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Kansas City Zephyrs Case

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For the Kansas City Zephyrs, answer and submit these two questions for each item in dispute: Who's correct and why?
Roster Depreciation
The owners. From 1977 to 2004, sports team owners were allowed to treat 50 percent of the team purchase price as an asset depreciable over no more than 5 years.
Deferred portion (20%) of compensation
The owners. It is an accrued expense, The Company may owe its own players’ salaries and wages for work performed, but not yet paid. Even though they are to be paid at some future date, they are indicated on the firm's balance sheet from when the firm can reasonably expect their payment, until the time they are paid.
Singing bonus
The players. Signing bonuses have to be capitalized and amortized over the lives of the contracts. This is because players are signed to play for the team to provide benefits over the lives of their contracts.
Non-roster guaranteed payment
The players. Payments to the non-roster guaranteed contracts should be expensed when they are paid. A provision has to be set up. A reliable estimate has to be made of the amount of the obligation based on the past history on probability of players getting injured and not being picked by another team.
Stadium rent
The owners. The stadium pricing agreement would have to go through a market valuation to see if it provided transparency and accuracy. As related party transactions cannot be presumed to be carried out on an arm's-length basis unless such representations can be substantiated. If the stadium pricing agreement however is based on arm lengths principle and valued at market price, then the players cannot reduce the amount charged. Also there would have to be a required additional disclosure by the two stadium owners because it is a related party

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