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Former Microsoft CEO Steve Ballmer, who shelled out $2 billion for the Clippers after owner Donald Sterling’s fall from grace, may get a $1 billion tax break on his transaction. Ballmer raised eyebrows when he paid quadruple what other highest-paying owners have for the team, but the tax break may make it all worthwhile, according to HuffingtonPost.
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If Ballmer uses the not well known “goodwill” tax break, he could cut 50% from his purchase. Even without the break, Ballmer thinks buying the Clippers was a good investment. He says his money is better spent on the team than in an S&P fund, has less downside, and compared to tech stocks, has more real earnings.
Sports teams often have generous tax credits. For instance, the NHL and the NFL are registered as tax exempt. While the NBA is not tax-exempt, it has profitable deals with Disney, which owns ESPN and Time Warner.
