Big Changes Ahead for Sports Team Buyers

If you’ve ever dreamed of owning a professional sports team—NFL, NBA, MLB—you’re not alone. But here’s something most fans don’t know: buying a franchise isn’t just a flex or a love letter to the game. For the ultra-wealthy, it’s one of the smartest tax moves around. And now, Congress might be ready to rewrite that playbook. For years, billionaires and investment firms have flocked to buy sports teams, not just for the prestige or profits, but because of a powerful tax loophole buried in the fine print. This financial perk has helped transform teams into tax shelters—and it’s part of what has fueled the jaw-dropping prices teams are commanding today.

Ever wonder why an NBA franchise can sell for $4 billion or why NFL team values seem to double overnight? You’re not just watching the magic of the market. You’re watching the IRS subsidize the sport one intangible asset at a time. But now, a little-known provision quietly added to a domestic policy bill by House Republicans could change everything. With one swipe of the tax code, the government may finally be stepping in to level the playing field—or, depending on who you ask, throw a flag on team owners’ best-kept financial secret.

Here’s what’s really going on—and why the next major shift in American sports might come not from the locker room, but from the halls of Congress.

💸 The Hidden Tax Play in Pro Sports

For the past two decades, owning a team in the NFL, NBA, or MLB hasn’t just been a status symbol—it’s been a tax goldmine. Thanks to a rule in the tax code, team owners have been allowed to write off the full value of their team’s “intangible assets”—think player contracts, media rights, and sponsorships—over 15 years. These assets often make up the majority of a team's value. As team prices soared, so did the size of the tax breaks—sometimes totaling hundreds of millions of dollars. Translation? Owning a team has been like buying a tax shelter with turf.

Things get more interesting when you add President Trump into the mix. Trump has a famously rocky history with the NFL, going all the way back to the 1980s when he failed to buy a team and then tried (and failed) to take on the league through a short-lived spring league. More recently, he clashed with players and teams over protests during the national anthem. Some team executives are convinced this tax move is a jab at the NFL—though the White House denies that claim. A spokesman said the proposal is about fairness and stopping billionaire team owners from enjoying tax breaks while fans are stuck paying more and more for tickets.

📉 The New Proposal That Could Shake the League

Tucked inside a broader domestic policy bill, House Republicans have introduced a change that could drastically alter the financial playbook for owning a professional sports team. The proposal would cut in half the tax write-off that new team buyers currently enjoy for intangible assets like media rights, player contracts, and sponsorship deals—assets that often make up the bulk of a team’s value. Currently, buyers can deduct 100% of those intangible assets over 15 years, turning team ownership into a lucrative tax shelter.

This benefit has fueled a gold rush among billionaires and investment firms to purchase teams at record-breaking prices. But under the new plan, only 50% of those deductions would be allowed, drastically reducing the financial incentive. Importantly, the change would only apply to future team owners—not those who already benefit from the existing rules. Still, its impact could ripple throughout the sports world. With team valuations soaring in recent years, this tax perk has been a major selling point. Without it, some potential buyers may pump the brakes—or demand lower prices.

The Congressional Joint Committee on Taxation estimates that this change could raise $991 million in federal revenue over the next decade. But that potential windfall comes at a cost for the sports industry. Leagues and their wealthy owners are not sitting quietly. NFL owners were briefed on the proposal last week during a two-day meeting in Minnesota, and sources report that some are already calling senators from their home states to lobby against the measure. The reaction has been swift and strategic.

One anonymous team executive called the move “punitive,” especially given former President Trump’s rocky history with the NFL. Though the White House claims the goal is to ensure fairness and curb tax advantages for team owners—particularly as fans face rising ticket prices—many in the industry see it as a direct threat to their business model. If passed, this proposal could send shockwaves through sports ownership, potentially reshaping who gets to buy a team—and at what cost.

⏳ What Happens Next — and Why It Matters

This provision isn’t law yet. It still has to clear the Senate, and it could be altered or dropped along the way. If the provision does pass, the era of buying a pro team for a massive tax break could be winding down. Still, don’t expect the market for teams to dry up. Here’s why it all matters:

• The value of teams may stop skyrocketing as fast.

• Tax changes could reshape how (and how quickly) teams are bought and sold.

• Billionaire owners are lobbying hard to protect their perks.

• Fans may benefit if politicians use ticket prices to rally support.

For billionaires, owning a franchise has always been about more than money—it’s prestige, influence, and access to an elite club. As one legal expert put it: “If you’ve got that much wealth and you want to join the club, you’re going to pay the price.” Whether you’re a sports fanatic, a tax policy junkie, or just here for the billionaire drama—this is one story where money, politics, and fandom all collide.