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Forbes article: Subsidized Saturdays

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GREAT article from Forbes on the economics of football "donations".

It opens with our GEO Group fiasco and goes on to other things like:

"Oil magnate and Twitter mic-dropper T. Boone Pickens gave $165 million to a charitable foundation attached to Oklahoma State University for a new football stadium and new housing and dining options for OSU athletes. Whether that is worthy of charity is not even the issue here: Less than one hour later, the foundation invested all of Pickens’ donation money – plus another $37 million in other donations – into a hedge fund run by Pickens. The university feted Pickens as a charitable hero and honored him with a wood-paneled locker next to the players’ in the new stadium."

and

"With the stadiums built, it’s time for football season. As higher education journalist Daniel Golden writes in the Wall Street Journal, tickets for the fanciest seats – costing $50,000 to $90,000 per year – are not taxed at a regular schedule. He explains, “Suites – usually featuring 16 seats, catered food, televisions and high-speed Internet access – are priced at $50,000 to $90,000 a year. Under a 1988 federal law, taxpayers may deduct 80% of payment for the right to purchase seating at a collegiate sports event — though not a professional one – as a charitable contribution."

Plus interesting stuff about bowls. Check it out.

P.S. I don't respond to guest posts. All guests are encouraged to register with the site.
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owl2Doc said

GREAT article from Forbes on the economics of football "donations".

It opens with our GEO Group fiasco and goes on to other things like:

"Oil magnate and Twitter mic-dropper T. Boone Pickens gave $165 million to a charitable foundation attached to Oklahoma State University for a new football stadium and new housing and dining options for OSU athletes. Whether that is worthy of charity is not even the issue here: Less than one hour later, the foundation invested all of Pickens’ donation money – plus another $37 million in other donations – into a hedge fund run by Pickens. The university feted Pickens as a charitable hero and honored him with a wood-paneled locker next to the players’ in the new stadium."

and

"With the stadiums built, it’s time for football season. As higher education journalist Daniel Golden writes in the Wall Street Journal, tickets for the fanciest seats – costing $50,000 to $90,000 per year – are not taxed at a regular schedule. He explains, “Suites – usually featuring 16 seats, catered food, televisions and high-speed Internet access – are priced at $50,000 to $90,000 a year. Under a 1988 federal law, taxpayers may deduct 80% of payment for the right to purchase seating at a collegiate sports event — though not a professional one – as a charitable contribution."

Plus interesting stuff about bowls. Check it out.
Posted On: Dec 23rd 2013, 11:45 AM #325085

I think it is time that donations to college athletic programs should not be a charitable tax deduction.  They have become big business.  Donations to scholarship funds should be deductible even donations of education buildings to universities.  But here is why they will not lose their charitable deduction status…the people who make BIG donations (Dolphins owner Ross gave $200mil to Michigan)…they know the guys who make the laws!
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The NFL doesn't pay taxes…just putting that out there.

Teambeer is the most knowledgeable FAU sports fan I know, way smarter than me.
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walty12 said

The NFL doesn't pay taxes…just putting that out there.
Posted On: Jan 6th 2014, 1:13 PM #325676

The NFL does not correct…but they are an administering body that handles league contracts, most notably TV and union…after administrative expenses, they distribute to the teams….which do pay taxes.
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I was saying its ludicrous, not defending it.

The reason I personally think donations to University athletic foundations should be tax deductable is because they are just that...a donation.  While yes, college football has become big business...the donors do not earn a ROI from the money donated.

Teambeer is the most knowledgeable FAU sports fan I know, way smarter than me.
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