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Sports briefs: NFL gives up on tax-exempt status

April 29, 2015 at 5:59AM
NFL Commissioner Roger Goodell answers a question at a news conference during the NFL Annual Meeting Wednesday, March 25, 2015, in Phoenix. (AP Photo/Ross D. Franklin) ORG XMIT: MIN2015040620272588
Goodell (The Minnesota Star Tribune)
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The NFL's league office will drop its tax-exempt status in response to critics who claim that the government is losing millions of dollars in potential revenue.

As a result, the NFL, a business of about $10 billion in annual revenues, will no longer have to publicly disclose its tax returns, which include the salaries of its top executives, including Commissioner Roger Goodell. Major League Baseball took a similar step several years ago. The league offices of the NHL, the LPGA and several other sports organizations still have tax-exempt status.

Although the NFL's 32 teams are for-profit businesses that pay taxes, the league office has operated as a tax-exempt industry association in various forms since the 1940s. Under the tax code, the league is considered the marketing arm of the teams.

For years, former Sen. Tom Coburn, R-Okla., criticized the league's status. The chorus of critics rose in 2014 when the league office's filings with the IRS showed that Goodell received $44.2 million in fiscal 2012. Goodell was paid $35 million in 2013.

"The owners have decided to eliminate the distraction associated with misunderstanding of the league office's status," said Bob McNair, the owner of the Houston Texans and the chairman of the league's finance committee.

Tuesday's change does not affect the NFL's antitrust exemption, created in the Sports Broadcasting Act of 1961. That allows clubs to negotiate radio and TV broadcast rights together.

Dolphins' Jordan suspended for season

Miami Dolphins defensive end Dion Jordan has been suspended for the 2015 season for violating the NFL policy for substances of abuse, the team said. Jordan, the No. 3 overall pick in the 2013 draft, was previously suspended for six games last season for other violations.

AP: Jets fined $100K for tampering

The NFL fined the New York Jets $100,000 for tampering because of owner Woody Johnson's comments in December about cornerback Darrelle Revis, a person familiar with the situation told the Associated Press. Johnson said he would "love to have Darrelle back" while Revis was still with the Patriots.

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AROUND THE HORN

Mixed martial arts: Jon Jones was stripped of his UFC light heavyweight title and suspended indefinitely following his arrest in New Mexico on a hit-and-run that police say left a pregnant woman with a broken arm. The UFC announced the extraordinary penalties Tuesday night for violations of its athlete code of conduct policy following Jones' latest arrest in a string of misbehavior. Jones was scheduled to face No. 1 contender Anthony Johnson at UFC 187 in Las Vegas on May 23, but instead, No. 3 contender Daniel Cormier will face Johnson for the title.

Auto racing: David Ragan will move to Michael Waltrip Racing next week and finish the season as the replacement driver for Brian Vickers. Ragan has been filling in at Joe Gibbs Racing for Kyle Busch since the second week of the season. Busch is expected to return soon. Vickers missed the first two races of the season as he recovered from heart surgery, returned for two races but was sidelined again in March because of recurring blood clots.

WNBA: Phoenix Mercury star Brittney Griner entered into a diversion agreement after being arrested on suspicion of assault following a fight last week with her fiancée, fellow WNBA player Glory Johnson, in Goodyear, Ariz. Griner will plead guilty to disorderly conduct and must attend 26 weeks of domestic violence counseling. All charges will be dismissed if she completes her counseling. Both players were charged with assault by recklessly causing physical injuries and disorderly conduct after an argument at the home that the couple bought two days earlier turned physical.

Boxing: Gene Fullmer, a member of the International Boxing Hall of Fame whose 55 career victories included two over Sugar Ray Robinson, has died at age 83, his nephew said. Fullmer turned pro in 1951 and defeated Robinson in 1957 to win the middleweight title. The two fought four times and Fullmer went 2-1-1.

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