Quote:Right, but in this case Khan did not pay for it all himself.  Perhaps the Jaguars just capitalize the portion they paid for.  If not, then its probably all expensed in the year spent.

 

 

No, he would have to capitalize it and depreciate it over the life of the asset.   So if the scoreboard is expected to last 20 years, and he spent 20 million dollars on it, he would expense about 1 to 2 million a year depending on what depreciation method he is allowed to use.   Depreciation can be complicated, but he would definitely not be allowed to expense it all in one year.  

 

The depreciation expense wouldn't be a lot of money compared to the team revenue and expenses.  It's not enough to couldn't cause them to run a loss. 

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