Why Does the National Football League Deserve Tax-Exempt Status ? (1 Viewer)

[_W_]

You may not know it, but the National Football League is a nonprofit organization. It may seem absurd that a collection of teams that generated at least $9 billion in revenue last season would be given tax-exempt status, but the NFL is technically classified as a 501(c)6 organization.

Brian Frederick: Why Does the National Football League Deserve Tax-Exempt Status?

 

[WhoDat!5]

Brian Frederick: Why Does the National Football League Deserve Tax-Exempt Status?

The individual organizations are taxed

 

[billinms]

The last sentence sums the whole thing up.

The NFL may technically be a non-profit, but it sure as hell isn't acting in the public interest.

 

[workhorse]

Easy answer. Football is a religion in this country.

 

[Saint_Ward]

The profits would be considered double taxation, since the clubs are taxed.

However, any money that NFL generates that isn't going to the clubs probably should be taxed.

Question.. is the NFLPA taxed? Granted, they are a union, so that's different, right?

 

[lades]

Easy answer: lobbying.

 

[Merl]

The profits would be considered double taxation, since the clubs are taxed.

However, any money that NFL generates that isn't going to the clubs probably should be taxed.

Question.. is the NFLPA taxed? Granted, they are a union, so that's different, right?

Any money that doesn't go to the clubs is spent on league operating expenses. Thus no tax

 

[billinms]

Why don't the NBA, MLB, or the NHL enjoy the same status?

 

[Nutria]

Since when are Emperors taxed?

 

[Lurkaholic]

Why don't the NBA, MLB, or the NHL enjoy the same status?

The NFL has maintained (except when it's convenient for them) that it is 32 individual businesses operating in a consortium rather than one large company. That's why the individual teams are taxed. Are the other leagues set up that way, or do they use the more sensical approach of operating as one organization? (serious question; I don't know the answer)

 

[2009ring]

Any money that doesn't go to the clubs is spent on league operating expenses. Thus no tax

Which is why the Almighty makes $30 million a year. Really easy way to dispose of "extra" money.

 

[rstrauss33]

Right but earnings generated going towards Goodell's salary are not taxed? Seems a bit like if McDonald's franchises paid taxes but the parent company didn't and paid all revenue to corporate management. Seems like a subsidy to owners.

 

[Lurkaholic]

Right but earnings generated going towards Goodell's salary are not taxed? Seems a bit like if McDonald's franchises paid taxes but the parent company didn't and paid all revenue to corporate management. Seems like a subsidy to owners.

I do not enjoy defending the NFL in this matter (or any matter) at all, but you do realize that all nonprofits have executive staff and that staff gets paid a salary for doing its work, right?

Nonprofit doesn't mean nonsalary. It means that you cannot take excess money (profit) out of the business for personal gain or distribute it to shareholders etc.etc.etc...

 

[Nutria]

I do not enjoy defending the NFL in this matter (or any matter) at all, but you do realize that all nonprofits have executive staff and that staff gets paid a salary for doing its work, right?

Nonprofit doesn't mean nonsalary. It means that you cannot take excess money (profit) out of the business for personal gain or distribute it to shareholders etc.etc.etc...

Good point. As an example, CEOs of non-profit hospitals often make embarrassingly large salaries.

 

[Lurkaholic]

Good point. As an example, CEOs of non-profit hospitals often make embarrassingly large salaries.

At least that's a legit money-for-service business. What about pastors that drive Bentleys.

 

[rstrauss33]

Good point. As an example, CEOs of non-profit hospitals often make embarrassingly large salaries.

True as do universities, but the NFL is clearly a for profit business, with a sweetheart tax structure that any major corporation would love to have. In general, non profit just means there are no shareholders to whom profits are distributed. But as you say top staff can still get paid well. We can debate whether non profits at all should enjoy this status but I can't think of why the NFL especially deserves the break. If NFL revenue not distributed to the teams were taxed the teams and players would make a bit less they're still be very profitable and I doubt it would have an impact on the quality of play.