NC_Skins
10-20-2012, 11:46 AM
NFL fines Player X, $ 25K. Player X's has his game check deducted by $ 25K, after taxes. The $25K is then dispersed from Player X's team to the NFL and NFLPA in a 50/50 split.
The team would be deducting the $ 25K as either a salary, without the fine, or as a payment to a charity as a fine. Either way the team takes the same deduction with or without the fine.
The NFL and NFLPA take the fine money and donate it directly to their respective charities. They would need to account for the money coming in, then show it going back out to charity....and yes they would take the charitable deduction. However, the team, the NFL or NFLPA see any financial benefit or tax benefit from NFL player fines.
NFL will get the money, the money they net in the end is redistributed via revenue sharing. Like I said, the owners get the money. I was simplifying the process here, didn't mean to break out the accountants. :laughing-
The team would be deducting the $ 25K as either a salary, without the fine, or as a payment to a charity as a fine. Either way the team takes the same deduction with or without the fine.
The NFL and NFLPA take the fine money and donate it directly to their respective charities. They would need to account for the money coming in, then show it going back out to charity....and yes they would take the charitable deduction. However, the team, the NFL or NFLPA see any financial benefit or tax benefit from NFL player fines.
NFL will get the money, the money they net in the end is redistributed via revenue sharing. Like I said, the owners get the money. I was simplifying the process here, didn't mean to break out the accountants. :laughing-