Democrat probes college football coaching contracts for potential tax abuse
Rep. Bill Pascrell (D-N.J.) has launched a probe into potential tax abuses from college football programs that signed coaches to multi-million dollar contracts, The Washington Post reported.
Pascrell announced the inquiry by sending letters to the presidents of Louisiana State University and the University of Southern California on Friday.
Pascrell’s inquiry is based on elite college football programs producing lucrative contracts and expensive buyouts for head coaching targets and if those actions are persistent with the universities’ tax-exempt status.
Last month, LSU agreed to a 10-year, $95 million contract with former Norte Dame University head coach Brian Kelly and former University of Oklahoma head football coach Lincoln Riley signed a contract worth up to be $110 million, according to The Post.
“This week on national signing day, thousands of young students agreed to play sports for free for university programs paying literally tens of millions of dollars a year and giving free houses to their coaches. These exorbitant contracts to sports coaches from schools that receive federal tax-exempt status demand answers for the taxpayers that help fund these institutions,” Pascrell said in a statement.
“My letters today are beginning the work of seeking those answers and our subcommittee will remain focused on this issue and further possible abuses of the tax code by schools enjoying tax-exempt status giving exorbitant contracts to athletic coaches.”
NCCA’s tax-exempt status includes a declaration that fostering amateur sports competition is considered a charitable purpose and schools therefore do not pay taxes on the millions of dollars earned through what it makes off television, The Post reported.
The Hill has reached out to Pascrell’s office for comment.
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