Basket Purchase of Sports Franchise Paul Allen, co-founder of Microsoft, purchased the Seattle Seahawks, an NFL football team. Assume a total purchase price of $300 million. The largest assets are the franchise and the player con- tracts. Assume that for reporting to the IRS, the franchise has an indefinite useful life whereas the contracts have a 5-year useful life. Other assets are relatively minor. Suppose the seller shows the fol- lowing book values of the assets ($ in millions): Player contracts Franchise Total book value $30 50 $80 As Allen, if you have complete discretion for tax purposes, how much of the $300 million price would you allocate to the player contracts? Explain.