HFBoards

Go Back   HFBoards > General Hockey Discussion > The Business of Hockey
Mobile Hockey's Future Become a Sponsor Site Rules Support Forum vBookie Page 2
The Business of Hockey Discuss the financial and business aspects of the NHL. Topics may include the CBA, work stoppages, broadcast contracts, franchise sales, and NHL revenues.

OT slightly: Oklahoma senator wants tax-exempt leagues to be taxed

Reply
 
Thread Tools
Old
04-29-2013, 10:41 AM
  #1
cutchemist42
Registered User
 
cutchemist42's Avatar
 
Join Date: Apr 2011
Location: Winnipeg
Country: Canada
Posts: 3,248
vCash: 500
OT slightly: Oklahoma senator wants tax-exempt leagues to be taxed

http://thinkprogress.org/alyssa/2013...mpt/?mobile=nc

"Taxpayers may be losing at least $91 million subsidizing these tax loopholes for professional sports leagues that generate billions of dollars annually in profits. Taxpayers should not be asked to subsidize sports organizations already benefiting widely from willing fans and turning a profit, while claiming to be non-profit organizations."


So when the NFL collects money from a national deal, but distributes it to the teams, are they distributing tax-free money?

cutchemist42 is online now   Reply With Quote
Old
04-29-2013, 12:03 PM
  #2
tarheelhockey
Global Moderator
 
tarheelhockey's Avatar
 
Join Date: Feb 2010
Location: The Triangle
Country: United States
Posts: 33,846
vCash: 500
This issue is starting to boil below the surface as state services are being cut back.

http://www.wral.com/nfl-is-tax-free-...you-/12063209/

http://www.nonprofitquarterly.org/po...or-profit.html

http://www.huffingtonpost.com/brian-...b_1321635.html

IMO, it's absurd that an entity like the NFL is given even the slightest tax breaks considering their profit margins, let alone outright tax-exempt status. Total insanity.

tarheelhockey is online now   Reply With Quote
Old
04-29-2013, 12:22 PM
  #3
rj
Registered User
 
Join Date: Jan 2007
Location: Indiana
Posts: 1,077
vCash: 500
I agree.

And while we're at it, let's tax the revenues colleges make from sporting events, or at the very least stop season ticket holders from using buying them and donating to the athletics department as a tax writeoff.

rj is offline   Reply With Quote
Old
04-29-2013, 01:08 PM
  #4
cutchemist42
Registered User
 
cutchemist42's Avatar
 
Join Date: Apr 2011
Location: Winnipeg
Country: Canada
Posts: 3,248
vCash: 500
So does anyone know if the revenues produced by the NFL body is distributed tax-free? I'd imagine in MLB local contracts organized by the teams is taxable right because its through the team and not the league?

cutchemist42 is online now   Reply With Quote
Old
04-29-2013, 01:12 PM
  #5
Ugmo
Registered User
 
Ugmo's Avatar
 
Join Date: Oct 2011
Country: Austria
Posts: 10,443
vCash: 500
Kind of surprised this is coming from Tom Coburn. Amazed to see him propose a tax increase of any kind. He's usually a "cut spending" kind of guy.

Ugmo is online now   Reply With Quote
Old
04-29-2013, 01:12 PM
  #6
YouppiKiYay
Registered User
 
YouppiKiYay's Avatar
 
Join Date: Jul 2011
Location: Bellingham, WA
Country: United States
Posts: 348
vCash: 500
This might be old and already known to a lot of you, but it's still the best thing I've read recently on sports subsidies:

http://www.sportsonearth.com/article/40595178/

Insane

YouppiKiYay is offline   Reply With Quote
Old
04-29-2013, 02:05 PM
  #7
mouser
Global Moderator
Business of Hockey
 
mouser's Avatar
 
Join Date: Jul 2006
Location: South Mountain
Posts: 12,047
vCash: 500
Quote:
Originally Posted by cutchemist42 View Post
So does anyone know if the revenues produced by the NFL body is distributed tax-free? I'd imagine in MLB local contracts organized by the teams is taxable right because its through the team and not the league?
The NFL itself doesn't pay taxes. When revenue collected by the league is passed onto the individual teams then the teams pay taxes on that distributed revenue.

Where the real exploitation comes about is that the teams each pay somewhere around $6-7m in "membership dues and assessments" to the league office each season. Those payments are considered donations to a non-profit, so the team owners can use them to reduce their tax burdens.

mouser is offline   Reply With Quote
Old
04-29-2013, 11:28 PM
  #8
sh724
Registered User
 
Join Date: Jun 2009
Location: Missouri
Country: United States
Posts: 2,053
vCash: 500
Quote:
Originally Posted by rj View Post
I agree.

And while we're at it, let's tax the revenues colleges make from sporting events, or at the very least stop season ticket holders from using buying them and donating to the athletics department as a tax writeoff.
seriously? The Schools either put that money either back into the athletic departments or into the school in some other way.

There are many many things that are wrong with college athletics but requiring not for profit universities to pay taxes will only hurt academics and not athletics.

Professional sports leagues pass their revenues on to private entities that do very little to directly benefit their communities, universities invest that money directly back into the institution and/or community.

sh724 is offline   Reply With Quote
Old
04-29-2013, 11:36 PM
  #9
rj
Registered User
 
Join Date: Jan 2007
Location: Indiana
Posts: 1,077
vCash: 500
Quote:
Originally Posted by sh724 View Post
seriously? The Schools either put that money either back into the athletic departments or into the school in some other way.

There are many many things that are wrong with college athletics but requiring not for profit universities to pay taxes will only hurt academics and not athletics.

Professional sports leagues pass their revenues on to private entities that do very little to directly benefit their communities, universities invest that money directly back into the institution and/or community.
We're told time and again by the universities that the athletics departments are operated financially independent from the rest of the university. If that's the case, why should being an athletics booster count as a tax writeoff?

rj is offline   Reply With Quote
Old
04-29-2013, 11:51 PM
  #10
tarheelhockey
Global Moderator
 
tarheelhockey's Avatar
 
Join Date: Feb 2010
Location: The Triangle
Country: United States
Posts: 33,846
vCash: 500
There's a certain denial that goes along with big-time college sports, where we all pretend that the schools are somehow making money on athletic programs that cost millions above the table and untold sums below it. I would think that anyone who has been close to one of these programs realizes that it's all done with a wink and a nod, the paper trails only being exposed during corruption scandals which inevitably uncover massive financial sinkholes.

Pro sports is a different story. I doubt there is a significant amount of support for the idea of the NFL as a tax-free NFP. It's simply flown under the radar due to a lack of political opposition. I'd imagine that Coburn sees this as low-hanging fruit, an opportunity to get his name in the news for righting an obvious wrong.

tarheelhockey is online now   Reply With Quote
Old
04-30-2013, 03:18 AM
  #11
epo
Registered User
 
epo's Avatar
 
Join Date: Oct 2011
Posts: 331
vCash: 500
I'm not sure what exactly the benefit of the league being tax-exempt (501(c)(6) to be exact) is, but I'm reading that it isn't as beneficial as the descriptions imply.

http://thelegalblitz.com/blog/2012/1...ax-exemptions/

The fact that the NBA has never been organized under this classification, and that the MLB changed into a for-profit business 5 years ago, suggest that it isn't all that great of a tax loophole.

Quote:
Originally Posted by mouser View Post
The NFL itself doesn't pay taxes. When revenue collected by the league is passed onto the individual teams then the teams pay taxes on that distributed revenue.

Where the real exploitation comes about is that the teams each pay somewhere around $6-7m in "membership dues and assessments" to the league office each season. Those payments are considered donations to a non-profit, so the team owners can use them to reduce their tax burdens.

From the IRS website:

Tax treatment of donations - 501(c)(6) organizations
Contributions to section 501(c)(6) organizations are not deductible as charitable contributions on the donor’s federal income tax return. They may be deductible as trade or business expenses if ordinary and necessary in the conduct of the taxpayer’s business. The donee organization may be required to make certain disclosures and pay a proxy tax in connection with the dues payment, however.

epo is offline   Reply With Quote
Old
04-30-2013, 01:01 PM
  #12
mouser
Global Moderator
Business of Hockey
 
mouser's Avatar
 
Join Date: Jul 2006
Location: South Mountain
Posts: 12,047
vCash: 500
There are opinions that MLB dropped the non-profit designation so they wouldn't have to publicly report the salaries of their top executives.

One humorous item: it's claimed that the NFL uses its standing as a non-profit to avoid paying taxes on many Super Bowl-related expenditures.

mouser is offline   Reply With Quote
Old
04-30-2013, 08:14 PM
  #13
sh724
Registered User
 
Join Date: Jun 2009
Location: Missouri
Country: United States
Posts: 2,053
vCash: 500
Quote:
Originally Posted by rj View Post
We're told time and again by the universities that the athletics departments are operated financially independent from the rest of the university. If that's the case, why should being an athletics booster count as a tax writeoff?
Maybe where you live that is the case, there are only a handful of D1 schools that make a profit every year. Football and Basketball are the only profitable sports and they do not make enough to cover all of the other sports at the vast majority of schools.

(I cant believe I am defending college sports, normally I am complaining about the business side of them)

sh724 is offline   Reply With Quote
Reply

Forum Jump


Bookmarks

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



All times are GMT -5. The time now is 10:09 PM.

monitoring_string = "e4251c93e2ba248d29da988d93bf5144"
Contact Us - HFBoards - Archive - Privacy Statement - Terms of Use - Advertise - Top - AdChoices

vBulletin Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
HFBoards.com is a property of CraveOnline Media, LLC, an Evolve Media, LLC company. 2014 All Rights Reserved.