The NFL has chosen to relinquish its tax-exempt status, calling it a “distraction.” The league office (not the member football teams) is currently a 501(c)(6) business league, and will become a for-profit entity this year. Although the change is likely a direct result of Congress’ recent push to eliminate tax-exemption for professional leagues with revenues in excess of $10 million, it’s nice to see organizations realize that they don’t really need the tax-exempt status they’ve been maintaining. The NFL has said they don’t operate like a tax-exempt organization and most revenue is taxed at the for-profit team level. The league office says they typically operate at break-even net income, so the tax impact of the change will not be significant.
