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NEW YORK, April 28 (UPI) -- National Football League Commissioner Roger Goodell sent a letter to team owners Tuesday informing them the league's central office will ditch its tax-exempt status. The letter, also sent to members of the U.S. Congress, said that by doing so, it was eliminating a "distraction." Some lawmakers have been looking to revoke the NFL's tax break in recent months.
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"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," Goodell wrote. "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."
The impact of losing the tax break amounts to about $108 million over the next 10 years. It also means league information, including Goodell's salary, doesn't have to be publicly disclosed.
The NFL generated $10 billion in revenue in 2013, much of which goes to the individual teams. The 32 teams already pay taxes on their income, but not the central league office.
"The effects of the tax-exempt status of the league office have been mischaracterized repeatedly in recent years," Goodell said in the letter. "The fact is that the business of the NFL has never been tax-exempt."
U.S. Reps. Jason Chaffetz, R-Utah, and Elijah Cummings, D-Md., leaders of the House Oversight and Government Reform Committee, applauded Goodell's announcement.
"We are extremely pleased with the decision from the NFL to waive its tax-exempt status," the two said a joint statement. "It is rewarding to see such an important and positive step toward restoring basic fairness. We hope other professional sports organizations in similar situations will follow the positive example set by the NFL, and we look forward to rightfully returning millions of dollars to the federal treasury as a result."
The NFL will begin filing returns for the 2015 tax year.
