Time to tax??

[IWB]

I know this has been a recurring discussion over the years, but here is an article saying a former senator is now in the "College Sports should be taxed" corner.

http://www.bostonglobe.com/opinion/2014/08/18/college-sports-big-lie-these-universities-are-nonprofits/U8wvgLCBXVFbHbGwCBaYcI/story.html?event=event25

[MayorBeluga]

The IRS should start by going after the Big Ten Network as unrelated business taxable income of the conference itself.

[Gato78]

Apparently John Sununu has been listening to Mayor Beluga. I agree with Sununu--which is difficult for me to do based on our divergent politics. However, college sports has gotten out of hand and the administrators have lost sight of their mission to educate. Time for Congress to do something.

[unclejohn]

This is not even that new of an issue. The IRS went after Christian Brothers about a half century ago over selling wine and brandy. It did not matter that they were a religious organization and ran schools. They were running a business and competing against other suppliers. Sununu has a definite point.

Of course, the question then becomes how do you do it? As many have noted, most athletic programs lose money. I doubt Marquette makes a whole lot if anything, when you figure the cost of running the whole athletic department. That is likely true of many similar programs. With the big conferences making huge amounts on networks, they likely will, but of course clever accounting can reduce that. I think Sununu is not exactly offering a solution as opening a can of worms.

[TheSultan]

Apparently John Sununu has been listening to Mayor Beluga. I agree with Sununu--which is difficult for me to do based on our divergent politics. However, college sports has gotten out of hand and the administrators have lost sight of their mission to educate. Time for Congress to do something.


That is a pretty hyperbolic statement.

[TheSultan]

The IRS should start by going after the Big Ten Network as unrelated business taxable income of the conference itself.


I'm pretty sure the BTN is a separate legal entity. But yeah, "athletic income" in my opinion should be considered unrelated business income. Exempt organizations only are exempt in how they it relates to the purpose for which they are exempt.

So for instance, the income that Marquette received via tuition, etc. is exempt from taxation because Marquette uses that money for educational purposes. However income from television contracts, etc. IMO aren't related to the educational purpose of Marquette and therefore should be taxed. Unclejohn is right though with regards to the expenses that could reduce that tax burden.

[Gato78]

Didn't all of the conference jumping bear this out in rather stark terms? Even Notre Dame fell victim--who I have always admired because of its insistence on meeting educational and conduct standards first and foremost. (BTW I put MU in that category too.) Yet, the dollar chase by university presidents in sports gives witness to this statement. Pitt and Syracuse blindsiding the BIG EAST while the President of Pitt was attending to the BIG EAST television deal was simply corrupt.



That is a pretty hyperbolic statement.

[TheSultan]

Didn't all of the conference jumping bear this out in rather stark terms? Even Notre Dame fell victim--who I have always admired because of its insistence on meeting educational and conduct standards first and foremost. (BTW I put MU in that category too.) Yet, the dollar chase by university presidents in sports gives witness to this statement. Pitt and Syracuse blindsiding the BIG EAST while the President of Pitt was attending to the BIG EAST television deal was simply corrupt.


That doesn't mean that "they have lost sight of their mission to educate." You really think that Father Wild, as he pulled MU into the BE, and Father Pilarz, as he lead MU into a television contract that increased revenue over 100%, have lost their way?

Whenever discussions like this come up, I find it someone ironic that people who are season ticket holders, or watch the games on television, or spend time on message boards discussing the sport, etc. don't understand that *they* are part of the problem.

Look, I am all about reasonable taxation for athletic income, and I also don't think people realize that this might hit the smaller schools harder than the big ones, but when we start making broad social statements like this I just don't think people understand the role they play.

[MUMac]

Apparently John Sununu has been listening to Mayor Beluga. I agree with Sununu--which is difficult for me to do based on our divergent politics. However, college sports has gotten out of hand and the administrators have lost sight of their mission to educate. Time for Congress to do something.

And that is the problem I have with so many. Difficult to agree with someone because of their politics. Sad on many levels.

[Gato78]

What the hell is the problem here? We cannot talk about a broad based societal problem because Fr. Wild got Marquette into the BIG EAST? My point is relatively simple: universities at the high D1 level have stopped looking at intercollegiate athletics as an adjunct to the educational experience and have set their sights on the income generated thereby. All schools, including Marquette want to compete at the highest level. However, was that the motivating factor in conference realignment over the past 5 years? No. I am glad to say MU looked at it in terms of like minded institutions and was able to pick up some added revenue in the process. However, moves like Pitt and Syracuse's--threats like Texas leaving to join the PAC 12 and Rutgers courtship and joinder by the Big Tenleventwelve tell us exactly what University Presidents were thinking this past five years. Our high D1 football schools have become income producing minor league feeders for professional teams.

[TheSultan]

Right...so we are representative of what's right....and they are representative of what's wrong.

[Gato78]

In some respects, yes. I would like to think we have a better concept than other universities. We insist on students going to class and applaud when they get their degrees. We do not pay recruits whether underhanded or above board through AAU programs. Our student athletes come here to get degrees. We do not make it a farce like Kentucky. We discharge coaches who break rules. We are not like many of the SEC schools who wink and nod rules violations. We do a lot of things the right way but inevitably that puts us at a competitive disadvantage. We are run by Jesuits and others who serve a religious purpose. That makes us different. YES.


Right...so we are representative of what's right....and they are representative of what's wrong.

[Alan Bykowski, "brewcity77"]

And that is the problem I have with so many. Difficult to agree with someone because of their politics. Sad on many levels.

+1000

It's not enough to have a good idea anymore, the good idea has to come from a source you agree with. The polarization of this country is so extreme that you have to be wide right or far left. Heaven forbid we ever agree on anything...Fox News and MSNBC would never let us hear the end of it.

I agree that it is definitely time to tax, but also agree with Sultan that the ones that are hit hardest could very well be the little guys. I'm sure the Big 10 and other major conferences will just find creative ways to write off expenses so they end up skating anyway.

[TheSultan]

I agree that it is definitely time to tax, but also agree with Sultan that the ones that are hit hardest could very well be the little guys. I'm sure the Big 10 and other major conferences will just find creative ways to write off expenses so they end up skating anyway.


It's not just writing off expenses, but the ability to absorb the tax expense. Unless the rules allow for an exemption of some sort, 15% of Ohio State's athletic revenue will be easier for OSU to pay, than 15% of Akron's will be for Akron to pay.

[farmerdoc]

It's not just writing off expenses, but the ability to absorb the tax expense. Unless the rules allow for an exemption of some sort, 15% of Ohio State's athletic revenue will be easier for OSU to pay, than 15% of Akron's will be for Akron to pay.

Can a "luxury tax" even be legal in this situation? Certain the "power 5" would have the resources to fight off that kind of proposal.

[WarriorNich]

+1000

It's not enough to have a good idea anymore, the good idea has to come from a source you agree with. The polarization of this country is so extreme that you have to be wide right or far left. Heaven forbid we ever agree on anything...Fox News and MSNBC would never let us hear the end of it.

I agree that it is definitely time to tax, but also agree with Sultan that the ones that are hit hardest could very well be the little guys. I'm sure the Big 10 and other major conferences will just find creative ways to write off expenses so they end up skating anyway.

"You don't even know what a write-off is." -Jerry
"But they do. And they're the ones writing it off." -Kramer

[IWB]

"You don't even know what a write-off is." -Jerry
"But they do. And they're the ones writing it off." -Kramer

Awesome