You aren’t going to like this one: the general answer is “no.”
Many business owners and professionals use sports tickets to build relationships with clients. Whether it's a single game or a luxury suite, there are some nuanced ways to get some small tax benefits, but you may find your money better spent elsewhere.
The IRS views tickets differently depending on how they are used—whether as a client gift, an entertainment expense, or part of a promotional event. Here’s a breakdown of three common scenarios and how they affect your tax deduction.
1. Giving Tickets as a Client Gift
If you simply purchase two or four tickets and give them to a client to use at their discretion, the IRS classifies this as a business gift. Business gifts are subject to a strict $25 per recipient per year deduction limit under IRC §274(b). That means if you spend $1,000 on premium seats, you can only deduct the first $25—not very economical unless you send them to the local junior hockey team at $8 per ticket.
2. Attending the Game with the Client to Close a Deal
Let’s stretch this scenario as far as we can: Say you attend a game with the client and use the opportunity to discuss business—especially to negotiate or close a deal—you might assume the tickets qualify as a deductible business expense. However, under the Tax Cuts and Jobs Act (TCJA), most entertainment expenses are non-deductible, even if business discussions take place.
Before TCJA, businesses could deduct 50% of entertainment expenses if they were directly related to business discussions. But under current law, simply talking business during the game does not override the IRS classification of tickets as a non-deductible entertainment expense.
That said, you may be able to deduct related expenses—such as food and beverages—if they are separately itemized on an invoice and meet the ordinary and necessary business expense standard under IRC §162. If the game is a key setting for advancing a business deal, it's a good idea to document the nature of the discussions, who attended, and how it directly related to your business objectives. While the tickets themselves won’t be deductible, keeping records can help support deductions for related expenses.
3. Renting a Suite and Promoting Your Business
If a company that purchases a suite and uses it to openly promote its business, such as displaying signage, distributing marketing materials, or hosting a business presentation, they may be able to classify some of the expense as a marketing or advertising expense instead of entertainment.
To maximize deductibility, businesses should:
Clearly document the promotional nature of the event.
Have employees actively engaging with clients about business.
Provide branded materials and signage in the suite.
Demonstrate that the primary purpose of the event was business promotion, not entertainment.
If structured correctly, a portion of the cost—especially branding and promotional expenses—may be deductible as advertising under IRC §162. However, the ticket cost itself is still at risk of being deemed entertainment and disallowed.
Best Practices for Deductibility
Avoid giving tickets outright as gifts due to the $25 limitation.
Keep detailed records of business discussions if you attend the event.
When using a suite, emphasize the promotional aspects and document business activities. Still, depending on how the suite is priced, the tickets themselves aren’t likely deductible.
Work with a tax professional to determine the best way to structure these expenses for maximum deductibility.
Unfortunately, sports tickets are not treated favorably in the tax code right now. Maybe this will change with the new Trump tax act in 2025.
