Congressional provision could boost franchises

WASHINGTON -- Many professional sports teams could increase in value by millions of dollars under a provision Congress included in legislation revamping corporate tax laws, tax and sports finance analysts said Monday.

The exact impact of the language would vary for each franchise. Minor league teams in faltering financial health could lose money because their tax deductions might be worth less under the new rules than under current law, the analysts said.

Profitable franchises could find their values enhanced by many millions of dollars because under the proposed legislation, they would be able to write off far more in taxes than they can today when they sell their teams.

"At the end of the day, there is no doubt it raises franchise values," said Robert Willens, a managing director of the investment bank Lehman Brothers.

Interactives Game: Balance a State Budget Yourself Latest News Tax Bill Could Raise Sports Teams' Value White House Projects Highest Deficit Ever Willens said the provision could add 5 percent to the value of many sports teams. Aaron Barman, who heads the sports finance group of Raymond James & Associates, said profitable National Football League teams could see their value rise by 5 to 6 percent.

"It's going to vary widely depending on the particular sport," Barman said. "But generally speaking, the proposed legislation should be a positive" to many teams' values.