Why Doesn’t The NFL Pay Taxes? Why Is The NFL A Non-Profit Organization? Tax Status Allows The League To Keep All Of Its Profits
With all of the current controversy in the National Football League right now, it's not surprising that American's are taking a new look at the industry that generates almost $10-billion dollars a year - not counting second-tier profit centers. But - did you know that the NFL is a non-profit organization and because of that designation - doesn't pay a dime of taxes on those profits?
Just like a charitable organization, the NFL is listed with the Federal government as a non-profit - which puts them in the company outfits like the Red Cross, Muscular Dystrophy Association, Catholic Charities, and the like.
How is this possible and how did the NFL end up with a non-profit designation?
The easy answer is politics. When the American Football League merged with the National Football League in 1966, lobbyists successfully gained the designation as a bargaining chip. No lawmaker wanted to be seen as being on the "wrong side of football" - so they voted for the league's interests. Arguments at the time said that we needed to "protect" football as "America's favorite pastime".
Surprised? It actually gets worse. The NFL isn't the only sporting industry that gets to profit without contributing tax dollars to our country. The Professional Rodeo Cowboys Association and the Professional Golfers Association also fall under similar tax decrees.
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