Should Congress Reconsider the Tax Exemption of Pro Sports Organizations?

The Properly Reducing Overexemptions for Sports Act (S. 3086) (PRO Sports Act) is a bill to eliminate the nonprofit status for the league offices of professional sports organizations. Amending the tax code in this area would end a provision that gives millions away to sports leagues simply for being sports leagues. Making a profit does not disqualify an organization from being a nonprofit; rather, the distinction is based on motive. But here the motive of the leagues appears clear, raising the question: Should Congress eliminate the exemption for professional sports leagues? The PRO Sports Act specifically mentions the National Hockey League (NHL), Professional Golfers Association (PGA) Tour, and the Ladies Professional Golf Association (LPGA) as these are the three most well-known exempt leagues. According to the legislation, the league-wide operations of these three organizations combined generate $1 billion in total revenue, and if they were no longer considered tax-exempt…

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