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Accounting Today: Seahawks’ Sale Price Could Take a Hit After IRS Denies Tax BreakOctober 25, 2018
Following the death of Microsoft co-founder Paul Allen, the NFL’s Seattle Seahawks and NBA’s Portland Trail Blazers may be auctioned off. According to the Bloomberg Billionaires Index, the teams combined are worth over $3 billion. However, the overall worth may be heightened by the lack of teams for sale and the 2017 tax overhaul.
In August, the IRS announced that team owners would not be able to participate in the write-off from the new tax law. The final IRS regulations are expected to be announced at the end of the year.
O’Melveny tax partner Arthur Hazlitt, who advised David Tepper on tax structure during his acquisition of the Carolina Panthers, estimates that the new IRS regulations could lessen the teams’ values by tens of millions of dollars. “It is clear that these are relatively sophisticated buyers and that tax planning does weigh heavily,” Hazlitt said. “These people don’t pick a number out of thin air” on how much to bid, he said. To read the full article, click here.