NFL--another special interest--pays no taxes - Page 2 - TigerDroppings.com

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Srbtiger06
USA Fan
Buga Nation
Member since Apr 2006
20463 posts

re: NFL--another special interest--pays no taxes


Better get ready, IB is furiously googling right now and will be back to prove you all wrong.





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deltaland
Mississippi St. Fan
Member since Mar 2011
22556 posts

re: NFL--another special interest--pays no taxes


NFL distributes their profit to the the teams, and the owners of the teams pay taxes on it.

The only real issue as far as taxpayer dollars go is the stadium subsidies.






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I B Freeman
Member since Oct 2009
5116 posts

re: NFL--another special interest--pays no taxes


On the surface it appears that removing the status would be tax neutral. That is not the case. (critical thinkers would have to wonder why the NFL is so opposed to this change if it was tax neutral).

First off if the NFL was a regular corporation they would fall under different tax laws and different laws regarding shareholders--their owners. If a C corporation they would pay taxes and the owners would pay taxes on any dividends they receive. So they avoid that double taxation. Other IRS rules that corporations are subject too that non profits aren't involve what is and isn't expenses. So there are benefits there too.

In it's current form the NFL owners pay fees into the NFL and those fees are used to make interest free loans to the owners. This is an obvious tool to avoid taxes as the owners are expensing the fees they pay the NFL and the loans make them cash neutral for the owners. Each team pays $6 million annually into the NFL. The NFL recognizes no profit from the loans as they receive no interest. In this aspect all the NFL is doing is creating an expense for the owners to save taxes.

Another thing to consider is that many states and cities exempt tax exempt organizations from many local taxes. Even hotel and motel taxes. Small but none the less a benefit.

There are very good reasons why such non profit status is not available to all of us and these are just a few.

Coburn says the tax exempt status's net effect may be as much as $91 million.



This post was edited on 9/19 at 6:27 pm


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TigerintheNO
LSU Fan
New Orleans
Member since Jan 2004
22452 posts

re: NFL--another special interest--pays no taxes


quote:

Another thing to consider is that many states and cities exempt tax exempt organizations from many local taxes. Even hotel and motel taxes. Small but none the less a benefit.


the individual organizations aren't tax exempt






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CarrolltonTiger
LSU Fan
New Orleans
Member since Aug 2005
46281 posts

re: NFL--another special interest--pays no taxes


quote:

First off if the NFL was a regular corporation they would fall under different tax laws and different laws regarding shareholders--their owners.


A critical thinker would be aware that the NFL doesn't have shareholders.



This post was edited on 9/19 at 6:33 pm


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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
79950 posts
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re: NFL--another special interest--pays no taxes


You also need to get over your obsession with me. And I still don't want to meet you for coffee.....





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TigerintheNO
LSU Fan
New Orleans
Member since Jan 2004
22452 posts

re: NFL--another special interest--pays no taxes


quote:

A critical thinker would be aware that the NFL doesn't have shareholders.

Maybe this confused him







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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
79950 posts
 Online 

re: NFL--another special interest--pays no taxes


quote:

If a C corporation they would pay taxes and the owners would pay taxes on any dividends they receive. So they avoid that double taxation.
It sounds like you're in favor of said double taxation.

quote:

why the NFL is so opposed to this change if it was tax neutral).
Maybe they just don't want the hassle and expense that comes with compliance with the Gestapo IRS' rules. Don't you think the NFL could find a way to expense all of their surplus back to the individual teams thus erasing any tax liability? I sure do.

I'm curious why your thread title only singles out the NFL when the proposed law would also affect the NHL, the NBA, the PGA and the ATP World Tour???






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I B Freeman
Member since Oct 2009
5116 posts

re: NFL--another special interest--pays no taxes


quote:

First off if the NFL was a regular corporation they would fall under different tax laws and different laws regarding shareholders--their owners.


A critical thinker would be aware that the NFL doesn't have shareholders.


If they were a regular corporation they would--that is the point.






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I B Freeman
Member since Oct 2009
5116 posts

re: NFL--another special interest--pays no taxes


quote:

Another thing to consider is that many states and cities exempt tax exempt organizations from many local taxes. Even hotel and motel taxes. Small but none the less a benefit.


the individual organizations aren't tax exempt


No they are not but one article I have read is how the NFL rented up a bunch of hotels in Indianapolis for the super bowl and was exempt from the hotel taxes and all the taxes from car rentals the organization made. They of course made these rooms and cars available to their owners. This is local law and how non profits are treated.






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I B Freeman
Member since Oct 2009
5116 posts

re: NFL--another special interest--pays no taxes


quote:

I'm curious why your thread title only singles out the NFL when the proposed law would also affect the NHL, the NBA, the PGA and the ATP World Tour???



Not enough room to mention all and it is football season.

I mentioned the C treatment of income to illustrate one potential advantage of the NFL being a non profit instead of a for profit entity.

Now are you going to friggin argue that owners of an exclusive non profit that use that non profit for interest free loans to avoid taxes is something the government should be doing for the politically powerful special interest or are you going to just admit there is no good reason for government to allow them to operate like this if everyone else can't?






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I B Freeman
Member since Oct 2009
5116 posts

re: NFL--another special interest--pays no taxes


quote:

A critical thinker would be aware that the NFL doesn't have shareholders.

Maybe this confused him




The Green Bay Packers are not the NFL.






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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
79950 posts
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re: NFL--another special interest--pays no taxes


Please substantiate your claim about interest free loans being used to avoid taxes. Are you familiar with the IRS rule for imputed income?





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I B Freeman
Member since Oct 2009
5116 posts

re: NFL--another special interest--pays no taxes


quote:

It's an association of 32 for-profit entities


times $6 million a year in fees (may actually be considered donations to a non profit) is $192 million in income for the owners protected from taxes every year.

I suspect there are more examples of how they and the other sports organizations mentioned use these non profits to avoid taxes but that is their purpose. It is not a vehicle available to other businesses.



This post was edited on 9/19 at 7:12 pm


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I B Freeman
Member since Oct 2009
5116 posts

re: NFL--another special interest--pays no taxes


quote:

Are you familiar with the IRS rule for imputed income?
non profits are not subject to tax and besides the non profit carries the loans as assets


quote:

What the league won't be able to avoid is being taxed on the $6 million in annual dues each team currently pays to the league office. Currently, those dues are used to fund interest-free loans to teams building new stadiums.


If I could do that I guarantee you I would be very imaginative in what the non profits does and what my profit entities do. No way related corporations could be making interest free loans to each without the IRS calling BS on it. Even when my company loans me money my accountant makes me pay it interest and pay it back because he fears the IRS would call it personal income for me.

They should not be allowed to play these games with the tax code. They obviously lobbied to be allowed these special non profit entities and they did it for profitable reasons.



This post was edited on 9/19 at 7:26 pm


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Srbtiger06
USA Fan
Buga Nation
Member since Apr 2006
20463 posts

re: NFL--another special interest--pays no taxes


quote:

times $6 million a year in fees (may actually be considered donations to a non profit) is $192 million in income for the owners protected from taxes every year.


Wouldn't that $6-million have already been taxed?






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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
79950 posts
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re: NFL--another special interest--pays no taxes


I just googled and found the $6 million a year dues each team must pay to the NFL to remain in the league.

There was nothing about the dues being rebated to the owners in the form of interest free loans for $6 million.

Do you have a link proving your claim about the money going back to the teams in the form of interest free loans?






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Poodlebrain
LSU Fan
Way Right of Rex
Member since Jan 2004
14868 posts

re: NFL--another special interest--pays no taxes


Why would the intelligent men who own NFL franchises organize as a corporation when they could organize as a partnership or LLC and avoid the tax issues associated with being a corporation? Your assumption that the NFL would let itself be subjected to corporate taxes is a non-starter, and any hypothetical taxes the league might owe would not apply. Being taxed as a partnership would not result in any significant tax increase on the NFL or its franchises.





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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
79950 posts
 Online 

re: NFL--another special interest--pays no taxes








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I B Freeman
Member since Oct 2009
5116 posts

re: NFL--another special interest--pays no taxes


quote:

Wouldn't that $6-million have already been taxed?


No

The owners are calling it an expense just like any other dues or like the electric bill. If they had $10 million in profits to pay taxes on without the dues they would have $4 million to pay taxes on with the dues. Thing is money there for them to use all the same.






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