NFL drops tax-exempt status to avoid 'distraction'

[Yo_Mama_Been_Loggin]

The NFL league office will relinquish its status as a tax-exempt business after more than 70 years, ending several recent controversies and misunderstandings about why such a wealthy enterprise even needed it.

Individual NFL teams had been taxable businesses, but not the league office, which was set up as a not-for-profit, tax-exempt business.

"The income generated by football has always been earned by the 32 clubs and taxable there," said a statement issued by Robert McNair, owner of the Houston Texans and chairman of the league's finance committee. "This is the case whether the league office is tax exempt or taxable. The owners have decided to eliminate the distraction associated with misunderstanding of the league office's status, so the league office will in the future file returns as a taxable entity."

http://www.king5.com/story/sports/nfl/2015/04/28/nfl-tax-exempt-status-relinquish-roger-goodell/26516185/

[trumad]

1. I thought this was the Onion.

Wow!

[Auggie]

2. I wouldn't be surprised if this was decided after accountants assured them payment would be minimal

... after loopholes and write-offs and who-knows-what-else. No business relinquishes a freebie like that.

[hughee99]

3. The NFL league office (the tax exempt entity) loses money every year.

Yes it's a multi-billion dollar industry, but most of that money goes to the teams, and is taxable. The league office itself takes in around 3-400 million a year, and spends it all. The payments would have been minimal for years even if it wasn't tax exempt.

[Auggie]

4. I've since heard it called a P.R. move too.

[hughee99]

7. I'm not sure that this will cost them a dime, and now the NFL can say they VOLUNTARILY

gave up their tax exempt status. It's all about the PR. For an organization (the NFL league office) that spent most of the year shooting itself in the foot, this might be the ONLY good PR move they've made recently.

[El Supremo]

5. Goodell doesn't have to disclose his salary anymore. n/m

[Yo_Mama_Been_Loggin]

6. Yes

Just read that on another blog