The Tax Consequences of Catalyzed Fans

6 Harvard Journal of Sports Law & Entertainment 187 (2015)

22 Pages Posted: 10 Nov 2015

See all articles by Adam Chodorow

Adam Chodorow

Arizona State University (ASU) - Sandra Day O'Connor College of Law

Date Written: November 7, 2015

Abstract

This article, in honor of Dan Markel, explores the tax issues that would arise were fans to band together as a Fan Action Committee (FAC) to offer players additional compensation or a donation to a favored charity as an incentive to sign with the fans’ team, the proposal at the heart of one of Dan’s last articles. Both the direct compensation and charitable models raise questions regarding whether the players and owners have income, the tax consequences for the FAC of both contributions and distributions, and the fans’ ability to deduct contributions to the FAC. Exploring these questions will help pave the way for FACs to move from academic discourse to the real world, offers the opportunity to consider a number of important tax policy issues that have far broader application, and seems like a wonderful way to honor Dan’s memory.

Keywords: charitable organizations, 501(c)(3), sports law, charitable giving, exempt organizations

JEL Classification: K34

Suggested Citation

Chodorow, Adam, The Tax Consequences of Catalyzed Fans (November 7, 2015). 6 Harvard Journal of Sports Law & Entertainment 187 (2015), Available at SSRN: https://ssrn.com/abstract=2687545

Adam Chodorow (Contact Author)

Arizona State University (ASU) - Sandra Day O'Connor College of Law ( email )

Box 877906
Tempe, AZ 85287-7906
United States

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