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Chapter 12
League Policies,
Taxes, and Profits
Introduction
is chapter focuses on the ways in which league policies and taxes aect the prof-
its of sports teams. Both professional and collegiate sports leagues are somewhat
unique in that there are many (externally enforced and required) policies that dic-
tate how teams receive money and how those funds can be spent. Most of these
policies are in place to achieve some level of competitive balance, but fail to achieve
any semblance of parity on the eld. ere are also many taxes unique to the sports
industry that can have a large eect on a team’s prots. Taxes or tax laws, such as
player ta