The improvements are effectively considered a capital expenditure.

 

The only expense that could be realized from the deal would be interest if the jags borrowed money to finance the improvements and that would be a relatively small expense that is also tax deductible.

 

It would have no effect on the income statement from which revenue is determined besides some tax expense if Khan decided not to pay cash. If he payed cash, then there would be no expense shown at all. It would show up on the balance sheet as an exchange of one asset (cash) for another (capital asset).

 

Acquiring an asset doesn't count as a loss of revenue.

 

Edit: Actually you would have a depreciation expense, but as a capital expenditure, it would be depreciated over a course of decades which would be a yearly expense equal to a single average players yearly salary, basically pocket change to the organization. Pushing the depreciation ahead in order to show a loss would violate GAAP and couldn't legally be used as a reason break the lease. 

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