Quote from Forbes --Jan 30, 2014
The National Football League takes in more than $9.5 billion per year and is exempt from Federal taxes. As a nonprofit, it earns more than the Y, the Red Cross, Goodwill, the Salvation Army or Catholic Charities – yet it stands as one of the greatest profit-generating commercial advertising, entertainment and media enterprises ever created.
An arcane tax code change that eased the 1966 merger of the NFL with the old American Football League landed the new combined entity in section 501(c)6 of the tax code, designated as an industry association. The designation actually covers “chambers of commerce, real estate boards, boards of trade, and professional football leagues.” This does not cover the league’s 32 individual franchises, which also rake in billions.
The National Football League makes $9.5 Billion in profits. This figure is for the League alone exclusive of the profits earned by individual franchises. The NFL pays no taxes as it enjoys tax exempt status as a non profit organization. It enjoys this status as a result of an obscure 1966 law that declares professional football leagues non profit tax exempt status. What do you think?