Posted on 04/28/2015 1:58:13 PM PDT by Citizen Zed
NEW YORK (CNNMoney) — The National Football League is giving up its not-for-profit tax status.
“The income generated by football has always been earned by the 32 clubs and taxable there,” said a statement from Robert McNair, chairman of the league finance committee and owner of the Houston Texans. “This is the case whether the league office is tax exempt or taxable. The owners have decided to eliminate the distraction associated with misunderstanding of the league office’s status, so the league office will in the future file returns as a taxable entity.”
An estimate from the Citizens for Tax Justice found the league saved only about $10 million a year from the tax break, which is rounding error for an enterprise the size of the NFL, which pulls in more than $1 billion in profits.
But the controversial tax break also required the league to disclose the salary of its commissioner and other top league executives. Roger Goodell received $35 million for the most recently disclosed year, a fact that was known only due to the tax status.
Bout damned time, for too long have cities and local governments bent over and took it for the “economic opportunities” that supposed would come if we the taxpayer footed the bill for some new “bread and circuses” stadium to be build mostly using our hard earned dough.
Now let’s see if the unions will do the same.
Roger Goodell is responsible for that. He is the guy who was responsible for rolling local politicians for stadiums before he became Commissioner. The way I read this, he’s a bit sensitive about the rest of us knowing what his W2 is each year.
Mixing the apples of the taxes to be paid (maybe) by the league office with the profits of the individual teams. I bet the accountants will be even more careful in the future to make sure that the league profits and taxes are closer to zero. Reduce the fees charged to each team to run the league office and run more of the money from networks, advertisers and merchandisers directly to the teams so 32 checks are written instead of one to the NFL for distribution to the teams.
Many “non-profits” and foundations are engaged in profit making activities or earning income on investments and should be taxed on income. Consider the NCAA, Ford Foundation, Rockefeller Foundation, Clinton Foundation, Nature Conservancy. Others are political action groups using income from investments and activities to influence politicians - NRA, Sierra Club, NEA, Urban League, La Raza, and Planned Parenthood. I see Goodwill, Salvation Army and Habitat for Humanity stores popping up around the country, competing directly with for profit retailers who are taxed. Colleges and universities generating income and profit on licensing activities, retail activities, sports, investments on endowment funds. Even some religious organizations earn significant income on investments in securities, sales of merchandise, and ownership of property.
Perhaps it is time to rethink the concept of non-profit. Require non-profits to report and pay taxes on income generated from investment funds, rentals, sale of merchandise and services, license fees, and other income generated from activities on which private sector “for profit” organizations pay taxes.
For example, why should the Ford Foundation be given an exemption on its investment and property income when a citizen pays taxes on investment and rental income as does a profit making company. To exempt the Ford Foundation from taxation of its income is to effectively subsidize its activities at taxpayer expense. Note I’m not talking about taxing donations of individuals to a foundation, I’m talking about taxing the foundation’s income.
With respect to religious institutions perhaps we should consider exempting only local church congregations and church buildings from taxes. This is the location at which the constitutionally protected freedom of religion occurs. The regional and national religious organizations are administrative organizations, not centers for individuals to exercise their religious beliefs. The profit making activities of the national and regional offices of religious organizations should be taxed.
Twice!
This change in tax status will not change cities bending over and taking it.
This won’t change any of that
How much is GE and GM etc paying in taxes?
I agree.
One repercussion - the price of your tickets are going up, another one maybe the NFL doesn’t have to bribe as many politicians to keep their tax-exempt status.
I love watching at home :) brother took me to game when I was 10. it was freezing!!!!! he told me to be a man!! I thought to myself this is the last game I will see a million yards away in the stands when I could be home warm eating a hero :)
One of those pathetically misunderstood things that generated a lot of misplaced vigor. Only the league office was tax exempt, the teams pay plenty of taxes. And even without the exemption the league office STILL won’t be paying any taxes because the league office doesn’t make any money to pay taxes on.
Nothing. Ignorant people who don’t understand the situation no longer get to grind this ax, and Goodell’s (and everybody else in the office) salary now can be kept secret.
Same here - not only is it more comfortable in front of a wide screen TV at home but you get to see more up close action plus instant replays.
Oh, another repercussion, companies will have to pay more to get their ads shown and/or we watching at home have to put up with more ads.
Not really. All you need to understand is that the league office is a trade association, it gets money from the members of the trade, money it then uses to increase their revenue. But it doesn’t make any money itself. People hear “the NFL is tax exempt” and think that means the league as a whole pays no taxes, but it’s JUST the office that manages the league that’s exempt. All the revenue comes to the teams (often via deal MADE by the league) and they pay plenty of taxes. It’s really pretty simple, but slightly more complicated than the average outrage junky likes to bother with.
I decided I had attended my last NFL game when we bought a new TV last year. If I need to go to JerryWorld for my football fix, I can wait for the Texas state HS playoffs, when I can buy an all day ticket for 12 bucks.
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