This week, a senator from Oregon proposed legislation that would strip PGA Tour its tax-exempt designation.
Senator Ron Wyden, D-Ore., chair of the Senate Finance Committee, introduced two bills on Wednesday: the Sports League Tax-Exempt Status Limitation Act, and the Ending Tax Breaks for Major Sovereign Funds Act.
The PGA Tour has a 501(c), a tax-exempt status that allows professional sports leagues to enjoy exemptions from taxes. Wyden is concerned about the Tour’s 501(c), tax-exempt organization status and what would happen if the framework agreement created a for profit entity between Saudi Arabian Public Investment Fund (SAPIF) and PGA Tour.
Wyden stated that “most of America’s major pro sports leagues voluntarily gave up their tax exemptions when their revenues reached astronomical levels, and they had not even shamed themselves by Saudi blood money.” “An organization which betrays its word and becomes a profit generator to Saudi Arabia’s brutal government has disqualified themselves for a tax exempt.”
The Sports League Tax Exempt Status Limitation Act will amend the current tax code in order to exclude sports organizations that have assets above $500 million. The Ending Massive Sovereign Funds Tax Breaks Act would deny this benefit to funds that belong to countries with more than $100 billion in global investments.
Wyden stated that “many of the largest sovereign wealth funds are owned by countries who do not share our values and there is no reason why hardworking American tax payers should have to subsidise their enormous profits.”
Senator Wyden launched an investigation in June into the financial structure of the proposed PGA Tour and Saudi deal. He cited censorship as well as national security concerns, given that the tour owns property near U.S. Military sites.
