Since the NFL is now considered a for-profit corporation, what NFL revenue would be reported as income?
“what NFL revenue would be reported as income?”
You are just about to step into the graft side of it. Every “business” has earnings. Even organizations like the Salvation Army has worth and income. For instance, they own a $12M housing project in Tampa, Florida where their execs live free in $300T homes with a jacuzzi. Nation wide they own an estimated $75M real estate portfolio. Part church, part charity, part business.
The NFL is a business that takes in a percentage of the gate, TV revenues, paraphernalia sales, and pays employee office staff people and have modified personal services contracts with their players, coaches, and field staff. They have attorneys and doctors under retention, and in some cases like in Green Bay, they are part owners of the stadium.
Another team, the Oakland Raiders, last year brought in an estimated revenue of $321M with an operating income of $41M and players expenses at $194M. All covered by income. These numbers are just one team. You can imagine what 30 teams mean.
Now, as to why they never paid taxes before? In my mind they made a deal with the tax ruling people. And they are not alone as all sports get into this game. They generate a tremendous amount of revenue in their wake. Last year’s Super Bowl (played in Glendale but with Scottsdale and Phoenix hosting events) produced a gross economic impact of $719.4 million for the entire state, according to a study from Seidman Research Institute and the School of Business at Arizona State University. And according to Forbes, NFL owners are minting money thanks to hefty TV contracts and a favorable labor deal with the players. Operating profits (earnings, before interest, taxes, depreciation and amortization) were a record $101 million per team last season, with every team north of $40 million. The $3.2 billion in league-wide income is $500 million more than the combined earnings of teams in the NBA, NHL and MLB.
So when you look at the income they produce for their cities and the league, it would be a real stupid mistake for the government to try to mess with it. It is never discussed or investigated by the IRS. It kind of fell under the guise of it wasn’t broke.........
I have no idea how much taxable income they produce for themselves. Everything is an estimate, probably low. You guess is as good as mine.
rwood