Donald Trump destroys almost everything he touches. Marriage equality. Transgendered rights. The African-American community. All have been destroyed by the monstrosity known as Trump. Trump is an evil American Shiva, demolishing everything in his path as he gobbles two scoops of ice cream while guzzling twelve Diet Cokes.
Now Trump has yet another victim: professional sports. But shockingly most people have no idea of the harm soon to befall our progressive athletes and their liberal owners.
For decades, professional sports thrived on the entertainment expense deduction. For decades, major corporations and other businesses purchased the overwhelming majority of sports tickets. Sports leagues across the country, especially the National Football League (NFL), likewise demanded cities and municipalities to pay for lavish new stadiums, often costing over $1 billion. Why? — because they wanted to add expensive luxury boxes for major corporate clients to entertain clients.
Businesses bought the tickets even though many executives often had little concern for sports. The entertainment expense deduction, however, allowed them to deduct 50% of the expense, which they could then justify to the accounting geeks for client entertainment or at least as a fringe benefit for employees.
Now the deduction is gone. Worse, businesses can still deduct 50% for client business meals, and many businessmen have already been grumbling about ticket inflation for years. In the next few years, here is the conversation that is going to take place in every company currently holding season tickets:
Accounting Geek: “We can’t deduct sports tickets anymore. We should use dinners to entertain clients instead. We can deduct those.”
Businessman Who Likes Sports: “But I use tickets to entertain clients!”
Businessman Who Doesn’t Care About Sports: “Take them out to dinner instead!”
In boom years, many companies may still keep paying for the tickets. But when a recession strikes, businesses will overwhelmingly eliminate the expense. It is almost inconceivable that any manager or financial officer could justify a non-deductible expense in a difficult business climate, particularly when client meals are still deductible. And professional sports teams are already seeing massive declines in TV viewership (roughly 20% for the NFL in the last two years) in large part because people are sick of watching ad-laced programming in an on-demand world.
The Trump tax assault likely is the major factor behind the “freeze” in free agency in Major League Baseball. But teams likely have tried to keep the issue quiet to avoid liquidity problems and more expensive financing arrangements. So a clueless media continues to blame extraneous factors, like the current collective bargaining agreement — which never caused a freeze in previous seasons.
As usual, African-Americans are being hit the hardest. Trump made no secret of his disdain for the NFL and its largely African-American player base in his earlier comments on the racist national anthem. Without seven-figure and eight-figure incomes, how will our star African-American athletes pay for the alimony that they owe or the large retinues of homies that they require for popularity purposes?
The Trump tax law is going to decimate professional sports. Ticket prices could collapse. And important corporate leaders attached to cell phones may soon become a thing of the past at stadiums — replaced by Trump’s deplorables and their disgusting white families. If this doesn’t prove Trump is evil, I don’t know what does.