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View Diary: The NFL is a Tax Exempt Association that made $1 billions in profits (24 comments)

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  •  Might Want to Edit The Title (5+ / 0-)
    Recommended by:
    MsGrin, dopper0189, bepanda, Lujane, wader

    ...it was $9B in revenue, not profit.

    Profits were just under $1B.   Which doesn't change your point at all....

    •  Fixed. (2+ / 0-)
      Recommended by:
      Lujane, wader

      Thanks ... my source wasn't quite right.

    •  Yes it does, it changes everything (6+ / 0-)

      I'd like to see a citation for the $1B in profits for the league. The link you provided indicated the "the combined operating income of the league’s 32 squads was $984.5 million in 2005". I have no doubt that number is higher now. But the sum for the individual teams is not the same as for the league. None of the individual teams operate as a non-profit organization, and their income is taxable.

      As it stands, the title of the diary isn't only misleading. It's dead wrong.

      •  As you well know (0+ / 0-)

        the NFL is a not-for-profit revenue collection and product enhancement scheme mostly the result of the genius of long time commissioner Pete Rozelle.

        The individual teams, as you point out, are for profit corporations (with the sole exception of the Green Bay Packers, a community owned not-for-profit) which pay taxes on such profits as they may make.

        “Perhaps the most 'spiritual' thing any of us can do is simply to look through our own eyes, see with eyes of wholeness, and act with integrity and kindness.” Jon Kabat-Zinn

        by DaNang65 on Sun Feb 03, 2013 at 05:09:50 PM PST

        [ Parent ]

        •  I'm not sure what your point is (7+ / 0-)

          if you have one. The league itself is a non-profit association. The vast majority of NFL league revenues pass through to the individual teams and does not escape taxation.  Each individual team is either a taxable entity or a pass-through entity whereby the profits pass through to the owners. The income is all taxable. (The Packers, btw, are NOT a community owned not-for-profit. They are a stock corporation, subject to income tax.) The entire premise of this diary is simply wrong.

          •  In my inimitably clumsy way (3+ / 0-)
            Recommended by:
            Kane in CA, puzzled, Catte Nappe

            I was agreeing with you. I also agree that the entire premise of the diary suffers from low information.

            The ownership of the Packers is more nuanced.

            “Perhaps the most 'spiritual' thing any of us can do is simply to look through our own eyes, see with eyes of wholeness, and act with integrity and kindness.” Jon Kabat-Zinn

            by DaNang65 on Sun Feb 03, 2013 at 06:12:21 PM PST

            [ Parent ]

      •  Well, they clearly have good accountants (0+ / 0-)

        considering that despite all the billions of dollars they funnel through their organization, they operate at a considerable loss . .. . .

        The roster of tax-exempt trade associations includes the National Football League and the National Hockey League. The NFL -- which in 2011 negotiated $27.9 billion in television contracts over nine years for its 32 member teams -- paid Commissioner Roger Goodell $11.6 million in fiscal 2011. It reported a loss of $52.2 million.
        from Bloomberg

        It is noteworthy that that blurb basically supports the premise of this diary insofar as it questions why very wealthy organizations get tax exempt status . . ..

        •  No, it doesn't do anything of the sort (2+ / 0-)
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          VClib, 6ZONite

          The NFL negotiated the contract on behalf of its 32 teams. The 32 teams get that TV contract money, not the league itself, other than to function as a conduit for the money. Organizations get tax-exempt status based on what they do, not based on how much revenue they have. Trade organizations are tax exempt.  Furthermore, the dues paid to the organization by the members (in this case, the teams), are not tax deductible to the extent they are related to expenditures which would otherwise not be deductible if paid by the members themselves. The tax exempt status of the league is not a tax loophole.

          •  Not sure what that has to do with the (1+ / 0-)
            Recommended by:
            VClib

            issue of the NFL being tax exempt - it is well documented that the league itself (not the teams you are fixated upon) is a major revenue generating organization:

            In 1966, when the American and National Football Leagues were merging, then commissioner Pete Rozelle was able to get both tax exempt status and anti-trust legislation passed on the down low. Since then, the “non profit” has grown enormously. The NFL generates nearly $200 million in revenue from membership fees from teams (roughly $6 million per team). They came in at a net loss though – largely owing to salaries to staff of nearly $54 million. Oh and FYI, the non-profit also has over $1 billion in assets. That’s not chump change but still they don’t have to pay taxes.
            So, the tax exempt league is essentially a $200 million a year business!

            Of course, like I said, they somehow still manage to "lose" $54 million a year so - like ExxonMobil - wouldn't have to pay taxes anyways . .. .

            link for the blockquote above

            •  So if it loses money (2+ / 0-)
              Recommended by:
              VClib, 6ZONite

              The title of the diary is dead wrong. Companies that lose money, irrespective of their revenue, don't pay taxes. Pretty much the same as you, if you don't make any money, you don't pay taxes. Additionally, $200 million in revenues is a far shake from the billions previously referred to.

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