John Elway doesn't believe in safety nets/The NFL is Tax exempt? [MERGED]

MacNut

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So I stumbled upon this article that says New Jersey will eat all costs for hosting the Superbowl. I was unaware that the NFL is a "nonprofit".
When New Jersey landed this year’s Super Bowl, it gave the National Football League a major tax break. The state agreed to suspend the sales tax on all tickets and parking for today’s big game — a gift that will cost the state $8 million in lost revenues, officials said.

And that’s not the only cost the state is picking up.

All the security and police presence needed for the game — including the estimated 700 New Jersey state troopers who will be patrolling in and around MetLife Stadium today — will also not cost the NFL a dime. The state said it is covering all of its public safety expenses for the game, which is expected to include hundreds of hours in overtime.
The league, which pays no federal taxes because of its tax-exempt status, receives 100 percent of the revenues from the sale of all Super Bowl tickets and parking, and has long gotten a pass on state and city sales taxes when it comes to the championship game.

"One of the standard conditions that the NFL asks of all host communities for Super Bowls is to provide sales tax relief on the sale of tickets to the game and certain associated events as well as parking at those events," said Christopher Santarelli, a spokesman for the state Treasury Department. "New Jersey agreed to provide this tax relief to the NFL."
Sen. Tom Coburn (R-Okla.) has legislation pending that would revoke the tax-exempt status of sports leagues such as the NFL. His bill would strip tax-exempt status from any league making more than $10 million a year.

The NFL, registered with the IRS as a 501(c)(6) nonprofit organization, generates billions in broadcast and licensing deals for its member teams and brings in about $255 million in revenues annually. It paid its commissioner, Roger Goodell, $29.4 million in 2011, the most recent figures available.
http://www.nj.com/super-bowl/index.ssf/2014/02/nj_gave_nfl_8_million_tax_break_and_pass_on_security_costs_to_land_the_2014_super_bowl.html

I think it's about time we change some of these exemption laws for a pro league.
 

SLC Flyfishing

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This may all work out in everyone's favor when you factor in the economic impact that New Jersey felt as a result of hosting the game.

Perhaps that's why they do it?
 

Menel

macrumors 603
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The the NFL is a 501c non-profit.

Simliar to USACycling, USATF, and most other national level competitive athletic discipline. The only deviation I can think of is Triathlons are for-profit.
 

MacNut

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This may all work out in everyone's favor when you factor in the economic impact that New Jersey felt as a result of hosting the game.

Perhaps that's why they do it?
I think New York felt the impact, but I bet Jersey took the brunt of the cost.
 

0007776

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This may all work out in everyone's favor when you factor in the economic impact that New Jersey felt as a result of hosting the game.

Perhaps that's why they do it?
I'd be curious to see some actual statistics showing that there is an actual economic benefit, does anyone have studies from past super bowls? The closest I've found is that big sporting events like the olympics usually lose money, but those require a lot more investment beforehand.

I doubt many people who come in from out of state stay for much more than the weekend, and I wouldn't be surprised if a decent amount stay in New York instead of New Jersey and just go across for the game and nothing else. Plus if it's bringing in a lot of people from out of town then I would guess that the crowds would make tourists who aren't interested in the Super Bowl stay away until it's over, so tourism wouldn't go up either.
 

MacNut

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I'd be curious to see some actual statistics showing that there is an actual economic benefit, does anyone have studies from past super bowls? The closest I've found is that big sporting events like the olympics usually lose money, but those require a lot more investment beforehand.

I doubt many people who come in from out of state stay for much more than the weekend, and I wouldn't be surprised if a decent amount stay in New York instead of New Jersey and just go across for the game and nothing else. Plus if it's bringing in a lot of people from out of town then I would guess that the crowds would make tourists who aren't interested in the Super Bowl stay away until it's over, so tourism wouldn't go up either.
Im sure restaurants in NYC did great, but the city is so big most people wouldn't even notice the Superbowl was in town. New Jersey had to pay for all of the security and transportation costs and maybe got some hotel revenue. But I doubt they make back the 8 million it cost to host.

There is no reason the NFL can't pick up some of the tab for this game. It's not like they are hurting for money. If I were a city bidding on the game I would tell them to shove it and pay for some of it. If enough cities say that the NFL will change it's tune or drastically scale down the event.
 

rdowns

macrumors Penryn
Jul 11, 2003
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Tons of articles out there that state the NFL overstates the economic impact of the Super Bowl.

http://www.nytimes.com/2014/01/26/business/a-super-bowl-estimate-with-a-life-of-its-own.html?_r=0


Kind of related:

Denver Broncos executive vice president of football operations John Elway revealed on Sunday that he was a Republican because he doesn't "believe in safety nets" -- even though he admitted they were necessary.

In a interview on Fox News prior to Super Bowl XLVIII, host Chris Wallace pointed out that Elway was a "big Republican" who had contributed "a lot of money" to former Republican presidential nominee Mitt Romney in 2012.

"Why do you support the GOP?" Wallace wondered.

"Well, it goes to what my beliefs are," Elway explained. "I believe that we're given the opportunity to succeed or not succeed."
Wonder how he feels about the bonds floated by taxpayers to help pay for 75% of his new stadium.
 

Michael Goff

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Arran

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Elway explained. "I believe that we're given the opportunity to succeed or not succeed."
Wonder how he feels about the bonds floated by taxpayers to help pay for 75% of his new stadium.
It's entirely consistent with his stated belief. He's succeeding and the rest of us are not succeeding.

No problem there. No inconsistency.
 

jnpy!$4g3cwk

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Feb 11, 2010
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John Elway doesn't believe in safety nets

Sorry to my Bronco-loving friends, but, I'm now glad that Denver lost miserably. I missed the big Bronco story of the week until now somehow.

Well, here’s a reason to root for the Seattle Seahawks in tonight’s Super Bowl: Denver Broncos icon John Elway’s comments this morning on “Fox News Sunday.”

Elway, who won the Super Bowl twice as the Broncos quarterback and is now a team executive, was asked by Chris Wallace why he is a Republican.

His answer: Garbled nonsense about not believing in a social safety net.

“Well, it goes to what my beliefs are,” Elway said. “I believe that we’re giving the opportunity to succeed or not succeed.”

“I don’t believe in safety nets,” he said. “Obviously, we’ve got to have some kind of safety nets. But I think my philosophy is when given the opportunity to go take advantage of that, I think that’s when you get the best out of people.”

As the Daily Kos points out, perhaps it’s time the “non-profit” NFL stops being a taker and starts paying taxes.
http://www.salon.com/2014/02/02/john_elway_i_dont_believe_in_safety_nets/

I keep wondering why cities all over the country keep subsidizing pro sports, directly, and, indirectly through sweetheart land deals &etc.
 

Eraserhead

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Menel

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Sorry to my Bronco-loving friends, but, I'm now glad that Denver lost miserably. I missed the big Bronco story of the week until now somehow.



http://www.salon.com/2014/02/02/john_elway_i_dont_believe_in_safety_nets/

I keep wondering why cities all over the country keep subsidizing pro sports, directly, and, indirectly through sweetheart land deals &etc.
Competition between cities, price war to lure teams.
Not unlike ATT and Verizon competing for customers by lowering price to gain more revenue.

Good sized teams bring A LOT of revenue to your city. Hotels, restaurants, gas stations, shopping stores. Boosts the success of your local businesses and brings in a lot of tax money.

It may sound like a lot of money to subsidize stadiums, but there are real justifications behind it.
 

rdowns

macrumors Penryn
Jul 11, 2003
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Odd, he had no problem with sticking 75% of the cost of a new stadium on taxpayers.
 

Shrink

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Feb 26, 2011
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Be sure to check your mailbox today, John. The Mensa invitation is waiting for you.

Also, the Super Articulate Speakers Bureau will be calling soon.

:rolleyes:
 

Menel

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Aug 4, 2011
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Additionally, most cities/states have travel and hotel taxes, double dip on visitors in such ways as not to burden their local constiuents.

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Odd, he had no problem with sticking 75% of the cost of a new stadium on taxpayers.
He didn't stick them with it.

The tax payers of that city by their popular vote for their mayor/governor/legislature chose to make an offer, and enter into an agreement, making their city a better price choice.
 

rdowns

macrumors Penryn
Jul 11, 2003
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Competition between cities, price war to lure teams.
Not unlike ATT and Verizon competing for customers by lowering price to gain more revenue.

Good sized teams bring A LOT of revenue to your city. Hotels, restaurants, gas stations, shopping stores. Boosts the success of your local businesses and brings in a lot of tax money.

It may sound like a lot of money to subsidize stadiums, but there are real justifications behind it.

Come on, football teams play 8 home games a year, 10 if you include pre-season. Add a playoff game or two if your team is good. Do 11 games really generate enough revenue to justify taking on debt to pay for 75% of the stadium?
 

Eraserhead

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Additionally, most cities/states have travel and hotel taxes, double dip on visitors in such ways as not to burden their local constiuents.
Visitors do use local services too - and hotel taxes are usually pretty low.
 

Menel

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Come on, football teams play 8 home games a year, 10 if you include pre-season. Add a playoff game or two if your team is good. Do 11 games really generate enough revenue to justify taking on debt to pay for 75% of the stadium?
I haven't seen the numbers for the Broncos, but its certainly probable.

The tax payers, legislature and all in these kind of cities are obviously convinced by evidence. Ive never heard of a mayor/governor ousted because they managed to lure a sports team.