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Battle over NFL's Tax-Exempt Status Focuses Attention on Sports Crony Capitalism
Breitbart Sports ^ | 12/9/2013 | MICHAEL PATRICK LEAHY

Posted on 12/09/2013 2:50:58 AM PST by markomalley

The National Football League, which Forbes Magazine recently called "the most lucrative sports league in the world" has enjoyed federal tax-exempt status since 1966. In September, Senator Tom Coburn (R-OK) introduced the PRO Sports Act (S. 1524), which is designed to end the tax-exempt status of the NFL, along with several other sports leagues and organizations, including the NHL, the PGA, and the LPGA.

Despite a petition to Congress signed by over 300,000 fans requesting an end to the NFL's tax-exempt status and a recent pair of dueling op-eds between Senator Coburn and Jeremy Spector, an attorney with Covington and Burling and outside tax counsel to the NFL, that publicly debated the merits of the NFL's tax-exempt status, Coburn's legislation is going nowhere.

In a Senate filled with colleagues who eagerly rush to co-sponsor popular bills, Coburn has failed to find a single co-sponsor. On September 18, when Coburn introduced the bill in the Senate, it was read twice on the floor, as is the custom, and was sent to the Senate Finance Committee on the same day. Nothing has been heard of it since.

The reasons why the bill is going nowhere sheds light on the intricate connection between the major players in the sports world and our national problem of special-interest crony capitalism.

Though the 32 teams that comprise the NFL and several valuable league subsidiaries, such as NFL Ventures LLC, are for-profit tax paying organizations, the NFL League office itself is a not-for-profit organization. It is not an IRS Code Section 501 (c) (3) charitable non-profit, like the American Red Cross, but is instead an IRS Code Section 501 (c) (6) non-profit, which independent tax attorney Jeffrey Tenenbaum points out is "an organization whose primary purpose is to further the industry or profession it represents."

(Excerpt) Read more at breitbart.com ...


TOPICS: Business/Economy; Extended News; Government
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1 posted on 12/09/2013 2:50:58 AM PST by markomalley
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To: markomalley

BUMP


2 posted on 12/09/2013 3:01:46 AM PST by kitkat (STORM THE HEAVENS WITH PRAYERS FOR OUR COUNTRY.)
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To: markomalley

All the players, the refs, the coaches, the stadium workers, the TV announcers etc. must pay taxes. Why does the NFL Big Wigs think they should get special treatment?


3 posted on 12/09/2013 3:07:36 AM PST by Mad Dawgg (If you're going to deny my 1st Amendment rights then I must proceed to the 2nd one...)
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To: markomalley

Any industry that can shell out millions on salaries, per person, does not need subsidies.


4 posted on 12/09/2013 3:08:29 AM PST by Jonty30 (What Islam and secularism have in common is that they are both death cults)
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To: markomalley

Businesses don’t actually pay taxes.

Corporate taxes are just another way to get the consumer to pay more in taxes while keeping them fooled into believing that it’s the big bad corporations that are paying.

However, corporate taxes do hinder the ability to compete with products imported without tariff from other countries that have lower or no corporate tax.

It’s always the common folk that pay the taxes, always.
It has to be this way since almost all the money is held by the middle class. The great bulk of all taxes are paid by the middle class as increased prices of goods and services passed on to them to make up for the taxes levied on the wealthy and corporations....And the retirement funds of the middle class constitutes the biggest bonanza of real money in the world. (the dems cast greedy eyes upon this huge fortune)


5 posted on 12/09/2013 3:12:18 AM PST by Bobalu (White Boy Think A Lot)
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To: Jonty30

“Any industry that can shell out millions on salaries, per person, does not need subsidies.”

Well, I do agree with that. But, what do you say we continue to give the LPGA a little break? It appears to me that it is struggling financially. And, it’s pay-outs are not particularly large as compared to others. Besides, now that the LPGA leadership has finally wised up and has brought on a new generation of young cuties and has run off those old bull dykes I kinda enjoy watching. Now, the LPGA Needs to work on their Asians, especially the Koreans, and instruct them in how to dress attractively like women and not boys..... :)


6 posted on 12/09/2013 3:25:59 AM PST by snoringbear (E.oGovernment is the Pimp,)
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To: markomalley

So, they don’t pay taxes and on top of that the taxpayers build them stadiums to play in.


7 posted on 12/09/2013 3:35:45 AM PST by Vinnie
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To: Mad Dawgg
The NFL as an organization isn't actually a commercial enterprise. It probably doesn't generate any revenue on its own. All of the revenue from ticket sales, TV and merchandise licensing is reported by the individual teams, not the league itself.

Some of these articles can be misleading. It's not as if TV networks pay $X billion per year to broadcast NFL games and nobody pays any taxes on that income.

8 posted on 12/09/2013 4:05:44 AM PST by Alberta's Child ("I've never seen such a conclave of minstrels in my life.")
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To: Alberta's Child

The NFL? And then there is the National Basketball League, the National Baseball League, The National Soccor League, etc. etc., need I go on? Everyone wants a free ride. Its time to stop all the give aways. Professional sports contribute nothing directly to our gross national product and only sell entertainment. Next thing you know, the movie and TV folks will also want the same as the NFL is getting. FORGET IT!


9 posted on 12/09/2013 4:23:00 AM PST by DaveA37
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To: Vinnie
So, they don’t pay taxes and on top of that the taxpayers build them stadiums to play in.

And are protected from anti-trust litigation (try forming your own NFL franchise). The list goes on.

10 posted on 12/09/2013 4:26:16 AM PST by 1rudeboy
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To: Progov
You missed the point of my post.

The NFL does not generate any income from its operations. The 32 NFL teams do. That's why the 32 NFL teams pay taxes, while the NFL does not.

11 posted on 12/09/2013 4:34:37 AM PST by Alberta's Child ("I've never seen such a conclave of minstrels in my life.")
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To: 1rudeboy
I don't believe the NFL is protected from anti-trust litigation. They faced a lawsuit from the USFL back in the 1980s, and they lost.

It wasn't much of a loss, though. The jury awarded the USFL $1 in damages, which was tripled to $3 under Federal anti-trust law. In other words, the USFL proved to a jury that the NFL was violating Federal anti-trust law, but couldn't demonstrate that the NFL had actually caused the USFL any financial losses.

12 posted on 12/09/2013 4:37:05 AM PST by Alberta's Child ("I've never seen such a conclave of minstrels in my life.")
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To: Alberta's Child

Hmm . . . I’ll have to read up about it later. I may be incorrect. Thanks.


13 posted on 12/09/2013 4:40:24 AM PST by 1rudeboy
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To: markomalley

Since they have assumed a political stance by banning commercials from gun stores, they should loose their tax free status.


14 posted on 12/09/2013 4:50:08 AM PST by ZULU (Impeach that Bastard Barrack Hussein Obama the Doctor Mengele of Medical Care)
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To: markomalley

The NFL is tax exempt? That’s ridiculous - they can and should pay taxes. Mucho taxes in fact. Beaucoup bucks.

I like football, but it is certainly a profit making venture.


15 posted on 12/09/2013 5:08:37 AM PST by jocon307
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To: ZULU

yep-

was wondering why the NFL was supporting O’bummer care-
pressuring the Redskins on a name change-
DOING COMMERCIALS FOR the O’Bummers- touting health Care-
And anything the First Wookie is promoting!

Just a little pay back for O’bummer

THE NFL should be taxed big time


16 posted on 12/09/2013 5:24:06 AM PST by mj1234
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To: Jonty30

To take it a step further, any industry that needs a subsidy should simply cease to exist.


17 posted on 12/09/2013 5:29:46 AM PST by Tea Party Terrorist (Why work for a living when you can vote for a living?)
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To: Alberta's Child

The NFL Commissioner makes $10 million per year, so they at least generate, somehow, $10 million in revenue.


18 posted on 12/09/2013 5:31:31 AM PST by Tea Party Terrorist (Why work for a living when you can vote for a living?)
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To: markomalley

Tax them.

The Fedgov and citygov keep looking for ways to tax the property of Churches. Let them tax the NFL


19 posted on 12/09/2013 5:37:34 AM PST by redgolum ("God is dead" -- Nietzsche. "Nietzsche is dead" -- God.)
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To: markomalley

They all need to pay taxes. I’m surprised the tax-loving Democrats are not lining up to co-sponsor this bill?


20 posted on 12/09/2013 6:06:17 AM PST by rawhide
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