"Big beautiful bill" has an ugly provision for NFL owners

The so-called "big beautiful bill" has one component that the NFL's owners will regard as downright hideous.

Via the New York Times, the domestic spending bill that passed the U.S. House of Representatives last week includes a provision removing the ability of sports-league owners to write off the entire value of "intangible assets" over 15 years.

The House bill will limit the write off to half of the value of the intangible assets, which include player contracts, media rights, and sponsorships.

As explained by the Times, the tax break can equate to "hundreds of millions of dollars," because intangible assets "make up the bulk of a team’s worth."

With franchise values skyrocketing, the tax break has become even more valuable. And it helps justify the higher and higher prices owners are getting, especially for minority shares of a given team.

The measure would affect future owners only. Still, it would tend to hold down the price to be paid for all or part of an American pro sports team.

The Congressional Joint Committee on Taxation estimates that the change will raise $991 million over 10 years. Per the Times, owners believe the real number will be much higher.

At last week's quarterly meetings, owners were encouraged to call senators to lobby them to kill that portion of the bill. The Times reports that some owners believe the change to the tax laws "feels punitive," with President Trump seeking leverage over NFL owners.

“The president is committed to ensuring that sports teams overcharging ticketholders do not receive favorable tax treatment,” White House spokesman Harrison Fields told the Times in a statement. “His focus is on fairness for fans, not team ownership.”

Regardless, the owners are the ones whose oxen will be gored. Not now, but when they try to sell equity to people who won't have the tax break available.