Why buying the Seattle Seahawks for $9.6bn could be the smartest tax move Vinod Khosla ever makes
Silicon Valley billionaire Vinod Khosla is set to complete a record $9.6 billion purchase of the Seattle Seahawks, the second-most expensive sports franchise takeover ever. Beyond the price tag, the deal offers the Khosla family a potentially massive tax advantage. US federal law allows new business owners to amortize intangible assets over 15 years, and with sports franchises deriving 90% or more of their value from intangibles, the deferred tax savings could run into billions. Financially, the Seahawks are a robust business, generating $624 million in annual revenue and $143 million in operating income. NFL owners are set to vote on the deal in August.
Silicon Valley billionaire Vinod Khosla is set to complete a record $9.6 billion purchase of the Seattle Seahawks, the second-most expensive sports franchise takeover ever. Beyond the price tag, the deal offers the Khosla family a potentially massive tax advantage. US federal law allows new business owners to amortize intangible assets over 15 years, and with sports franchises deriving 90% or more of their value from intangibles, the deferred tax savings could run into billions. Financially, the Seahawks are a robust business, generating $624 million in annual revenue and $143 million in operating income. NFL owners are set to vote on the deal in August.
