Somehow Yes, the NFL is a nonprofit and legally it should be. The league is listed as a trade association, the teams are the businesses according to nonprofit consultants. Then how does the head of the League get $40 Million dollars in his pocket? The legal difficulties of several professional football players have reignited anger about the National Football Leagues ethics and non profit status, driving many Americans into a fury. Many agree that the NFL can’t be nonprofit. It’s a $9 billion dollar industry. They should pay taxes like we all do!
“Nonprofit” and “charity” are not the same thing. A charity is only one of the 57 types of non-profit organizations in 31 categories recognized by the Internal Revenue Service under Federal law. Charities, churches, private schools and other entities are in section 501.c.3 of the IRS Code. Labor Unions are in 501.c.5 Business leagues and trade associations are 501.6. Section 527 regulates political organizations. The NFL has never claimed to be a charity.
According to the IRS website: Section 501.c.6 of the Internal Revenue Code provides for the exemption of business leagues, chambers of commerce, real estate boards, boards of trade and professional football leagues which are not organized for profit and no part of the net earnings of which inures to the benefit of any private shareholder or individual. Mr. 40 Million dollar a year calls his a wage for services rendered.
32 independent corporations operate football teams that belong to the National Football League. According to Forbes Magazine, those teams collectively earned about $9 Billion dollars last year. That mon ey belongs to the teams and not to the league. The league is nonprofit. The teams are not. Where does Mr. Head of the NFL get his millions from? Those 32 corporations or teams pay dues and fees for their NFL memberships. Those teams also pay taxes under the same rules as all United States corporations. The NFL provides services to its members. It pays no taxes because its money does not belong to any individual, stockholder or corporation. Meanwhile Mr. big shot makes a hefty salary.
Of course Mr. Big shot is actually Commissioner Roger Goodell.