NBA team owners have long relied on tax benefits to retain their profits. When teams are sold, new owners write off intangible assets—like broadcasting rights, sponsorship deals, and player contracts — for tax deductions. They use legal tax minimization strategies and accounting mechanisms that significantly reduce their tax burdens. But the new policy bill will significantly make it harder.

How NBA team owners keep their profitable income ‘safe’

Currently, under the tax law, new owners are allowed to write off player contracts. In addition, they can also categorize a few things under intangible assets for 15 years.

On paper, this shows the team might be running at a loss, even though they might be profitable.

Resultantly, teams can evade certain taxable income by showing a lower profi

See Full Page