Senator Ron Wyden Proposes Legislation to Revoke PGA Tour’s Tax-Exempt Status
Senator Ron Wyden (D-Ore.), the chair of the Senate finance committee, introduced two bills aimed at revoking the tax-exempt status
Senator Ron Wyden (D-Ore.), the chair of the Senate finance committee, introduced two bills aimed at revoking the tax-exempt status of the PGA Tour. The proposed bills are the Sports League Tax-Exempt Status Limitation Act and the Ending Tax Breaks for Massive Sovereign Wealth Funds Act.
The PGA Tour currently enjoys tax-exempt status as a 501(c)(6) organization, which grants tax exemptions to professional sports leagues and chambers of commerce. However, Senator Wyden expressed concern over the Tour’s tax-exempt status, especially in light of a potential partnership between the Saudi Arabian Public Investment Fund and the PGA Tour that could create a for-profit entity.
The Sports League Tax-Exempt Status Limitation Act seeks to amend the current tax code to exclude sports organizations with assets exceeding $500 million from receiving tax exemptions. On the other hand, the Ending Tax Breaks for Massive Sovereign Wealth Funds Act aims to deny tax benefits to funds belonging to countries with more than $100 billion invested globally.
Senator Wyden criticized the PGA Tour for considering a partnership with the Saudi Arabian Public Investment Fund, citing concerns over human rights violations and censorship in Saudi Arabia, as well as national security implications due to the Tour’s real estate holdings near U.S. military sites.
In June, Senator Wyden initiated an investigation into the financial structure and potential implications of the proposed PGA Tour-Saudi deal, highlighting the need to address censorship and national security issues linked to the partnership.