And of course, Dan Snyder offloads the cost of removing waste from the stadium by pouring it onto the fans, sneakily making them transport it to the outside world for free!
Here's a fun fact for you : The Wirtz family, owners of the Blackhawks own the distributor that supplies the United Center the beer and alcohol sold there.
I’m more interested in how clubs get money for stadiums from taxpayers, but still have abysmal stadiums. Clearly something weird is going on and someone’s hiding the money.
To be fair with Sneaky Way #2, while he hasn't been able to make it to where he pays $0 in taxes, my father has used depreciation to reduce his annual income as much as 60%. Bear in mind my father is a truck driver with just one year of college experience. This is another suggestion to do a video on the Clippers failed move to Anaheim.
Yet another reason the Chicago Bears want out of Soldier Field, they do not get the revenue for the parking or concessions to their own stadium, that goes to the park district as well… come to think of it they are in charge of the field the Bears play on. A field built on top of a landfill, next to a lake. Trying to keep it green during the season is more of a challenge then the Bears figuring out how to protect Justin Fields with an o line that’s still built with twigs and elmer’s glue. Makes you wonder what the park district are doing with the money they get every year if the field is the last thing they seem to get around to.
I don't even think the park district or city gets the money from parking. The city leased out the city owned parking structures and meters to some company for I'm not sure how long. The city burned through that money they made right away of course and now are sorely missing that revenue.
Being an Ex IRS employee >>1 fine point about tax Evasion--What you described is Tax Avoidance(paying lower tax or tax rates though legal deductions/write offs) Avoidance is LEGAL(maybe not ethical) but Evasion Is defined as an ILLEGAL act to hide income or falsely claim a deduction)
I did not know about the real estate angle teams use but it makes sense even more in one I do know, in that cities and states give tax grants for tourism/entertainment/"bringing money to our state" on the land these stadiums/venues sit on (like Disney world), so it is likely not just the stadium but these real estate and year round ventures are taxed less than the equivalent venues elsewhere.
Im a tax accountant and I didn’t even know they could depreciate their players. I just assumed they were treated as employees and their salary was written off that way
Also a tax accountant here. They're not actually taking amortization on the players... they're amortizing the goodwill of the franchise. Every business does that when they undergo any sort of acquisition.
DingusShmingus I know about the goodwill aspect of tax avoidance but I’m talking about the point he brought up at 8:49 unless you’re talking about the actual contracts from players are being amortized as goodwill?
@@xdashx4962 If there is any cash exchanged to sign the contract, that goes on the balance sheet and is amortized over the life of the contract instead of taking the full deduction right away. It's the same amount of deductions either way just different timing. The way he says it is very misleading.
There is an outlier in all of this and that is the deferred contracts. Bobby Bonilla, Chris Davis, Ken Griffey Jr. and other athletes who got released from their teams don't get the money remaining on their contracts. So they deferred payments with interest in which the teams aka the owners are on the hook
the nfl was a non-profit until they got called out. Also, New York Central, later known as Penn Central, owned the "Air rights" to all the land their former railyard north of Grand Central resided. Meaning they owned that land like a realtor and big corporations had to pay them to build a skyscraper there. if Penn Central would of planned out their merger better, they could of realistically made bank off of Madison square Garden sitting atop the old Penn station property I'm sure this same scheme would of occurred as the Jets would of built that westside stadium
You talked about Atlanta and Comcast. Comcast's cooperate headquarters is in Philadelphia. Ties into the vid though cause Comcast owns the Flyers and the area outside the Wells Fargo Center is an entertainment complex owned by Comcast called XFinity Live which will also house the Fusion Arena for Comcast owned Overwatch team the Philadelphia Fusion.
Your last point is something literally anyone who owns a business can do, no matter the size of the business. And yes, although the player is in fact a person, they do depreciate as they get older. So...
The funny thing to remember is Amortization, Depreciation and write offs are all NON-CASH expenses.The owner is not paying a dime So when you are reviewing a company’s statements for profitability, it’s better to look at a Company’s statement of Cash Flows rather than the Income Statement - From an actual Public Accountant
Man, I tried fantasy sports once and goddamn this video made it more complicated than I thought it would be, like for example, the velocity of an outfielder's throw, I never thought it would get this complicated
What about the Patriots pretty much building a town right next to Gillette in Patriot Place? That’s a textbook example, and probably the most well known one
#2 isn’t entirely accurate. Writing down an asset is perfectly legal as you say but you’re only gearing yourself up for a monstrous capital gains tax bill when you do sell the team. Depreciating and asset lowers its “basis”. You owe capital gains on every dollar sold above that number
it's too localized to be as substantial as those mentioned, and they still depend on fan engagement, positive attendance, etc., as mentioned. Some franchises might get a healthy cash injection for what it's worth to them, but TV deals are hardly sneaky.
Regarding insurance, professional wrestlers would buy injury insurance policies through Lloyds of London; retire because of an injury and collect a nice payout. The problem, for Lloyds, was that wrestlers were used to working with injuries that any doctor would classify as career ending, so after being retired for a year or two, and probably blowing through the insurance money, they would un-retire and return to the ring. Eventually Lloyds of London got fed up with this and stopped insuring wrestlers sometime in the 90’s. I know Bret Hart cashed in his policy when he retired in 2000. When he appeared on WWE TV years later, they had to be careful to not do anything too physical with him, or Lloyds could claim he violated his policy and try and get their money back.
I think some colleges even have courses or majors in sports business or sports accounting. In some ways I think anyone thinking of going pro should take those if available, At least get a basic overview of how the industry will screw them if they are not knowledgeable. And if you cant get a job on the field you can apply for a job in the back office doing the screwing.
if he gets his way with howard terminal (I don't care where please don't leave town) is why cheapskate owner John Fisher want's to do where he owns the bay front land vs building at the current place (serviced by freeways and good public transit)
That's not how amortization works. They're not saying that their franchise is "depreciating". Goodwill arises from the purchase price consideration (the amount paid over the actual value of all the purchased businesses tangible assets AKA intangible assets). For tax you are allowed to amortize this goodwill which spreads the deduction out over multiple years. If intangible assets didn't exist in IRS law, the purchase price consideration would be a business expense and would lead to massive NOLs in the first year of operation that would carry forward anyways. Not really a loophole because any business that purchases a pre-existing brand can take advantage of it... In fact, they have to... because it's the law
while i get the gambling thing, sports betting needs to be banned honestly it is awful for people's mental health, financial problems, etc. but it will never change
No need to ban it. If everyone actually learned basic arithmetic in school, everyone would see how gambling must be a losing proposition for almost everyone that plays.
One sneaky way is through parking. I was watching a near-miss crash between a cyclist and a road going vehicle on the dodgers roadway entrance and it was a 3 lane roadway into the park with no options for multi-modal transportation at all. It really shows how teams put a blind eye to mostly everything else but parking where they can collect fees that way. A car at the park also means rich people which equates to more money through food and other entertainment costs.
That last one isn’t really sneaky. Every company - from McDonalds to Walmart to Goldman Sachs - can fully write off employee expenses, full stop. This isn’t really a way they’re making money since by definition it requires cash to leave their bank account. The only time the amortization issue comes into play (as opposed to simply writing off whatever is paid in cash each year) is either when there’s a dramatic difference in cash payments from one year to the next, OR when there are upfront payments that are made when the contract is signed (typically signing bonuses). In those cases, the entire value of the contract is amortized evenly throughout the life of the contract - essentially smoothing out the expense for tax purposes rather than have a ‘lumpy’ expense on the tax return. But regardless, the amount claimed as an expense on the tax return will equal the cash that the team pays the player over the life of the contract - the same as any other employee in any other business.
How tf is an asset that increases in value able to be amortized?!?! I'm not a CPA but from my couple accounting classes that sounds like fraud. But it's legal
I had an older relative that was into real estate. He rubbed it into his wife for decades that a relatively short time after the construction of Lambeau Field, he was approached by other real estate guys in the area who had a plan. They were going to buy up a huge chunk of adjacent land, because it was going to be worth a lot of money. HIs wife pitched a fit and wouldn't let him join in, even going as far as to say she was going to leave him if he did. The group made the right bet, as that land shot up in value and they were able to sell it to the team for a huge profit. When I told my Dad after hearing the story, "I'd be pissed for years about that.", he smiled and told me, "Oh, don't worry. He made a bunch of money after that." I assumed by telling his wife to shut her noise hole when it came to the real estate business. . As an addendum, I think teams like The Bears see all these huge complexes built around stadiums, and they want some of that cash. But they can't build around Soldier Field, and they can at the Arlington Heights site, or whatever it is called. Even those idiots in Chicago can see that is where real money can be made, especially in the offseason. Good vid as usual, Baldy.
3:35 Ok, I’m willing to bet that Franklin Roosevelt passed a law preventing big businesses from doing that but then Ronald Reagan repealed it. That’s always what it turns out to be. It’s so annoying. #CarterMondale1980
I think the Lions have built such a diehard following in the city… to the point 75 to Grand River is at a standstill 1 hour before kickoff. There ain’t no standstill for Tiger’s games. But we know how big football is in the state of Michigan, right Spartan??! From a Wolverine ‘97 BSE… Go Blue! Our schools might be doing some of the same things the pros are doing…
Any Gambling just takes your money and gives it to whoever runs the Gambling game. You are not a winner but a long term loser or short term loser. Life is a Gamble enough.
Welcome to the future. Where you can bet on anything online including presidential elections. Now if we could just give weed the same treatment we give alcohol. Warning: Winning too much may lead to the IRS busting down your door with hollow points and you won't be rich enough to evade them
Honestly, i'd rather have sports team owners keep their money rather than give it to the government. That is how I do my taxes and everyone else does. No handouts from taxpayers though.
![[Part 1] ทารกน้อยถูกทิ้ง👶 หญิงชราเก็บขวดขายเลี้ยงดูเขาจนโต #โลกการละคร](http://i.ytimg.com/vi/nPTDvFCExks/mqdefault.jpg)
And of course, Dan Snyder offloads the cost of removing waste from the stadium by pouring it onto the fans, sneakily making them transport it to the outside world for free!
"Solid"
Lol true
Another sneaky way teams make money
*Charge $15 for a frickin beer!!!*
Here's a fun fact for you : The Wirtz family, owners of the Blackhawks own the distributor that supplies the United Center the beer and alcohol sold there.
Money maker, yes. Sneaky, not so much.
Thank you for exposing this to a wider audience Five
I suggest making a video about some of the weirdest stadiums in NFL history, then making it a series with the MLB.
It's been done already. 90+ minutes on NFL stadiums: th-cam.com/video/sWSO4BxJkVk/w-d-xo.html
Been done
I’m more interested in how clubs get money for stadiums from taxpayers, but still have abysmal stadiums. Clearly something weird is going on and someone’s hiding the money.
To be fair with Sneaky Way #2, while he hasn't been able to make it to where he pays $0 in taxes, my father has used depreciation to reduce his annual income as much as 60%. Bear in mind my father is a truck driver with just one year of college experience.
This is another suggestion to do a video on the Clippers failed move to Anaheim.
So what if he has one year? If he owns his own vehicle, he has to do taxes
Glad to see another video of yours brother!! Always informative!!
Much appreciated
One of your most informative videos imo. Love you, FivePoints!
Thanks!!
Yet another reason the Chicago Bears want out of Soldier Field, they do not get the revenue for the parking or concessions to their own stadium, that goes to the park district as well… come to think of it they are in charge of the field the Bears play on. A field built on top of a landfill, next to a lake. Trying to keep it green during the season is more of a challenge then the Bears figuring out how to protect Justin Fields with an o line that’s still built with twigs and elmer’s glue. Makes you wonder what the park district are doing with the money they get every year if the field is the last thing they seem to get around to.
I don't even think the park district or city gets the money from parking. The city leased out the city owned parking structures and meters to some company for I'm not sure how long. The city burned through that money they made right away of course and now are sorely missing that revenue.
Bro ballpark village in st.louis is lit!!!!! Even has seats you can buy tickets for to watch the games from across the steeet!!
Being an Ex IRS employee >>1 fine point about tax Evasion--What you described is Tax Avoidance(paying lower tax or tax rates though legal deductions/write offs) Avoidance is LEGAL(maybe not ethical) but Evasion Is defined as an ILLEGAL act to hide income or falsely claim a deduction)
I did not know about the real estate angle teams use but it makes sense even more in one I do know, in that cities and states give tax grants for tourism/entertainment/"bringing money to our state" on the land these stadiums/venues sit on (like Disney world), so it is likely not just the stadium but these real estate and year round ventures are taxed less than the equivalent venues elsewhere.
Im a tax accountant and I didn’t even know they could depreciate their players. I just assumed they were treated as employees and their salary was written off that way
Also a tax accountant here. They're not actually taking amortization on the players... they're amortizing the goodwill of the franchise. Every business does that when they undergo any sort of acquisition.
DingusShmingus I know about the goodwill aspect of tax avoidance but I’m talking about the point he brought up at 8:49 unless you’re talking about the actual contracts from players are being amortized as goodwill?
@@xdashx4962 If there is any cash exchanged to sign the contract, that goes on the balance sheet and is amortized over the life of the contract instead of taking the full deduction right away. It's the same amount of deductions either way just different timing. The way he says it is very misleading.
@@xdashx4962 kind of like capitalized loan costs.
There is an outlier in all of this and that is the deferred contracts. Bobby Bonilla, Chris Davis, Ken Griffey Jr. and other athletes who got released from their teams don't get the money remaining on their contracts. So they deferred payments with interest in which the teams aka the owners are on the hook
Add threatening to leave the city on this list
the nfl was a non-profit until they got called out.
Also, New York Central, later known as Penn Central, owned the "Air rights" to all the land their former railyard north of Grand Central resided. Meaning they owned that land like a realtor and big corporations had to pay them to build a skyscraper there. if Penn Central would of planned out their merger better, they could of realistically made bank off of Madison square Garden sitting atop the old Penn station property
I'm sure this same scheme would of occurred as the Jets would of built that westside stadium
I live in Greensboro and I can confirm the Grasshoppers own those apartments, but idk about the hotel on the far right side.
You talked about Atlanta and Comcast. Comcast's cooperate headquarters is in Philadelphia. Ties into the vid though cause Comcast owns the Flyers and the area outside the Wells Fargo Center is an entertainment complex owned by Comcast called XFinity Live which will also house the Fusion Arena for Comcast owned Overwatch team the Philadelphia Fusion.
The Weather Channel is headquartered across the highway from Truist Park, and the Braves use its lot as overflow parking on game days.
You should make a video on the weirdest rules from other leagues like the XFL that would benefit the NFL 👀
Five points? More like 10 out of 10 points! Good vid.
Your last point is something literally anyone who owns a business can do, no matter the size of the business. And yes, although the player is in fact a person, they do depreciate as they get older. So...
No way Greensboro's baseball team is on the thumbnail hahaha!
I'm suprise it actually was lol
The Chicago Cubs also own a lot of the land around Wrigley. They own most of the apartments across the street from the stadium.
The funny thing to remember is Amortization, Depreciation and write offs are all NON-CASH expenses.The owner is not paying a dime
So when you are reviewing a company’s statements for profitability, it’s better to look at a Company’s statement of Cash Flows rather than the Income Statement
- From an actual Public Accountant
Man, I tried fantasy sports once and goddamn this video made it more complicated than I thought it would be, like for example, the velocity of an outfielder's throw, I never thought it would get this complicated
Well said
What about the Patriots pretty much building a town right next to Gillette in Patriot Place? That’s a textbook example, and probably the most well known one
2:11 yes!
Shoutout the Greensboro Grasshoppers in the thumbnail! Great little stadium though!
#2 isn’t entirely accurate. Writing down an asset is perfectly legal as you say but you’re only gearing yourself up for a monstrous capital gains tax bill when you do sell the team. Depreciating and asset lowers its “basis”. You owe capital gains on every dollar sold above that number
Bro the apartment building you showed is in downtown Greensboro and isn’t even owned by the minor league team 😂😂😂
Yes TB12 is the exception to rule.
I think the fill the drink up with mostly ice, and little drink, should be added. Like dude they add way to much ice, and still you have to pay alot
Business in sports is some of the most corrupt crap you'll ever see
Should have included television contracts as well. As television revenue has always been a substantial way of making money for sports teams.
it's too localized to be as substantial as those mentioned,
and they still depend on fan engagement, positive attendance, etc., as mentioned. Some franchises might get a healthy cash injection for what it's worth to them, but TV deals are hardly sneaky.
How is this sneaky?
4:21 also Chris sale with motorcycle in season
ballpark village is so damn nice
Speaking of betting on everything remember the movie The Gauntlet "Vegas bets on everything"
Very informative video.
Regarding insurance, professional wrestlers would buy injury insurance policies through Lloyds of London; retire because of an injury and collect a nice payout. The problem, for Lloyds, was that wrestlers were used to working with injuries that any doctor would classify as career ending, so after being retired for a year or two, and probably blowing through the insurance money, they would un-retire and return to the ring. Eventually Lloyds of London got fed up with this and stopped insuring wrestlers sometime in the 90’s.
I know Bret Hart cashed in his policy when he retired in 2000. When he appeared on WWE TV years later, they had to be careful to not do anything too physical with him, or Lloyds could claim he violated his policy and try and get their money back.
Cincinnati Bengals taking notes rn for the next 4 years of paying their talents
I think some colleges even have courses or majors in sports business or sports accounting. In some ways I think anyone thinking of going pro should take those if available, At least get a basic overview of how the industry will screw them if they are not knowledgeable. And if you cant get a job on the field you can apply for a job in the back office doing the screwing.
if he gets his way with howard terminal (I don't care where please don't leave town) is why cheapskate owner John Fisher want's to do where he owns the bay front land vs building at the current place (serviced by freeways and good public transit)
What up 5!😎
That's not how amortization works. They're not saying that their franchise is "depreciating". Goodwill arises from the purchase price consideration (the amount paid over the actual value of all the purchased businesses tangible assets AKA intangible assets). For tax you are allowed to amortize this goodwill which spreads the deduction out over multiple years. If intangible assets didn't exist in IRS law, the purchase price consideration would be a business expense and would lead to massive NOLs in the first year of operation that would carry forward anyways. Not really a loophole because any business that purchases a pre-existing brand can take advantage of it... In fact, they have to... because it's the law
Patriot place in foxboro
😂🤣 number of assaulted masseuse!!!!😭🤦🏽♂️😂🤣
Do they still kneel down during the anthem?
Thumbnail is my local team
How about betting on ball pressure?
I have no problem with any of these.
The thumbnail is from the First National Bank field, where the Greensboro Grasshoppers currently plays at.
Go to the game when you have the time!
Photo was taken by me at a game!
@@FivePointsVids I'm jealous ngl, been there last year for the July 4th game.
My city has a 50% tax on beer sold at stadiums. Well I say stadium, it's technically just a convention center that has bleachers inside.
Comcast’s headquarters are in two skyscrapers in Philadelphia
I will not allow this Texans slander
while i get the gambling thing, sports betting needs to be banned honestly it is awful for people's mental health, financial problems, etc. but it will never change
at least heavy regulation for it maybe if possible
No need to ban it. If everyone actually learned basic arithmetic in school, everyone would see how gambling must be a losing proposition for almost everyone that plays.
One sneaky way is through parking.
I was watching a near-miss crash between a cyclist and a road going vehicle on the dodgers roadway entrance and it was a 3 lane roadway into the park with no options for multi-modal transportation at all. It really shows how teams put a blind eye to mostly everything else but parking where they can collect fees that way. A car at the park also means rich people which equates to more money through food and other entertainment costs.
That last one isn’t really sneaky. Every company - from McDonalds to Walmart to Goldman Sachs - can fully write off employee expenses, full stop. This isn’t really a way they’re making money since by definition it requires cash to leave their bank account. The only time the amortization issue comes into play (as opposed to simply writing off whatever is paid in cash each year) is either when there’s a dramatic difference in cash payments from one year to the next, OR when there are upfront payments that are made when the contract is signed (typically signing bonuses). In those cases, the entire value of the contract is amortized evenly throughout the life of the contract - essentially smoothing out the expense for tax purposes rather than have a ‘lumpy’ expense on the tax return. But regardless, the amount claimed as an expense on the tax return will equal the cash that the team pays the player over the life of the contract - the same as any other employee in any other business.
Pete Carroll Chewing Gum Appearances at 2022 Season Opener
Over Under: 3
I bet over
I have no issues with any of these
How tf is an asset that increases in value able to be amortized?!?! I'm not a CPA but from my couple accounting classes that sounds like fraud. But it's legal
Say goodbye to your DraftKings sponsorship, Five
How did you come up with the name Five Points?
every video used to have FIVE POINTS of information
Freddie who? We are more than happy with Matt.
comcast headquarters is in philly bro come correct
Patriot place is crazy how much money Kraft probably makes
Didnyou just say brAT-wurst ??? Hahahahahahahahahhahaahahahhahahaha
Crazy people aren’t aware of all these. Pro sports have a don’t a good job keeping these under wraps
good business
I had an older relative that was into real estate. He rubbed it into his wife for decades that a relatively short time after the construction of Lambeau Field, he was approached by other real estate guys in the area who had a plan. They were going to buy up a huge chunk of adjacent land, because it was going to be worth a lot of money. HIs wife pitched a fit and wouldn't let him join in, even going as far as to say she was going to leave him if he did. The group made the right bet, as that land shot up in value and they were able to sell it to the team for a huge profit. When I told my Dad after hearing the story, "I'd be pissed for years about that.", he smiled and told me, "Oh, don't worry. He made a bunch of money after that." I assumed by telling his wife to shut her noise hole when it came to the real estate business.
.
As an addendum, I think teams like The Bears see all these huge complexes built around stadiums, and they want some of that cash. But they can't build around Soldier Field, and they can at the Arlington Heights site, or whatever it is called. Even those idiots in Chicago can see that is where real money can be made, especially in the offseason. Good vid as usual, Baldy.
thanks brother. and always trust your gut :)
Evasion is illegal, avoidance is why we keep needing more lawyers and accountants.
the Watson cheapshots never stops
Go grasshoppers
Hey FivePoints, you might want to be careful about ragging on the Lions as they are on their way up.
3:35 Ok, I’m willing to bet that Franklin Roosevelt passed a law preventing big businesses from doing that but then Ronald Reagan repealed it. That’s always what it turns out to be. It’s so annoying. #CarterMondale1980
So what stopped gambling the first time. Jimmy the Greek and Brent musburger
Or you can get Bret Farve to do it
Money laundering. There is no other reason for the Browns to even exist.
Alright
You missed one: the Arizona Coyotes making money by not paying for their arena lease.
Don't let this video distract you from the fact that Liverpool FC is still winless in this Premier League season.
Lions will win this thanksgiving! Book it! Boom!
The only sneaky way I know is when the tank for nothing lmao aka browns...
Hockey season lasts 9 months really. Not half a year.
Gotta love paying $158 just for Tickets (not including gas, parking, food and drinks) just to watch the Lions lose
I mean pick different seats tickets for the seattle game midfield higher up where the view is still good was 65 a piece after tax and fees
I think the Lions have built such a diehard following in the city… to the point 75 to Grand River is at a standstill 1 hour before kickoff. There ain’t no standstill for Tiger’s games.
But we know how big football is in the state of Michigan, right Spartan??! From a Wolverine ‘97 BSE… Go Blue! Our schools might be doing some of the same things the pros are doing…
Gambling is for chumps.
Draft Kings, FanDuel, et al.... is for suckers.
Oh good, billionaires making more, while I can’t even afford a reasonable sized house working 50 hours a week
Legalize gambling but not cannabis!?😂😂😂😂😂😂
Bahahahahah I laughed out loud and died in my kitchen when you said "because fuck communism". 😅😅😅😅
Close on the Oregon CB pronunciation Five. It's Eee-foe, not Eye-foe.
“Because fuck communism”😂😂
Your wrong, on number one.
They can write off player 2x on taxes.
Once as cattle
Again for salary.
Athlete are cattle not equipment.
"Come boss!"
The thumbnail is my local minor league team the Greensboro Grasshoppers
*CAPITALISM AT ITS FINEST*
alright another great video by fivepoints
I feel like the "fuck communism" joke is going to be lost on some people lol
Any Gambling just takes your money and gives it to whoever runs the Gambling game. You are not a winner but a long term loser or short term loser. Life is a Gamble enough.
The lesson, as always: EAT THE RICH.
Welcome to the future. Where you can bet on anything online including presidential elections. Now if we could just give weed the same treatment we give alcohol.
Warning: Winning too much may lead to the IRS busting down your door with hollow points and you won't be rich enough to evade them
Jesus is the lord
Honestly, i'd rather have sports team owners keep their money rather than give it to the government. That is how I do my taxes and everyone else does. No handouts from taxpayers though.