Prop 40’s Residency Loophole Threatens California Sports Teams
California voters will decide on November 3 whether to pass Proposition 40, a one-time 5% levy on billionaire assets to offset federal healthcare cuts. The measure’s impact on professional sports teams hinges on the complex determination of state residency, potentially creating a competitive imbalance between in-state and out-of-state owners. While supporters argue the tax is necessary to address healthcare deficits, opponents warn it will raise ticket prices and drive capital out of the state.