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Traded player contracts and draft picks have zero value under safe harbor

By Sally P. Schreiber, J.D.

Please note: This item is from our archives and was published in 2019. It is provided for historical reference. The content may be out of date and links may no longer function.

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Professional sports teams that trade player contracts or draft picks will be able to treat the contracts and draft picks as having a zero value for determining gain or loss to be recognized on the trade under a safe harbor issued by the IRS on April 11 (Rev. Proc. 2019-18). This guidance is discussed in detail in the July issue’s Tax Practice & Procedures column.