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

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  •  Why this issue REALLY does NOT matter (0+ / 0-)

    Here's the reality - if the NFL actually pulls a profit, which, for the sake of argument, it might, then it won't actually pay any taxes.  

    What WILL happen is that the NFL will form a master limited partnership (MLP), where all "profits," if there are any, will be distributed to its 32 owners, i.e., the teams.  Then, whatever profits are there will subsidize the teams.  However, if the league loses money in a year, those losses will go to the teams, which can use Section 469 of the tax code to offset other gains.  I work for a MLP, and they are set up to push all the profits out to the owners, minimizing tax burdens to the company.  

    This is about optics, not necessarily about taxes.  However, the image of a $10 billion sports league as a non-profit is bizarre.  

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