HR Slugger is a professional baseball player in a Major League Baseball league. He is a well-known player and is very popular throughout the league, but especially with the local fans. Much of his population is based on his hitting ability, specifically regarding home runs. The issue emerges from the following facts, similar to an actual situation you may have heard of.

After days of intense anticipation by sports fans and winters throughout the league, Slugger hits a home run that brakes the record for total home runs during a regular season. The record broken had been in place for 45 years. This is a major event in MLB.

The homerun ball was hit out of the ball park. It was actually caught outside the playing field by a 14-year-old girl who is, along with her parents, a big fan of HR Slugger and the team.

League policy is that in such a situation, the ball belongs to the person that obtains the ball.

Given the circumstances (a long-term home run record broken), the subject ball is immediately very valuable. Estimated value could be $5000,000-$1,000,000, possibly more.

The girl and her parents are very proud of the catch and plan to add the ball their sports memorabilia to be treasured for years to come. As it happens, the parents are clients of yours, and they come to you for advice.

Issue: Does the event described result in any kind of tax issue?

What is your advice to them?

Include factual/legal analysis, including authority for a conclusion.