NFL is tax exempt

Churches, too, and they rake in billions.

I am not agreeing with it, but they would classify themselves similar to a chamber of commerce.

Section 501(c)(6) essentially exempts from taxation, "an organization whose primary purpose is to further the industry or profession it represents."

http://espn.go.com/nfl/story/_/id/9342479/examining-nfl-tax-exempt-status-challenged-us-senator-tom-coburn

Except that the NFL doesn't represent an industry - it IS the industry.

The TV money goes to the teams and they pay taxes.

The money the NFL distributes to the 32 teams is taxed, as the teams are for profit corporations.

It represents the franchises/owners. Again, not defending it. It's just a legal fiction allowed under the tax code.

If you read the story, when NFL executives check into hotels or buy stuff they claim exemptions from sales taxes, hotel taxes, etc. What a joke!

Of course NFL teams are masters of leaching off of the taxpayers for stadiums that they could pay for themselves. It's just more rent seeking by rich guys who pay lip service to free enterprise and capitalism buy are really just trying to pick up corporate socialism.

Too many concussions wrote:

Of course NFL teams are masters of leaching off of the taxpayers for stadiums that they could pay for themselves. It's just more rent seeking by rich guys who pay lip service to free enterprise and capitalism buy are really just trying to pick up corporate socialism.

Not all stadiums are taxpayer supported. If you don't like your taxes supporting your team, speak up and stop it just like others have done.

The NBA and MLB are taxed.

Why not the NFL?

Willow Wisp wrote:

The NBA and MLB are taxed.

Why not the NFL?

Through the magic of registering as a 501(c)(6) corporation and favorable federal legislation.

The NHL and PGA are non-profits.

I could be wrong, but as I understand it, the "NFL" is just an organization that acts on behalf of its 32 for-profit teams to negotiate the collective bargaining agreement with the players and refs, negotiate tv deals, administrate over rules changes, levy fines, protect its copyrights, distribute shared profits, etc... So the 32 for-profit teams each are subject to federal corporate taxes, and of course all employees of each of the individual teams as well as all NFL executives are subject to federal income taxes.

So what we're talking about here is the retained earnings of the "NFL", which is the corporate entity that employs the commissioner and the various employees who support the activities of the commissioner, not being subject to federal corporate income taxes. I'm having a hard time viewing this as a massive tax avoidance scheme.

cotton sweatpants no underwear wrote:

I could be wrong, but as I understand it, the "NFL" is just an organization that acts on behalf of its 32 for-profit teams to negotiate the collective bargaining agreement with the players and refs, negotiate tv deals, administrate over rules changes, levy fines, protect its copyrights, distribute shared profits, etc... So the 32 for-profit teams each are subject to federal corporate taxes, and of course all employees of each of the individual teams as well as all NFL executives are subject to federal income taxes.

So what we're talking about here is the retained earnings of the "NFL", which is the corporate entity that employs the commissioner and the various employees who support the activities of the commissioner, not being subject to federal corporate income taxes. I'm having a hard time viewing this as a massive tax avoidance scheme.

I believe the NFL --separate from its teams -- makes a ton of dough. What kind of non-profit pays its top exec $30 million per year? Plus the NBA and MLB are for profits that pay taxes.

I'm having a hard time NOT viewing this as a massive tax avoidance scheme.

From the linked article:

"[T]he NFL may have lived every taxpayer's dream at this year's Super Bowl in Indianapolis. According to the Indianapolis Business Journal, '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.'"

I don't think that's how non-profit status should work. If that's legal, the law should be changed.

Willow Wisp wrote:

I believe the NFL --separate from its teams -- makes a ton of dough. What kind of non-profit pays its top exec $30 million per year? Plus the NBA and MLB are for profits that pay taxes.

I'm having a hard time NOT viewing this as a massive tax avoidance scheme.

quickly summarized by the last paragraph of the article:

The problem is that people are confusing the business entity of the NFL with the massive business entity we think of as “the NFL.” The latter makes an enormous amount of money; it just accrues to the 32 member teams and their owners, not the League.

cotton sweatpants no underwear wrote:

Willow Wisp wrote:

I believe the NFL --separate from its teams -- makes a ton of dough. What kind of non-profit pays its top exec $30 million per year? Plus the NBA and MLB are for profits that pay taxes.

I'm having a hard time NOT viewing this as a massive tax avoidance scheme.

http://www.outsidethebeltway.com/nfl-tax-exempt-status-means-they-pay-more-taxes/

quickly summarized by the last paragraph of the article:

The problem is that people are confusing the business entity of the NFL with the massive business entity we think of as “the NFL.” The latter makes an enormous amount of money; it just accrues to the 32 member teams and their owners, not the League.

You are asserting that all the money the NFL makes goes to the teams. That does not seem to be the case. Goodell is paid $30 million per year by the NFL. The NBA and MLB pay taxes as for profits. Given those facts, I think we can surmise that the NFL makes a lot of money that it does not give to the teams. Plus, if it was giving all the money to the teams, it would have no income and be a for profit and pay no tax. Too many holes in your assertion

As a Browns fan, I feel I am contributing to a charity case every time I go to one of their games. Even more so now that they flushed their season down the toilet to play next year's draft QB derby.

cotton sweatpants no underwear wrote:

[quickly summarized by the last paragraph of the article:

The problem is that people are confusing the business entity of the NFL with the massive business entity we think of as “the NFL.” The latter makes an enormous amount of money; it just accrues to the 32 member teams and their owners, not the League.

I read that whole article.

You can be sure:

(1) The NFL is engaged in some real creative accounting practices as it shows they lose money every year; and

(2) The article claims the NFL would be owed money rather than owe taxes if it were for profit. If this were the case, the NFL would be for profit. Believe that

[quote]not bernie kosar wrote:

As a Browns fan, I feel I am contributing to a charity case every time I go to one of their games.

I suspect all of us are paying for our local NFL team whether we want to or not. Tax breaks, tax-payer paid for stadiums and roads, cable bills that are higher than they would be -- whether you order special packages or not.