All right everyone, I hope you are all sitting down for this, because I am filled with mild outrage at the National Football League. But first, go Seahawks! Dudes, sweet touchdown at the last minute to beat the Panthers! We all needed that. We’ve been worried about you guys. Welcome back!
But back to the outrage. Apparently, the NFL has for decades been considered a trade association, kind of like a chamber of commerce, and is granted 501c6 status, which makes it a nonprofit. That’s right, the NFL is a nonprofit! Sure, it makes over $10 billion a year and pays its commissioner, Roger Goodell, $44 million in salary last year. But with the 501c6 status, which it gained through some political voodoo in 1966 when it merged with the American Football League, the NFL is tax-exempt.
Now, before you too get upset and punch your cubicle wall with your carpal-tunnel-afflicted hand, here are some facts to consider. First, even though the NFL is considered a nonprofit, its members (the 32 football teams like the Seahawks) are not, so the revenues they make through licensing and swag and stuff are taxed. Second, the NFL often operates at a loss, which you can clearly see on their 990. Heck, in 2012 they were $304 million in the red. You can’t tax a net loss. Removing their tax-exempt status would only recover about $10 million per year in funds, which is still a lot, but not nearly as much as we were all hoping.
What is mainly annoying me, however, is the fact that the NFL is considered legally a nonprofit. This is ridiculous. That’s like saying that a donkey is a bunny. Or that a hat is a door. Or that a Hershey’s bar is actually chocolate (it is chocolate-flavored sugar). It is insulting to all of us who proudly wear the title “Nonprofit.” Do I go around telling people that I am a dentist? Of course not! Especially not after the last tooth extraction I did on a colleague who didn’t have dental insurance; it did not go as well as Youtube suggested it would.Continue reading →