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Sportico: Market to Own Sports Teams Endures Thanks to Ego, Media Rights and Tax BreaksOctober 30, 2020
O’Melveny Sports Industry Group co-chair Chuck Baker is quoted in this Sportico article, which discussed the strong demand for owning a sport franchise despite a challenging economic environment and little to no fans attending games due to the COVID-19 pandemic.
On the subject of taxes, which Sportico called an “often-overlooked pillar supporting team values,” Baker agreed that tax benefits such as the ability to claim depreciation may help motivate some buyers. “There may also be an uptick in sales now as current owners anticipate capital gains tax rate increases,” he said. “Teams are still able to sell at a premium for several reasons [including media rights]. In addition, most of us believe that once there is a widely available vaccine, fans will return to stadiums and arenas so game day revenue will rebound.”
Read the full article here.