The NFL is ending its tax-exempt status, the league announced Tuesday.
In a statement sent to teams (via Bloomberg), commissioner Roger Goodell said, “Recently Congress has questioned whether sports league associations should, as a matter of federal tax policy, be tax exempt. We will notify interested members of Congress of this decision by NFL ownership.”
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Goodell also stated, "The league office was first granted tax-exempt status by the IRS in 1942, and the IRS has repeatedly confirmed that status over the years. The Management Council has a similar tax status and organizational structure. As you know, the effects of the tax exempt status of the league office have been mischaracterized repeatedly in recent years.
"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."
Because of the move, according to Bloomberg, the NFL will no longer need to disclose Goodell’s salary and other financial information.
Goodell earned more than $44 million in total compensation from league owners during a 12-month period that ended in March 2013, Sports Business Daily reported.