The potential Angels sale marks the latest big payday for outgoing franchise owners, with six of the most expensive American sports franchise sales happening in the last five years. With figures coming in the billions, it’s no surprise only the wealthiest can place a bid. A recent report by money manger UBS and consultancy PwC found that billionaires own nearly 80% of the world’s top 140 sports brands.
The motivation for the ultra-wealthy to get in on the game comes from a U.S. tax code provision that allows for someone who buys a business to deduct almost the entire sale price against their income in years to follow. The savings that franchise owners can reap from utilizing this loophole can mean millions in additional income.
Investigative journalism outlet ProPublica illustrated the enormous savings from these tax deductions by breaking down the finances of three individuals who attended a March 2019 NBA game featuring the Los Angeles Lakers and Los Angeles Clippers.
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