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Did you know about this stupid law? I didn't. From Bloomberg:
The Atlanta Braves, the country’s only publicly traded Major League Baseball team, is facing off against the US tax code in a lonely battle that threatens to cost the franchise millions.
A little-known tax rule soon to go into effect will restrict public corporations from deducting the salaries paid to their highest compensated employees. For Atlanta Braves Holdings Inc., those employees are players — including first baseman Matt Olson, third baseman Austin Riley and former National League Most Valuable Player Ronald Acuña Jr.
The team’s five most generously compensated players are set to collectively earn $96 million in 2027 — the year the new rule limiting salary deduction for all but $1 million of each of the top five most highly compensated players’ pay. That amounts to a potential $19.1 million tax hike on the Braves, assuming a 21% corporate tax rate. The team paid $4.2 million in federal income taxes in 2024, according to a regulatory filing.
Privately held teams like the New York Mets, owned by Point72 Asset Management founder Steve Cohen, and billionaire John Middleton’s Philadelphia Phillies, won’t get hit by the tax.
. . . one other professional sports entity affected by the 2027 tax hike: Madison Square Garden Sports Corp., which owns the the National Basketball Association’s New York Knicks and the National Hockey League’s New York Rangers.
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I have no experience with this rule since I do not deal with any publicly traded companies, but I thought this rule was effective several years ago. Did it get delayed?
The more I know the more I don’t know.
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First they came for the publicly traded companies
And I did not speak out
Because I was not a publicly traded company . . .
It's all Biden's fault. From the Bloomberg article:
"The rule initially only applied to executive pay — not employee compensation — but it was broadened to include the five highest worker salaries as part of former President Joe Biden’s pandemic relief bill, with a delayed effective date until 2027."
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Today, about 80% of baseballs used worldwide are made in China. However, official baseballs for Major League Baseball are made by Rawlings in Costa Rica under an exclusive contract. Each year, Major League Baseball teams use nearly one million baseballs over the course of a season. Before 1987, Major League baseballs were manufactured in Haiti. However, political instability in the country led Rawlings Sporting Goods to shift production to Costa Rica.
Costa Rican imports are now subject to a 10% tariff.
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To make American baseball great again, why isn't there a tariff on foreign baseball players playing professional baseball here? Let's go back to manufacturing our own baseball players again. 😜
Slava Ukraini!
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@BobKamman Thanks for the explanation.
The more I know the more I don’t know.
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Green Bay Packers are a publicly traded entity.
Don't yell at us; we're volunteers
