So you want to buy a sports franchise? Why entering sports ownership gives the rich a ‘very elite and exclusive club’ with great tax benefits

July 17, 2026 - 18:00

More and more of the world's wealthiest people are cashing in on a new kind of trophy: a professional sports franchise. From the founders of Home Depot to the dynasties behind Walmart and LVMH, the list of billionaires entering the ownership ranks is growing fast. But this trend is about much more than just a love of the game. For the ultra-rich, buying a team offers a rare combination of prestige and financial engineering that is hard to beat.

At its core, owning a sports team grants entry into what insiders call a "very elite and exclusive club." It is a social passport that opens doors to private boxes, political influence, and a peer group of other billionaires. Unlike a yacht or a private jet, a team is a public asset that generates constant media attention and community goodwill. The owner is celebrated as a local hero, not just a rich person spending money.

But the real draw often lies in the tax code. The structure of a franchise purchase allows owners to depreciate the value of player contracts and other intangible assets over a short period, typically 15 years. This creates massive paper losses that can be used to offset income from other business ventures. Even as the team's actual value skyrockets, the owner can report a tax loss on paper. When they eventually sell, the profits are taxed as capital gains at a lower rate than ordinary income. For billionaires already looking for ways to manage their tax burden, a sports franchise is one of the most powerful tools available. It is a business that almost never loses long-term value, yet provides a steady stream of tax advantages.