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Kansas City Zephars
Essay specific features
Written by:
Martin M
Date added:
April 22, 2015
Level:
University
Grade:
B
No of pages / words:
2 / 537
Was viewed:
1326 times
Rating of current essay:
Essay content:
Roster depreciation;
2. Player compensation;
3. Transfer pricing of related party operations (stadium costs);
1. Roster Depreciation
The owners recognize depreciation of a value placed on the player roster at the time the baseball club was purchased apparently just because tax rules allowed them to do so...
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Tax rules allow this value to be set arbitrarily at a maximum of 50% of the purchase price (It would be foolish to set it at a lower value for tax purposes). The depreciation is spread linearly over six years and comes to $2m per year. The players do not feel that any roster depreciation should be shown: if anything, they argue, the roster appreciates as the players become more experienced...
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