$7,000,000,000 Cash Offer by DC Native Turns Focus Back to NFL’s Controversial Tax Law That Once Unsettled Donald Trump

The sale process of the Washington Commanders has turned many heads in the NFL community. One of the biggest surprises in this process has been the $7 billion cash offer made by a DC native. Whether it goes through or not is a question for the future, but it has brought the focus back to the NFL’s controversial tax law. Yes, the same law that once even unsettled Donald Trump.

Brian Davis wants to take the Commanders off Dan Snyder’s plate. And he has gone in with an offer that would be a little difficult to refuse. But with such a high value involved, won’t there be tax repercussions? There might not be at all.

Tax law helping NFL team owners 

The tax gods have smiled upon sports team owners, especially those who have just entered the business. The IRS rules were tweaked back in 2004 and that rule change has helped incoming owners in the NFL and beyond, save millions in taxes. But how?

Well, the rule tweak allowed the new owners to write off nearly all of the franchise purchase value against profit over the period of 15 years. Just for example, if someone purchases a team for, let’s say, $1.5 billion, they could write off $100 million in taxable income every year for a decade and a half.

As per NYPost, according to Forbes, this has helped franchise owners in the league to add roughly 5% to the value of the team. That is the reason that values have skyrocketed in recent years. While the law came into effect under the George Bush administration, it gained headlines due to the kneeling controversy during the D0nald Trump regime. The then President even called for the laws to change.

The owners have to pay the tax when they sell the team, something Dan Snyder will deal with when it is all done. That is part of the reason why owners raise the sale value significantly, to cover their tax bills. But most may not even have to deal with it or even if they do, it might come decades after the original purchase. The new Commanders’ owner is up for a big tax break.

The irresistible Brian Davis offer 

Brian Davis has offered to buy the Commanders with a staggering offer of $7 billion cash. Out of the total money, $1 billion will go to Dan Snyder within 24 hours of acceptance of the offer, and the rest $6 billion within the next seven days.

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Davis is a former NBA player and two-time NCAA Men’s basketball national champion. After his playing days, he made his fortune in the renewable energy sector. Before his intention to buy the Commanders, he once owned the MLS franchise from Washington, DC United. So, he isn’t someone new in the sports sector.

Whether Davis ends up buying the NFL franchise or not is another question. But the tax break on $7 billion will be humongous. What will be the final value of the Commanders sale? Do share your opinions in the comments section.

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