Roster Depreciation Allowance - The ability to amortize sports franchise (greenberglawoffice.com)
"Under the American Job Creation Act of 2004, sports owners could depreciate all tangible property acquired in connection with the franchise under IRS Section 168 and amortize all intangible assets such as players’ contracts, sponsorship agreements, luxury suite contracts, and various other intangibles – including the franchise itself – over a fifteen year period under IRS Section 197."
"The tax sheltering effects are clearly apparent in reviewing the consolidated statements of operations for the Brooklyn Basketball, LLC, owner of the Brooklyn Nets. Taking the fiscal year of 2006, not only are the players’ salaries totaling $58,896,983.00 deducted from income, but also “depreciation and amortization” are deducted in the amount of $41,032,427.00.[3] The consolidated statements represents an actual cash loss of $27,075,307 (operating loss of $14,439,939 and interest expense of $12,635,368), but a total loss of $68,107,734. At a marginal tax rate of 35%, that constitutes $23,837,706 in tax savings."