For decades, the league — not the teams themselves who pay taxes — which makes an estimated $10 billion in annual revenue has avoided paying Uncle Sam because of a line of code that allowed them to do so. Section 501(c)(6) of the Internal Revenue Code says that "professional football leagues" are free to be exempt, which was a way that helped allow the NFL and old American Football League, its one-time rival, join forced into the monster it now is, back in 1966.
"Business leagues, chambers of commerce, real estate boards, boards of trade, or professional football leagues (whether or not administering a pension fund for football players), not organized for profit" have been allowed to earn that status and avoid paying taxes.
In recent years, congressional forces have rallied against this tax-exempt status — as well as with other sports leagues, such as the PGA and NHL — and have pressured the leagues to give it up and pay their fair share. The NFL apparently has the money and is willing to get ahead of the game to avoid a public-relations nightmare.
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"Business leagues, chambers of commerce, real estate boards, boards of trade, or professional football leagues (whether or not administering a pension fund for football players), not organized for profit" have been allowed to earn that status and avoid paying taxes.
In recent years, congressional forces have rallied against this tax-exempt status — as well as with other sports leagues, such as the PGA and NHL — and have pressured the leagues to give it up and pay their fair share. The NFL apparently has the money and is willing to get ahead of the game to avoid a public-relations nightmare.
Rest of Yahoo! story