Posts Tagged ‘Debt’

Spike TV's "Guys Choice 2015" - Arrivals

Floyd Mayweather is in the IRS’ good books again.

The retired boxer paid $23.5 million to the IRS just days after his Aug. 26 win over Conor McGregor to settle an outstanding tax liability from 2015, according to Bryan Koenig of Law360. Both parties filed a joint motion in U.S. Tax Court to dismiss the payment dispute in September.

While he’s off the hook for the 2015 tax lien, Koenig notes that a lightly redacted account transcript states Mayweather had a late-payment interest charge of more than $551,000 and a $1.2-million late-payment penalty assessed against him on Sept. 25.

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Fourteen of the NBA’s 30 franchises lost money last season before receiving revenue-sharing cash from the league, and nine of those teams still ended up in the red after that, according to confidential financial records obtained by ESPN’s Brian Windhorst and Zach Lowe.

The report appears to confirm suspicions that despite record income from national television contracts, some teams are having trouble turning a profit – and not just in small markets.

The nine franchises to reportedly come out in the red, by the league’s accounting, after revenue sharing are: the Atlanta Hawks, Brooklyn Nets, Cleveland Cavaliers, Detroit Pistons, Memphis Grizzlies, Milwaukee Bucks, Orlando Magic, San Antonio Spurs, and Washington Wizards.

The Spurs and Cavaliers may raise eyebrows given their combined runs of success, but it was already widely reported the Cavs lost $40 million during their 2015-16 championship season – due in part to a $54-million luxury tax bill.

At the end of the day, small cities such as Memphis and Milwaukee cannot compare to markets like Los Angeles. However, Brooklyn is part of New York City, and Washington and Atlanta rank as the nation’s seventh- and 10th-largest media markets, respectively.

At least one owner brought up the idea of expansion as a way to increase team income, the report states. An expansion fee – likely over $1 billion per team – would be divvied equally among NBA owners and not subject to the 50-50 basketball-related income split with players under the collective bargaining agreement.

Commissioner Adam Silver is on record as saying expansion is not a priority, although markets such as Seattle may be soon waiting in the wings for a new team. Relocating less profitable franchises is another option, something a handful of richer owners have suggested, according to Windhorst and Lowe.

The chasm between the NBA’s most profitable and weaker franchises will be discussed at the league’s next Board of Governors meeting at the end of September, sources told ESPN.

Floyd Mayweather

Floyd Mayweather appears to have unfinished business with the IRS after all.

The undefeated boxer is facing a $22-million tax lien filed March 6, according to documents obtained by Gilbert Manzano of the Las Vegas Review-Journal.

“Money” filed a tax court petition for a reprieve on back taxes from 2015 on July 5, citing insufficient liquidity, and reportedly claimed he’d be able to square away the debt in 60 days, by which time he’ll have locked horns with Conor McGregor in a fight expected to net him north of $100 million.

The 40-year-old has also requested a Collection Due Process Hearing, meant for one to explain why their debt can’t be paid or to contest any taxes owed. Such hearings can reportedly take upward of 60 days to book.

Mayweather has since responded to reports of his tax woes by maintaining he paid $26 million in taxes in 2015, a year in which he pocketed $250 million for a superfight with Manny Pacquiao that sold more than 4.5 million pay-per-views.

The pugilist meets McGregor in a 12-round boxing match Aug. 26 at Las Vegas’ T-Mobile Arena.

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The Los Angeles Dodgers will need to balance their books in order to avoid breaking Major League Baseball rules regarding their outstanding debt.

Under current MLB guidelines, teams are given five years following an ownership change to comply with the debt service rule, though the club is now believed to be in hundreds of millions of debt, according to the Los Angeles Times’ Bill Shaikin. Since being purchased in 2012 by Guggenheim Baseball Management for $2.15 billion, the Dodgers spent wildly and never turned a profit in the following three seasons, including their record-breaking $300 million in payroll in 2015.

Thanks in part to their improved farm system, the club expects to bring that number down to the $200-million mark in 2018, but commissioner Rob Manfred doesn’t expect that compliance to hinder their on-field product.

“I think the Dodgers will be in a position that they can comply with our expectations in terms of the debt service rule, without any dramatic alteration in the kind of product they have been putting on the field,” Manfred said, according to Shaikin.

Though they will need to reduce spending, the Dodgers have been consistently competitive under the new ownership, having won the NL West division title four times since 2012.

“They’re doing what they can to set the team up for the future,” Ron Fowler, executive chairman of the San Diego Padres, told Shaikin. “Do I like it as a competitor? No. Do they have the right to do it? Absolutely, yes.”

Los Angeles had the majors’ most expensive total payroll in 2016, spending approximately $52 million more than the New York Yankees, according to Spotrac.

The New York Islanders are square with Nassau County.

The Islanders, along with property management firm SMG, have reached an agreement with the municipality, reconciling their unpaid rent, utilities, and other outstanding dues with a $3.55-million settlement, county officials told Newsday.

This year’s finances are still to be calculated, so the Islanders aren’t free and clear in Brooklyn just yet, but the agreement does clear up debt dating back to 2011.

The deal was reached on the final day of SMG’s 30-year arena lease agreement with Nassau County.