Welcome to the newest edition of The Why. “Why did the NFL give up their tax-exempt status?” you ask? Good question . . . timely too. (Besides, it beats answering the question: “Why does anyone care about gay football players?” Seriously, we have no clue except there is a lot of hugging and @ss-patting that might somehow tie into this.)
Readers familiar with the earlier ALW works of yours truly know that the National Football League’s tax exempt status has been an issue since some time prior to Super Bowl 2014. The profits the National Football League makes on merchandise, royalties, ticket sales and TV contracts might have been enough to get a petition and some legislation going. It seems some folks may still have been clueless that the NFL which takes in about $10 billion yearly enjoys a tax-exempt status.
Recent controversy caused by NFL practices inspired politicians to once again get involved. Still, after literally years of being tax-exempt and more importantly staving off the taxman why did the NFL give up their tax-exempt status?
Could it be as noted in prior coverage of this subject that the NFL is not itself the preferred target but the individual teams themselves so the NFL decided to throw us a bone? After all, with loss of the tax-exempt status comes lots of legal tax deductions and much of what people think goes to the NFL actually goes to the individual teams, right?
Lynda Woodard, one of the key figures involved with the ChangeDot Org. petition (Congress: Revoke the Tax-Exempt Status of the National Football League) believes the NFL heard the people who signed the petition. She says that “the NFL has voluntarily relinquished their tax-exempt status” because “it had become a ‘distraction’.”
Furthermore, she claims that the 429,565 signers of the petition “led Congress to take notice and start to really put pressure on the NFL. Roger Goodell saw the writing on the wall that, had they not made this decision, he would have been called before a Congressional Committee to defend their status.”
Woolard also confirms that the tax-exempt status “is just the tip of the iceberg on taxpayer giveaways that benefit the NFL” Ergo, again, why would the NFL not throw the public a bone perhaps in hopes of avoiding or at least slowing the progress of some members of Congress “looking at their antitrust exemption.”
Why did the NFL give up their tax-exempt status? Now you know.
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