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Nick Saban wins another one in Baton Rouge, this time against the IRS
By Andrew Olson
Published:
Once again, Nick Saban has come out the victor in Baton Rouge.
His latest victory isn’t quite as exciting as Alabama’s 29-0 win on Nov. 3, 2018 (unless you’re a big fan of tax law). According to the Wall Street Journal, the U.S. Tax Court ruled in the Crimson Tide coach’s favor in a dispute involving a “bad-debt deduction” the IRS attempted to block.
The report states that Saban loaned developer Joseph Spinosa $2 million in 2006 for a project which ultimately did not work out. Instead of being repaid, Saban agreed to a 15 percent stake in a different project, known as “2590 Associates” in Baton Rouge. Saban, however, did not want to directly own 2590 Associates due to his lack of popularity in the home of the LSU Tigers.
The court case was over a “worthless debt deduction of $2.9 million” by 2590 Associates for the loan, plus interest, in 2011. The IRS challenged the deduction, arguing that Saban’s receipt of the stake in 2590 Associates had satisfied the loan. Judge Joseph Goeke sided with Saban and 2590 Associates, calling the transaction a legitimate debt.
The full Journal report can be read here.
[H/T AL.com]Andrew writes about sports to fund his love of live music and collection of concert posters. He strongly endorses the Hall of Fame campaigns of Fred Taylor and Andruw Jones.