High Point Enterprise Newspaper Archives Jul 22 1974, Page 35

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High Point Enterprise, The (Newspaper) - July 22, 1974, High Point, North Carolina 4b High Point Enterprise monday july tax lawyer is key figure in pro sports franchises i i by Richard Starnes North americas newspaper Alliance in professional sports winning is everything right wrong tax accounting is almost everything in fact losing often becomes winning by the time an adroit tax lawyer wheels and deals his Way to the Bottom line of a teams profit and loss statement tax Laws Are at the Root of the wild proliferation of new pro sports leagues and the expansion of established leagues tax Laws explain an owners apparent ability to absorb huge losses to ignore empty stands often to ride roughshod Over his handful of Loyal fans sports franchising is the nations most glamorous tax shelter and it offers fringe benefits that conventional tax shelters such As real estate developments do not a governor or a senator is a Bush league celebrity compared to the Man who sits in the owners Box however seedy his team May be the real hero of the sports franchising Boom is never introduced Over the stadium a system indeed he has to buy a ticket even to get into the place he is the Ordinary taxpayer who bereft of special tax gimmicks is subsidizing the new sports franchises that Are springing up All Over the country All it really takes to create a new league and with it a Host of valuable franchises is a copying machine a Fertile imagination and detailed understanding of the whims of the internal Revenue service a guided tour through the snarl of irs rulings affecting pro sports is a difficult one even for accountants specializing in the Field but the Saga of the fun City Goliath a fanciful team in the Equality mythical cosmic football league can help show the Way fun City has a Wheeler dealer who has Reade and More important is still making a lot of Money in enterprises not related to sports he is an avid sports fan and Long has cherish last place and has lost Money True but the owner is in High canny Friend can sell the teamed the notion of owning a team of his own moreover our Cotton due to the rapid depreciation allowed on his principal taxed Wheeler dealer has a great Deal of taxable income and he needs a tax shelter the organizers of the new cosmic football league approach the fun City Wheeler dealer and sing him a Siren song full of such terms As accelerated depreciation negative profits and Book loss our Wheeler dealer is no Dummy he quickly graph the Heady potential he can fulfil his ambition to own a team spend Little of his own Money and avoid a High percentage of the income taxes he pays on his other earnings All this is possible because irs permits professional sports enterprises to write off player contracts at a much More rapid rate than say the real estate tycoon can depreciate a High Rise for most pro sports write offs of player contracts Are permitted in three to five years this Means that when the Goliath sign linebacker Earth quake Bon Basher Long a crowd please in a rival football league for million for a 10year contract the team can depreciate write off the contract for tax purposes in As Little As three years hence for tax purposes Good old earthquake is generating a tax loss while costing the Goliath Only a year in salary the Goliath sign other players overt Hill veterans in tried rookies men Cut from established teams but every player is signed to a contract option ing him to the team for a period of years exceeding the period of accelerated depreciation irs allows at the end of the season the Goliath have fulfilled predictions by having a Lousy year even with parking fees Broad cast earnings and concessions profits the team shows a Book loss of say but our Wheeler dealer be happier the team is in White sox 6 Brewers 2 first came Milwaukee Chicago Abr Hbl Abr Hbl Colucc Lorf 4000 Kelly do 4110 cmoore 4110 or Tab 4000 Brig Golf 2000daien1b 4232 sol Tab 4021 Cmaylo 3010 money3b 4100 3011 Dejohn Sundh 3010 Meltc Nab 3221 Mitchellsr Sharpl 4110 Berry 4000 her Mann 3011 Youniss 3010 dents 4 0 1 d Garcia 3000 Kaapp 0000 Colborne 0000 for Terp 0000 total 32 2 a 2 total 32 4 ii 5 ill Wickli Chicago 200 100 12x6 Money 2 Chicago 1 5 cd Scagos 2 Khen Terson cmoore May Dallen so Kelly in h r Erbb so 8 11 6 6 5 3 Kaat wll6 6135 1 i 1 2 Forster 2 23 1 1 1 1 4 save Forster Brewers 5 White sox 3 second game Milwaukee Chicago Abr Hbl Abr Hbl Educ clock 3000 Kelly of 4010 he Garph 1110 orta2b 4131 Berryl 0000 mus Erlb 3010 Youniss 4000 pm ayah 4 0 d 0 Brig Golf 2010 4011 scottly 4111 metton3b 4010 Porter 3100 sharply Dejohn Sundh 4114 Downing a 2000 a Mayra 4000denlss 3120 tjohnson2b 3000 Bahnsen 0000 vukovch3b 2000 Forster 0000 Hanson pm 1110 Money 3b 0000 comp Long 0000 to Murphy 0000 athletics 6 indians 3 Oakland Cleveland Abr Hbl Abr Hbl Northc 5 0 3 2 to Wenstel 4000 camper less 4000 duly is Cahnt Gydh 3000 Crosby is Bandoh 1000 Hendri Kcf Jackson of 3100 spoke sri re Dill Tenace Mangu Allf Haney dgreen2b total 31 5 s 5 total 32 3 10 2 Milf Auk 000 000 ms5 0001100103 May 1 Cal Carol chlcago4 Khen Derson Downing in h Herb so Champion 71310 3 2 0 0 Murphy w34 1230 0 0 0 1 Bohnsen 8 13 3 2 22 2 Forster u56 232331 1 a36827 giants 4 expos 0 first game Montreal san Francisco Abr Hbl Abr Hbl unti2b 4000 phllllps3b 4 0 2 4020 Spei Ersi 4010 Maddox of 4000 Bon Durf 2000 Matthew self 3010 Goodsonl 3010 fun Teszi 2010 do Radert 2000 Barry 4000 3112 4120 1001 3000 3000 3110 3110 Singleton of far Lyle bailey3b Jorgen self stuns on Fol ass re Kop Morales pm 1000 Blair p 0000 total 29 0 6 0 total 28 4 7 4 my Trail 000 000 0000 Sonfra Noltee 100 000 m4 Montreal 4 Sanfrancisco 3 a blonds giants 2 expos 0 second game Montreal san Francisco Abr Hbl Abr Hbl ltntz2t 3000 4010 Davis of 4000 spelers 4010 Singleton of 3000 Maddox cd 3011 2010 Bon Durf 3010 balley3b 4000 Matthew self 4110 Jargen self 3010 Goodsonl 3010 footer 4000 arnold2b 3011 folios 3000 do Radert 3000 Rayph 1 b 0 0 Danu Stop 2100 Rpgers 2000 soap 0000 Hunt pm 0000 Montague p 0000 total 29 0 2 0 total 29 2 7 2 mortar Ftp 0000000000 Sanfra Clico 001 000 2 in h re Buso 7 62215 Montague 1 10010 813 i 0068 Sosa 2310000 save Sosa balk Rogers a8007 8 cubs 2 Chicago a r h by kesilngerss4 1 1 0 monday of 4000 moral self 4011 Carde Narf 4000 Athorn Telb 2010 4110 grbrfcwtz2b 3011 Hooton Bonham falling a Fanon anti Laroche burrs p rot Elf morgan2b Bench there lib chaney3b dress enl 4221 Ellish 3110 bbell3b 3000 Leech 1110 my crawl 2010 Duncan 3000 1000 4010 4110 4010 3 10 0 1010 4012 3111 1 000 Bourqu Eph 1001 Gamble fish maxvill2b 1010 brohamr2b 3030 kublak3b 3112 a Perry 0000 Bluco 0000 Hil Gendrop 0000 Linda tap 0000 fingers p 0000 total 34 6 10 6 total 35 3 9 3 Oakland 000 010 0002001003 1 Cleveland 1 5 Cleveland 5 Mccraw w Dun can in h Herb so 6238 3 3 0 2 Lindblad 1300000 fingers 2 10001 Jerry l98 6236 s 5 4 3 Hilgendorf 2134 1 1 0 1 padres 7 mets 3 new York Abr by barrels ones 4110 Ehn Anduss 3370 wgarrelt3b 3110 rmorales2b 3000 Cjones if 4010 4 1 23 a Taubry 3023 Mcco Velb 2224 Kran Poolle 3000 Grubby of 4000 Theodore la 1000 Gastonr 4010 Hodges 2010 Kendall 4000 by Eph 1010 Darbor sob 4000 Hahn of 4 0 0 0 Greipp 2110 tmartinz2b 3000 Rjones 1000 Mcgraw 0000 Grot Eph 1000 a Parker 2000 Miller p 0000 Boswell 2b 2110 total 33 3 8 3 total 31 7 8 7 naw Yerk 100 0001703 san Plage 10104000x7 new York 6 san Diego 5 Ehernandez Winfield Gaston Mccovey 2 Gruelf in 4 2 2 h Parker us Miller Mcgraw Gruelf w5ll Rjones a7481 723 7 1 13 1 h Herb so 55524 2 2 200 0 3 0 1 3 2 7 0 1 twins 10 tigers 7 Minnesota Obr Hbl a Ryeck 5020 carew2b 5231 his Elf 4 1 Kylle Breedh 6 Darwin of 4 1 soderhlm3b 5 1 terrells 5 1 Kus Kalb roof Blyleven 0 1 2 3 0 3211 4121 0000 Burg lerp 0000 Detroit a r h by a Stanleyc 4120 Suhr Landph 5010 Ogle Vleda 2111 Kal Lendh Northrup of Nell self Manelf freehand a 5133 earn Knss 4012 Moses 4010 Walker p 0000 la grow p Jray Miller p 2000 5100 7100 2110 5121 0000 0000 0000 total 4110 13 9 total 40 7 12 7 11070010010 i Trot 0011301007 Terrell Northrup Detroit 9 Carew Rodriguez de Holm Freemsn scar new 2 of Glivic in h Herb so 5 86315 Burmeler 4 41113 Walker u42 3136 6 5 3 5 Lagrow 232332 1 Jray 3 41101 Hitler 2 10023 Heller Cincinnati Abr Hbl Geronimo of 4000 3100 3211 3121 0001 4011 Concep Cess 3110 Grill Feyrn 2112 ghost err 1000 Gullette 3000 3010 2000 0000 0000 1000 0000 0000 a Essner 1 can can Nlle Cor Ceplon to per Mao Jock Bench Athor Rilon or Graf Fey Sale Hart Schaffner and Marx suits 1 chats formerly j87so clothing stores u downtown High Point Angels 6 orioles 4 California Baltimore a r h by a r h by River Sci 5340 Blair of 4000 chalk3b 5220 girl Chub 4 1 Stantorf 4111 Davis do 4221 Roi Iverda 3022 Ewilla Sib 4000 frown Sundh 0001 Bay Lortt 4021 Valentin Elf 1000 4111 Lena self 3010 full Earl 4000 la Houlf 1011 etched inc 4000 Boc Telb 4 o 2 0 Belang Erss 1000 Egan 3000 Mcnally 0 0 d 0 ddoyle2b 4000 Bryn Lisp 0000 Ramir Ciss 4000 Hass Terp 0000 Tanana p 0000 total 37 6 13 5 total 33 4 6 4 California 001 020 1026 100 Oil 0104 9 Balti More 5 Stanton Baylor Davis Davis Egan Robinson in h r Erboso Hassler 6234 3 3 3 s Tanana w414 2132 1 1 0 3 Mcnally u87 8 11 s 4 1 5 Breynolds 1 21102 Mcnally Mcnally phils 2 dodgers 1 Philadelphia los Angeles a r h by Abr h by Dias Hub 4120 Lopesz 3010 Bow ass 3000 Buck Erlb 4000 schmidt3b 4010 Wynn of 4000 Monta Nelb 3011 Ferguson 4000 Bro Wolf 4000 3010 Brobis Nsncy 4010 cey3b 3110 Boone 4010 Joshual 3000 Mandr surf 3121 Russel is 3021 Lonborg 4020 Downing 2000 Hough p 0000 Pacior Kph 1000 Marshall p 0000 total 33 2 10 2 total 30 1 5 1 my 000 0102 los Algil 010 000 2 los Angeles 1 lob Philadelphia 8 los an in h r Erbb so Lonborg w129 9 51026 Downing u34 723 8 2 2 2 3 Hough 13000 0 1 Marshall 1 20001 Downing a43710 pirates 6 braves 2 Pittsburgh Atlanta a r h by a r h b etennett2b 4110 is Rolf 3010 hebner3b 5442 3000 Aoi Iverc 5012 Bakerch 1000 Start Elolf 3011 a Nierop 0000 i surf 4000 evans3b 4111 Sang Illic 4111 typed Nolb 4110 4000 Mill err 4000 to Verasso 4000 office of 4011 Eltise 3010 mperez2b 3010 Gates c 3000 Capra p 1000 Mur Rollph 1000 Leon p 0000 a Fosters 1000 total 36 6 9 6 total 32 2 5 2 Pilot Borgh Atlanta 100 on 0012 Tepedino 1 z Mperez Hebner 2 Sang Ellen team assets player contracts the owner comes out with a toss for tax purposes of close to million since the owners other enterprises have produced a taxable income of around million he will apply his Book loss on the Goliath to this taxable income so instead of paying Uncle some 1700000 in income taxes the teams owner pays nothing his tax shelter has Cost him out of pocket and has enabled him legally to avoid in taxes net profit for the Goliath Happy owner is in the teams first year apart from saving its owner a bundle the Goliath have done a number of other things the team has Hurt its established rival league both by siphoning off some ticket and to Revenue and by sparking a dizzy escalation of player salaries it has also brought a measure of Competition to an area that established franchisees had Long regarded As a monopoly it had perhaps paved the Way for an even More chaotic proliferation of yet additional leagues All launched by men seeking a Quick Buck by exploiting tax loopholes the Lon term effect on pro sports is Uncertain in times past new leagues have gone through occasionally traumatic growing pains and either have failed or muscled established leagues into merger As the Only alternative to anarchy but the Lon term Prospect for the Wheeler dealer from fun City is More predictable he has at least two Happy avenues open to him after he has milked the rapid depreciation tax loss gimmick for All its Worth if his team actually starts making Money he May keep the team and dispatch his accountants on safari seeking other tax shelters but if the Goliath continue to lose and ultimately use up the rapid depreciation on the bulk of the player contracts our at break tigers cold twins burning Ellis w58 Leon Niekro in 9 5 3 i h Herb so 52223 6 4 4 24 32201 00012 a9351 cards 9 astros 1 Houston St Louis a r h by a r h by Gross of 4000 Brockly 4131 Metz Erss 4000 Cru Elf 1112 Eden of 4120 davanon2b 5120 Watson of 4011 Mcbride it 4 0 2 0 pm alb 4010 is Mithra 4001 a May 3010 Simmons 3000 dgrader3b 3000 Torrelt 2210 helms2b 4020 reitz3b 4222 Oie Kerp 2010 to songs 4132 so Hermna 0000 Forscht 2100 gala Garph 1000 Forsch p 0000 c Johnson pm 1000 total 34 1 8 1 total 33 9 14 8 Houston 100 000 0001 St Lull 120m312x9 2 St Louis 2 St Tyson Dierker May son Jcruz so Brock 2 Smith s in h Herb so Dierker l66 5239 4 6 2 0 Scherman 131 0000 Forsch 2 43301 Forsch w22 9 81123 Forsch Yankees 5 royals 4 Kansas City new York Abr Hbl Abr Hbl i Morf 4110 alomar2b 4000 cow Ensaf 1000 Maddox of 3000 roas2b 4122 Marc err 4022 Oil Sci 3112 Blombergh 2 0 0 0 maybe Rydh 4 0 1 0 a whited Mcrael 3020 gmettles3b Solai Talb 2010 Pini Ellaf 4110 Dev Ansof gbrett3b 3000 Chablis sub 3210 Macau Tifen Wohlf Orph 1000 Munson 1100 0000 masons 3023 is Ackwell Healy 4120 Dobson 0000 Leep fwd less 2010 Lyle 0000 rangers 2 red sox 1 Boston Texas a r h by a r h by Harper do 3010 to Varcy 4010 Miller of 4 1 20 Johns nah 4021 Ca Erlb 4000 Burrig Herf 3011 Petroceli Lesb 4031 Grid self 4010 2000 Hughessr 0000 randle2b 4020 4110 car to if Mango rep 0000 total 324114 total King Salty 3000001004 Newyork 62000030xs Roias City 1 new York i lob Kansas City 7 new York 5 Mason Murcer a Rolls a broils of White Blue pools unlimited swimming pools 1nground ail types we service what we sell for service and repair work on any Type of Pool Call 4317833 72 years of experience e7jj4 by the associated press whether you believe in that vague mystical Force known As momentum depends on which Side of the Streak youre on if youre Ralph Houk youre a devout believer if youre Frank Quilici Well then theres More to winning than impetus As the major leagues three Day Allstar break begins today Houks Detroit tigers Are shivering there so cold Quilici Minnesota twins meanwhile Are Burn ing up the joint on sunday for example Bob Darwin hit a two run single and Eric soderholm clubbed a three run Homer to highlight a seven run fourth inning explosion that carried Minnesota to a 107 Victory Over the tigers the twins 12th Victory in their last 15 games and Detroit 13th loss in its last 15 in sundays other american league games new Yor edged Kansas City 54 Oakland Defeated Cleveland 63 California topped Baltimore 64 Texas tripped Boston 21 and in a doubleheader Chicago beat Milwaukee 62 before the Brewers bounced Backoo win the second game 53 yanks 5 royals 4 Bobby Murcer wrecked Kansas City manager Jack Mckerns strategy with a two run base loaded double in a three run seventh inning that led the yanks past the royals with new York trailing 43 and men on second and third and two out Mckeon ordered Steve Mingori to Load the bases by walking Elliott Maddox intentionally but Murcer jumped on an 01 out Side pitch and punched a Dou ble Down the left Field line As 6 indians 3 Ted Kubias two run single highlighted a four run seventh inning that beat Cleveland a walk and singles by Joe Rudi and Gene Tenace loaded the bases Pat Borque tied the game with a grounder Kubiak singled and Bill North tripled Angels 6 orioles 4 got two runs in the ninth on one of mickey1 Rivers three doubles Dave chalks bunt single Frank Robinsons sacrifice Fly and Joe Lahoud single to beat the orioles Baltimore had tied the score in the eighth rangers z red sox 1 seven thinning singles by Jim Sundberg Alex Johnson Burroughs carried the rangers past Boston the Victory kept Texas fourth in the West eight games behind firs place Oakland White sox 63 Brewers 25 Dick Allen hit his 26th Homer and two doubles and Bill Melton homered to give Chicago its opening game Victory and the White sox were Only three outs away from a sweep when Mil Waukee finally flexed its see tigers on so 4000 harrass 4000 3000 dnelson2b 1010 0000 cardenas3b 2000 4020 Frego Silb 2010 4010 Hargro Velb 0000 3000 Sundbergh 3210 0000 hargans 0000 Foucault 0 of 0 33 1 9 i total 31 2 10 2 total Milan 2 Sundberg 30 5 7 5 j Texas 4 lobboiton7 Texas so Randle in h Herb so 8 10 2 2 2 2 823 8 1 0 1 s 1310000 Foucault Hargar a11770 who makes the mortgage payments when youre disabled we can help your nationwide agent knows How to help keep your family and Home together when youre unable to work Call an agent and see Malcolm f Ruuard 1916 s main St High Point n c phone 8822615 Al passavant 1916 s main St High Point n c phone 8822615 t t Mitchell 1611 n main St High Point n c phone 8826328 Brad Teitelbaum 1916 s Moi ii Street High Point no 8822615 Douglas Smith 1916 s main St High Point no phone 8822615 Jerry Lee Bogle n Elm St High Point n c 8823570 nationwide insurance nationwide is on your Side nationwide Mutual insurance company Nason wide life insurance company Home Otyce plumb i onto sell at a loss he merely applies the loss to his other earnings and again beats the system there Are Pitfalls of course h Metzenbaum Echio a Cleveland tycoon with fingers in numerous sports enterprises recently Losta bitterly contested primary elec Tion to former astronaut John h Glenn or due largely to disclosure of the fact that in 1969 Metzenbaum paid no Federal income taxes on in adjusted Gross income Nysted among the tax shelters where losses enabled him to write off his entire taxable income for that year was Cleveland soccer inc a no defunct round Hall team that provided a tax loss of in 1969 and in 1968 in 1972 Metzenbaum showed tax losses of on the Cleveland crusaders in the world hockey association another Hazard is the whimsical manner in which various irs districts interpret the rules on player depreciation according to Gerald h Phipps chairman of the Board of Rocky Mountain Empire sports inc the incorporation that operates the National football league Denver Broncos and the Denver bears an american association baseball club there Are some advantages to those in substantial tax brackets from sports investments Phipps told a Scripps Howard reporter recently when they treat a corporation like a partnership for tax purposes they can get benefits against their other income and there is also the possibility of player depreciation which can make things More attractive the problem however is that up to this Point the irs has left the valuation of players acquired say in an expansion draft to the local irs office there has been Little uniformity in the method of valuation its been said that Miami had its players valued by the local irs at each when they got them in an expansion draft while Cincinnati reportedly was allowed to use a valuation of Only each but a new franchise has an Opportunity to show losses and take them As a credit against other income the irs will per Mit this for a while if you can show you expect and Are pointing to an eventual profit operation this however also varies according to the rules of the local irs District sooner or later the irs will take the position on chronic losers that you Are doing this not to build to a logical profit situation but As a Way to use losses to offset income and Dis allow it say that a new Wal world football league club loses million for a couple of years and then million for a third fourth and fifth year the irs could step in and say a pattern has developed that they Are using football losses to offset profit in other businesses and not Only disallow this but even go Back and make it retroactive which could be one hell of a Jolt to anybody next a look at football get rid of Gray hair some of it or All of it 1st Day 6th Day 12th Day 18th Day time lapse photographs show How gradual action of grecian formula 16 Tets you control just How much Gray you slowly get rid of some of it or All of it just As much Gray As you want some of it most of it or All of it you can Stop where you like you Are in Complete control of How much Gray goes or stays once you get rid of As much Gray As you want simply use grecian formula once a week or so to keep it that Way since grecian formula 16 works gradually Over a period of time even close friends wont notice the change happen ing the resulting color is so completely natural that the hair definitely does not have a dyed look grecian formula 16 is Avail Able at White Plains by hundreds of thousands of men All Over the country Are now using a remark Able product to control just How much Gray they slowly get rid of it is called grecian formula 16 and the results Are simply Amaz ing grecian formula 16 is a practically Clear liquid As easy to use As hair tonic this remarkable for Mula works Frany color hair be cause it combines with the natural chemistry of the hair to recreate natural looking color there is Rio mess and no Ruboff you simply use it every Day for two or three weeks until you slowly get rid of Mann drug stores Saver service Chassis tuneup to make your car Roll better we will align front end repack and torque front wheel bearings adjust brakes Correct tire pressure lubricate Chassis and your sensible driving habits will help stretch your Gas mileage All american cars regularly be Goodrich were tire other Guys american i Xmas Chakot tvo Vinc charge Lankamer Kaftor your convenient of Goodrich store 201 English re Tel 8824193 Specio Lissin org Menli mufflers shocks brakes lineups h77j

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