Buyer of NFL’s Denver Broncos Could Write Off $3 Billion, Sportico Says
Buyer of NFL’s Denver Broncos Could Write Off $3 Billion, Sportico Says
(Bloomberg) -- Whoever buys the NFL’s Denver Broncos in what’s expected to be the most expensive team sale in U.S. sports history is in line for a tax write-off that could total as much as $3 billion, according to Sportico.
Under Internal Revenue Service rules, the new owner will be allowed to deduct intangible assets, which can amount to more than 90% of a sports team’s value, the online news site said in a report Wednesday. Sportico valued the Broncos at $3.8 billion in September.
The write-off could reduce the team’s income tax burden by as much as $240 million annually for each of the next 15 years if the sales price were to reach $4 billion, Sportico reported.
The National Football League team, which was purchased by attorney Pat Bowlen in 1984, was placed in a trust before he died in 2019. It’s currently owned by Bowlen’s seven children.
The Broncos began interviewing bankers in November in advance of a potential sale. Front Office Sports reported this month that Robert F. Smith had emerged as a possible bidder, which would make him the first Black owner in the league’s history.
However, a person with knowledge of the matter said that Smith, the chief executive officer of Vista Equity Partners, isn’t currently interested in buying the team. Smith, 59, has a net worth of $8.9 billion, according to the Bloomberg Billionaires Index.
The value of U.S. sports franchises has soared in recent years. Alibaba Group co-founder Joe Tsai paid a record $3.3 billion in 2019 for the Brooklyn Nets basketball team and rights to operate the Barclays Center.
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