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View Diary: Utah Republican: Make the NFL pay taxes (112 comments)

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  •  Sports Accounting (0+ / 0-)

    has to be about the shadiest GAAP there is.  I could show you how the "losses" all track back to paper amortization of construction costs of stadiums/arenas the teams never paid to build in the first place, but don't hesitate to claim the cost as an "expense" of a limited partnership that the tean rents the facility from at huge expense.  (The limited partners being of course the same people as the team owners.)  The profit from the games and ancillary income (parking, concessions) gets daisy-chained into losses on construction that the owners never paid for!  It's a scam of the first degree when sports teams claim to lose money.  The one exception is when a truly separate entity owns the facility where the games are played, but that is a rarity.

    "Power concedes nothing without a demand. It never did and it never will." ~Frederick Douglass

    by ActivistGuy on Fri Jan 31, 2014 at 03:59:49 PM PST

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    •  AG - I think you are confusing different entities (0+ / 0-)

      The umbrella association, the headquarters function of the NFL, has no ownership interest in any of the teams or any of the stadiums. So none of the team or stadium issues impact its financial statements. Each of the teams is a for profit, tax paying, entity and each has a unique stadium situation with different impacts on its P&L and tax liability.

      The umbrella organization collects association fees from each of the teams and pays for the headquarters level expenses. The TV and other league wide revenue goes directly to the teams, bypassing the umbrella organization, which in addition to being a non-profit earns no surplus. So even if it was a taxable organization it would owe no tax. That's why this entire discussion, and the petition to "Tax the NFL", makes no sense.

      "let's talk about that"

      by VClib on Fri Jan 31, 2014 at 08:46:40 PM PST

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