Press Release: Proposed Tax Changes Could Impact Minnesota Sports Team Sales
In a significant development for Minnesota sports, a recent House budget bill threatens to halve a crucial tax benefit utilized by sports team owners, potentially affecting future ownership of the Minnesota Twins and the NBA/WNBA’s Timberwolves and Lynx franchises. This policy change aims to generate nearly $1 billion in revenue over the next decade, as noted by the Joint Committee on Taxation, but would only apply to owners purchasing teams after the law is enacted.
The Pohlad family, who have owned the Twins for 40 years after acquiring the team for $44 million in 1984, have recently placed the franchise up for sale, with hopes of finalizing a deal before the upcoming MLB season. Reports indicate that negotiations with potential buyers are advancing, as interested parties evaluate Target Field and engage with the Pohlads.
Meanwhile, the Timberwolves and Lynx are also navigating ownership changes. Former MLB star Alex Rodriguez and entrepreneur Marc Lore emerged victorious in an arbitration ruling that allows them to continue their pursuit of ownership from Glen Taylor, who originally purchased the team for $94 million in 1994. In 2021, Taylor agreed to sell the franchise for $1.5 billion but attempted to withdraw from the deal over a breach of contract allegation, which ultimately did not favor him in arbitration.
As both teams approach pivotal sales decisions, the looming tax changes could complicate negotiations for any prospective buyers. Efforts to secure advantageous financial conditions are now critical, with the NBA Board of Governors still needing to approve the Timberwolves’ sale. No comments have been received from representatives of the Pohlad family yet regarding these developments.
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