R. Senator Tom Coburn attempts to remove the NFL from it's tax exempt status.

Oklahoma Senator Tom Coburn introduced a bill yesterday that would strip the National Football League of its tax-exempt status. The PRO Sports Act proposed by the Republican lawmaker would prohibit professional sports organizations with annual revenue of more than $10 million from filing as nonprofit organizations. In addition to the NFL, the bill would also change the status of the National Hockey League, golfs PGA Tour, and the ATP World Tour in tennis, among other professional sports groups.

Wondering how an organization charging $2,600 for Super Bowl tickets qualifies for tax exemptions in the first place? Its a good question. The NFL qualifies as a 501(c)(6), a nonprofit category that includes chambers of commerce, trade groups, real estate boards, and a handful of other sports leagues. The National Basketball Association is a for-profit organization, and Major League Baseball gave up its exempt status in 2007.

When Congress granted an antitrust exemption in 1966 that allowed the NFL to merge with the AFL, lawmakers added professional football leagues to the statute to ensure the new league would qualify. So while the NFLs 32 teams bring in a combined $9.5 billion in annual revenue, the league office calls itself a trade association promoting interests of its 32 member clubs. This is a bit likeMcDonalds (MCD) calling itself a trade association promoting the interests of its 14,000 U.S. restaurants. The key difference is that the NFL distributes all its revenue back to the teamsafter covering expenses such as rent, officiating crews, and Commissioner Roger Goodells $30 million salary.

Tax earmarks are essentially tax increases for everyone who doesnt receive the benefit, Coburn said in his press release proposing to tax Americas most popular sport. In this case, working Americans are paying artificially high rates in order to subsidize special breaks for sports leagues. This is hardly fair. The NFL did not respond to requests for comment.

Coburn, whose home state is without an NFL team, tried to close the sports-league loophole earlier this year in an amendment to the Marketplace Fairness Act. The bill passed the Senate, but Coburns amendment never came up for a vote. Now hes trying again with a standalone bill. A spokesman for the senator said Coburn has failed to find a co-sponsor despite extensive outreach to his colleagues.

Its unclear how much the bill would add to the tax bill for the NFL and other leagues. MLB reported that its shift away from nonprofit status was tax-neutral. Last year, in his annual catalog of government pork, Coburn estimated that the change could generate at least $91 million of federal revenue every year from the NHL and NFL alone.

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Interesting, I don't really follow sports so I was unaware that these organizations were tax exempt. I personally don't see any reason why they are exempt from taxes, but what do you guys think? Should this pass?

I would assume that it won't pass, but personally I believe it should.

Link

It should pass. It's bad enough that these bone heads get paid millions just to throw balls around. They don't deserve tax exemptions. For those of you saying that my argument is balls because the league and not the players are tax exempt, consider the fact that the players would obviously "earn" less money if the league is taxed. 

omfg, the NFL is tax exempt? I had no idea, that is insane.

Hell yeah, charge those mofos.  Charge them double for all the taxes they should have been paying.

This is surprising coming from a republican, nice to see smart taxes appreciated by a republican.

It should pass. It's bad enough that these bone heads get paid millions just to throw balls around. They don't deserve tax exemptions.

BluRayHiDef

I think the players get taxed.  I think it is the NFL association itself that does not

[QUOTE="BluRayHiDef"]

It should pass. It's bad enough that these bone heads get paid millions just to throw balls around. They don't deserve tax exemptions.

mrbojangles25

I think the players get taxed.  I think it is the NFL association itself that does not

woo

I wasn't aware they were tax exempt. On what grounds are they? I would like to hear the reasoning. HoolaHoopMan

the reasoning is that they "reinvest" the money back into the association by paying rent, officiating fees, and salaries to various NFL chairmen (I believe one guy got paid 31 million dollars last year).

while the NFLs 32 teams bring in a combined $9.5 billion in annual revenue, the league office calls itself a trade association promoting interests of its 32 member clubs. This is a bit likeMcDonalds (MCD) calling itself a trade association promoting the interests of its 14,000 U.S. restaurants. The key difference is that the NFL distributes all its revenue back to the teamsafter covering expenses such as rent, officiating crews, and Commissioner Roger Goodells $30 million salary.

It is on the same grounds as this:

The NFL qualifies as a 501(c)(6), a nonprofit category that includes chambers of commerce, trade groups, real estate boards, and a handful of other sports leagues.

[QUOTE="HoolaHoopMan"]I wasn't aware they were tax exempt. On what grounds are they? I would like to hear the reasoning. mrbojangles25

the reasoning is that they "reinvest" the money back into the association by paying rent, officiating fees, and salaries to various NFL chairmen (I believe one guy got paid 31 million dollars last year).

while the NFLs 32 teams bring in a combined $9.5 billion in annual revenue, the league office calls itself a trade association promoting interests of its 32 member clubs. This is a bit likeMcDonalds (MCD) calling itself a trade association promoting the interests of its 14,000 U.S. restaurants. The key difference is that the NFL distributes all its revenue back to the teamsafter covering expenses such as rent, officiating crews, and Commissioner Roger Goodells $30 million salary.

It is on the same grounds as this:

The NFL qualifies as a 501(c)(6), a nonprofit category that includes chambers of commerce, trade groups, real estate boards, and a handful of other sports leagues.

[QUOTE="mrbojangles25"]

[QUOTE="HoolaHoopMan"]I wasn't aware they were tax exempt. On what grounds are they? I would like to hear the reasoning. Crunchy_Nuts

the reasoning is that they "reinvest" the money back into the association by paying rent, officiating fees, and salaries to various NFL chairmen (I believe one guy got paid 31 million dollars last year).

while the NFLs 32 teams bring in a combined $9.5 billion in annual revenue, the league office calls itself a trade association promoting interests of its 32 member clubs. This is a bit likeMcDonalds (MCD) calling itself a trade association promoting the interests of its 14,000 U.S. restaurants. The key difference is that the NFL distributes all its revenue back to the teamsafter covering expenses such as rent, officiating crews, and Commissioner Roger Goodells $30 million salary.

It is on the same grounds as this:

The NFL qualifies as a 501(c)(6), a nonprofit category that includes chambers of commerce, trade groups, real estate boards, and a handful of other sports leagues.

that is the beauty of non-profits, they can be very profitable lol.

there are some various technicalities, but so long as your company does not make a profit, you can reinvest whatever money you make as you see fit; and that means reinvesting it into your wallet as well.

This is surprising coming from a republican, nice to see smart taxes appreciated by a republican.

mrbojangles25

I was also thinking this. I can't remember the last time I heard a story where a relatively well known republican was for supporting something that in effect brings in tax revenue.

[QUOTE="HoolaHoopMan"]I wasn't aware they were tax exempt. On what grounds are they? I would like to hear the reasoning. mrbojangles25

the reasoning is that they "reinvest" the money back into the association by paying rent, officiating fees, and salaries to various NFL chairmen (I believe one guy got paid 31 million dollars last year).

while the NFLs 32 teams bring in a combined $9.5 billion in annual revenue, the league office calls itself a trade association promoting interests of its 32 member clubs. This is a bit likeMcDonalds (MCD) calling itself a trade association promoting the interests of its 14,000 U.S. restaurants. The key difference is that the NFL distributes all its revenue back to the teamsafter covering expenses such as rent, officiating crews, and Commissioner Roger Goodells $30 million salary.

It is on the same grounds as this:

The NFL qualifies as a 501(c)(6), a nonprofit category that includes chambers of commerce, trade groups, real estate boards, and a handful of other sports leagues.

Odd that a republican would be pushing for that.  Lol.

It should pass. It's bad enough that these bone heads get paid millions just to throw balls around. They don't deserve tax exemptions.

BluRayHiDef

You're an idiot. The players aren't tax exempt. The LEAGUE is.

Sounds good. Absolutely no legitimate reason they should be exempt. 

Chasing nickels.

The league is tax exempt. The teams are not. The players are not.

It is only the administrative costs of running the league itself that are tax exempt.

Still not fair and should be rectified, but the large majority of money that goes into the NFL is subject to tax through the teams and players.

great news, go after the NCAA next, non-profit my asslamprey263

college sports should be abolished, there is absolutely no reason they should exist as they currently do.

if they want to run them like they do high school sports, that'd be fine, but as a business that is wrong.

[QUOTE="mrbojangles25"]

This is surprising coming from a republican, nice to see smart taxes appreciated by a republican.

Serraph105

I was also thinking this. I can't remember the last time I heard a story where a relatively well known republican was for supporting something that in effect brings in tax revenue.

[QUOTE="lamprey263"]great news, go after the NCAA next, non-profit my assmrbojangles25

college sports should be abolished, there is absolutely no reason they should exist as they currently do.

if they want to run them like they do high school sports, that'd be fine, but as a business that is wrong.

That South Park episode, Crack Baby Athletic Association, really nailed it. 

[QUOTE="mrbojangles25"]

[QUOTE="BluRayHiDef"]

It should pass. It's bad enough that these bone heads get paid millions just to throw balls around. They don't deserve tax exemptions.

BluRayHiDef

I think the players get taxed.  I think it is the NFL association itself that does not

Wow, I had no idea, definitely tax them.

[QUOTE="mrbojangles25"]

[QUOTE="BluRayHiDef"]

It should pass. It's bad enough that these bone heads get paid millions just to throw balls around. They don't deserve tax exemptions.

BluRayHiDef

I think the players get taxed.  I think it is the NFL association itself that does not

No, they would make around the same. The league itself may be tax-exempt, but the teams are not. And what's the problem with the players making millions anyway? Why should they not make as much money as possible at it?

[QUOTE="BluRayHiDef"]

[QUOTE="mrbojangles25"] 

I think the players get taxed.  I think it is the NFL association itself that does not

worlock77

No, they would make around the same. The league itself may be tax-exempt, but the teams are not. And what's the problem with the players making millions anyway? Why should they not make as much money as possible at it?

agreed, they make as much money as we want them to lol.  When we don't want them to make so much money, we will stop buying tickets, buying their jerseys, and buying the products they endorse.

Supply and demand [and endorsement]

While I would support this bill it wont be passed easily. The NFL has some well paid lawyers, lobbyists, and accountants.Diablo-B

Not to mention that the government itself wants the NFL to remain the massive, bloated, attention-grabbing spectacle that it is. A well fed and entertained society will never rebel, no matter how bad things get otherwise. The ancient roman rulers called it "bread and circuses". Modern day America calls it welfare and professional sports.

You mess with football, people will start to get pissed up. Master_Live

bah, bring back the XFL!

American football sucks anyways. Tax that crap.

So the government can have more money to waste away?  How about no.  

So the government can have more money to waste away?  How about no.  

hoola

Do you have a good argument as to why the NFL should be tax-exempt other than "gub'ment sucks"?

[QUOTE="BluRayHiDef"]

[QUOTE="mrbojangles25"] 

I think the players get taxed.  I think it is the NFL association itself that does not

worlock77

No, they would make around the same. The league itself may be tax-exempt, but the teams are not. And what's the problem with the players making millions anyway? Why should they not make as much money as possible at it?

When people throwing a ball around are making more money than astro physicists, doctors etc... seems like a pretty piss poor incentive structure for society to me.

I think everyone can agree if all the kids aspiring to be professional athletes were instead aspiring to be engineers, scientists, and doctors... that would probably be alot more beneficial.

[QUOTE="worlock77"]

[QUOTE="BluRayHiDef"] Well, it's all part of the same system. I'm pretty sure that if the NFL was taxed, the players would "earn" less money.

BeardMaster

No, they would make around the same. The league itself may be tax-exempt, but the teams are not. And what's the problem with the players making millions anyway? Why should they not make as much money as possible at it?

When people throwing a ball around are making more money than astro physicists, doctors etc... seems like a pretty piss poor incentive structure for society to me.

I think everyone can agree if all the kids aspiring to be professional athletes were instead aspiring to be engineers, scientists, and doctors... that would probably be alot more beneficial.

The shortage of scientists and engineers in this country isn't because of pro athletes. 

The NFL being tax exempt is absolutely absurd.  Way overdue.

Chasing nickels.

The league is tax exempt. The teams are not. The players are not.

It is only the administrative costs of running the league itself that are tax exempt.

Still not fair and should be rectified, but the large majority of money that goes into the NFL is subject to tax through the teams and players.

 

SUD123456

^

[QUOTE="BeardMaster"]

[QUOTE="worlock77"]

No, they would make around the same. The league itself may be tax-exempt, but the teams are not. And what's the problem with the players making millions anyway? Why should they not make as much money as possible at it?

worlock77

When people throwing a ball around are making more money than astro physicists, doctors etc... seems like a pretty piss poor incentive structure for society to me.

I think everyone can agree if all the kids aspiring to be professional athletes were instead aspiring to be engineers, scientists, and doctors... that would probably be alot more beneficial.

The shortage of scientists and engineers in this country isn't because of pro athletes. 

This is also true.

I am okay with this.

[QUOTE="mrbojangles25"]

[QUOTE="BluRayHiDef"]

It should pass. It's bad enough that these bone heads get paid millions just to throw balls around. They don't deserve tax exemptions.

BluRayHiDef

I think the players get taxed.  I think it is the NFL association itself that does not