Trump Plans to End Special Tax Benefits for Billionaire Sports Team Owners. This Monday, it was announced that the Trump administration has a plan to end special tax benefits for billionaire sports team owners, who collectively have a net worth of nearly $1 trillion.
The sports industry is established as one of the most dynamic and profitable sectors globally, especially in the United States, where sports are not only a pillar of popular culture but also an economic driver that fuels related industries such as technology, entertainment, marketing, and fashion.
According to Statista, the U.S. sports market, led by leagues like the NFL, NBA, MLB, and NHL, generates billions in annual revenue. It is estimated that by 2025, the global value of this industry will surpass $600 billion, driven by the growing demand for sports content on digital platforms, the rise of eSports, and the globalization of traditional competitions.
Trump vs. Sports Team Owners
White House Press Secretary Karoline Leavitt announced that Trump intends to eliminate “all special tax exemptions for billionaire sports team owners.”
The exact details are still unclear, but the proposal could make it more difficult for owners to take advantage of the lucrative tax deductions that have long cushioned their investments.
In the U.S., for the ultra-wealthy, owning a sports team has long been the ultimate trophy—a sign that they’ve made it to the big leagues of wealth.
“You don’t buy a sports team expecting to get rich; you’re a rich person, and you buy a sports team,” said Eric Nemeth, a tax partner at the law firm Varnum, in an interview with Bloomberg News.
According to Bloomberg data, forty-two of the world’s 500 richest people own U.S. sports teams. Together, they have a combined net worth of $869 billion, with some of the biggest names in business sitting courtside as majority shareholders.
Former Microsoft CEO Steve Ballmer, owner of the NBA’s Los Angeles Clippers, leads the group with a net worth of $143.1 billion.
Meanwhile, Walmart heir and Denver Broncos owner Rob Walton, Las Vegas Sands billionaire Miriam Adelson, Rocket Companies founder Dan Gilbert, and New York Mets owner Steve Cohen, the hedge fund titan who founded Point72 Asset Management, are among the wealthiest owners.
It’s worth mentioning that one of the most significant tax advantages for team owners is the ability to depreciate their investments over 15 years. While depreciation deductions are common in many industries (such as manufacturing, where companies write off the value of factory equipment), sports franchises enjoy an unusual advantage.
With this provision, owners can depreciate intangible assets like TV contracts and player rosters, even though these assets often appreciate in value.
Experts believe Trump’s proposal is unlikely to put existing owners on the defensive, as Congress would struggle to apply changes retroactively. Therefore, it’s unlikely that the current list of billionaire sports magnates will take a significant hit.
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