Why is the NFL tax exempt?

Asked by rojo (24179

) February 16th, 2015

Sure, for some football is a religion but still…. The NFL earns billions in revenue every year, but hasn’t paid a dime in taxes since the 1960’s. The NFL is classified as a 501 c 6 organization.

Section 501c (6) of the Internal Revenue Code provides for the exemption of business leagues, chambers of commerce, real estate boards, boards of trade and professional football leagues, which are not organized for profit and no part of the net earnings of which inures to the benefit of any private shareholder or individual.

What could possibly justify giving the NFL this? It is the only sports league that qualifies for this exemption.

Is it the bread and circus’ thing?

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7 Answers

Rich people have great lobbyists. They can buy their way to the law they like.

elbanditoroso (33520

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A red Herring at it’s best. NFL revenues do not belong to the NFL but rather to the member teams. The teams are taxable so there is no lost revenue. In fact the NFL has lost money every year and wouldn’t be paying taxes regardless of their status. This is just another scheme to scream and yell about big business with no real point to be made.

Take a look at all the articles concerning this and you’ll see that they talk about revenues but no profits. Taxes are on profits not revenue. Tax exempt or no exemption doesn’t matter to me or the NFL. Here’s a brief description.

Jaxk (17742

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Would not the same thing apply to other professional sports leagues like the NBA or MLB? That the revenues belong not to the league, but to its member teams. Yet the NFL is the only league that has tax-exempt status.

Darth_Algar (18933

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Actually not the only league. I think the PGA and the NHL have tax exempt status as well. Not sure about any others.

Jaxk (17742

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