The Nfl Has Not For Profit Status?!?!

[Toronado3800]

Now I know my Jack Tatum, Len Dawson and really enjoyed my trip to Canton, this is taking hypocrisy to far. The NFL somehow has Not For Profit status.

The Real Super Bowl Question Should The NFL Be A Nonprofit - Forbes

Day after Super Bowl A look at NFL s non-profit status - CBS News

The NFL is Really Considered a Non-Profit 8211 New Day - CNN.com Blogs

And the commissioner makes 29 million a year AND we generally go in with corporate welfare plans to build stadiums for the teams of these billionaires. Another stupid reason we need to tax folks and redistribute money forcibly.

Now I'm getting riled up.

Ridiculous things like this make me figure money makes more money through graft and corruption. Welfare for million & billionaires. I hear it doesn't even make that much of a difference because the league itself claims a loss often enough.

Join me in hunting down our reps and complaining.

Find Your Representative House.gov

 

[bendog]

Now I know my Jack Tatum, Len Dawson and really enjoyed my trip to Canton, this is taking hypocrisy to far. The NFL somehow has Not For Profit status.

The Real Super Bowl Question Should The NFL Be A Nonprofit - Forbes

Day after Super Bowl A look at NFL s non-profit status - CBS News

The NFL is Really Considered a Non-Profit 8211 New Day - CNN.com Blogs

And the commissioner makes 29 million a year AND we generally go in with corporate welfare plans to build stadiums for the teams of these billionaires. Another stupid reason we need to tax folks and redistribute money forcibly.

Now I'm getting riled up.

Ridiculous things like this make me figure money makes more money through graft and corruption. Welfare for million & billionaires. I hear it doesn't even make that much of a difference because the league itself claims a loss often enough.

Join me in hunting down our reps and complaining.

Find Your Representative House.gov

I don't see the outrage here. The Forbes article you linked to has an embedded link to another article showing how the big money, the tv money, is passed to individual teams WHO ARE NOT TAX EXEMPT. The maj of the NFL revenues are from dues the teams pay to the central governance NFL.

 

[Mad Scientist]

Correction: Goodell makes 44 Million a year.

The NFL is Non Profit AND local Cities pay taxes to fund Stadiums for Ego Maniacal Team Owners.

The San Diego Chargers used money from the San Diego Teachers Union Retirement Fund to build their Stadium of Stupidity.

 

[Toronado3800]

Now I know my Jack Tatum, Len Dawson and really enjoyed my trip to Canton, this is taking hypocrisy to far. The NFL somehow has Not For Profit status.

The Real Super Bowl Question Should The NFL Be A Nonprofit - Forbes

Day after Super Bowl A look at NFL s non-profit status - CBS News

The NFL is Really Considered a Non-Profit 8211 New Day - CNN.com Blogs

And the commissioner makes 29 million a year AND we generally go in with corporate welfare plans to build stadiums for the teams of these billionaires. Another stupid reason we need to tax folks and redistribute money forcibly.

Now I'm getting riled up.

Ridiculous things like this make me figure money makes more money through graft and corruption. Welfare for million & billionaires. I hear it doesn't even make that much of a difference because the league itself claims a loss often enough.

Join me in hunting down our reps and complaining.

Find Your Representative House.gov

I don't see the outrage here. The Forbes article you linked to has an embedded link to another article showing how the big money, the tv money, is passed to individual teams WHO ARE NOT TAX EXEMPT. The maj of the NFL revenues are from dues the teams pay to the central governance NFL.

That is true. And thank you SOOO much for disagreeing in a reasonable way. I disagree. My line of thought is the teams and the NFL corporation are all pretty big businesses to be considered not for profit. I also recognize it is legal.

Your point is valid though.

 

[bendog]

Now I know my Jack Tatum, Len Dawson and really enjoyed my trip to Canton, this is taking hypocrisy to far. The NFL somehow has Not For Profit status.

The Real Super Bowl Question Should The NFL Be A Nonprofit - Forbes

Day after Super Bowl A look at NFL s non-profit status - CBS News

The NFL is Really Considered a Non-Profit 8211 New Day - CNN.com Blogs

And the commissioner makes 29 million a year AND we generally go in with corporate welfare plans to build stadiums for the teams of these billionaires. Another stupid reason we need to tax folks and redistribute money forcibly.

Now I'm getting riled up.

Ridiculous things like this make me figure money makes more money through graft and corruption. Welfare for million & billionaires. I hear it doesn't even make that much of a difference because the league itself claims a loss often enough.

Join me in hunting down our reps and complaining.

Find Your Representative House.gov

I don't see the outrage here. The Forbes article you linked to has an embedded link to another article showing how the big money, the tv money, is passed to individual teams WHO ARE NOT TAX EXEMPT. The maj of the NFL revenues are from dues the teams pay to the central governance NFL.

That is true. And thank you SOOO much for disagreeing in a reasonable way. I disagree. My line of thought is the teams and the NFL corporation are all pretty big businesses to be considered not for profit. I also recognize it is legal.

Your point is valid though.

Well, I dunno that the NFL itself is THAT big of a business ... compared to things like the United Way and various political advocacy groups. The link indicated that practically all the NFL's funds come from club dues and go to salaries. And, they're paying the Ginger Hammer bigtime for getting them the labor contract and the new TV deal. But, he pays taxes ... I assume.

To me, the egregious nature of the thing is that the owners themselves expense, with things like their food entertainment gifts vacations, and all the while the value of the franchises appreciate. And they basically extort stadiums.

 

[oldfart]

I think that underlying this is a misunderstanding of what a non-profit organization is. Churches, charities and the like are 501(c)(3) organizations to which contributions are deductible as itemized deductions. Other tax-exempt organizations (all the other 501(c)'s) cannot solicit funds which are deductible. All of them however pay no tax on their income from their core purpose. This includes business leagues, labor unions, social clubs, and so forth. If they derive income from operations unrelated to their exempt purpose (such as interest on bank accounts) those earnings are taxed at the highest corporate rate as Unrelated Business Income (UBI).

Now a non-profit organization can pay its employees whatever it wants. The president of the Red Cross makes a lot of money, and I guess that the Red Cross thinks the money is worth it. The hospital system my wife is retired from did compensation surveys for executive compensation at comparable size health care systems and paid their top executives mid-six figure salaries. Since most of these were nuns under a vow of poverty, the money was paid over to the order, but the nuns filed tax returns, had withholding, and treated it as compensation. The same is basically true of all non-profit executives, their pay is taxable as compensation. The Form 990 each non-profit files (provided the income is sufficient to require more detailed reporting) will contain the compensation of the highest five paid employees, as is available for public inspection.

Now there are abuses in the system, especially in regard to political activities. These could be addressed if Congress wanted to, but I wouldn't hold my breath.

 

[martybegan]

Now I know my Jack Tatum, Len Dawson and really enjoyed my trip to Canton, this is taking hypocrisy to far. The NFL somehow has Not For Profit status.

The Real Super Bowl Question Should The NFL Be A Nonprofit - Forbes

Day after Super Bowl A look at NFL s non-profit status - CBS News

The NFL is Really Considered a Non-Profit 8211 New Day - CNN.com Blogs

And the commissioner makes 29 million a year AND we generally go in with corporate welfare plans to build stadiums for the teams of these billionaires. Another stupid reason we need to tax folks and redistribute money forcibly.

Now I'm getting riled up.

Ridiculous things like this make me figure money makes more money through graft and corruption. Welfare for million & billionaires. I hear it doesn't even make that much of a difference because the league itself claims a loss often enough.

Join me in hunting down our reps and complaining.

Find Your Representative House.gov

I don't see the outrage here. The Forbes article you linked to has an embedded link to another article showing how the big money, the tv money, is passed to individual teams WHO ARE NOT TAX EXEMPT. The maj of the NFL revenues are from dues the teams pay to the central governance NFL.

That is true. And thank you SOOO much for disagreeing in a reasonable way. I disagree. My line of thought is the teams and the NFL corporation are all pretty big businesses to be considered not for profit. I also recognize it is legal.

Your point is valid though.

It has been calculated that taxing the NFL offices in addition to the teams would result in about $10 million more in revenue for the feds per year. That's enough to fund the federal government for 1 minute and 23 seconds.

 

[Mad Scientist]

Going by your example that means my taxes would fund the government for about 0.2 seconds?

0.2 seconds of funding is really insignificant so how about letting me keep it all? They'll still have plenty to fund ISIS.

 

[Toronado3800]

This is absolutely the most mature and informative thread I have read in some time. I have even calmed down a bit! Thanks for the meaningful replies guys.

 

[bendog]

I think that underlying this is a misunderstanding of what a non-profit organization is. Churches, charities and the like are 501(c)(3) organizations to which contributions are deductible as itemized deductions. Other tax-exempt organizations (all the other 501(c)'s) cannot solicit funds which are deductible. All of them however pay no tax on their income from their core purpose. This includes business leagues, labor unions, social clubs, and so forth. If they derive income from operations unrelated to their exempt purpose (such as interest on bank accounts) those earnings are taxed at the highest corporate rate as Unrelated Business Income (UBI).

Now a non-profit organization can pay its employees whatever it wants. The president of the Red Cross makes a lot of money, and I guess that the Red Cross thinks the money is worth it. The hospital system my wife is retired from did compensation surveys for executive compensation at comparable size health care systems and paid their top executives mid-six figure salaries. Since most of these were nuns under a vow of poverty, the money was paid over to the order, but the nuns filed tax returns, had withholding, and treated it as compensation. The same is basically true of all non-profit executives, their pay is taxable as compensation. The Form 990 each non-profit files (provided the income is sufficient to require more detailed reporting) will contain the compensation of the highest five paid employees, as is available for public inspection.

Now there are abuses in the system, especially in regard to political activities. These could be addressed if Congress wanted to, but I wouldn't hold my breath.

Yeah, but I think the concept is that the NFL itself really isn't any different from a union or "society of engineers," or a banking lobby. It's basically just an address with employees, and they lobby, enter into contracts on behalf of their members, sign contracts to bring in money for their members, etc.

That is, what's egregious isn't the organizational status or the function, or that groups like this are tax exempt when their members are not tax exempt. What's egregious is the level of greed in the member owners. Some are not total psychopaths, but it's really a monopoly engaged in extortion. But, the fans demand the spice. It's the same with the criminals among the players. The reason they keep playing is that the fans want to see their team win.

Like Marty said, the owners manage to avoid paying much tax. They don't show much personal income, they expense all their personal expenses, they show little to no operating profit, and all the value stays inside the franchise, which is then corporately structured to stay within the family.

 

[martybegan]

Going by your example that means my taxes would fund the government for about 0.2 seconds?

0.2 seconds of funding is really insignificant so how about letting me keep it all? They'll still have plenty to fund ISIS.

What it means is that this is a non-issue, not worthy of any attention from the news organizations, or basically anyone else.

The NFL as a whole pays taxes, A LOT of taxes, because they make A LOT of money. They also generate tons of $$ via sales taxes of merchandise and concessions. Finally by way of the Direct TV package they add to all those fees the government charges to your cable bill.

 

[martybegan]

I think that underlying this is a misunderstanding of what a non-profit organization is. Churches, charities and the like are 501(c)(3) organizations to which contributions are deductible as itemized deductions. Other tax-exempt organizations (all the other 501(c)'s) cannot solicit funds which are deductible. All of them however pay no tax on their income from their core purpose. This includes business leagues, labor unions, social clubs, and so forth. If they derive income from operations unrelated to their exempt purpose (such as interest on bank accounts) those earnings are taxed at the highest corporate rate as Unrelated Business Income (UBI).

Now a non-profit organization can pay its employees whatever it wants. The president of the Red Cross makes a lot of money, and I guess that the Red Cross thinks the money is worth it. The hospital system my wife is retired from did compensation surveys for executive compensation at comparable size health care systems and paid their top executives mid-six figure salaries. Since most of these were nuns under a vow of poverty, the money was paid over to the order, but the nuns filed tax returns, had withholding, and treated it as compensation. The same is basically true of all non-profit executives, their pay is taxable as compensation. The Form 990 each non-profit files (provided the income is sufficient to require more detailed reporting) will contain the compensation of the highest five paid employees, as is available for public inspection.

Now there are abuses in the system, especially in regard to political activities. These could be addressed if Congress wanted to, but I wouldn't hold my breath.

Yeah, but I think the concept is that the NFL itself really isn't any different from a union or "society of engineers," or a banking lobby. It's basically just an address with employees, and they lobby, enter into contracts on behalf of their members, sign contracts to bring in money for their members, etc.

That is, what's egregious isn't the organizational status or the function, or that groups like this are tax exempt when their members are not tax exempt. What's egregious is the level of greed in the member owners. Some are not total psychopaths, but it's really a monopoly engaged in extortion. But, the fans demand the spice. It's the same with the criminals among the players. The reason they keep playing is that the fans want to see their team win.

Like Marty said, the owners manage to avoid paying much tax. They don't show much personal income, they expense all their personal expenses, they show little to no operating profit, and all the value stays inside the franchise, which is then corporately structured to stay within the family.

I think they pay plenty of taxes actually. Plus their player employees make a ton of money, also adding to the tax coffers.