Incorrect Amortization Period for Minor League Player Signing Bonuses

$280,000 - $840,000 annually (same mechanism as above; additionally impacts ability to defend expense allocations to sponsors in audit scenarios) • $280,000 - $840,000 annually per team (assuming $2M-$6M in annual signing bonuses × excess deduction acceleration × 21% corporate tax rate; compounds with audit penalties at 20-40% of underpaid taxes plus interest at 8% annually) • $420,000 - $1,400,000 (audit penalties 20-40% of underpaid tax + 8% annual interest + professional audit defense costs $50K-$200K per examination)

CFO delegates to accounting coordinator who manually adjusts general ledger entries; paper contract files cross-referenced with tax filing notes; informal communication via email about bonus amounts • Compliance Officer coordinates with external tax counsel via phone/email; manually assembles files; no internal system tracks whether compliance protocols were followed at bonus execution • Compliance Officer maintains separate audit binders with handwritten notes; relies on Chief Counsel memo CCM 20133901F (cited manually); reconstructs amortization schedules during audit from QuickBooks exports and paper files