The NFL was an unincorporated NONPROFIT association until 2015?!?

Truly incredible.

Jul 01, 2021

NFL fans,

I am admittedly speechless upon finding out that the NFL was operating as a “unincorporated nonprofit 501(c)(6) association” until 2015. That shit seems absolutely preposterous to me but apparently it is as true as true can be. Up until 2015 the NFL was exempt from paying federal income taxes due to their nonprofit status.

Admittedly, I am no legal scholar so I’m going to lean on the work of The New York Times, USA Today, and New York Daily News to explain this more in depth…

“At the corporate level, the National Football League considers itself a trade association made up of and financed by its 32 member teams. Up until 2015, the league was an unincorporated nonprofit 501(c)(6) association. Section 501(c)(6) of the Internal Revenue Code provides an exemption from federal income taxation for "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 and no part of the net earnings of which inures to the benefit of any private shareholder or individual." In contrast, each individual team (except the non-profit Green Bay Packers) is subject to tax because they make a profit.
The NFL gave up the tax-exempt status in 2015 following public criticism; in a letter to the club owners, Commissioner Roger Goodell labeled it a "distraction", saying "the effects of the tax-exempt status of the league office have been mischaracterized repeatedly in recent years... 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 league office might owe around US$10 million in income taxes, but it is no longer required to disclose the salaries of its executive officers.”

This is just simply WILD.

The combined valuation of all 32 NFL franchises sits at $91 BILLION and yet they were considered a NONPROFIT until 6 years ago.

I don't know exactly what to do with this information to be honest but I have to admit it seems absolutely crazy that this was the case for so long. At the end of the day it clearly has not effected the product that we all know and love but it definitely points to the power of the league as a whole.

I guess I’m just glad to see that the NFL has decided to pay the same income taxes as the fans who spend money in their stadiums. How nice of them to join us.

At the end of the day the NFL is and will probably always be a financial beast. This is just part of that game I guess.

It still seems crazy though.