Reply to thread

Message

[QUOTE="FloridaCuse, post: 5531484, member: 8912"]
A number of posts earlier asked the question whether the entity created by the B1G to manage the media rights and sponsorships, that the investment fund would own 10% of, would be a taxable entity.  I am a retired tax expert (both in government and in private practice) but not in this area of the tax law of tax-exempt organizations and unrelated business income of such organizations. I did look at the basic principles of tax law involved in determining that and on first look there does not ap⁷pear to be a clear answer.  (Not untypical of the tax law.)  By way of background, the concept of taxing unrelated business income of tax-exempt organizations goes back to the 1950s when New York University owned the Mueller Macaroni Company.  It was thought by Congress that it was unfair for a private business enterprise to be tax free when its competitors had to pay income tax.  One sticking point in the present B1G case might be would the new B1G entity be in business competition with a taxable enterprise.

I'll do more research on this when I have an opportunity.  If this deal goes forward.
[/QUOTE]

Verification

What is a Syracuse fan's favorite color?