The Lakers as a $12.5 Billion Tax Shelter

In early August, former Walt Disney CEO Bob Iger and investor Josh Kushner bought a majority stake in the Los Angeles Lakers at a record $12. 5 billion valuation—$2. 5 billion more than the sale price a year ago. Another is not-so-obvious: tax benefits.

Since 2004, pro franchises have been considered “Section 197 intangibles,” says tax expert Robert Willens.