Are there tax accounting reasons for keeping Davis on the team?

[mdbdotcom]

I'm not an accountant, but I recall years ago hearing that one of the great benefits of owning a sports club was that the the players' salaries could be deducted as expenses and their contracts could be depreciated as assets. That gave owners the ability to double dip at the tax well and even show bookkeeping losses when they were making money.

Does anyone know if this is the case today? 

I'm wondering because it seems to me that the ability to double dip with Davis's salary would give ownership millions of reasons to keep him on the team.

[Tx Oriole]

2 hours ago, mdbdotcom said:

I'm not an accountant, but I recall years ago hearing that one of the great benefits of owning a sports club was that the the players' salaries could be deducted as expenses and their contracts could be depreciated as assets. That gave owners the ability to double dip at the tax well and even show bookkeeping losses when they were making money.

Does anyone know if this is the case today? 

I'm wondering because it seems to me that the ability to double dip with Davis's salary would give ownership millions of reasons to keep him on the team.

I sure as hell hope not. There are reasons to get him off the team PDQ.

[OsFanSinceThe80s]

https://sabr.org/research/roster-depreciation-allowance-how-major-league-baseball-teams-turn-profits-losses

[Can_of_corn]

8 minutes ago, OsFanSinceThe80s said:

https://sabr.org/research/roster-depreciation-allowance-how-major-league-baseball-teams-turn-profits-losses

Quote

The RDA is a depreciation of almost the entire purchase price of a sports franchise over 15 years.

I believe it was Bill Veeck that began the practice.

[mdbdotcom]

Not sure if the RDA applies to the O's now, as Angelos bought them more than 25 years ago and it seems to apply to the purchase price.