NFL giving up tax exempt status

WoodysGirl · Apr 28, 2015

@ProFootballTalk: NFL will give up its tax-exempt status http://t.co/M8c95T1Kjj

phildadon86 · Apr 28, 2015

So what does this mean exactly?

EST_1986 · Apr 28, 2015

phildadon86 said:
So what does this mean exactly?

Means Peterson is coming to Dallas

Corso · Apr 28, 2015

Salary cap will drop to compensate for loss of revenue. Wouldn't surprise me...

The Quest for Six · Apr 28, 2015

now the government can't stick their nose in with threats when they feel like it to make themselves seem important..

Tabascocat · Apr 28, 2015

It means that the NFL can now hide profits, salaries, etc from the public. So, if Goodell gets a raise, we will have no idea how much. That sneaky fool....................

Setackin · Apr 28, 2015

What does this actually mean?

CowboyMike · Apr 28, 2015

radioactivecowboy88 said:
What does this actually mean?

It means the NFL did not used to have to pay taxes. After pressure that they should due to their massive revenues, they're giving up their tax exempt status and will now pay taxes.

Crown Royal · Apr 28, 2015

The Quest for Six said:
now the government can't stick their nose in with threats when they feel like it to make themselves seem important..

dexternjack said:
It means that the NFL can now hide profits, salaries, etc from the public. So, if Goodell gets a raise, we will have no idea how much. That sneaky fool....................

CowboyMike said:
It means the NFL did not used to have to pay taxes. After pressure that they should due to their massive revenues, they're giving up their tax exempt status and will now pay taxes.

Not entirely true. They still have an anti-trust exemption that gives the government a lot of say in matters.

My guess is that they are being warned about things. It's well known that the NFL shelters many holdings under their tax-exempt entity that the owners benefit.

AmericasTeam81 · Apr 28, 2015

Expect prices for NFL related items to rise now. Taxes on businesses are not paid by the businesses. They are paid by the consumer, the employee, or shareholders.

YosemiteSam · Apr 28, 2015

Not only should they not be tax exempt, they should be paying back taxes at least since free agency started in 1994.

SilverStarCowboy · Apr 28, 2015

Are NFL Stadiums Tax Exempt? If they were, Jerry saved a ton on the DethStar.

khiladi · Apr 28, 2015

The fact they were tax-exempt for this long is the biggest joke.

The biggest joke is Goodell whining how it's always been mis-characterized throughout the years...

Tabascocat · Apr 28, 2015

Crown Royal said:
Not entirely true. They still have an anti-trust exemption that gives the government a lot of say in matters.

My guess is that they are being warned about things. It's well known that the NFL shelters many holdings under their tax-exempt entity that the owners benefit.

Why is mine not true?

The move will make the league more opaque, because it will no longer need to disclose Goodell’s salary and other financial information. The U.S. requires that nonprofits file annual tax returns and make portions of them public.

The above is true and the NFL does pay taxes, just not the main office. It is paid through the 32 teams. I am sure it is all not on the up and up, but taxes are paid.

Crown Royal · Apr 28, 2015

dexternjack said:
Why is mine not true?

The move will make the league more opaque, because it will no longer need to disclose Goodell’s salary and other financial information. The U.S. requires that nonprofits file annual tax returns and make portions of them public.

The above is true and the NFL does pay taxes, just not the main office. It is paid through the 32 teams. I am sure it is all not on the up and up, but taxes are paid.

Sorry about that, you're 100% right.

Crown Royal · Apr 28, 2015

khiladi said:
The fact they were tax-exempt for this long is the biggest joke. And then they have the audacity to demand tax-payers fit the bill for their stadiums.

Only the 'NFL" entity that is the league office is tax exempt. Each individual team still pays taxes.

khiladi · Apr 28, 2015

Crown Royal said:
Only the 'NFL" entity that is the league office is tax exempt. Each individual team still pays taxes.

Now that I think about it, there must be some catch. I read this comment on an article here:

Ok I want to point out this little fact to all of you, the NFL will still not pay taxes as their returns will show zero profit to tax since they only keep enough money for operating costs while the rest is split between the 32 individual teams where the money is taxed. The media never mentions that little fact when they report on the NFLs tax exempt status they the all those NFL profits that you are always hearing about are split between the teams which are not the NFL they are individual corporations that have contracts with the NFL. Now these 32 individual corporations do not have tax exempt status and must pay taxes on all profits. So in the end nothing will change the government will still get the same amount of money that they have been getting in the past from the 32 teams. This begs the question why even make this a story when nothing changes with this change?

http://www.huffingtonpost.com/2015/04/28/nfl-tax-exempt-status_n_7162874.html

Crown Royal · Apr 28, 2015

khiladi said:
Now that I think about it, there must be some catch. I read this comment on an article here:

http://www.huffingtonpost.com/2015/04/28/nfl-tax-exempt-status_n_7162874.html

There are. There are so many accounting intricacies that go on that it would be almost impossible for a reporter to get their hands on it. More so after they move to tax-exempt.

xwalker · Apr 28, 2015

Crown Royal said:
Only the 'NFL" entity that is the league office is tax exempt. Each individual team still pays taxes.

I'll give an example that seems similar.

In Texas there is a franchise tax for money made by a corporation. If you pay out all of your profits as salary and dividends, then the Franchise Tax amount is zero.

Most of the revenue goes to the teams but some amount has to go to the NFL to pay Goodell's salary and that type of thing. I think only that pool of money that is used to Pay Goodell and the other NFL expenses was tax exempt. Even with tax, Goodell' salary is an expense that comes off the books before it gets taxed. He is paying tax on his salary personally.

I think it works similar to the franchise tax in the example. Only the amount remaining in the NFL's bank account at the end of the year will get taxed. They can structure it such that it will be a minimal amount.

If you have a small private corporation, you just need to make certain to pay out all of your profits before the end of the year. If you split all of the revenue up and pay it out to the owners in December then there is no franchise tax. If you pay them the same amount in January, then that amount is lower by the amount of the franchise tax. With a small private corporation, if you need money in the bank account in January, the owners can just loan back money to the company.

AmericasTeam81 · Apr 28, 2015

The whole United States tax system is screwed up and convoluted.

NFL giving up tax exempt status

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