A bill to amend the Tax Reform Act of 1976.

Amends the Internal Revenue Code to render the basis rule for player contracts transferred in connection with the sale of a sports franchise inapplicable to the sale or exchange of a sports franchise after December 31, 1975, and before March 1, 1977, if the principal stockholder of such franchise at the time of its sale had purchased more than 50 percent of its voting stock prior to December 31, 1975.