Legislature Challenging NFL Non-Profit Status
Since the 1966 merger between the NFL and the American Football League, its league office has been tax exempt. There’s about $100 million plus over a ten-year period that is not collected because of this tax exempt status and Congressman Jason Chaffetz of Utah says times have changed and so should their tax status.
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Chaffetz, now the chairman of the House Oversight Committee, said he wants to place a call to the NFL Commissioner Roger Goodell before the House to justify the league’s status as a nonprofit. The NFL has been under fire for a while to explain their non-profit status but Chaffetz thinks now they are going to have to really find proof that there is not a good reason to make the change.
According to the NFL administration the league falls under a non-profit status because its administrative office acts as a trade organization, handling responsibilities like overseeing game rules and employing referees. It does not contribute to profitable efforts by the league’s 32 teams, which pay taxes on tickets, jersey sales and television rights.
The NFL is not the only sports league that falls under the non-profit status; both the National Hockey League and the Professional Golfers’ Association of America also do.
Chaffetz isn’t the only one who is upset about the most valuable sports league in the world not having to pay their fair share of taxes. Senator Cory Booker of New Jersey wants to end their tax exempt status and use the funds to help support domestic abuse programs around the country, and Washington state’s Maria Cantwell is offering a bill targeted directly at the NFL’s tax-exempt status, to change its name from a racial slur against Native Americans.
Congress doesn’t actually think the NFL’s tax bill would be that big. It is suggested that taxing the NFL and NHL alone would raise about $91 million per year. Senator Booker hopes his bill would raise about $100 million over a decade, which would go to support domestic abuse programs. That’s nothing in comparison to the $9.5 billion the NFL generates each year.
Major League Baseball ended their non-profit status in 2007 and the NBA has never been tax exempt.
