John Ross discusses the absurd tax exemption enjoyed by major sports leagues like the NFL
I was particularly struck by this
as a tax-exempt entity, [the NFL] doesn’t pay taxes on the income that it earns. The NFL has managed to keep its income earnings a little on a low side by paying its top executives corporate-level salaries—eight NFL execs took home compensation of $51.5 million in 2010. The teams get to write off their NFL membership dues, roughly $6 million per team, for the privilege of belonging to this unusual trade association, and that money is put into a stadium fund that provides interest-free loans to teams so long as they get taxpayer financing on stadium construction and improvement costs.
So NFL teams pay dues to the NFL, and get to write the cost of those dues off on their taxes. But the NFL pays not taxes on the dues it receives It then puts these dues in a fund that the teams can use, but ONLY if they go out and extort further taxpayer gifts for their stadiums. Ugh.