How is the NFL a Nonprofit Organization?

[InCyder]

I never new this was true, and then my wife started asking me questions on how this worked. I thought it seemed odd that an organization that grosses over $9 biliion could get this exempt status, but in this day and age nothing really surprises me anymore. I just wondered if anyone on here had a quick explanation to how this works.

Thanks

 

[IcSyU]

The NFL is a holding company which repatriates the earnings out to the teams.

 

[Cyclonin]

Their expenses (re: Salaries + team/owner payouts) get adjusted yearly as the NFL doesn't necessarily have a "Net Income"

 

[boone7247]

I never new this was true, and then my wife started asking me questions on how this worked. I thought it seemed odd that an organization that grosses over $9 biliion could get this exempt status, but in this day and age nothing really surprises me anymore. I just wondered if anyone on here had a quick explanation to how this works.

Thanks

The league is exempt, but the teams are not. That $9 billion mostly gets distributed to the teams and they pick it up as revenue. So while the league is exempt, theoretically the revenue is taxed. I am assuming that is what you are getting after.

 

[NATEizKING]

Pretty sure they won't be for long, I don't believe the NBA or other pro leagues are non-profit.

 

[CornFedIABoy]

Per Wikipedia

The National Football League is an unincorporated nonprofit 501(c)(6) association, meaning its league office is not subject to income tax because it does not make a profit. In contrast, each individual team (except the non-profit Green Bay Packers[SUP][/SUP]) is subject to tax because they make a profit. The NFL considers itself a trade association made up of and financed by its 32 member teams.

 

[CornFedIABoy]

Pretty sure they won't be for long, I don't believe the NBA or other pro leagues are non-profit.

The only way the NFL stops being a 501(c)6 is if federal law is changed. You really think they're going to let that happen?

 

[Mr Janny]

The only way the NFL stops being a 501(c)6 is if federal law is changed. You really think they're going to let that happen?

Not likely, and frankly, I'd rather go after their anti-trust exemption rather than their Non-profit status, but that won't happen either.

 

[Clonefan32]

So what you're telling me is I need to start treating my children as member organizations, pay my bills and filter what's left to them and I can avoid paying taxes? Sweet!

 

[CyFan61]

So what you're telling me is I need to start treating my children as member organizations, pay my bills and filter what's left to them and I can avoid paying taxes? Sweet!

Then your kids will be paying the taxes instead...

 

[Clonefan32]

Then your kids will be paying the taxes instead...

Good life lesson.

 

[LivntheCyLife]

The way I understand it is it's just like a Chamber of Commerce. The businesses (teams) are for profit, but they can form an organization (NFL) to oversee things.

 

[Wesley]

http://network.yardbarker.com/author/article_external/17394008?widget=true

 

[cycfan1]

The NFL is a holding company which repatriates the earnings out to the teams.

So do corporations.