The National Football League’s structure has historically involved a blend of for-profit and non-profit entities. For many years, the league itself, specifically the office of the Commissioner and its administrative functions, operated as a tax-exempt organization under section 501(c)(6) of the Internal Revenue Code, which typically applies to trade associations. Individual teams, however, always operated as for-profit businesses.
The league’s tax-exempt status provided certain financial advantages, shielding revenue generated at the league level from federal income tax. This allowed the league to reinvest those funds into promoting the sport and supporting its member teams. The historical context is significant as the financial landscape and scrutiny surrounding professional sports organizations have evolved substantially over time, leading to re-evaluations of their financial structures.