Manatee Review

Congressmen Vern Buchanan (R-FL) and Mike Thompson (D-CA) have introduced legislation to revoke the tax-exempt status of the PGA Tour. The PGA Tour, currently classified as a 501(c)(6) nonprofit organization, does not pay federal corporate income taxes. The introduction of this legislation comes after the PGA's decision to merge with Saudi-backed LIV Golf, forming a single for-profit entity.

Congressman Buchanan expressed his concerns about taxpayer subsidies for the PGA's tax-exempt status, stating, "With billions of dollars in annual revenue and record profits streaming in, coupled with their looming partnership with Saudi Arabia's sovereign wealth fund, why in the world should hardworking American taxpayers subsidize the PGA's tax-exempt status? We should be supporting local charities on Main Street, not foreign-backed professional sports organizations that are not dedicated to benefiting the American people."

Congressman Thompson highlighted the need for nonprofit tax treatment to be reserved for institutions and charities that directly help everyday Americans. He stated, "The proposed PGA-LIV merger raises serious concerns. Nonprofit tax treatment should be reserved for institutions and charities that help everyday Americans – not billion-dollar sports leagues backed by Saudi government money."

The deal to merge the PGA Tour and LIV Golf was announced in June of 2023. The proposed merger would involve the Saudi Public Investment Fund contributing its golf-related commercial business and rights, along with a significant financial investment. However, few details of the agreement have been made public since then.

The legislation introduced by Buchanan and Thompson specifically targets sports leagues with annual gross receipts exceeding $1 billion during any of the preceding five tax years. Most American professional sports organizations have voluntarily given up their tax-exempt status. Major League Baseball relinquished its tax-exempt status in 2007, followed by the National Football League in 2015. The National Basketball Association, National Hockey League, and Major League Soccer are currently not classified as nonprofit organizations.

The introduction of this bill signifies a growing sentiment among lawmakers that tax-exempt status should be reserved for organizations that directly benefit the American people. As the PGA and LIV Golf continue their negotiations, Congressman Thompson expressed his eagerness to work with colleagues from both sides of the aisle to achieve this goal.

For more information, visit the official website of Congressman Vern Buchanan: [link](https://buchanan.house.gov/2023/12/buchanan-thompson-introduce-bill-to-remove-pga-tax-exempt-status)

To find out more, go to this link: https://buchanan.house.gov/2023/12/buchanan-thompson-introduce-bill-to-remove-pga-tax-exempt-status