Steve Ballmer could save $1 billion taxes due to purchase of Clippers

Steve Ballmer stands to gain as much as $1 billion in tax benefits as a result of his $2 billion purchase of the Los Angeles Clippers basketball team, helping to explain why the Microsoft billionaire paid a record price for the club.

Ballmer paid about four times the next highest price paid for a professional basketball team when he bought the National Basketball Association franchise in May.

An analysis of US tax laws shows that Ballmer could claim about half of the purchase price in current terms over the next 15 years against his taxable income. The deduction can be claimed under a little-known feature of the tax code covering so-called active owners of sports franchises.