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Tom Cassidy's avatar

Thanks for your insights and to David Brown for sharing them. He and I are part of an increasingly disheartened Nationals season ticket package. Is this the real reason the Nats are tanking (lead LTE in Washington Post a few days ago)?:

Opinion: Say goodbye to the Lerners, and thanks for the memories

Barry Svrluga is a thoughtful baseball writer. However, his April 19 Sports column on the Lerners’ likely sale of the Washington Nationals, “Why owning a baseball team is nothing like owning a mall,” missed the giant tax elephant in the room: the roster depletion allowance (RDA).

The RDA is a tax escape hatch baseball owners enjoy for 15 years in which they can write off the massive salaries they pay their players. The Lerners bought the team in 2006. Their RDA expired in 2021 or 2022. So they can’t write off the $400 million-plus Juan Soto wants now or enjoy the $200 million annual estimated write-offs they’ve enjoyed for years. A new owner certainly will.

Nationals fans should say goodbye and thanks for the memories to Ted Lerner. The sale is a fait accompli for tax reasons, not for lack of competitive desire or community spirit. It’s a tiny bit about baseball and a ton about taxes.

Bradford Brown, Arlington

https://www.washingtonpost.com/opinions/2022/04/22/say-goodbye-lerners-thanks-memories/

I have some experience in federal tax policy, but ain’t never heard of no RDAs.

I am reminded of a classic line my law school professor on federal income tax said on the 1st day of class: If you see unusual behavior it is often due to the tax code.

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Sandy's avatar

Wow! "Tell us what you really think". Thanks

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