NFL commissioner Roger Goodell, who earned a reported $ 44 million in 2013, will no longer have to divulge his salary now that the league has given up its tax-exempt status.
It will be the mother of all tax returns requiring more than a few calculators and a small army of accountants now that the NFL office has given up its much criticized tax exempt status.
As a result of no longer being not-for-profit, which the NFL has been since 1942 – members of Congress have been critical of the exemption — it means the NFL will no longer have to disclose the salaries of employees at the league headquarters on Park Avenue, including commissioner Roger Goodell, whose salary was reported at $ 44 million in 2013.
“Recently Congress has questioned whether sports league associations should, as a matter of federal tax policy, be tax exempt,” Goodell wrote to NFL owners Tuesday. “We will notify interested members of Congress of this decision by NFL ownership.”
CNN reported that Citizens For Tax Justice estimated the league saved about $ 10 million with its tax-exempt status. The status had become a “distraction,” the league said.
The $ 10 million in extra taxes is hardly going to put a For Sale sign out in front of 345 Park Avenue.
Goodell ‘s letter informed the owners that the long-discussed tax status change was made after a vote by the league’s finance committee and management council executive committee. The NFL will begin filing tax returns for 2015.
“As you know, the effects of the tax exempt status of the league office have been mischaracterized repeatedly in recent years,” Goodell wrote to the owners. “The fact is that the business of the NFL has never been tax exempt. Every dollar of income generated through television rights fees, licensing agreements, sponsorships, ticket sales, and other means is earned by the 32 clubs and is taxable there. This will remain the case even when the league office and Management Council file returns as taxable entities, and the change in filing status will make no material difference to our business. As a result, the Committees decided to eliminate this distraction.”
Texans owner Bob McNair, the chairman of the finance committee, “”The income generated by football has always been earned by the 32 clubs and taxable there. This is the case whether the league office is tax exempt or taxable. The owners have decided to eliminate the distraction associated with misunderstanding of the league office’s status, so the league office will in the future file returns as a taxable entity.”
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