Yes!! I love baseball because it’s an economics playground in so many ways but especially when it comes to this last agreement and the ridiculously insane moves by the reds. Id likely still love baseball but the economic angle is huge for me. It’s also ALWAYS been an example of the economic struggles in America no matter the decade.
AMEN, Robyn! I'm with you on the inequality of capitalism and how baseball is the proof. The retired Washington Post sportswriter Tom Boswell wrote a book back in the 1980s entitled "How Life Imitates the World Series." This is a great example. I extend my sympathies to you and the other Reds fans. (If I cared at all about pro football, I could weigh in on really bad owners, thanks to the dysfunction that is Daniel Snyder.) Nonetheless, baseball fans are suffering here in DC, as just two years after winning the World Series (with an improbable group), our billionaire owner decides to trade and/or sell off all our stars (Max!) because of one half of a bad year, and then everyone wonders why Juan Soto doesn't want to sign a long-term deal but instead wants to talk with other teams! I also wrote a blog post a while back about the Astros cheating scandal and the abandonment of democracy that had a similar theme. (You can read it here at https://moretocome.net/2020/02/24/tribalism-and-the-abandonment-of-democracy/) I think I'll share your great piece on my blog in the coming days.
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.
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.
I love your blogs in general, but this is a particularly good one. I'm both pissed off and amused. Thanks!
Yes!! I love baseball because it’s an economics playground in so many ways but especially when it comes to this last agreement and the ridiculously insane moves by the reds. Id likely still love baseball but the economic angle is huge for me. It’s also ALWAYS been an example of the economic struggles in America no matter the decade.
Wow! "Tell us what you really think". Thanks
AMEN, Robyn! I'm with you on the inequality of capitalism and how baseball is the proof. The retired Washington Post sportswriter Tom Boswell wrote a book back in the 1980s entitled "How Life Imitates the World Series." This is a great example. I extend my sympathies to you and the other Reds fans. (If I cared at all about pro football, I could weigh in on really bad owners, thanks to the dysfunction that is Daniel Snyder.) Nonetheless, baseball fans are suffering here in DC, as just two years after winning the World Series (with an improbable group), our billionaire owner decides to trade and/or sell off all our stars (Max!) because of one half of a bad year, and then everyone wonders why Juan Soto doesn't want to sign a long-term deal but instead wants to talk with other teams! I also wrote a blog post a while back about the Astros cheating scandal and the abandonment of democracy that had a similar theme. (You can read it here at https://moretocome.net/2020/02/24/tribalism-and-the-abandonment-of-democracy/) I think I'll share your great piece on my blog in the coming days.
Keep up the great writing. All the best - David
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.