NFL ends its own tax-free status

[JuiceTheGator]

How about that?! The NFL is no longer a charity or church...or whatever...as it has been since 1942.

NFL Voluntarily Ends Tax-Exempt Status

In a memo to the clubs, Commissioner Roger Goodell called the tax exempt status -- granted in 1942 -- "distraction" and added that is has "been mischaracterized repeatedly in recent years."

"The fact is that the business of the NFL has never been tax exempt," he said.

Goodell noted that all the money earned by the league's 32 clubs from television rights fees, licensing agreements, sponsorships, ticket sales "is taxable there" and will remain as such.

The change will strip with NFL's office and management council of its tax exempt status, a decision made after the league's finance committee began a study on whether to do so. Goodell said that during the annual meetings in March, owners grant the committee the ability to change the tax status and is voted to do so last week.

 

[gowazzu02]

ticket prices just went up.

 

[tedman2012]

goodell pay will become a secret

 

[Sharkonabicycle]

Probably means very little. If they become taxable hello business write-offs/expenses. The MLB ended tax exempt status in 2007 and absolutely nothing changed. There's so many manipulations to tax law especially for sports that are going to have HUGE business write offs and charitable contributions which will make the tax a moot point. There's no way a league would end tax exempt status without hiring plenty of CPAs to validate that the extra cost of tax is going to be relevant.

There's a case the NFL can make in that they are furthering the professional industry as a whole by running the NFL (which is part of the case for being tax exempt) but the big issue unlike the PGA is not everyone can join. PGA technically any regular Joe can join as long as you post the qualifier scores. NFL - you can't just erect a stadium and be fit in the schedule, there's explicit approvals/league policies, etc. that must be satisfied hence why this issue likely got brought up.

All said, it's a non-issue. I see this having zero impact on prices. Yah they may pay a couple million here and there when the dust settles but that's nothing to the NFL and if anything going taxable allows them to structure business differently while heightening publicity and 'good faith' by paying to the government. If anything it'll probably just garner more supporters lol.

 

[redseat]

He will just find news ways to hide money.... Just "good press" for him

 

[GNG]

ticket prices just went up.

They've been going up every year.

 

[Rex Racer]

Probably means very little. If they become taxable hello business write-offs/expenses. The MLB ended tax exempt status in 2007 and absolutely nothing changed. There's so many manipulations to tax law especially for sports that are going to have HUGE business write offs and charitable contributions which will make the tax a moot point. There's no way a league would end tax exempt status without hiring plenty of CPAs to validate that the extra cost of tax is going to be relevant.

There's a case the NFL can make in that they are furthering the professional industry as a whole by running the NFL (which is part of the case for being tax exempt) but the big issue unlike the PGA is not everyone can join. PGA technically any regular Joe can join as long as you post the qualifier scores. NFL - you can't just erect a stadium and be fit in the schedule, there's explicit approvals/league policies, etc. that must be satisfied hence why this issue likely got brought up.

All said, it's a non-issue. I see this having zero impact on prices. Yah they may pay a couple million here and there when the dust settles but that's nothing to the NFL and if anything going taxable allows them to structure business differently while heightening publicity and 'good faith' by paying to the government. If anything it'll probably just garner more supporters lol.

I agree. This is nothing more than a preemptive move against those who have been squawking about the anti-trust exemption the NFL has had all these years.

I also agree with Juice. The business of the NFL has generated a bazillion dollars in tax revenue around the country since the very beginning. Those that were bitching taxes were/are out of line.

 

[Davis_Mike]

This means very little. 99.9% of NFL revenue was already being taxed. It just takes away a political talking point that was founded in ignorance.

And it also allows them to keep NFL HQ salaries private if they choose to do so.

 

[HaroldSeattle]

This means very little. 99.9% of NFL revenue was already being taxed. It just takes away a political talking point that was founded in ignorance.

And it also allows them to keep NFL HQ salaries private if they choose to do so.

This.

 

[Clayton]

And it also allows them to keep NFL HQ salaries private if they choose to do so.

Thats probably the main point. Right now Goodell is the only one paid like a king but maybe they choose to expand the club. Its their choice at this point.