Archived

This topic is now archived and is closed to further replies.

bayone

Did you know that the NFL is a tax-exempt nonprofit?

5 posts in this topic

In 2010, the registered NFL nonprofit alone received $184 million from its 32 member teams. It holds over $1 billion in assets. Together with its subsidiaries and teams – many of which are for-profit, taxed entities – the NFL generates an estimated $9 billion annually. Each of its teams are among the top 50 most expensive sports teams in the world, ranking alongside the world’s famous soccer teams. Almost half of professional football teams are valued at over $1 billion….

League commissioners and officials benefit from the nonprofit status of their organizations. Roger Goodell, commissioner of the NFL, reported $11.6 million in salary and perks in 2010 alone.

 

Goodell’s salary will reportedly reach $20 million in 2019. Steve Bornstein, the executive vice president of media, made $12.2 million in 2010. Former NFL commissioner Paul Tagliabue earned $8.5 million from the league in 2010. The league paid five other officials a total of $19.2 million in just one year. In comparison, the next highest salary of a traditional nonprofit CEO is $3.4 million.

The NFL’s exemption stems from a 1966 law, passed at the time of the merger with the old American Football League, specifically allowing “professional football leagues” to enjoy 501©(6) status as tax-exempt trade organizations. Other leagues have piggy-backed on that legislation to claim that status themselves.

 

 

the NFL and its employees would be exempted from paying the tax that everyone else must pay to subsidize stadiums built for a highly profitable industry pending the state but thats usually the case

 

article states how tax exempt staus affected revenue in Indiana with superbowl

 

http://blogs.ajc.com/jay-bookman-blog/2012/10/18/did-you-know-that-the-nfl-is-a-tax-exempt-nonprofit/

Share this post


Link to post
Share on other sites

Rich people doing favors for rich people.

1 person likes this

Share this post


Link to post
Share on other sites

Yes it's been that way for a very long time. Sort of misleading though, the NFL at the corporate level is actually more like a filter. It receives revenue, covers operating expenses, then passes on the revenue to the teams(doesn't happen exactly like this but for simplicity). All the teams pay taxes on all their revenue except for the Packers. They don't have to pay local and state taxes because of state law but have to pay federal taxes. They are publicly owned, not-for-profit. 

 

Now where people get irritated is the salary paid out to NFL executives. If they are non profit, why are the executives paid so much money? Well because the NFL is basically a trade association between all the owners. Not only that, but non profit does not mean employees cannot paid salaries. 

2 people like this

Share this post


Link to post
Share on other sites
Yes it's been that way for a very long time. Sort of misleading though, the NFL at the corporate level is actually more like a filter. It receives revenue, covers operating expenses, then passes on the revenue to the teams(doesn't happen exactly like this but for simplicity). All the teams pay taxes on all their revenue except for the Packers. They don't have to pay local and state taxes because of state law but have to pay federal taxes. They are publicly owned, not-for-profit. 

 

Now where people get irritated is the salary paid out to NFL executives. If they are non profit, why are the executives paid so much money? Well because the NFL is basically a trade association between all the owners. Not only that, but non profit does not mean employees cannot paid salaries. 

 

 

i also thought, talking salaries , what basebal executives of similar positions maake as

 

From same article

 

Major League Baseball also used to enjoy the same tax-exempt protection, but in 2007 it chose to surrender that status in part because as the salary information above illustrates, tax-exempt, non-profit status requires you to report the salaries of your top executives.

 

MLB decided that protecting that information from the public was more important than escaping taxes.

Share this post


Link to post
Share on other sites
Yes it's been that way for a very long time. Sort of misleading though, the NFL at the corporate level is actually more like a filter. It receives revenue, covers operating expenses, then passes on the revenue to the teams(doesn't happen exactly like this but for simplicity). All the teams pay taxes on all their revenue except for the Packers. They don't have to pay local and state taxes because of state law but have to pay federal taxes. They are publicly owned, not-for-profit. 

 

Now where people get irritated is the salary paid out to NFL executives. If they are non profit, why are the executives paid so much money? Well because the NFL is basically a trade association between all the owners. Not only that, but non profit does not mean employees cannot paid salaries. 

Exactly. I had several issues with the way that the info was presented in that article. I suspect that the exemption was made for sound reasons's in the 60's and that we have all in a sense benefited from any advantages it afforded the league. Whether it still makes sense now is entirely contingent on details that we don't have access too, and which I suspect the writer isn't capable of comprehending in the first place.

 

Suffice it to say that corporate income taxes would only be accessed on what's left over after (amongst MANY other things) the payment of salaries - ALL of which are subject to the full complement of payroll and personal income taxes. Goodell's salary is a reflection of the billions in tv contracts and his vital role he plays for his 32 employers. The league's tax status is irrelevant to that. And one can assume that all "income" they receive for the benefit of the clubs (from tv contracts, license fees, etc) flows back out to the clubs virtually immediately upon receipt - not impacting "the leagues' bottom line at all. Their only actual income is likely the membership fees that they are paid by the clubs, which should be enough to cover it's expenses and not a heck of a lot more. The billion is assets may be incredibly misleading if - for example - it includes things like "tv revenue receivable". That could well be 900 million at any given moment by itself. The report fails to mention the offsetting payable.

 

The point is, the league is just a pass-through entity controlled completely by the owners. I can't conceive of any benefit to them in allowing sufficient income to accumulate in the league itself for their to be income taxes accessed even if it WAS a taxable entity. It's their money. Doesn't do them any good sitting in a league bank account.

 

Now being exempt from sales tax does seem a bit ridiculous, but ironically has nothing to do with the federal government, and this "report" was generated by a Senator from Oklahoma.

 

By the way, here is a line from the senator's wikipedia page, regarding something else he is apparently proud of:

 

"On May 23, 2007, Coburn threatened to block two bills honoring the 100th birthday of Rachel Carson. Coburn called Carson's work "junk science," proclaiming that Silent Spring "was the catalyst in the deadly worldwide stigmatization against insecticides, especially DDT."

 

We aren't dealing with a rocket scientist here.

Share this post


Link to post
Share on other sites

  • Recently Browsing   0 members

    No registered users viewing this page.

  • Thread of the Week

  • Topics

  • Posts

    • Right now, maybe half of the top 15 (or so) interior defensive lineman are 6'1 or less and about 300 lbs or less and arm lenght of around 32 inches (Donald, Atkins, Casey, Daniels, Jarrett/Kyle Williams). Only Donald was a day one 1 pick or drafted in the first two rounds. Casey went in the 3rd round. No one else was picked in the top 100. I don't think there is an other position were so many top players share similar trait and most of them were picked late in the draft.   Are teams that afraid of having a small team that they automatically give worse grade for smaller defensive lineman? If Aaron Donald, for example, had Geno Atkins besides him instead of Michael Brockers, would that line be as effective as one would expect just from the player talent level upgrade from Brockers to Atkins or even worse? I mean, Brockers is a good player but Atkins is on another level. And individually these players are great but would they work as well together on the same line? Not sure if it's as much about the size itself as these players can use it to their advantage in quickness and leverage but maybe two dlineman with short arms would create some issues?   Just wondering why so many of them have fallen late in the draft. I understand that some teams want bigger, physical players (like BB, Parcells etc) but what about those teams that had already gotten steals later in the draft with small interior lineman would jump at the chance to select a player who had great tape and showed similar traits as their best defensive player. Like Grady Jarrett in 2015. Both the Bengals and Titans drafted a dlinemen in the 4th, Jarrett went with first pick in the 5th round Bengals pick was actually two picks before Jarrett was taken.   Though the Bengals did take Billings last year and he might be next to Atkins but he was another 4th round pick. And Titans did draft Mike Martin to be their nose tackle a year after taking Casey but he didn't pan out. And I maybe haven't looked at closely enough at bust/success rate for smaller defensive lineman so these guys could be sort of outliers and teams just missed on these guys for other reasons.    
    • Also for retrospect on this list: Dan Marino--Mark Clayton & Jim Kelly--Andre Reed were snubbed.  Can you think of others that should be on here in place of someone else?
    • http://newarena.com/nfl/ranked-the-top-24-qb-wr-duos-of-all-time/7/?amxt=fbdesktop2   11. Peyton Manning/Reggie Wayne: Indianapolis Colts   In the post Marvin Harrison era, Wayne took the torch as being Manning’s go-to target. During his 14-year career with the Colts, Wayne had eight seasons with at least 1,000 yards receiving. He also managed to haul in 82 touchdowns during this time period. Manning’s resume has been chronicled ad nauseam. He is the all-time leader in passing yards (71,940), and is consistently mentioned as one of the best to ever throw a football in the history of the sport.   2. Peyton Manning/Marvin Harrison: Indianapolis Colts   The respective skill-sets of Manning and Harrison worked perfectly with one another. Manning’s unbelievable timing on throws was predicated greatly by Harrison’s ability to separate in coverage. One of the best technical receivers in league history, Harrison’s route-running capabilities led him to become an 8-time Pro Bowler and a 3-time First-team All-Pro. He also led the league in receiving yards twice with Manning under center. 114 of Manning’s 539 touchdowns throws went to Harrison. This statistic is simply mind-boggling — and further validates a top-three standing.   ( Jerry Rice also got mentioned 2 times.  #3 with Steve Young, and #1 with Joe Montana.)
    • A passing league now. You could say the same of probably 10 other WRs in the league right now. Marv did it in a very different league.    Not taking away from it, he's a Pro Bowl player.
    • This is why you need a well rounded team.  No matter how good 1,2, or 5 players play, it takes an entire team to win games.  Every aspect of the team thrives or wither off the success AND failures of other aspects.
  • Welcome New Members

    •   Sorry to keep harping on the Irish thing, but did you know the horseshoe has seven points on it?  (The Colts horseshoe, anyway.  Actual shoes for horses depend on the farrier).   Seven is considered a lucky number...  Lucky.  Luck.  I'm telling you, you picked the right team to root for.   7    
    •   Don't hold Boston against the Irish.  It's not our fault.    We love our green, which makes Indiana a tearmann.   I love it that you chose to root for an underdog instead of the Pats.  I don't think it's coincidence that you became a fan around the time Luck got drafted to the Colts.  That's providence.     Horseshoe?  Luck?  Four-leaf clover?  Come on.  Hoosier Hospitality has roots in Irish fun-lovery.  If you're lucky enough to be Irish, you're lucky enough!  May the luck of the Irish be with you!  
  • Members

Community Software by Invision Power Services, Inc.