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Title: Bills Blocking Taxpayer Funding Of Sports Arenas Could Gain Steam Amid Anthem Protests
Source: DailyCaller
URL Source: http://dailycaller.com/2017/09/24/b ... m-in-midst-of-anthem-protests/
Published: Sep 25, 2017
Author: Kerry Picket
Post Date: 2017-09-25 09:25:23 by Tooconservative
Keywords: None
Views: 3752
Comments: 25

Senators proposed a bill this summer to prevent federal taxpayer funding from going towards the construction of professional sports arenas, and after more players began supporting the protest of the national anthem before games, the legislation may begin to pick up steam.

A companion measure to the legislation was already proposed in the House back in March by Oklahoma Republican Rep. Steve Russell.

Last June, New Jersey Democratic Sen. Cory Booker and Republican Oklahoma Sen. James Lankford put forth a bill that would ban professional sports teams from using municipal bonds in relation to federal funding to build their sports arenas.

“Professional sports teams generate billions of dollars in revenue,” Booker said in a statement. “There’s no reason why we should give these multimillion-dollar businesses a federal tax break to build new stadiums. It’s not fair to finance these expensive projects on the backs of taxpayers, especially when wealthy teams end up reaping most of the benefits.”

The Oklahoma Republican senator agreed, saying, “The federal government is responsible for a lot of important functions, but financing sports stadiums for multi-million – sometimes billion – dollar franchises is definitely not one of them.”

A spokesman from Lankford’s office told The Daily Caller Sunday that in the last four weeks interest in the bill has picked up since both members proposed it four months ago.

Should taxpayers have to pick up the tab for stadiums for wealthy professional athletes and team owners who thumb their noses when the national anthem is played in those very stadiums?

Players on the Baltimore Ravens and Jacksonville Jaguars, all who can potentially benefit from taxpayer dollars at the local, state and federal levels, followed the lead of former San Francisco 49er quarterback Colin Kaepernick Sunday. They kneeled during the national anthem at a game against each other in London. Other teams stayed in their locker rooms for the anthem.

The incident happened one day after President Donald Trump criticized professional football players who kneel during the anthem, which set off a war of words on Twitter between the president and professional sports figures.

Kaepernick claimed his protest of the national anthem last season stemmed from treatment of blacks by law enforcement, but by the end of the season Kaepernick’s demonstrations, joined at that point by other players, led the reason to the league’s TV ratings plunge, ESPN reported.

Not only have viewers bid farewell to the NFL but attendees at teams’ taxpayer-funded stadiums appear to be refusing to fill seats. Last Thursday, the San Francisco 49ers and the L.A. Rams played before a poorly attended crowd.

According to Booker and Lankford, for the past 17 years, 36 professional athletic stadiums have been built or renovated by federal tax-exempted municipal bonds. This cost taxpayers $3.2 billion dollars, the Brookings Institute reported last year.

Despite claims from local officials and team owners that the construction of these stadiums would create jobs and economic growth, research from the Journal of Economic Perspectives showed “there is no statistically significant positive correlation between sports facility construction and economic development,” specifically aimed at income growth or job creation.

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Begin Trace Mode for Comment # 25.

#23. To: Tooconservative (#0)

Did you know the NFL was a non-profit 501(c)(6) until 2015?

http://money.cnn.com/2015/01/30/news/companies/nfl-taxpayers/index.html

NFL gets billions in subsidies from U.S. taxpayers

by Chris Isidore
@CNNMoney January 30, 2015: 10:53 AM ET

If you're a U.S. taxpayer then you're subsidizing the wildly profitable National Football League, regardless of whether you're a fan.

The NFL is the most profitable pro sports league in the U.S., raking in an estimated $1 billion in profits on $10.5 billion in revenue last season, figures that are sure to increase this year.

[...]

Stadium construction: Twenty new NFL stadiums have opened since 1997 with the help of $4.7 billion in taxpayer funds, according to an analysis by the advisory firm Conventions, Sports and Leisure. Local governments pony up to build these venues to attract or keep teams in their towns.

Two more stadiums now under construction in Minneapolis and Atlanta are being built with $700 million in government funds.

[...]

Tax breaks for the NFL's biggest customer: Corporate America: NFL teams sell between $1.5 billion to $2 billion worth of luxury and high-end club seats a year, according to Bill Dorsey, the chairman of the Association of Luxury Suite Directors. A single suite can cost as much as $750,000 a season. Almost all suites and club tickets are bought by corporate clients, which write the cost off as a business entertainment expense.

[...]

Not for profit: The NFL's not for profit status strikes critics as particularly unseemly, given its financial might. But it's categorized that way because the league's profits are distributed to each of the teams, rather than kept by the league itself.

The league probably only saves about $10 million a year as a non-profit, according to Richard Phillips, research analyst with Citizens for Tax Justice, which is a rounding error for a league as profitable as the NFL.

That last part about the NFL not-for-profit status got so embarrassing that the NFL gave it up on their own initiative. The above article is from January 2015 when the NFL was still incorporated as a 501(c)(6) nor for profit corporation.

In April 2015 the NFL announced that it was give up its non-profit status.

https://www.washingtonpost.com/news/business/wp/2015/04/28/the-nfl-is-dropping-its-tax-exempt-status-why-that-ends-up-helping-them-out/

http://www.nydailynews.com/sports/football/nfl-no-longer-non-profit-giving-tax-exempt-status-article-1.2202484

https://www.theatlantic.com/business/archive/2015/04/why-the-nfl-decided-to-start-paying-taxes/391742/

https://nonprofitquarterly.org/2015/04/29/why-did-the-nfl-give-up-its-tax-exempt-status/

Why Did the NFL Give Up Its Tax-Exempt Status?

By Larry Kaplan Larry Kaplan
Non-profit Quarterly
April 29, 2015

[excerpt]

The NFL hardly qualifies in our mind for tax-exempt status as a 501(c)(6), because the beneficiaries of its trade association functions are not football clubs across the board or the sport of football generally, but the 32 specific for-profit professional football clubs. But former commissioner Pete Rozelle so strongly sought this tax status that he had it written into the 501(c)(6) statutory definition. Why? Was it simply a throwaway? Something doesn’t add up here.

One benefit for Goodell and the NFL is that without having tax-exempt status, they won’t face the pressure of full disclosure for their big-ticket salaries, including Goodell’s enormous salary, which was over $40 million in 2012. Of course, we only know that because the NFL was tax exempt, even though the NFL tried to get itself exempted from the disclosure requirement long ago.

But if the tax exemption wasn’t all that important to the NFL, and dropping it won’t materially affect the NFL’s operations going forward, doesn’t that sound odd? Counterintuitive, like there’s something more to the story? Was the NFL able to jigger its finances so that it could use its tax-exempt status for its benefit and then drop it, still manipulating the numbers, so that without it there would be no adverse impact?

Given the NFL’s huge size, enormous salaries, and massive income-generating track record, it sounds like there’s a step that should be taken, either by the IRS, if the IRS’s tax-exempt division were operating with resources and capacity, or by some other watchdog with the ability to take a deep dive into the complexities of the NFL’s financial structure. Let’s hope some watchdog goes back over several years of the NFL’s Form 990s and figure out what the benefit of the tax exemption has been to the NFL in concrete terms—that Rozelle clearly wanted so much to stick it into the law.

Moreover, someone should assess the NFL’s filings to see what the NFL did and didn’t do in terms of compliance with required disclosure. Until this point, the NFL had wanted to protect its tax-exempt status but circumvent various disclosures. What do watchdogs think the NFL should have been reporting on? What should it have been held to in terms of nonprofit standards of behavior and disclosure? Can we assess what benefits the NFL captured through its tax-exempt status and compel a recapture of the economic benefits that the NFL now sees as able to be ditched without much financial impact?

Now is the time to reassess not only the NFL’s history as a tax-exempt entity, but others’ whose tax-exempt status is also questionable, since as (c)(6)s, they have functioned with a tax exemption that gave benefits the NFL is demonstrating they perhaps may not need.—Rick Cohen and Larry Kaplan

nolu chan  posted on  2017-09-26   19:30:10 ET  Reply   Untrace   Trace   Private Reply  


#25. To: nolu chan (#23)

One benefit for Goodell and the NFL is that without having tax-exempt status, they won’t face the pressure of full disclosure for their big-ticket salaries, including Goodell’s enormous salary, which was over $40 million in 2012. Of course, we only know that because the NFL was tax exempt, even though the NFL tried to get itself exempted from the disclosure requirement long ago.

Yeah, I knew. The rest of the article drew out some of the tax angles that I had only suspected but it was always clear that their motives were financial secrecy and increased salary/benefit packages.

They wanted to dip their beaks a lot deeper.

Tooconservative  posted on  2017-09-26   20:04:10 ET  Reply   Untrace   Trace   Private Reply  


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