Quote:The money Khan invested in scoreboards, locker rooms, et. al. is known as "lease hold improvements" and he does get credit for depreciation on these assets to hold the lease. In my original restaurant I bought new air conditioning units because the existing ones didn't cool it to my satisfaction.  The building owner wouldn't purchase new ones because he didn't think they were necessary. I was able to depreciate the ones I bought for his building.

 

As far as the lease itself goes, as long as he pays the rent he's fulfilling the obligations of his lease as far as I can tell. When Weaver owned the Jags the lease agreement had a clause in it that required the Jags to play all their home games at Everbank Stadium, but we now know that clause has been amended since Khan is playing home games in London. It's my estimation Khan could move the team and still pay the rent at Everbank without having to open his books.

 

Regards.........................the Chiefjag

 

This...under US GAAP, leasehold improvements are capitalized by the lessee and depreciated over the shorter of the useful life of the asset or the lease life.  So he'll actually take all of the depreciation expense.

 

Having said that, I don't think it's some big conspiracy theory, I think he's pretty committed to this city.  I think he wants to be known for transforming Jacksonville and making his stamp on this city.

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