There is primary source data available on this and linked previously in this thread that does not require spin ir massaging by the league or players association. People with their tit caught in a wringer deny things all the time.
The Roster depreciation Allowance allows the owner to expense 100% of the purchase price of the team over 15 years as a consequence of the hypothetical depreciation of the roster. Aside from the fact that "rosters" do not actually depreciate as aging talent is replaced through draft and free agent acquisitions, this dog s
corporate welfare tax break is also double dipping because player salaries are a deductible expense against income already. It is a sham. It is legal, but it is a paper loss that is used to offset positive cash flows during the 15 year period following acquisition of the team. That depreciation allowance is also a financial ASSET which increases the book value of the team at sale.
Real cash flows are reduces for tax purposes by this allowance, but it is not a payable. It is essentially a tax credit. But wait...there's more! Apparently if the team is owned as a pass through (s-corp) then an owner who shows a tax loss due to this RDA can use the team as a legal tax shelter against OTHER income. It represents MORE money to owners but shows a financial statement as an expense because that is how accounting and taxes work. Depreciation and oher write offs do not always correlate to actual cash flow e penditures. It's a wee bit different than filing your 1040ez.
These are objective facts and are verifiable by reading the applicable tax code and field guidance bulletins or numerous economic analysis published on the subject.
Note: The RDA is not the 25MM Loss in the Nets 2004 financial statement. It appears that the allowance was not taken in 04. Deadspin corrected this. The allowance was taken on both 05 and 06 statements. It is shown as an expense of about $40MM each year.
http://www.scribd.com/doc/59074529/Nets-0506 Being able to read a financial statement (after a 2nd look) and the tax code >>>>>>>>>>>>>>> regurgitating partisan press releases.