I 
115TH CONGRESS 
1ST SESSION H. R. 3830 
To amend the Internal Revenue Code of 1986 to exclude major professional 
sports leagues from qualifying as tax-exempt organizations. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 26, 2017 
Mr. FARENTHOLD introduced the following bill; which was referred to the 
Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to exclude 
major professional sports leagues from qualifying as tax- 
exempt organizations. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Properly Reducing 
Overexemptions for Sports Act’’ or the ‘‘PRO Sports 
Act’’. 
SEC. 2. FINDINGS. 
Congress makes the following findings: 
(1) The National Football League (NFL), Na-
tional Hockey League (NHL), PGA Tour, and La-
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dies Professional Golf Association (LPGA) each have 
league offices that are registered with the Internal 
Revenue Service as nonprofit organizations under 
section 501(c)(6) of the Internal Revenue Code of 
1986. 
(2) League-wide operations of the NFL, NHL, 
PGA Tour, and LPGA together generate over $1 
billion in annual revenue, and these businesses are 
unmistakably organized for profit and to promote 
their brands. 
(3) Separate from their subsidiaries, the non-
profit league offices of the NFL, NHL, PGA Tour, 
and LPGA had annual gross receipts of $326.9 mil-
lion, $41.1 million, $1.5 billion, and $89.1 million in 
2010, respectively, for a combined total of over $1.9 
billion, according to each organization’s publicly 
available Form 990 filed with the Internal Revenue 
Service. 
(4) According to the Internal Revenue Service, 
section 501(c)(6) of the Internal Revenue Code of 
1986 is for groups looking to promote a ‘‘common 
business interest and not to engage in a regular 
business of a kind ordinarily carried on for profit’’. 
(5) According to the Internal Revenue Service, 
businesses that conduct operations for profit on a 
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‘‘cooperative basis’’ should not qualify for tax-ex-
empt treatment under section 501(c)(6) of the Inter-
nal Revenue Code of 1986. 
SEC. 3. ELIMINATION OF SPECIFIC EXEMPTION FOR PRO-
FESSIONAL FOOTBALL LEAGUES. 
(a) IN GENERAL.—Paragraph (6) of section 501(c) 
of the Internal Revenue Code of 1986 is amended— 
(1) by striking ‘‘, or professional football 
leagues (whether or not administering a pension 
fund for football players)’’; and 
(2) 
by 
inserting 
‘‘or’’ 
after 
‘‘real-estate 
boards,’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2017. 
SEC. 4. SPECIAL RULES RELATING TO PROFESSIONAL 
SPORTS LEAGUES. 
(a) IN GENERAL.—Section 501 of the Internal Rev-
enue Code of 1986 is amended— 
(1) by redesignating subsection (s) as sub-
section (t); and 
(2) by inserting after subsection (r) the fol-
lowing new subsection: 
‘‘(s) SPECIAL RULES RELATING TO PROFESSIONAL 
SPORTS LEAGUES.—No organization or entity shall be 
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treated as described in subsection (c)(6) if such organiza-
tion or entity— 
‘‘(1) is a professional sports league, organiza-
tion, or association, a substantial activity of which is 
to foster national or international professional sports 
competitions (including by managing league business 
affairs, officiating or providing referees, coordinating 
schedules, managing sponsorships or broadcast sales, 
operating loan programs for competition facilities, or 
overseeing player conduct), and 
‘‘(2) has annual gross receipts in excess of 
$10,000,000.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2017. 
Æ 
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