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  1. #1

    NFL doesn't pay taxes??



    Someone at work sent me a petition found on change.org to change the tax status of the NFL. I didn't know they were non profit. I must be living under a rock. Below are contents of the petition.

    Despite the fact that it is a $9Billion/Year industry, the National Football League (NFL) continues to enjoy status as a non-profit organization -- meaning it doesnít have to pay federal corporate taxes.

    The Commissioner of the NFL, Roger Goodell, makes nearly $30 million a year -- earning more than the heads of companies like Coca-Cola and Wal-Mart. Through TV deals alone, the NFL has inked nearly $30 billion with various television networks. And so often, fans like you and me are asked to foot the bill for new stadiums through our own taxes.

    Yet despite being the most profitable sports league in the entire world, the NFL does not pay federal taxes.

    The NFL should pay their fair share towards our economy! Just like Major League Baseball, which gave up its nonprofit status in recent years, as well as the National Basketball Association, the NFL should not be able to hide under a nonprofit status in order to avoid paying federal taxes.

    The NFL has methodically worked to shift all the power to their side, leaving players, employees and PARTICULARLY THE FANS little say in what goes on with the league. We deserve a say, but do not wish to boycott our teams! Therefore, we are calling on our elected representatives to revoke the tax-exempt status we bestowed upon the league half a century ago. Please sign this petition, and let Congress know that you want them to reconsider the NFLís tax exempt status.




  2. #2

    Re: NFL doesn't pay taxes??

    The individuals who receive salary - like Goodell pay both Federal, State and Local taxes on their income depending on where they live. So Goodell is paying at the top end on his Federal (about 40% - and if he is living in NY or NJ he's paying another 10+% in State.

    So its not as dire as your post would suggest.




  3. #3

    Re: NFL doesn't pay taxes??

    Next thing you know, the Gubment will be giving them subsidies, like Corporate farming and oil companies, so they can make even MORE money without paying taxes, and cut food stamps even more to come up with the money.




  4. #4

    Re: NFL doesn't pay taxes??

    So you actually believe he pays 40%? Hogwash. Doesn't matter what the rate is set at, the tax code provides him with many ways to get around the 40%. Like Exxon makes 40 bil and pays 2 or 3 %.




  5. #5

    Re: NFL doesn't pay taxes??

    Quote Originally Posted by Loyola View Post
    The individuals who receive salary - like Goodell pay both Federal, State and Local taxes on their income depending on where they live. So Goodell is paying at the top end on his Federal (about 40% - and if he is living in NY or NJ he's paying another 10+% in State.

    So its not as dire as your post would suggest.
    Forget who makes what. You don't think it's odd that a $9b league doesn't pay taxes?
    I'm not complaining but I'm kind of surprise if any. Then again there are many corporations that find a way to not pay taxes




  6. #6

    Re: NFL doesn't pay taxes??

    Quote Originally Posted by pslholder96 View Post
    Someone at work sent me a petition found on change.org to change the tax status of the NFL. I didn't know they were non profit. I must be living under a rock. Below are contents of the petition.

    Despite the fact that it is a $9Billion/Year industry, the National Football League (NFL) continues to enjoy status as a non-profit organization -- meaning it doesn’t have to pay federal corporate taxes.

    The Commissioner of the NFL, Roger Goodell, makes nearly $30 million a year -- earning more than the heads of companies like Coca-Cola and Wal-Mart. Through TV deals alone, the NFL has inked nearly $30 billion with various television networks. And so often, fans like you and me are asked to foot the bill for new stadiums through our own taxes.

    Yet despite being the most profitable sports league in the entire world, the NFL does not pay federal taxes.

    The NFL should pay their fair share towards our economy! Just like Major League Baseball, which gave up its nonprofit status in recent years, as well as the National Basketball Association, the NFL should not be able to hide under a nonprofit status in order to avoid paying federal taxes.

    The NFL has methodically worked to shift all the power to their side, leaving players, employees and PARTICULARLY THE FANS little say in what goes on with the league. We deserve a say, but do not wish to boycott our teams! Therefore, we are calling on our elected representatives to revoke the tax-exempt status we bestowed upon the league half a century ago. Please sign this petition, and let Congress know that you want them to reconsider the NFL’s tax exempt status.
    The 'tax exempt' label is misleading. They're classified as tax-exempt, but that does not mean that they do not pay taxes. According to Forbes, they are classified as a 501c(6), not a 501c(3). 501c(3) is a traditional non-profit designation while the 501c(6) status covers "...business leagues, chambers of commerce, boards of trade, and similar organizations." The distinction here is that 501c(3) nonprofits (churches, etc) are single organizations that are not designed to make money, while 501c(6) organizations are an umbrella for members that ARE trying to make money--but for themselves, not the NFL as a whole.


    Does that make sense?

    The interesting conclusion to the article:

    The NFL had expenses in excess of revenue of $77,628,857 for the year ended 3/31/2012 and $52,195,407 for the prior year. Apparently, that is nothing new. The liabilities of the NFL exceeded its assets by $316,642,454 at 3/31/2012. Superficially, my reasoning would be that if the NFL was organized as an LLC, instead of as an exempt organization, the member teams would have had nearly a third of a billion more in deductions since inception. I’m sure it is more complicated than that, but I suspect that the motivation for the way it operates may be to keep liabilities off the balance sheets of the member organizations. It appears to me that if there is a game there, it is a GAAP (generally accepted accounting principles) game, not a tax game.

    Superficially, it appears that, if the NFL were not an exempt organization, it would not owe federal income taxes, because it has not been making money. If you view the NFL in conjunctions with its member teams, it appears that it has the effect of increasing aggregate taxable income.

    So what is everybody so upset about ? Maybe somebody will explain it to me
    See this article for a more detailed explanation: http://www.forbes.com/sites/peterjre...meets-the-eye/
    Last edited by goodandfast; 10-10-2013 at 01:24 PM. Reason: Added link




  7. #7
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    Re: NFL doesn't pay taxes??

    The profits are earned by the individual teams that do pay taxes just as any other normal for-profit business does.

    Whatever "the league" earns after payroll and other expenses is passed onto the teams (divided equally).

    The league is not a for-profit business, it is a pass-through to the teams where taxes are paid.




  8. #8

    Re: NFL doesn't pay taxes??

    Except that the league doesn't actually make money, or so suggests the article I referenced.




  9. #9

    Re: NFL doesn't pay taxes??

    Quote Originally Posted by pslholder96 View Post
    Yet despite being the most profitable sports league in the entire world, the NFL does not pay federal taxes.
    No, but the Baltimore Ravens, Inc. pay taxes. So does Pittsburgh Steelers Sports, Inc. and each of the other 30 teams. The fact that the National Football League (i.e. Goodell's org, not the teams) doesn't pay taxes does not mean that $9 billion goes untaxed. It only means that Goodell's org isn't paying the taxes because they don't keep the money.

    We've seen this argument before, and it doesn't hold any more water this time around.
    I've upped my standards. Up yours.




  10. #10

    Re: NFL doesn't pay taxes??

    Quote Originally Posted by goodandfast View Post
    The 'tax exempt' label is misleading. They're classified as tax-exempt, but that does not mean that they do not pay taxes. According to Forbes, they are classified as a 501c(6), not a 501c(3). 501c(3) is a traditional non-profit designation while the 501c(6) status covers "...business leagues, chambers of commerce, boards of trade, and similar organizations." The distinction here is that 501c(3) nonprofits (churches, etc) are single organizations that are not designed to make money, while 501c(6) organizations are an umbrella for members that ARE trying to make money--but for themselves, not the NFL as a whole.


    Does that make sense?

    The interesting conclusion to the article:



    See this article for a more detailed explanation: http://www.forbes.com/sites/peterjre...meets-the-eye/
    Excellent post. Thanks for educating.




  11. #11

    Re: NFL doesn't pay taxes??

    When you are talking about SALARY you are talking about ORDINARY INCOME. Other than giving it away to charity there is not really an easy way to shelter a SALARY of $30M.

    If he had a $100 Million mortgage at 6% interest he could deduct $6M from the $30M. Even if he could SHELTER 90% of his SALARY he would still be in the 40% Federal Income tax bracket.

    So yes I do believe that he is paying the top bracket rate (about 40%) on his adjusted gross income.



    Quote Originally Posted by Rochardrik View Post
    So you actually believe he pays 40%? Hogwash. Doesn't matter what the rate is set at, the tax code provides him with many ways to get around the 40%. Like Exxon makes 40 bil and pays 2 or 3 %.




  12. #12
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    Re: NFL doesn't pay taxes??

    Quote Originally Posted by Rochardrik View Post
    So you actually believe he pays 40%? Hogwash. Doesn't matter what the rate is set at, the tax code provides him with many ways to get around the 40%. Like Exxon makes 40 bil and pays 2 or 3 %.
    Nice job muddying the waters.

    Corporate Taxes =/= Income Taxes

    You best believe Goodell, just like anyone else at his tax bracket, is paying through the nose. There's very few shelters for individuals.

    As for your claims that Exxon is paying 2-3%? Hogwash. Not even close.

    http://www.usatoday.com/story/money/...taxes/1991313/
    WARNING: This post may contain material offensive to those who lack wit, humor, common sense and/or supporting factual or anecdotal evidence. All statements and assertions contained herein may be subject to literary devices not limited to: irony, metaphor, allusion and dripping sarcasm.




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