The Effect of the 1976 Tax Reform Act on the Ownership of Professional Sports Franchises

With the passage of the Tax Reform Act of 1976, Congress severely restricted many of the tax advantages that came with the ownership of a professional sports franchise. The authors analyze in detail the effect of the new law, first discussing the benefits that had existed under prior law, then describing the method in which the Act changed the "rules of the game," and conclude with an indication of some tax planning for the future.