nfl-tax-exempt

You may not know it, but the National Football League is a nonprofit organization. It may seem absurd that a collection of teams that generated at least $9 billion in revenue last season would be given tax-exempt status, but the NFL is technically classified as a 501(c)6 organization. It’s obviously notable that only professional football leagues are included here, as opposed to all sporting leagues. The exemption for football stems from lobbying efforts by Pete Rozelle in the 1960s to earn an antitrust exemption for the merger of the NFL and AFL. The antitrust and tax exemptions were cleverly attached to an uncontroversial 1966 bill to “suspend the investment credit and the allowance of accelerated depreciation in the case of certain real property.” The NFL-AFL merger language was included at the end of the bill that had nothing else to do with football.

It seems inconceivable that the NFL is not “engag[ing] in a regular business of a kind ordinarily carried on for profit.” How are their efforts to maximize profits any different than those of Major League Baseball, the National Basketball Association or the National Hockey League? As far as the NFL’s “net earnings,” the nonprofit was actually in the red in 2009, according to its latest available return. Virtually all of the leagues $192.3 million in revenue in 2009 came from “membership dues & assessment.” While the NFL doesn’t explain how much each clubs pays in dues, it averages to about $6 million per team. NFL owners don’t have to pay taxes on those dues, as they are considered donations to a nonprofit.

At least make them build their own stadiums, not the taxpayer. Of course this is never going to happen, but I can still bitch about it.



  1. super77 says:

    One could argue that football is a religion to some.

    • McCullough says:

      Yeah, tax them too.

      • Dipstick says:

        +1 BILLION!

      • jpfitz says:

        Tax the institutions and jail members of the pedo club with thousands of parishes to be moved to when clergy becomes under suspicion of sexual abuse.

        “Magdalene laundries

        Ireland’s Magdalene laundries scandal was singled out by the report as an example of how the Vatican had failed to provide justice despite “slavery-like” conditions, including degrading treatment, violence and sexual abuse.”

        “The laundries were Catholic-run workhouses where some 10,000 women and girls were required to do unpaid manual labour between 1922 and 1996.”

        http://stopabusecampaign.com/feature/un-slams-vatican

  2. dusanmal says:

    If this doesn’t convince you that one and only way to deal with tax avoidance is a simple, tax all and everything at the same rate without any possible exemptions, loophole, rebates, prebates,… taxation system – well you should pay for this corruption.
    No income tax, punishing productivity; no wealth tax, punishing prosperity – tax every purchase by anyone of anything (be it yacht, bread or a stadium) at the same, unchangeable, Constitutionally enshrined rate (an in the same amendment have limit on Governmental spending to that what they take in). I even have a number: 18%. From how much taxation a free market economy can carry as a load without collapsing. Tax spending, consumerism. Ensure that every voting person has a proportional skin in the game.

    • Dipstick says:

      You’ve already bought into the big huge lie when you even imply that you agree the government should be imposing the taxes that it does — in a so called FREE SOCIETY! (Most American’s scream about freedom but sadly haven’t even got a clue as to what their OWN freedom means.)

      Sure! Property and sales taxes might be imposed, but that’s it!!! Anything else like an income tax is still illegal! That is, until you get into that whole 16th Amendment crap.

      You should know that the 16th Amendment, which allows Congress to levy an income tax, is technically illegal when you look at the Bill of Rights and realize that most of your income is really based on labor. Yet, this illegal Amendment was passed by ANOTHER corrupted Congress and signed by ANOTHER dumb ass Democrat (Wilson) in that most fateful year, 1913. The same year that centralized banking was born with entities like the Federal Reserve and when we all started to get taxed more.

      But hey! Traditions are hard things to stop. And as long as no one’s bitching and as long as no one cares to read any history, we’re all doomed to repeat the same mistakes.

      It’s all good when you submit to being some kind of democratic “free” SLAVE! Just ask foolish idiots like Bobbo who agree with bigger (more corrupt) government.

      … BTW, Even Woodrow Wilson later regretted what he did — which was to allow “big money” to take over.

      • jpfitz says:

        That’s my contention, labor is not taxable income, but try fighting the system. I believe one man did win his case against the federal government.

        Jekyll Island was the beginning of the scam perpetrated by the banking cartel to create yet another central private bank with fiat money.

        The rich get wealthy as the taxpayers build great stadiums with banking cartel names emblazoned inside and out. Sickening.

  3. Beno3000 says:

    The NFL distributes the 9 billion it collects back to the teams.
    The owners then pay the taxes on their revenue.

    The NHL is under the same legal status as far as being a 501c 6 non-profit

    Looking at their 2012 990 form the NFL Roger Goodell made $29 million!!! That that to me is the bigger issue.

    What the heck did he deserve to garner that?

    Getting paid something like 15% of total revenue of an organization seems absurd.

    Meanwhile their 990 shows them in the red.
    Go figure.

  4. MikeN says:

    So the teams are taxed, only the umbrella organization is tax free.

    Bigger focus should be on stopping the stadium building. Maybe cut HUD funding for cities that build the stadiums or engage in other unfair eminent domain tactics.

  5. bobbo, the pragmatic existential evangelical anti-theist says:

    Holy Crap……….whats up Dudes?

    Every single post is EXCELLENT.

    Super–yes, I can’t imagine paying $$ to see a game in a crowded parking lot/stadium/concession etc. At the most, tailgate party then go home.

    McC==Very Funny…and true. Like the NFL “the Church” should be an umbrella org so that they are forced to disgorge their income back to the local congregations. IE–a truly eleemosynary institution that is fully taxed should still pay zero after normal business deductions.

    dusanmal==Exactly so. RICH = CRIMINAL. (IE–what else does “lobby” mean with such a special provision?)

    Beno–thanks for that info. Clarifies w/o changing the issues. I like it when that happens. It means something is up.

    MikeN==Most insightful comment you have ever made. What is tax breaks to millionaires to build their stadiums except a wealth transfer from the poor to the rich? CAN YOU SEE IT??? Corporate Welfare……yet the Media, the Church, the Republicans, the Gubment will have us believe it is the poor that are a drag on society.

    Oh Dear…..where can I go for an adrenaline pump?

    EVEN the movie on right now is “good.” Impact Point with Melissa Keller. For a swimsuit model turned actress she is actually quite good. Brian Austin Green. Gets paid money to be nekkid in bed with Melissa Keller then goes home to make babies with Megan Fox. I’d love to be inside his head when he gets depressed ………………could it even happen? I just assume its a human condition from time to time.

    If I need an argument, guess I’ll just call the DA’s office and see if they are ever going to answer my letter about evicting trespassing lodgers.

    What a country. Good and Bad living right next to each other.

  6. Dipstick says:

    RE:
    At least make them build their own stadiums, not the taxpayer. Of course this is never going to happen, but I can still bitch about it.

    You know, a good argument could be made for revoking the NFL’s non-profit status when they sell naming rights to those taxpayer funded stadiums and act exactly like a MONOPOLY!

    Next time I hear someone bitching and moaning about NFL copy/patent rights, I’ll have to remember this. Because last time I checked, none of the real non profits were suing over who got to make the official gear or who infringed on who’s logo! I mean, forget for the moment that we’re dealing with some really stupid money grubbing people, can anyone realistically see the Catholic church suing over something as silly as a logo?!

  7. bobbo, the pragmatic existential evangelical anti-theist says:

    Trolling Dipshit:

    1. Get out of your mothers basement and into the real world. The USConst means WHAT THE SCt SAYS IT MEANS. Not what you blather on about to the contrary. So basic an issue.

    2. Non profits sue all the time. Without a google various gnu projects sue the for profits all the time for their theft and misuse of free use products. March of Dimes used to sue all the time as hucksters loved to fleece the public who only wanted to help the kiddies.

    Ain’t reality a bitch?

  8. Supreme Ultrahuman (I see the comment system is still designed for retards.) says:

    Sad thing is NFL and Golf are the only sports worth watching on TV.

    The problem with stadiums is the rich fucks getting them built in downtowns. Put them outside the city with enormous parking lots so tailgating can be done properly. Then let tailgating start on Thursday. 4 Days! Put roofs on all stadiums or require tickets to be free any time it’s less that 75 at kickoff. Neanderthals and Europeans can deal with weather, Americans should not have to.

    super77: the NFL is much more important than religions (including the silly one devoted to Global Warming (TM) ). It’s the greatest sport of the greatest nation.

  9. Hmeyers says:

    Why is this worth worrying about?

    None of the giant companies seem to pay any tax.

    GE, Facebook, Verizon etc. GE doesn’t just not pay any tax, it has received $3 billion in refunds over the last 10 years. Google and Apple either pay no tax or barely pay any.

    Most companies dodge taxes quite easily, no need to make a fuss about it. Smart rich people do too — like Zuckerberg has no almost no income but borrows against the value of his shares, which isn’t “income”.

    • bobbo, the pragmatic existential evangelical anti-theist says:

      Most common Puke lament: “USA has the highest corporate Tax Rate in the World. Thats why we don’t have any jobs.”

      Spot the lie?….harder: whats NOT a lie coming out of Puke’s mouths????

      Makes a true Conservative……..cry.

      • jpfitz says:

        My Nephew said the exact same phrase to me. He works in a bank as an investment broker. I replied that the tax codes are exploited by most major US corps, obscenely receiving a tax credit. He replied again with the same mantra about America’s highest tax rate IN THE WORLD.

        My reply was I’m not going to argue with a banker about corporate taxes.

        Oy vey!

    • LibertyLover says:

      Zuckerberg>/i>

      He pays interest. This creates money (i.e., prints it).

      This is what the Federal Reserve wants.

      Extremely Simple Example: He makes $1M in dividends but leaves them in hock. He takes out a loan for $$500k. Pays back $5ok in interest, probably from that $500k, leaving him $450k to play with. He writes off that $50K (and may even get it back as a refund). Next year he does the same thing, only this time he takes $100k from his dividends and then takes out another $500k loan. Low income to report because he had a gross income of $100k minus the $50k expense (the interest). Only now, he is $950k in the hole. But that’s okay because his dividends paid another $1M. He’s worth an extra $50k, but it isn’t considered income.

      In the meantime, there is now an extra $100k in circulation (from the interest), eroding the value of everyone else’s dollar.

      This will continue to work as long as his shares continue to appreciate. Once they stop though, all that money he owes will come due and he won’t have anything to pay it back with. Then the government will inject some cash into him because he’s too big to fail.

      It’s obviously a bit more complicated than that, but if the government truly wanted this to end, it would end it.

      Shut up and get back to your Buffy reruns.

  10. Captain Obvious says:

    Curlers get taxed. Yup, something is out of whack.


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