The test cases were Riddell (a NRL player) and Spriggs (an AFL player) v FCT.
The decision by single judge is contrary to Australian Taxation Office opinion contained in Taxation Ruling TR2000/5.
The player management fees were for negotiation of a contract of employment, was not incurred too soon because the liability to pay only arose after the players received payments under their employment contracts, and were for advising and representing the player in matters concerning the players sporting talent and therefore not capital, and the players had a viable business framework.
First quarter to the taxpayer. Unfortunately, the ATO will not change its application of the law until the final siren sounds.