Fans reading the latest from NBC News Business might claim they’ve been clipped — by the National Football League (NFL). How’s that? It seems that the NFL has been a nonprofit since the 1940s.
Excuse me, but isn’t the NFL one of the richest franchise holding entities in U.S. business today? Aren’t most of the teams owned by billionaires?
The NFL’s tax attorney, Jeremy Spector says the league office, according to U.S. tax code, is a nonprofit trade association, promoting football and serving as an agent and organizer for the 32 clubs. He failed to mention that this tax exempt “trade association” has its headquarters in Manhattan.
This is an outrage to Vikings’ fans and cheese heads alike! U.S. Sen. Tom Coburn R-Okla., agrees. He has sponsored a bill to revoke the tax exemption. What’s his contention? He says working folks are subsidizing a tax break for a sports owner.
“The NFL does not claim to be a charity, and the $9 billion in annual revenue earned through network-TV contracts, jersey sales, ticket proceeds and other sources gets funneled to the 32 teams where all of that money is subject to taxation,” said NFL attorney Spector.
The only tax-exempt slice of that football empire is the league office, which qualifies as a 501(c)6 trade association.
Do other professional sports teams have nonprofit status?
Yes, the U.S. Tennis Association and the National Hockey Association have tax exempt status.
The National Basketball Association has never had nonprofit status and Major League Baseball gave up its tax exemption for its league office in 2007.
Meanwhile, Joe Sixpack fans continue to subsidize new stadiums for billionaire owners.
Is there anyone out there against a total revision of the U.S. tax code? I didn’t think so.