(Bloomberg) — Why would anyone spend $24 million to buy a 1% stake in the New York Yankees? Minority ownership seems like a lose-lose proposition: A lot of money for very little power. For wealthy sports fans, though, it's cool — and can be one heck of a tax shelter.
Owning a piece of a team can create the kind of on-paper losses that cut a wealthy owner's bill to the IRS. A sports team "spits out losses that offset other income," says Murray Solomon, a tax partner at the accounting firm EisnerAmper in New York City. "Then at the end of the day, you can sell the investment and make money."
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