TAX NEWS - JUNE 2010

Tax Lawyers

It's a stereotype, we know. But we tend to think of tax lawyers as some of the nerdiest and smartest the BigLaw world has to offer. We think of tax lawyers as brainiac puzzle-solvers, compensated (well) not to schmooze clients or give dazzling courtroom closings, but to sit in their offices, alone or in small clusters, geeking out over the beast that is the tax code.

Andrew Friedman, a tax-attorney at Covington & Burling for years and years, certainly breaks that mold.

Once upon a time, Friedman handled tax issues for the four major sports leagues: baseball, football, basketball and hockey. As Thomas Heath reports in this Washington Post article out Monday, while at Covington:

Friedman had a good gig. He was the go-to tax lawyer for the sports industry. He had access to the best sports tickets. Attended all-star games, playoff games and Super Bowls. Schmoozed with league commissioners, players, coaches and team owners. To top it off, partners at Covington bring in more than $1 million a year.

But this seemingly good life wasn't enough for Friedman. Two years ago, as Heath writes, "Friedman decided to go out on his own. He quit Covington (on good terms, he insists) after 28 years and reinvented himself."

And what does Friedman do now? He gives speeches for up to $12,000 a day "to investors and financial firms on how Washington's laws and regulations affect their investments." According to Heath's calculation, Friedman's 200 speeches in 2009 netted him close to $2 million.

Tax lawyers aren't known as huge risk-takers. And Friedman isn't necessarily an exception. He was already doing quite a bit of speaking while at Covington; after he left, he just stepped it up.