Lawmaker to introduce bill to end NFL’s tax-exempt status because of Redskins name

[FSogol]

Source: Washington Post

Sen. Maria Cantwell (D-Wash.) announced Tuesday that she will introduce legislation to eliminate the NFL’s tax-exempt status because of its refusal to address the name of the Washington Redskins.

Flanked by several tribal chiefs, Cantwell, who is the former chair of the Senate Indian Affairs Committee, condemned the team’s name as a slur against Native Americans.

“The NFL needs to join the rest of Americans in the 21st century,” she said. “It is about right and wrong.”

Cantwell made her remarks at a press conference called by a coalition of Native American and social justice groups leading the campaign against the Redskins’ name.

Read more: http://www.washingtonpost.com/local/nfl-owners-are-asked-to-force-redskins-owner-dan-snyder-to-change-teams-name/2014/09/15/cfcd58ce-3d18-11e4-b0ea-8141703bbf6f_story.html?wpisrc=nl_buzz&wpmm=1

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Article by Ian Shapira.

[hollysmom]

1. ow about just ending it because these things are for for profit companies? n/t

[FSogol]

2. That was my thought too. End it because they don't need a tax break, they are earning billions.

[former9thward]

35. The teams do pay taxes.

The league office does not. If the bill became law the amount of taxes paid would be minor.

[FSogol]

37. Wrong. The NFL (the non profit enity) brings in just under 15 billion per year.

I like football too, but they aren't a charity and should pay their fair share.

PS. I do know the teams pay taxes, I mentioned that elsewhere in this thread.

[former9thward]

38. What are the business expenses?

I don't know. I don't have their tax form but I really suspect they would not be paying taxes on $15 billion. That said I agree all sports should pay their taxes.

[FSogol]

40. Ok, but don't pretend that a gross of $15 billion isn't a lot. n/t

[former9thward]

41. I am not pretending anything.

There are huge corporations like GE that gross 140-150 billion and don't pay taxes.

[FSogol]

42. Yeah, our tax laws and loopholes are f'ed up. n/t

[Sgent]

45. That's not true

The league office only brings in dues paid by the teams. Licensing, broadcast rights, etc. go through other, taxable entities.

[FSogol]

46. Here you go, nonbeliever:

http://www.forbes.com/sites/tomwatson/2014/01/30/the-real-super-bowl-question-should-the-nfl-be-a-nonprofit/

[Sgent]

47. Read the update

To the story you linked and read:

http://www.forbes.com/sites/peterjreilly/2013/06/01/nfl-as-tax-exempt-less-than-meets-the-eye/

250million revenue, fully disclosed on their public 990 (non-profit return).

[FSogol]

48. So? If you look around the web, there is no agreement on what the actual numbers are. The update

also concludes: "the most successful media entities of our time enjoying formal Federal protection from taxes designed, under 501(c)6 guidelines, to encourage trade organizations. As a professional monopoly with a limited number of dues-paying members – each worth of a couple billion on paper – it is hardly that."

That's the point. Strip them of the nonprofit status. They won't suffer.

[Plucketeer]

5. Exactly!

I totally agree with her move here, but it's for the wrong reason. Why in HELL are the NFL an other sports industries exempt from paying taxes? I'm sure fans pray that their teams triumph, but that hardly qualifies them as "churches".

[FSogol]

6. The NBA, MLB, and NHL are not non-profit organizations. n/t

[Plucketeer]

25. Well - there ya go!

Makes the NFL's exemption all the more ludicrous.

[customerserviceguy]

43. The only time I ever pray

is when my team needs a play to execute properly. I guess that qualifies as religion, no?

[elzenmahn]

7. My Thought EXACTLY!

The NFL should NEVER have been given a tax-exemption in the first place.

[hughee99]

29. The NFL itself (the league office) is tax exempt.

The individual teams are not. The teams all have to pay taxes. The NFL itself (the corporate entity), brings in about $300 million a year or so (mostly through franchise fees that the team owners pay) and usually spends more than it brings in, which means on paper, they don't make a profit.

[hollysmom]

34. well giving your self a huge salary is not exactly not making a profit.

I am sure enough is wasted - why should they not pay taxes? We have to tax corporate goodies. someone should pay.

[hughee99]

36. I agree and the league offices have big salaries

But it's still a 350 million dollar business that's tax exempt as opposed the billions the nfl rakes in on the whole that is taxed.

[FSogol]

39. You are way low on your numbers. This info was leaked a few years back:

http://deadspin.com/5821386/audited-financials-operating-profit-for-nfl-ventures-lp-rose-from-999-million-to-13-billion-last-year
AND
http://deadspin.com/5819427/exclusive-weve-obtained-audited-financials-for-the-nfl-league-office

They do make a profit in the billions. Don't forget they're paying their commissioner Roger (No Moral Compass besides the dollar) Goodell $74 million per year.

[hughee99]

44. I read the article and the pdf.

Despite the title of the link, I don't see that 13 billion number ANYWHERE in the audit. Which page is it on?

[KamaAina]

3. While she's at it, why doesn't she take on baseball's antitrust exemption?

Because of the Cleveland American League team and its barbarically offensive logo, which I shall not post here.

[FSogol]

4. Why the problem with the antitrust exemption?

With a strong players union of today, the only effect it has is to prevent billionaire owners from moving teams.

Agree on Cleveland's logo. IIRC, Cleveland took the logo off of their road uniforms this season.

[KamaAina]

9. I was merely following her reasoning to its logical conclusion.

I agree with the posters upthread who say this should be done because it's a billion-dollar industry, not because of the name of one of its teams.

And yes, the city in which I currently reside is challenging the antitrust exemption in court, in what will likely be a vain attempt to lure one of those billionaire owners to take his team down I-880.

[FSogol]

13. Really? What city/team? n/t

[KamaAina]

16. San Jose; the A's.

Billionaire owner Lew Wolff owns property down here, including hotels, plus he wants to cash in on the $ilicon Valley boom the way the 49ers have.

[FSogol]

17. Oh, should have guessed, Oakland. n/t

[cojoel]

28. I think he could move the 'A's to Fremont

That is in Alemeda County and within their home territory.

[KamaAina]

30. That was floated years ago

Fremont is not interested; they fear traffic nightmares on game days much like Santa Clara is suffering with the 49ers.

edit: But that would be 81 traffic nightmares, less doubleheaders (and, one hopes, plus playoffs ) rather than 8 plus playoffs for the Niners.

[elzenmahn]

10. "Prevent Billionaire Owners from Moving Teams..."

...Los Angeles Rams move to St. Louis.

...Oakland Raiders move to Los Angeles, then back to Oakland, (and now to San Antonio?)

...St. Louis Cardinals move to Phoenix.

...Baltimore Colts move to Indianapolis.

...The Original Cleveland Browns move to Baltimore to become the Ravens.

...not to mention other teams in other sports.

An anti trust exemption is not going to prevent billionaires from doing what they want, when they want.

The problem with the exemption is: the NFL is a for-profit business, as are its member teams. They should not be entitled to any special treatment in the tax code. They use the commons to promote and sell their game (which is nothing more than another form of entertainment), which we all pay for.

[FSogol]

12. You are confused. The NFL does not have an anti-trust exemption. Only baseball does. Only one team

in MLB has moved in the last 30 years (Montreal to Washington).

The NFL has non-profit status that allows it to not pay taxes (although the individual teams do pay). No other sport has that. I support stripping the NFL of that status regardless of Washington's team name.

Baseball's anti-trust exemption is more of an anachronism than an outrage.

[appleannie1]

8. There is absolutly no legitimate reason for the NFL to be tax exempt period.

[elzenmahn]

11. The NFL - or any other sports league, for that matter.

[FSogol]

15. Only the NFL is classified as non-profit. No other professional league enjoys

that status.

[FSogol]

14. Agreed. n/t

[denvine]

32. Exactly!!!

I can not think of one reason for them to be tax exempt!

[quadrature]

18. is the NCAA non-profit? ...nt

[FSogol]

19. Yes. They are not a professional sports league. n/t

[quadrature]

23. but there is no difference, except for that.. both are bad ..nt

[FSogol]

27. Except that the NCAA is promoting a number of amateur collegiate sports that would never turn

a profit such as rowing, track and field, field hockey, bowling, etc. They also support many women's sports thanks to Title IX.

[yurbud]

20. how the hell are they tax exempt in the first place?

that's like calling Goldman Sachs a charity.

[KamaAina]

24. It's a setup similar to a SuperPAC

http://en.wikipedia.org/wiki/National_Football_League#Corporate_structure

The National Football League is an unincorporated nonprofit 501(c)(6) association, meaning its league office is not subject to income tax because it does not make a profit. In contrast, each individual team (except the non-profit Green Bay Packers) is subject to tax because they make a profit. The NFL considers itself a trade association made up of and financed by its 32 member teams.

And in case you're wondering, the Pack is grandfathered in; no other community-owned teams are allowed.

[tosh]

21. About time!

[mountain grammy]

22. Tax exemption for the NFL is absurd, period.

[ladjf]

26. Nonsense. nt

[Faux pas]

31. Their tax exempt status should be eliminated

just on general principles, like 'religious' entities. It's all smoke, mirrors and BULLSHIT.

[warrant46]

33. And don't forget about the Thugs

Misogynistic Hoodlums and outright criminals they employ

[KamaAina]

49. Cory the Tory has chimed in; he pegs it to domestic violence!

http://www.si.com/nfl/2014/09/16/tax-exempt-nfl-cory-booker-bill

Sen. Cory Booker (D-N.J.) has introduced legislation to strip several professional sports leagues, including the NFL, of their tax-exempt status.

The bill, which is called the Securing Assistance for Victim Empowerment (SAVE) Act, seeks to raise $100 million over 10 years for domestic violence assistance programs.

The NFL's handling of domestic violence has come under intense scrutiny in light of multiple high-profile cases involving players, including Ray Rice, Ray McDonald and Greg Hardy.

The NFL gained tax-exempt status as a nonprofit in 1944. A designation in the tax code -- 501(c)(6) -- enables the league to function like a trade organization. The league office is not required to pay taxes but individual teams are.

I guess we'll have to wait for Bernie or Elizabeth to do it the right way, as usual.