Everyone knows that record-breaking baseballs are worth something, and most fans will go to any lengths to get their hands on one.Because, as Richard Sandmour wrote in a recent New York Times article, it's a "lottery-like prize coming at you." The only question, it would seem, is just how much the lottery prize is worth.
There are some interesting precedents on the subject, which Sandmour laid out. The biggest winner of all time would seem to be Phil Ozersky, who was lucky enough to retrieve and pocket $2.7 million for Mark McGwire's 70th home run ball, back at a time when Big Mac was still a hero.
Of course we all remember the bitter quarrel between Patrick Hayashi and Alex Popov, each of whom thought they could claim ownership to Barry Bonds' 73rd home run ball in 2001. In the end, the court ordered the pair to split the proceeds, which ended up totaling $450,000.
Half of that should just cover a year's worth of legal fees.
Going back a little further, Sal Durante collected $5,000 for Roger Maris's 61st home run ball, but that was in 1961. Five thousand dollars went a lot further, but people were also not yet fanatical about sports memorabilia.
Fast forward 46 years, and 21-year-old Matt Murphy is the one with the decision to make. A New York Mets fan who was in San Francisco on his way to Australia, Murphy found himself at the bottom of the pile in right-center field after Bonds' 756th.
Based upon his statements so far, it would seem that Murphy is going to auction off the baseball to the highest bidder, and he claims that he will be sharing 49% of the proceeds with a friend. Respectable, if you ask me.
Suppose for a minute, though, that it was you. You've got the ball in your possession, and offers for tickets, money, vacations, guest appearances on TV coming at you from every direction. What do you ask in return for the ball?
How much is enough?
Going back a little further, Sal Durante collected $5,000 for Roger Maris's 61st home run ball, but that was in 1961. Five thousand dollars went a lot further, but people were also not yet fanatical about sports memorabilia.
Fast forward 46 years, and 21-year-old Matt Murphy is the one with the decision to make. A New York Mets fan who was in San Francisco on his way to Australia, Murphy found himself at the bottom of the pile in right-center field after Bonds' 756th.
Based upon his statements so far, it would seem that Murphy is going to auction off the baseball to the highest bidder, and he claims that he will be sharing 49% of the proceeds with a friend. Respectable, if you ask me.
Suppose for a minute, though, that it was you. You've got the ball in your possession, and offers for tickets, money, vacations, guest appearances on TV coming at you from every direction. What do you ask in return for the ball?
How much is enough?
6 comments:
Allow me to summon my inner accountant...OK, here goes.
He would be stupid not to sell the ball, even if it's for under 500 grand. Even if he doesn't sell it, he will get taxed at the 35% tax rate, as the fair market value of the ball is income to him whether or not he sells it. It's like winning the showcase showdown on Price is Right...you get taxed even though you receive no money.
So, in order to make up for the $175,000 or so (based on a $500,000 value), you've got to sell it, unless you have that kind of cash to pay the government.
How ridiculous is it that he would have to pay taxes on catching a ball? Should I have to pay taxes on my baseball cards because they have some value?
Anyway, I would sell it post-haste. Who knows what will happen to Bonds in the coming months. Strike while it's hot.
I'd open it up to offers or put it in an auction with a sealed reserve bid.
I find it difficult to believe that one would have to pay for a ball that they caught at a game. Unlike the Price is Right, it is not a gift or something that can be bought in a store. Not calling you a liar Luke- just have never heard of this, and the absurdity of it is mind-blowing. If this is the case, yeah get rid of it. If not though, why not rest in your 15 minutes of fame. Make the circuit- hit the shows, do the interviews soak it in for a little while and then just enjoy the notoriety of being one of the few Americans who has not profited- in huge financial terms- from securing a piece of history such as this ball. I'd love to have 756 on my mantle and be able to pass it on to my kids someday. There's no story that could trump this! But unfortunately, we as a society have adopted the philosophy that my mother has when watching Antiques Roadshow- "SELL IT!!" :) Soon this sap will probably join the crowd in making a quick buck off of his good fortune, while bypassing a chance at owning a piece of history.
From what I've read and heard, the IRS will most likely go after him, and because of his notoriety there's little chance he'd fall through the cracks. And actually it is exactly like the Price is Right or even the Lottery...you received an item worth a significant amount of money as a prize. It's ridiculous, and there was a bunch of people upset about the same thing when Big Mac's 70th was caught. The only way I can think of arguing is saying it was a gift from Bonds...it's laughable, yes, but you don't pay taxes on gifts.
And as far as your baseball collection goes, zoner, if you bought them, you don't pay taxes on them unless you sell them. If you received them as a prize, then yeah, you technically are supposed to pay taxes. Of course, the IRS would have a tough time tracking down this sale.
Thanks Luke---good stuff!
Just give me lifetime season tickets to Shea Stadium and I'm a happy camper.
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