The Trump administration is floating a plan to end special tax benefits for billionaire sports owners — who have a collective net worth of nearly $1 trillion.
White House Press Secretary Karoline Leavitt announced on Thursday that Trump intends to eliminate “all special tax breaks for billionaire sports team owners.”
While the exact details remain unclear, the proposal could make it harder for owners to take advantage of lucrative tax write-offs that have long cushioned their investments.
The Post has sought comment from the White House.
For the mega-rich, owning a sports team has long been the ultimate trophy, a sign that they’ve made it to the major leagues of wealth.
“You don’t buy a sports team and hope to become wealthy; you’re a wealthy person and you buy a sports team,” Eric Nemeth, a tax partner at Varnum law firm, told Bloomberg News.
“It’s an elite club.”
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 down the value of factory equipment — sports franchises have an unusual edge.
Owners can write down intangible assets like TV contracts and player rosters, even though these assets often appreciate in value.
Trump’s proposal is unlikely to put existing owners on defense.
Since Congress would struggle to apply the changes retroactively, the current roster of billionaire sports moguls is unlikely to take a major hit.
However, new buyers may have to rethink their game plan if their ability to write down investments is curbed.
Forty-two of the world’s 500 richest individuals own US sports teams, according to the Bloomberg Billionaires Index.
Together, they boast a combined net worth of $869 billion, with some of the biggest names in business sitting courtside as majority stakeholders.
Former Microsoft CEO Steve Ballmer, the owner of the NBA Los Angeles Clippers, leads the pack with a net worth of $143.1 billion.
Walmart heir and Denver Broncos owner Rob Walton, Las Vegas Sands billionaire Miriam Adelson, Rocket Companies founder Dan Gilbert and New York Mets Steve Cohen, the hedge fund titan who founded Point72 Asset Management, are among the wealthiest owners.
Trump’s tax strategy isn’t just about sports.
The former president, who met with Republican leaders for over five hours on Thursday, is pushing to eliminate taxes on tips, overtime and Social Security benefits.
He has also proposed lifting the $10,000 cap on state and local tax deductions, targeting hedge fund managers by closing the carried-interest loophole and incentivizing American-made products with tax cuts.
While House Republicans are still huddling over the details, Trump is hoping to get his tax cuts through the Budget Committee as early as next week.
A significant part of Trump’s plan involves funding tax cuts through increased tariffs on imports, a strategy that has drawn mixed reactions.
Additionally, his administration is working to slash discretionary spending under the Department of Government Efficiency, spearheaded by Tesla CEO Elon Musk.
Federal buyouts for government workers and a pause on foreign aid are also on the table.
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