California billionaires tax appears headed for defeat, shielding sports team owners from levy
California's Proposition 40, which would have imposed a one-time 5% tax on billionaire residents, was trailing by roughly eleven percentage points after the majority of ballots had been counted, suggesting the measure will fail. The proposed tax had drawn fierce opposition from the state's wealthiest residents, some of whom spent heavily to defeat it; Google co-founders Larry Page and Sergey Brin had already relocated to Florida and Nevada before the vote, and Meta's Mark Zuckerberg had reportedly told his board he was weighing a similar move. The measure's apparent defeat spares more than a dozen California-based billionaires who control major professional sports franchises, including Anaheim Ducks owner Henry Samueli, whom Forbes estimates to be worth $31.7 billion. Other affected owners include Robert Pera of the Memphis Grizzlies, Tony Ressler of the Atlanta Hawks, and Tom Gores of the Detroit Pistons, as well as newer buyers such as José Feliciano of the San Diego Padres and Vinod Khosla, recently approved to purchase the Seattle Seahawks.
The likely failure of Proposition 40 spares more than a dozen billionaires who control major sports teams.
Why it matters
For service providers: Sports property valuations and ownership structures in California are less likely to be disrupted by billionaire departures that the tax might have accelerated.
For brands: Brands and sponsors partnered with California-based owners now face less uncertainty about those owners' long-term residency and team stewardship.
For coaches: Coaches employed by franchises owned by California-based billionaires gain stability, as ownership transitions driven by tax-flight concerns appear less likely.
For athletes: Professional athletes with ownership stakes in franchises could also have faced exposure under the tax, depending on their California residency and net worth.
Read the full story at Sportico
Sources
- Sportico · Kurt Badenhausen: California Billionaire Tax Heading for Defeat, Sparing Team Owners