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Now on the subject of big business and back door deals, this week the NFL announced it will give up its tax exempt status.  Oops.  Commissioner Roger Goodell informed team owners and members of the U.S. Congress of the decision in letters dated Tuesday that he was eliminating a distraction. 
 
He wrote: every dollar of income through television rights fees, licensing agreements, sponsorships, and ticket sales and other means is earned by the 32 clubs and is taxable there.  This will remain the case when the league office and management council files returns as taxable entities and the change in taxable status will not make a material difference to our business.  This is said to remove a point of leverage of Congress in its continuing inquiries into the league’s handling of concussions and domestic violence. 
 
The cost of the loss of the tax break will be about $109 million over the next decade, but is a political move by the NFL to keep Congress out of its business.  Goodell himself received $35 million in salary and bonuses in 2013 and it has not yet been made public the figure in 2014. 
 
The NFL is the biggest sport league in the U.S. with a record $10 billion in revenue in 2013, up from $7 billion when Goodell took over in 2006.  Much of that revenue goes to the teams who already pay taxes.  Well, at least the income going into the treasury will increase $109 million over the next ten years to help the deficits that will continue to rise thanks to our President, Congress, and the Fed. 
 
Congressional leaders praised the decision suggesting it was time to return to fairness.  Another active week for Congress on matters that waste time in the press if you ask me.  Incidentally the IRS code specifically provides a tax exemption to professional leagues under section 501, the same portion of the law used by the U.S. Chamber of Commerce.  So only by the decision of the league or an act of Congress could this be changed. 
 
It should also be noted that as a result of this declaration, Roger Goodell no longer is required by law to have his salary figure in the public domain.


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