The league offices for top sports organizations are being subsidized by taxpayers because of their nonprofit status despite the fact that they are making huge profits.
The league offices of the National Football League, the National Hockey League, golf’s PGA Tour, and the Ladies Professional Golf Association have combined annual gross receipts total about $2 billion and they don’t have to pay taxes because they are considered non-profits.
How do corporations making $2 billion a year come under the protections of non-profit when they are obviously making huge profits?
The Internal Revenue Service section 501(c)(6) grants the break for those “business leagues, chambers of commerce, real estate boards, boards of trade, or professional football leagues” and other entities that represent a trade or industry.
It has applied for decades and was meant to promote the NFL and other sports leagues.
The leagues’ lobbyists are out in full force to stop Tom Coburn’s bill, the Properly Reducing Overexemptions for Sports Act (PRO Sports Act), which would require them to pay taxes like everyone else.
The NFL’s teams pay taxes and this law only applies to the league offices.
The tax exempt status is not needed any longer. It’s being used as a vehicle for crony favoritism and we can’t afford it. This is a good example of corporate welfare.
Full story at Newsmax