NFL--another special interest--pays no taxes | Page 3 | TigerDroppings.com
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I B Freeman
Member since Oct 2009
7443 posts

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

quote:

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?


They are not a partnership or an LLC. They are a non profit.

They couldn't for example, give a partnership or an LLC $6million a year without it creating a taxable or distributable event for the LLC. You see? The money would simply come back to them as income.

By "paying dues" to a non profit the money does not come back as income and it is an expense to the owners reducing their taxable income. The non profit in this case loans the money to the owners interest free in a stadium fund and probably in many other funds. They have use of their money and save taxes.



LSURussian
LSU Fan
Member since Feb 2005
85145 posts

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

interest free in a stadium fund and probably in many other funds. They have use of their money and save taxes.

You are not making sense. If the owners spent the money on stadium expenses they could deduct it as a business expense anyway.

And you completely misunderstood Poodle's point about what they could do as a partnership or LLC.
This post was edited on 9/19 at 7:45 pm


BBONDS25
LSU Fan
Member since Mar 2008
17888 posts

re: NFL--another special interest--pays no taxes
His point is, even if they weren't a non profit, they could be a partnership which would avoid the double taxation you are complaining they aren't paying.


TROLA
LSU Fan
BATON ROUGE
Member since Apr 2004
6950 posts

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

They are not a partnership or an LLC. They are a non profit.


They would of course find the best avenue outside of incorporation if they lost non- profit status.. They would still be able to us distribution rules and they would still not pay taxes through such an entity. Senator Coburn is seeking something that isn't there by making the idiotic assumption that the NFL would incorporate instead of seeking other more sensible tax avenues.

For example: the nba and MLB have chosen to incorporate their association as for profit.. They have their reasons and ine can infer its in their best interest tax wise.


I B Freeman
Member since Oct 2009
7443 posts

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

You are not making sense. If the owners spent the money on stadium expenses they could deduct it as a business expense anyway.

And you completely misunderstood Poodle's point about what they could do as a partnership or LL


LINK

Russian please don't be obstinate. Stadium investments are not expenses they are assets.

I understood Poodle exactly and any person with any business sense understands what I told him


I B Freeman
Member since Oct 2009
7443 posts

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



They would of course find the best avenue outside of incorporation if they lost non- profit status.. They would still be able to us distribution rules and they would still not pay taxes through such an entity. Senator Coburn is seeking something that isn't there by making the idiotic assumption that the NFL would incorporate instead of seeking other more sensible tax avenues.

For example: the nba and MLB have chosen to incorporate their association as for profit.. They have their reasons and ine can infer its in their best interest tax wise


That is true. The NFL Inc. could reduce their revenue BUT the tax break today is not to the NFL but to the owners.

They are using the non profit they essentially own to create expenses for their taxable corporations. You understand??

As a non profit they do not have to distribute their money. A LLC or a partnership does.

The truth is the NFL owners have yet another entity to receive royalties, tv ect. that flows that income to the teams.


I B Freeman
Member since Oct 2009
7443 posts

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

His point is, even if they weren't a non profit, they could be a partnership which would avoid the double taxation you are complaining they aren't paying.


You don't understand. They are using the non profit to create expenses for the teams. The money is then--in at least one known gimmick--loaned back to the teams interest free.

From USA Today

quote:

The league's tax form also lists $621million in receivable loans — part of the lending program to member teams for stadiums.


This post was edited on 9/19 at 7:58 pm


LSURussian
LSU Fan
Member since Feb 2005
85145 posts

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

I understood Poodle exactly

No, you didn't. Which is not surprising for someone who does not know the difference between $750 million and $750 billion.

For the record, if the NFL folded tomorrow I would not even know it was gone. But I've never seen anyone as obsessed as you are to force people to pay more taxes. Obama is proud of you....


BBONDS25
LSU Fan
Member since Mar 2008
17888 posts

re: NFL--another special interest--pays no taxes
Which gimmick? The dues. I don't see it. If they expense 6MM and that just comes right bak to them after distribution, where is the beef? The IRS has measures already in place to assign income if there are in fact interest free "loans".


I B Freeman
Member since Oct 2009
7443 posts

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

. If they expense 6MM and that just comes right bak to them after distribution, wh


IT DOESN"T COME BACK AS A DISTRIBUTION as it would in an LLC or partnership.

You see??

One thing they do is take it as loans.
This post was edited on 9/19 at 8:03 pm


I B Freeman
Member since Oct 2009
7443 posts

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

But I've never seen anyone as obsessed as you are to force people to pay more taxes. Obama is proud of you...


You idiot--these special interest are getting unfair advantages over their competition and causing us all to pay more taxes or incur more debt.


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I B Freeman
Member since Oct 2009
7443 posts

re: NFL--another special interest--pays no taxes
Surely BBONDS you see this.

Read this again--

quote:

The league's tax form also lists $621million in receivable loans — part of the lending program to member teams for stadiums


You see there is $621 million in dues that were expensed by the owners reducing their income tax obligations. They took it back as loans.


BBONDS25
LSU Fan
Member since Mar 2008
17888 posts

re: NFL--another special interest--pays no taxes
I'm on my phone so I haven't read the link. Are these loans interest free? If so, the IRS has regulations in place to assign that income. You cannot disguise a gift as a loan. If the IRS isn't enforcing this, then your beef if with the service for not enforcing rules already in place.


I'd imagine you have issues with the loan provisions of life insurance policies too?
This post was edited on 9/19 at 8:13 pm


I B Freeman
Member since Oct 2009
7443 posts

re: NFL--another special interest--pays no taxes
From the Atlanta Journal:

quote:

In 2010, the registered NFL nonprofit alone received $184 million from its 32 member teams. It holds over $1 billion in assets. Together with its subsidiaries and teams – many of which are for-profit, taxed entities – the NFL generates an estimated $9 billion annually. Each of its teams are among the top 50 most expensive sports teams in the world, ranking alongside the world’s famous soccer teams. Almost half of professional football teams are valued at over $1 billion….


Now if all this is a pass through how did they come to have a billion dollars in assets in a non profit??

The other thing that is implied in this statement is that they have for profit entities that are subsidiaries of the non profit. Do you see the way they are screwing us there?

They could have a LLC owned by the non profit that flows millions back to the non profit but because it is a non profit the income from the LLC is not taxed. OR they could simply let the LLC expense a contribution to the non profit entity equal to what would be a distribution.


BBONDS25
LSU Fan
Member since Mar 2008
17888 posts

re: NFL--another special interest--pays no taxes
The franchises, which are not non profit are worth a billion.


TROLA
LSU Fan
BATON ROUGE
Member since Apr 2004
6950 posts

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

They are using the non profit they essentially own to create expenses for their taxable corporations. You understand??


So you understand that those expenses would still be there if they were to set up as a partnership.. Any loss would still flow through, any profit would still flow through.

quote:

As a non profit they do not have to distribute their money. A LLC or a partnership does.


But they do distribute the money or they would be subject to the rules governing the purpose and use regulations of the non-profit section of the code. They can't just horde cash indefinitely and not distribute the money to the associations members.


I B Freeman
Member since Oct 2009
7443 posts

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

I'm on my phone so I haven't read the link. Are these loans interest free? If so, the IRS has regulations in place to assign that income. You cannot disguise a gift as a loan. If the IRS isn't enforcing this, then your beef if with the service for not enforcing rules already in place.


Yes they are interest free but the non profit can do this. You are correct about the loan as gift between taxable entities. They say the loans are within their mission "to promote football for the NFL" and that is probably true.


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I B Freeman
Member since Oct 2009
7443 posts

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

The franchises, which are not non profit are worth a billion.
Right but it says the NFL entity has a billion in assets. Read it again.


I B Freeman
Member since Oct 2009
7443 posts

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


But they do distribute the money or they would be subject to the rules governing the purpose and use regulations of the non-profit section of the code. They can't just horde cash indefinitely and not distribute the money to the associations members.


They are not distributing as taxable income to the teams. They are using it as loans for stadiums for one thing. All within their stated mission. They are not distributing all the money or they would not have a billion in assets.
This post was edited on 9/19 at 8:22 pm


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BBONDS25
LSU Fan
Member since Mar 2008
17888 posts

re: NFL--another special interest--pays no taxes
Are you proposing taxing assets?


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