House GOP Bill Halves Tax Deductions for Pro Sports Owners

House Republicans have passed a domestic policy bill that would reduce tax deductions for professional sports team owners by half, specifically targeting the write-offs on intangible assets such as player contracts, media rights, and sponsorships. This tax provision, originally introduced in 2004, has allowed team owners to deduct the full value of these assets over 15 years, effectively turning sports franchises into significant tax shelters and driving up team valuations. While current owners would not be affected, future owners would see their deductions limited to 50%, a change estimated to raise nearly $1 billion in revenue over the next decade and potentially cool the aggressive acquisition activity by billionaires and investment firms. NFL owners have expressed concern, urging senators to oppose the Senate version of the bill, viewing the change as punitive, though the White House denies political motives and emphasizes the measure aims to address rising ticket prices for fans. Critics warn that the tax break reduction could slow the rapid growth in team values and investment in sports franchises, while supporters argue it promotes fairness and reduces tax advantages for wealthy owners. The bill faces further scrutiny and possible modifications in the Senate, with broader debates about the impact on federal deficits and other policy priorities ongoing.