I 
117TH CONGRESS 
1ST SESSION 
H. R. 363 
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 
JANUARY 19, 2021 
Mr. STEUBE 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 Hockey League (NHL), PGA 
Tour, and Ladies Professional Golf Association 
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(LPGA) each have league offices that are registered 
with the Internal Revenue Service as nonprofit orga-
nizations under section 501(c)(6) of the Internal 
Revenue Code of 1986. 
(2) League-wide operations of the NHL, PGA 
Tour, 
and 
LPGA 
together 
generate 
over 
$1,000,000,000 in annual revenue, and these busi-
nesses are unmistakably organized for profit and to 
promote their brands. 
(3) 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’’. 
(4) According to the Internal Revenue Service, 
businesses that conduct operations for profit on a 
‘‘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— 
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(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, 2020. 
SEC. 4. SPECIAL RULES RELATING TO PROFESSIONAL 
SPORTS LEAGUES. 
(a) IN GENERAL.—Section 501 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subsection: 
‘‘(s) SPECIAL RULES RELATING TO PROFESSIONAL 
SPORTS LEAGUES.—No organization or entity shall be 
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 
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‘‘(2) has annual gross receipts in excess of 
$10,000,000.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2020. 
Æ 
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