This week, U.S. Rep. Vern Buchanan, R-Fla., threw his support behind U.S. Rep. Mike Thompson’s, D-Calif., bill “to revoke the PGA Tour’s tax-exempt status.”
Buchanan’s office offered some of the reasons why the congressman was backing the proposal.
“Under current law, the PGA is a 501(c)(6) nonprofit organization, meaning it pays no federal corporate income taxes. The legislation follows the PGA’s decision to merge with Saudi-backed LIV Golf into a single for-profit entity,” Buchanan’s office noted.
“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 benefitting the American people,” said Buchanan. “That’s why I’m pleased to introduce this legislation with Congressman Thompson to end this special-interest giveaway and require the PGA to pay taxes, just like every other American business.”
“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,” said Thompson. “I look forward to working with my colleagues on both sides of the aisle to achieve that goal as the PGA and LIV continue their negotiations.”
“In June of 2023, a deal was announced to merge the PGA Tour and LIV Golf. The proposed deal would have the Saudi Public Investment Fund (PIF) contribute ‘its golf-related commercial business and rights (including LIV Golf), along with a significant financial investment, toward minority equity ownership of a new, collectively held, for-profit LLC./ In the months since, few details of the agreement have been made public.
The congressman’s office pointed to reports noting that the PGA Tour reported $1.9 billion in revenue last year. adding that the proposal “specifically applies to sports leagues with annual gross receipts exceeding $1 billion during any of the preceding five tax years.”
Thompson’s bill was sent to the U.S. House Ways and Means Committee. So far, Buchanan is the only co-sponsor and there is no companion measure in the U.S. Senate.
