Sweeping Tax Reform Proposal Would End Tax-Exempt Status Of Pro Sports
REUTERS/Sean Gardner
Under current tax law, a professional football league is granted tax-exempt status as a 501(c)(6) organization, a designation that typically applies to trade or professional organizations. The IRS has interpreted the exemption for "professional football leagues" to mean all professional sports leagues.
Camp's discussion draft proposes a provision that would strip professional sports leagues of tax-exempt status. That status, however, would still apply to amateur sports leagues.
According to the U.S. Congress Joint Committee on Taxation, which analyzed the plan, the provision would increase federal government revenues by about $100 million over 10 years.
Camp's proposal is not exactly a new idea on Capitol Hill, and it's something that has bipartisan support. Last September, the recently retired Oklahoma Sen. Tom Coburn introduced the PRO Sports Act, which would accomplish the same purpose.
The NFL, in particular, has been criticized for its tax-exempt status recently after it revealed Commissioner Roger Goodell made $44 million last year. While the football league has argued it does pay taxes on many of the billions of revenue it earns, the league office's revenue is tax-exempt.
"Claims that the NFL is using a tax exemption to avoid paying the tax due on these revenues are simply misinformed," NFL attorney Jeremy Spector said in a statement earlier this month.
"The confusion arises from the fact that there is one small part of the NFL unrelated to all this business activity, that is tax-exempt: the NFL league office."
- RBI Governor Das discusses ways to scale up UPI ecosystem with stakeholders
- People find ChatGPT to have a better moral compass than real humans, study reveals
- TVS Motor Company net profit rises 15% to ₹387 crore in March quarter
- Canara Bank Q4 profit rises 18% to ₹3,757 crore
- Indegene IPO allotment – How to check allotment, GMP, listing date and more
- Nothing Phone (2a) blue edition launched
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market