Jeremy D. Spector

Tax Controversy Matters

• Persuaded a state Department of Taxation to reverse its long-held, industry-wide position regarding sports clubs’ apportionment methodologies and to consequently drop 14 separate club audits.
• Representation of an NFL club in a $275 million dispute with the IRS regarding stadium financing, player contracts, and broadcast agreements.
• Obtained reversal of an IRS Chief Counsel Advice memorandum regarding the tax treatment of a league-wide disability insurance program.
• Lobbied the Treasury Department on a client’s fringe benefit issue, resulting in an example being inserted in new regulations adopting the client’s facts and proposed legal conclusion.
• Secured “no change” letters in income tax audits of two sports leagues and three leagues’ for-profit affiliates (five separate audits).
• Negotiated an extremely favorable industry-wide settlement with the IRS National Office regarding the tax treatment of acquisitions of professional sports franchises and related assets.
• Successfully resolved Fast Track appeal of a communications company’s tax treatment of a governmental fine, based on a novel legal theory and resulting in the deductibility of the majority of the fine.

Tax Planning Matters

• Structuring John Henry’s sale of the Florida Marlins and his simultaneous acquisition (as lead investor) of the Boston Red Sox, Fenway Park, and NESN as a tax-free like-kind exchange.
• Representation of multiple NFL clubs regarding their respective billion-dollar stadium development projects. Issues include structuring club and league real estate and financing transactions, use of tax-exempt bond financing and personal seat licenses, coordination among affiliated taxable and tax-exempt entities, and counseling on transaction documents (leases, management agreements, etc.).
• Representation of the NFL and other sports leagues in tax, corporate, legislative, and PR matters related to the relinquishment of their tax-exempt status. Projects involved tax planning, meetings with IRS executives and members of Congress, and coordination of audit defense strategy.
• Advising Roush Fenway Racing on driving and endorsement agreements with Cup Series drivers, and advising Major League Soccer on marketing deals with its players.
• Advice regarding franchise transfers, including Chris Cohan’s sale of the Golden State Warriors, the NHL’s purchase and sale of the Phoenix Coyotes, Major League Baseball’s relocation and sale of the Montreal Expos, Fenway Sports Group’s purchase of a 50% interest in Roush Racing, and the USTA’s acquisition of the Western & Southern Financial Group Masters tournament.
• Drafting World Baseball Classic agreements with leagues, federations, venues, and players.
• Counseling clubs and all five leagues on crafting and drafting bonus and deferred compensation arrangements for players and front-office executives, including with respect to Section 409A issues.
• Representation of the NBA, NHL, and NFL regarding their pre-season, season-opening, and other regular season games in Europe, including the foreign tax consequences to players and teams.
• Establishing multi-entity, multi-jurisdictional organizational structures for leagues’ taxable and tax-exempt activities, including charities and foundations.
• Continuing advice to Sotheby’s on the sales and use tax ramifications of auctions.
• Legislative and strategic advice to Amazon.com regarding the state taxation of online sales.
• Advice to various broadcast stations and their private equity owners regarding station acquisitions and related marketing agreements.