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.
12 bucks!!! cant go wrong.
Living in DFW is awesome...best place in the world for HS football. The Metroplex will usually have 10-12 teams in the mythical Top 100 nationwide. Add in the bands, the drill teams, etc. it's fantastic.
What do you mean "your", Kemosabe. I haven't purchased an NFL ticket in 8 years and have no plans to do so in the future.
Taxes are too high and government is irresponsibly wasteful in spending -— all to enhance its own power -— still I find it incredible that the NFL hasn’t paid taxes, and that major league sports teams get the communities to build their stadia on tax dollars.
In this case, virtually none.
The headline misrepresents the true situation. And the text doesn't make the true situation all that clear.
The true situation is this:
1. The income for the 32 individual NFL clubs is fully taxable.
2. The income for the NFL head office, a separate corporation styled as a non-profit, was not -- as it was funded by post-tax contributions from the 32 individual clubs.
3. Now, however the NFL office has been re-styled as a for-profit corporation and the contributions from the individual clubs will become taxable at that level (but deductible expenses for the individual clubs).
The actua impact on taxes paid appears to be negligible.
Wow. Thanks. So actually the teams will get to deduct things they couldn’t before. That’s good for the teams, right?
But, relatively speaking, we're talking pennies.
Sorry Lone Ranger.
The NFL is dropping its tax-exempt status. Why that ends up helping them out.
Hey now, don't be bringing facts and logic into this!
It's issues like this that really show how even posters on Free Republic (you know, the conservative, free market website) have simplistic, faux-populist - dare I say, "left wing" - economic outlooks.
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