Explain to me why the NFL has a non-profit charter?

[SunnyD]

The NFL reportedly wants potential superbowl halftime acts to pay for the privilege to perform.

Multi-million dollar commercial airtime segments, exclusive broadcast rights, local blackout rules, price fixing, free stadiums from the government, a litany of tax breaks... the list goes on. How exactly are these guys a non-profit again?

 

[RPD]

Because of an act congress pasted when the two leagues combined into the NFL.

Also suggest any NFL/football fan read this book - http://www.amazon.com/The-King-Sport.../dp/125001171X

 

[poofyhairguy]

Its organized that way in order for them to have their antitrust exemption.

Of course, you are not asking for technicalities. You are asking "how can these greedy assholes make tons of money on TV, jerseys, and tax breaks and still demand artists and cities pay them for the privilege of association on top."

For the answer to that, we must look to The Great Mel Brooks:

 

[HardcoreRobot]

the same reason anyone goes for it, to avoid taxes.

no one should be exempt, then you have no abuse

 

[juiio]

How exactly are these guys a non-profit again?

The teams are for-profit, not the league.

 

[Sonikku]

They're trying to stimulate the economy. Why won't you let them?

 

[Fern]

-snip-
How exactly are these guys a non-profit again?

They qualify as a 501(c)(6) organization. http://en.wikipedia.org/wiki/501(c)#501.28c.29.286.29

But that doesn't mean they necessarily pay no income tax. There is something called UBIT (unrelated business income tax) that may apply to some of their activities.

An example of UBIT is when a Chamber of Commerce offers its rooms for rent and to its members for meetings etc and charges for refreshments. In essence they are competing with regular for-profit type businesses (coffee shops/restaurants) and must pay income tax on any profits from such revenue.

I'm too lazy and uncaring to look up their Form 990 to see if they did, in fact, pay any income taxes. But those forms must be made available to the public upon demand so if you're interested you can search for them.

Fern

 

[SP33Demon]

Because it's BS and they've paid the right people.

http://profootballtalk.nbcsports.com/2014/02/14/nfl-explains-that-it-does-indeed-pay-taxes/

“Claims that the NFL is using a tax exemption to avoid paying the tax due on these revenues are simply misinformed,” Spector said. “The confusion arises from the fact that there is one small part of the NFL unrelated to all this business activity, that is tax-exempt: The N.F.L. league office.”

Specter is right. The money passes through the league office to its teams, and the teams pay the taxes.

Still, the NFL undoubtedly realizes a net benefit by using this structure — especially since the league could keep the compensation of Goodell and other key executives completely secret if the league office weren’t exempt from taxation.

That’s the real question, which the NFL probably won’t be answering via Twitter or otherwise. (We’ll ask them anyway.) How much money is saved by using this approach?

Yes, taxes are paid. But the taxes are surely less than they would be, unless the NFL has no concern about telling the world that Commissioner Roger Goodell has made in two years nearly 60 percent of the one-season spending limit for an entire team.

BS any way you look at it. They are and always have been for profit. There is nothing non-profit about the League Office.

 

[Carson Dyle]

The league itself doesn't make a profit. Owners are independent and split any money that the league makes collectively. All profits are taxed, but it's the teams that are taxed individually.

 

[Imp]

They bring joy and entertainment to millions... They spread their message across religious and political lines. Praise NFL!

 

[dmcowen674]

Explain to me why the NFL has a non-profit charter?
The NFL reportedly wants potential superbowl halftime acts to pay for the privilege to perform.

Multi-million dollar commercial airtime segments, exclusive broadcast rights, local blackout rules, price fixing, free stadiums from the government, a litany of tax breaks... the list goes on. How exactly are these guys a non-profit again?

Rich boys club.

They own you

 

[rsbennett00]

Boycott them. They only speak money.

 

[Uppsala9496]

They qualify as a 501(c)(6) organization. http://en.wikipedia.org/wiki/501(c)#501.28c.29.286.29

But that doesn't mean they necessarily pay no income tax. There is something called UBIT (unrelated business income tax) that may apply to some of their activities.

An example of UBIT is when a Chamber of Commerce offers its rooms for rent and to its members for meetings etc and charges for refreshments. In essence they are competing with regular for-profit type businesses (coffee shops/restaurants) and must pay income tax on any profits from such revenue.

I'm too lazy and uncaring to look up their Form 990 to see if they did, in fact, pay any income taxes. But those forms must be made available to the public upon demand so if you're interested you can search for them.

Fern

here are the 990's.
http://www.guidestar.org/organizations/13-1922622/national-football-league.aspx
http://www.guidestar.org/FinDocuments/2013/131/922/2013-131922622-0a132910-9O.pdf

Page 18 Section X shows $0 in federal income taxes.

 

[Newell Steamer]

They also don't pay their cheerleaders.

 

[SunnyD]

They also don't pay their cheerleaders.

That's because the cheerleaders aren't "theirs". The cheerleaders are separate, private entities run as completely separate organizations given the blessings to represent the respective teams by the franchises themselves.

 

[Newell Steamer]

That's because the cheerleaders aren't "theirs". The cheerleaders are separate, private entities run as completely separate organizations given the blessings to represent the respective teams by the franchises themselves.

Correct.

It was more to the point that the NFL does not incur a cost for the cheerleaders - because, to your points, they are not part of the NFL,... yet the NFL benefits from them.

 

[vi edit]

Funny you mentioned this...

Articles coming out the last few days
http://profootballtalk.nbcsports.co...halftime-performers-to-pay-for-the-privilege/

NFL wants the halftime performers to kick back a certain percent of their tour earnings to be able to perform at the halftime show of the superbowl.

How non-profit minded of them!

 

[Aharami]

ok why would any established musician agree to this?

 

[zinfamous]

Because without the fiefdom, we would cease to be entertained.

 

[SlowSpyder]

ok why would any established musician agree to this?

Because the audience is more than a hundred million people. $$$

 

[MrPickins]

Because the audience is more than a hundred million people. $$$

And?

 

[LTC8K6]

They don't pay the halftime act at the Super Bowl...

This year they want the band to pay the NFL to play at halftime...

 

[MetalMat]

Interesting article on how the nfl fleeces tax payers

http://www.theatlantic.com/magazine/archive/2013/10/how-the-nfl-fleeces-taxpayers/309448/

 

[cpacini]

I don't see what the problem is here, the added publicity for any artist to play the super bowl is probably much much more valuable than whatever the nfl is asking them to pay. And if it is not then no one is forcing anyone to perform. I'm sure the NFL would have no problem finding countless artists that would be willing to pay to get a 20 minute set in front of that size audience

 

[MetalMat]

I don't see what the problem is here, the added publicity for any artist to play the super bowl is probably much much more valuable than whatever the nfl is asking them to pay. And if it is not then no one is forcing anyone to perform. I'm sure the NFL would have no problem finding countless artists that would be willing to pay to get a 20 minute set in front of that size audience

Depends on how much it is.

Get the Bacon Brothers band national attention for a mill? Sure