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Diane Publishing Books
Tax Preferences for Collegiate Sports
Douglas W. Elmendorf (pf); Kristy Piccinini (au)
Colleges and universities generally qualify for preferential treatment under the federal income tax because their educational mission has important benefits for the public. The large sums generated through advertising and media rights by schools with competitive sports programs raise the questions of whether those sports programs have become side businesses for schools and, if they have, whether the same tax preferences should apply to them as to schools in general. This report compares athletic departments’ share of revenue from commercial sources with that of the rest of the schools’ activities to assess the degree of their commercialization. It also discusses the benefits of intercollegiate sports programs. Charts and tables.
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