Posted on Aug 30, 2015
Did you know the NFL has been a "nonprofit" business since 1966 under a 501(c)(6) filing?
11.1K
25
15
8
8
0
I was surprised to learn the NFL has been a tax exempt organization since 1966. It filed under 501(c)(6) using the clause that it is an "exclusive club". The NFL is not alone in it's claim to be a nonprofit organization under this clause,"These organizations are taking advantage of the provision of the tax code that allows industry and trade groups, such as the U.S. Chamber of Commerce or the Natural Resources Defense Council, to qualify as non-profit and tax-exempt. None of these groups can promote a specific brand within an industry but each may promote an industry as a whole." The NFL has lived every taxpayer's dream using its tax exempt status to avoid paying taxes due to, 'Hotels and restaurants [did not tax] National Football League employees.
The NFL [used] its tax-exempt status as a 501(c)(6) to avoid paying taxes, in addition to fuel, auto rental and admissions taxes.'" This year they are changing their method of operation stating they will file taxes in 2015 because of concerns arising regarding their tax status. Senator Tom Coborn of Oklahoma has challenged their tax exempt status and rallies against this type of tax exemption. Remember this when votes are being made about raising your taxes and ask, "Why were these groups being allowed to avoid paying tens of thousands of dollars in taxes?" http://www.wsj.com/articles/nfl-to-end-tax-exempt-status [login to see]
Posted >1 y ago
Responses: 8
CPT (Join to see) This is actually misleading (the article, captain, not you), because all profit the NFL makes is distributed to the teams, and they DO pay taxes. This is just another case of someone sensationalizing a non-issue for clicks and reads. (Again, them, not you!!)
(4)
(0)
SN Greg Wright
CPT (Join to see) - And from your own article:
"As you [the owners] know, the effects of the tax exempt status of the league office have been mischaracterized repeatedly in recent years. The fact is that the business of the NFL has never been tax exempt. Every dollar of income generated through television rights fees, licensing agreements, sponsorships, ticket sales, and other means is earned by the 32 clubs and is taxable there. "
"As you [the owners] know, the effects of the tax exempt status of the league office have been mischaracterized repeatedly in recent years. The fact is that the business of the NFL has never been tax exempt. Every dollar of income generated through television rights fees, licensing agreements, sponsorships, ticket sales, and other means is earned by the 32 clubs and is taxable there. "
(0)
(0)
LTC John Shaw
SN Greg Wright CPT (Join to see)
I agree with SN Wright, the 32 individual clubs pay taxes on income, see at the tail end of CPT M link:
"As you [the owners] know, the effects of the tax exempt status of the league office have been mischaracterized repeatedly in recent years. The fact is that the business of the NFL has never been tax exempt. Every dollar of income generated through television rights fees, licensing agreements, sponsorships, ticket sales, and other means is earned by the 32 clubs and is taxable there. This will remain the case even when the league office and Management Council file returns as taxable entities, and the change in filing status will make no material difference to our business. As a result, the Committees decided to eliminate this distraction."
I agree with SN Wright, the 32 individual clubs pay taxes on income, see at the tail end of CPT M link:
"As you [the owners] know, the effects of the tax exempt status of the league office have been mischaracterized repeatedly in recent years. The fact is that the business of the NFL has never been tax exempt. Every dollar of income generated through television rights fees, licensing agreements, sponsorships, ticket sales, and other means is earned by the 32 clubs and is taxable there. This will remain the case even when the league office and Management Council file returns as taxable entities, and the change in filing status will make no material difference to our business. As a result, the Committees decided to eliminate this distraction."
(1)
(0)
CPT (Join to see)
SN Greg Wright $10 million may not be a lot to them but it's a lot more than I"m paying in taxes.
(0)
(0)
SN Greg Wright
CPT (Join to see) - Of course. My point is, it's just pundits trying to get attention. I think the far greater issue is why we let tax dollars pay for stadiums.
(3)
(0)
The league itself being a Non-Profit is a bit of a red herring. The money from the league is distributed to the teams. By doing so the league can shore up the less well funded teams and, to some extent, keep the league competitive. It's a great lesson in socialism.
(1)
(0)
I did not know this, or that it was even possible... Now if we could get someone to do something about those oil subsidies... ;)
(1)
(0)
Read This Next