House Ways and Means Hearing Examines Sports Industry Tax Issues

Last week, the House Ways and Means Committee held a hearing to examine the "rapidly evolving business of sports and the tax issues implicated by its growth and transformation."

While there was discussion during the hearing of the tax-exempt treatment of athletic organizations, tax writers did not delve into a broader examination of the tax-exempt sector or the unrelated business income (UBIT) statute.

Much of the hearing was focused on the wide range of tax benefits available to sports team owners, including tax-exempt municipal bonds to finance the construction of new stadiums at taxpayer expense. Lawmakers also questioned the explosion of money surrounding college athletics, particularly through Name, Image, Likeness (NIL) compensation.

This article was provided to OSAP by ASAE's Power of Associations and Inroads.