Warnock, Britt Introduce Bipartisan Legislation to Level Playing Field for Atlanta Braves, Other Publicly Traded Sports Teams

U.S. Senators Reverend Raphael Warnock and Katie Britt (R-AL), along with several members of the U.S. House of Representatives, introduced legislation to address disparities in the tax treatment of publicly traded and privately owned sports teams

Senator Reverend Warnock: "This legislation will ensure fair tax treatment between professional sports teams"

Senator Britt: "I appreciate Senator Warnock's partnership on this commonsense fix to ensure the Atlanta Braves are not unfairly penalized for being a public company."

Washington, D.C. - Today, U.S. Senators Reverend Raphael Warnock (D-GA) and Katie Britt (R-AL) introduced bipartisan legislation to address disparities in the tax treatment of publicly traded and privately owned sports teams. The legislation would update the tax code to ensure publicly traded professional sports teams receive the same tax treatment as privately owned teams when accounting for compensation paid to players, coaches, and team managers. A companion bill is being led in the U.S. House of Representatives by Rep. Nicole Malliotakis (R-NY-11), Tom Suozzi (D-NY-03), Brian Jack (R-GA-03), and Lucy McBath (D-GA-06).

"The Atlanta Braves are a historic franchise that has showcased Atlanta and Georgia to the world," said Senator Reverend Warnock. "I am proud to have worked across the aisle to help the Atlanta Braves and other publicly owned teams continue to thrive and win on the playing field. This legislation will ensure fair tax treatment between professional sports teams."

"Beginning next year, Section 162(m) will expand to include a public company's five highest-paid employees beyond its senior executives. For publicly traded professional sports organizations like the Atlanta Braves, this means players and other on-field personnel will be swept into a tax rule designed around executive compensation," said Senator Britt. "Our bipartisan bill makes a targeted correction by excluding athletic personnel from that additional five-employee category while leaving the existing executive-compensation rules in place. I appreciate Senator Warnock's partnership on this commonsense fix to ensure the Atlanta Braves are not unfairly penalized for being a public company."

"We applaud the bipartisan work of Senators Warnock and Britt and Representatives Malliotakis, Suozzi, Jack, and McBath to correct an unintended competitive disadvantage harming publicly traded professional sports teams," The Atlanta Braves said in a statement. "Unlike C-suite executives, professional athletes work within league rules and do not receive equity or make business decisions for their teams. Yet, the tax code does not recognize the distinction.  These members agree that this was an unintended consequence, and we appreciate their willingness to clarify the original intent of the law." 

The full text is available here.

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