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KANSAS CITY ZEPHYRS BASEBALL CLUB – WEEK 1 ASSIGMENT ACG-6175 MAURICIO MEZA The case in discussion for this week is about controversy between owners and players about accounting issues. The five problems that arises for the case are the following: 1. Roster Depreciation. In this case, the owners of the club recognize depreciation on the player Roster at the time the club made the payment, due to the fact is a common practice in the market (Actually there is a tax law call Roaster Depreciation allowance). So according to the owners Tax rules allow this value to be set arbitrarily at a maximum of 50% of the purchase price, leading to 19M per year according to exhibits. The players argue that roster don’t depreciate and all the contrary players gain value thought years mainly because experience. In general rosters appreciate and depreciate over time, coaching and training, as well as trading and scouting increase or appreciate the value of the roster, and injuries and retirement decrease their value. So, bottom line
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