Pay your taxes.

Maybe this is why the NCAA is fighting Judge Wilken so hard.

Right now, the NCAA falls under the charitable exemption in the Internal Revenue Code for educational institutions. But if the entertainment provided by the NCAA is not provided by amateurs, it is really no different from entertainment provided by media companies like ESPN or Amazon, which are not tax exempt.

It is doubtful that college-sports fans tune into the NCAA basketball tournament for educational purposes…

Honestly, I’m surprised the NCAA hasn’t marketed a pitch like that yet.


Filed under It's Just Bidness, The NCAA

5 responses to “Pay your taxes.

  1. 79Dawg

    Even if the NCAA were to lose its status as a 501(c)(3), it would probably qualify under paragraph (6) as a trade association, as the National Football League does, and so still would be tax-exempt. This is particularly true in the NCAA’s case since its members all qualify for 501(c)(3) status due to their educational purposes.
    As I have said on here repeatedly, the fact that an entity has a lot of “money”, net revenue and/or unallocated revenue (i.e., “profit’s in non-profit speak), has nothing to do with its tax status, AS LONG AS THOSE “PROFITS” DO NOT INURE TO THE BENEFIT OF SHAREHOLDERS/OWNERS. In the NCAA’s case, the “profits” are paid back to the schools which, again, are all 501(c)(3)’s themselves. In the NFL’s case, the “profits” from the league are allocated to the teams, and then the teams pay taxes on those monies….
    And the reason it is not changing anytime soon is because they can’t write a tax law to single out the NCAA without messing up the exemptions that a lot of organizations (including many you all may be involved with!) have depended on for years…


    • I’m sure that’s what a lot of folks thought before Congress decided to tax high salaries paid at non-profits, too.


      • 79Dawg

        As my last sentence said, Congress can do something, but it will almost certainly affect all non-profits (as the excise tax on executive comp did), not just the non-profits you, the politicians or others don’t like. My point is simply that trying to force the NCAA to pay players by changing the tax code or revoking the NCAA’s tax status is impractical because of the likely effects on other, actually worthwhile charitable and non-profit organizations which would be wrought by such changes…


  2. Macallanlover

    Particularly glad Congress did that, people were totally sucked in by big, national charities spending a high percentage of their contribution on salaries, office rent/equipment, conferences in high-end resorts, etc. Remember looking at some and found a couple of the ones I had been supporting were actually giving less than 10% of their receipts on the cause they were advocating. For decades now I decided no more National Cancer Society, Heart Association, etc. for me; now I only support hospitals directly, and local organizations. At least with donations to the university’s athletic program, folks have a pretty clear idea where their dollars go (even if they significantly overpay the staffs at the big schools.)


    • Debby Balcer

      I hope youd did not fall for one of the fake stories that went after big charities with false numbers. I check mine out with charity navigator. There has been a lot of misinformation spread about established charities. Here is a link to the American Heart association and how it spends its money. There are some fake charities that use names that are very similar to real charities to gain donations do it is wise to check out who you donate to.