NFL's Non-Profit Status Challenged in Congress, New York State

By Dustin M Braden - 30 Jan '15 18:40PM
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The National Football League's non-profit status is being challenged just days before the league's biggest annual event, the Super Bowl.

BuzzFeed reports that the NFL's non-profit status is being challenged in both the United States Congress and the New York State Assembly. Such a change would have enormous ramifications for the multi-billion dollar organization because the league would be exposed to a number of new taxes because non-profits are not taxed.

The NFL makes around $10 billion annually from lucrative advertising contracts that are made possible by the fact that football is far and away the most popular sport in the United States.

If the bill in the New York Assembly revokes the NFL's non-profit status, the league would have to pay taxes to the state of New York, even if the congressional push fails, because its headquarters is in New York City.

The Congressional bill would not only revoke the non-profit status of the NFL, but also of the NHL, and the professional golf organizations known as the PGA Tour and LPGA Tour. The National Basketball Association has never been a non-profit and Major League Baseball ceased being a non-profit in 2007, accoring to BuzzFeed.

This is not the first time Congress has tried to revoke the NFL's non-profit status. New Jersey Senator Cory Booker and Washington Senator Maria Cantwell have also tried similar legislative initiatives.

It is difficult to say whether the New York Assembly and Congressional bills will be passed, given that the NFL employs a number of lobbyists to protect its interests. However, the NFL has been the subject of withering criticism throughout the 2014 season. It is possible that because of scandals surrounding domestic abuse, league malfeasance, brain damage, and deflate gate, the public no longer wishes to offer the league privileges as valuable as non-profit status.

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