Politician blasts (!) PGA Tour after bill aimed at tax exemption introduced
Ron Wyden has blasted the PGA Tour over their agreement with LIV Golf's backers after a bill was introduced aimed at the circuit's tax exemption.
Ron Wyden has blasted the PGA Tour's decision to partner with the Saudi PIF after a bill was introduced aimed at revoking the North American circuit's tax exemption status.
The new federal bill was introduced by the Senate Finance Committee on 26 July.
Wyden, a Democrat representing Oregon, released a statement after the bill was introduced where he heavily criticised the PGA Tour.
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The politician described the established tour of 'betraying its own word' by agreeing to 'become a profit generator for Saudi Arabia's brutal regime'.
That decision, he said, means the organisation has disqualified itself for tax exemption.
Wyden's statement, in full:
What bill has been introduced?
The bill Wyden is referring to would see a slight change to The Sports League Tax-Exempt Limitation Act.
It would modify the 501(c)(6) designation in the tax code to exclude sports organisations with assets exceeding $500m.
The PGA Tour currently holds more than $3bn in gross assets, according to high-ranking exec Ron Price when he provided testimony to lawmakers about the 6 June agreement to partner with the PIF.
The PGA Tour currently spends its revenue on:
- Prize money
- Operating expenses
- Charitable contributions
- Tournament costs
- Player support and development
- Marketing and media
- Course and facility improvements
- Investment reserves
More:
If the bill were to pass it would see the PGA Tour paying taxes on income and investments.
The aforementioned Price has already confirmed the PIF is willing to make an initial investment of $1bn in the new, for-profit golf organisation.
Revenue allocation varies from year to year, depending on economic factors.
This news comes as PGA Tour commissioner Jay Monahan has released a detail memo to its players ahead of the 3M Open.
Monahan's memo confirmed the tour have made plans to compensate those that had stayed loyal to the PGA Tour instead of joining LIV Golf.
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