Playoff PAC Accusing BCS Bowl Games of Abusing Tax-Exempt Status
College Football, Rich Old White People September 23rd. 2010, 1:40pm
Playoff PAC has filed a 27-page complaint with the IRS, claiming that the BCS is abusing its tax exempt status as a public charity. Playoff PAC claims BCS bowls are using their “charitable funds” to “enrich Bowl executives, pay registered lobbyists without disclosure, fund political campaigns and heap frivolous benefits on Bowl insiders.”
The Bowls are registered as charities. They are “tax-exempt” and can receive “tax deductible donations.” They can’t benefit private interests. Here are Playoff PAC’s allegations.
Executives are skimming. Paul Hoolahan (Sugar Bowl CEO) and Phil Junker (Fiesta Bowl CEO) both made more than $600,000 last year, believed to be “above market” for charities of their budgets (average $185,000). Junker and his VP for marketing also took out $120,000 in zero-interest loans from the organization.
They are using funds for frivolous things.
The PAC also criticized the bowls for what it called overly generous perks, citing the $750,000 in travel expenses for the Orange Bowl in 2009 and the Sugar Bowl’s $200,000 in “gifts and bonuses” in 2008; and “frivolous” use of funds, such as the Orange Bowl spending more than $1 million in entertaining and catering in 2009, and the Fiesta Bowl shelling out nearly $400,000 for its “Fiesta Frolic” golf retreat in 2009.
They are getting mixed up in politics, illegally. The Fiesta Bowl paid $1.2 million over five years to a lobbying firm, despite explicitly denying it engaged in political lobbying. The bowl donated $2,000 to a Republican Senate candidate, illegal for a tax-exempt organization. Fiesta Bowl executives reportedly were encouraged to donate to certain political candidates and repaid by the Bowl, illegal regardless of tax-exempt status.
So, essentially, the BCS Bowl games, which exist to be profitable and frivolous, are being profitable and frivolous. What are they supposed to do with their tax-deductible donations? Charity?
You may think I’m going to use this as a mace to bludgeon the BCS and to argue for a playoff. I’m not. We need Bowl games. Where would we be in a world where reason and the spirit of fair competition trumped reason and the lust for power? Where would we be if the traditions of the AllState Sugar Bowl, of the Tostitos Fiesta Bowl and of the Discover Orange Bowl were not sacrosanct and eternal?
College football may be unfair, but, because it’s unfair, you get to have tedious, repetitive arguments about how unfair it is! That’s as good of a justification for the status quo as any. What else would you talk about? The football?
[Photo via Getty]

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87 Responses to “Playoff PAC Accusing BCS Bowl Games of Abusing Tax-Exempt Status”
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September 23rd, 2010 at 1:44 PM
/team duffy
September 23rd, 2010 at 1:44 PM
Executives are skimming. Paul Hoolahan (Sugar Bowl CEO) and Phil Junker (Fiesta Bowl CEO) both made more than $600,000 last year,
Sounds like a good gig.
September 23rd, 2010 at 1:45 PM
Curious, who sets the salary for a bowl CEO?
September 23rd, 2010 at 1:46 PM
You may think I’m going to use this as a mace to bludgeon the BCS and to argue for a playoff.
I actually thought you were going to use it as a crowbar to open up a big ole Michigan post.
September 23rd, 2010 at 1:48 PM
Preferably, yes.
Not sure what to make of UM/Pittstache tonight. The fighting Wanny’s actually looked pretty good against Utah and I really dont trust Jacory on the road.
September 23rd, 2010 at 1:49 PM
tedious and repetitive rhetoric.
tedious and repetitive sarcasm.
September 23rd, 2010 at 1:50 PM
Yeah man. That 3.5 Pitt is getting is really fucking me up. I should just stay away…
September 23rd, 2010 at 1:51 PM
What else would you talk about? The football? Duffy
You guys are the ones that keep bringing up the playoff talk.
September 23rd, 2010 at 1:52 PM
Not if you write for this site, apparently.
September 23rd, 2010 at 1:53 PM
I wonder if they mentioned all of the payed trips to watch college football all year, disguised as “scouting” potential schools to play in their game.
We had some Fiesta Bowl guys at our tailgate a couple of years ago. Great dudes who were just enjoying the football weekend like anyone else, except that the Fiesta Bowl was playing for it…
September 23rd, 2010 at 1:53 PM
Also, I believe you are contractually obligated to use this picture when showing the Orange Bowl mascot.
September 23rd, 2010 at 1:53 PM
hope she donated that outfit to charity
September 23rd, 2010 at 1:54 PM
tedious and repetitive rhetoric.
you should have said “lengthy, tedious and lacking in humor”
September 23rd, 2010 at 1:54 PM
$400,000 Fiesta Frolic golf retreat. Nice.
September 23rd, 2010 at 1:54 PM
That’s good stuff.
September 23rd, 2010 at 1:56 PM
Katy Perry’s bewbs are too much for PBS. THINK OF THE CHILDREN!!!
September 23rd, 2010 at 1:56 PM
dammit.
/shows self out
September 23rd, 2010 at 1:57 PM
Tony Barnhart weighed in on this today. If this Playoff PAC succeeds in eliminating the BCS, what we’d get in its wake would be the Big 10 and Pac 10 in the Rose Bowl, the SEC in the Sugar Bowl, the Big XII in the Fiesta Bowl, and the ACC in the Orange Bowl. That’s almost like a playoff, right?
September 23rd, 2010 at 2:00 PM
For fuck’s sake
September 23rd, 2010 at 2:00 PM
If this Playoff PAC succeeds in eliminating the BCS,
Wouldn’t they just reorganize the BCS as a for-profit? The money is still there.
September 23rd, 2010 at 2:01 PM
Finally! Been awhile since the Rich Old White People tag was used.
September 23rd, 2010 at 2:01 PM
Exactly lefty, we would go back to the “old” bowl system long before a playoff. The one which was far more exclusionary than the BCS.
September 23rd, 2010 at 2:01 PM
Accusing and abusing look far too similar. I had to read the post title 5 times to get it right. First I thought it was about the PAC-10, then abusive accusations, then I went back and looked at Ines Sainz ass and then, only then, did I know what the post title actually said.
Now I’ll read what’s under it.
September 23rd, 2010 at 2:03 PM
Not necessarily. They are registered as a non-profit, and 501(c)3 states that such an organization can be used to foster amateur sports competition.
The lobbying is still clearly illegal and unethical, if true.
September 23rd, 2010 at 2:03 PM
I have a hard time believing this. I know it’s a possibility but I don’t they’d actually do it.
September 23rd, 2010 at 2:05 PM
The bowl system, I like it.
September 23rd, 2010 at 2:06 PM
Katy Perry’s bewbs are too much for PBS. THINK OF THE CHILDREN!!!
First, elmo is a quite a cock. Second, I thought it was silly until she was running near the end of the video. Third, what a vivid reimagination of a classic tune.
September 23rd, 2010 at 2:07 PM
This is what everybody’s on record as saying. Are they going to conjure a magical 8 or 16 team playoff out of thin air? Probably not.
September 23rd, 2010 at 2:08 PM
I have a dream… where rich old black people will be just as despised as the lighter, wrinkled skinned folks!
September 23rd, 2010 at 2:10 PM
What’s important is that Dan Wetzel (UMass grad) and Jeff Passan (Syracuse) who both went to school where football was an also-ran, would like to destroy the system that the rest of America likes.
September 23rd, 2010 at 2:10 PM
Yes, anti-BCS…the way to get a fucking playoff is by reporting the BCS bowls for violating the rules of their tax-exempt status.
Step 1: Turn in
Step 2: ?
Step 3: Right back to where we are now.
September 23rd, 2010 at 2:11 PM
I don’t anticipate the Bayou Bowl getting a BCS invite anytime soon.
September 23rd, 2010 at 2:12 PM
What’s important is that Dan Wetzel (UMass grad) and Jeff Passan (Syracuse) who both went to school where football was an also-ran, would like to destroy the system that the rest of America likes.
i’ve preordered my copy through Amazon. I had to find something else so I could get free Super Saver Shipping, so I went with the first season of CougarTown.
September 23rd, 2010 at 2:14 PM
Your copy of what? Wetzel’s book titled “I’m a massive douche and use a picture of Braylon Edwards as my twitter avatar in a desperate attempt to prove that I can be hip and ironic”?
September 23rd, 2010 at 2:18 PM
Bayou Classic!!!
September 23rd, 2010 at 2:18 PM
I agree with PBS. That cleavage was weak.
September 23rd, 2010 at 2:18 PM
How many platforms are following this guy on? Seems like at least 3.
September 23rd, 2010 at 2:19 PM
Yes? Yes.
September 23rd, 2010 at 2:19 PM
I was so excited when I read the part about not arguing for a playoff. That excitement went away though after I read the next 4 sentences. Therefore, I am creating a new team. We wear suits, drink bottled water and expense all 3 meals each day.
/team BCS
September 23rd, 2010 at 2:19 PM
What’s important is that Dan Wetzel (UMass grad) and Jeff Passan (Syracuse) who both went to school where football was an also-ran, would like to destroy the system that the rest of America likes.
This is borderline Freudian.
September 23rd, 2010 at 2:20 PM
I have a dream… where rich old black people will be just as despised as the lighter, wrinkled skinned folks!
Mak: on here, its already happened. Not long until the rest of the country does it as well.
/Armageddon
September 23rd, 2010 at 2:20 PM
fast forward to the running.
September 23rd, 2010 at 2:21 PM
I follow him on twitter, but don’t really read anything he writes. No need to really, it gets repeated here enough. I recall that he had/has a book coming out, but no idea what it’s called or what it’s about.
September 23rd, 2010 at 2:21 PM
good post Duff
September 23rd, 2010 at 2:22 PM
1:45 on its all bounce
September 23rd, 2010 at 2:23 PM
haha. +1.
September 23rd, 2010 at 2:23 PM
I found Wetzel’s book.
You can hover all you want. It’s safe for work and it’s funny.
September 23rd, 2010 at 2:25 PM
Cornholio is David Wells?
September 23rd, 2010 at 2:25 PM
i’ve preordered my copy through Amazon. I had to find something else so I could get free Super Saver Shipping, so I went with the first season of CougarTown.
You should have just put an ad on Craigslist to have somebody ship you 5 lbs of shit. Now you’ll feel compelled to watch & read that garbage
September 23rd, 2010 at 2:25 PM
If I was supposed to be headed to the Commonwealth Games I would be having second thoughts.
September 23rd, 2010 at 2:26 PM
I would like to subscribe to more of your YouTube study guides. I also want them to film that entire scene in the arctic climate dropback. Complete with temperature of course.
September 23rd, 2010 at 2:26 PM
My favorite part was Oscar popping out of his can and gawking at her ass.
September 23rd, 2010 at 2:27 PM
Semi-On Topic:
Heard a guy from a Corporate Marketing Company (name redacted to protect the innocent and me) who is neck deep in college football TV contracts.
He spent about 30 minutes discussing the conference realignment and why it was all due to the Big Ten Network. Some great, great stuff.
Here are some excerpts:
The relalignment is just on hiatus. It is most definitely not done. It will be all about what Notre Dame does before much else moves.
The money that the Big 10 is getting from the network is absurd. They would also stand to gain up to 19m more TV households by getting a mixture of Maryland, BC, UConn, Rutgers into the conference.
With the cash that the SEC got from ESPN, that ACC has gotten, and the Big 10 is getting, Notre Dame’s $9m from NBC is chump change. He’s not sure they’ll go to a conference, but it’s costing them if they don’t.
Texas would have left for EITHER the Pac 10 or the SEC in a heartbeat if Beebe wouldn’t have given the Horns the keys to the bank. They basically own their own TV rights to any game not on national TV. They will likely be starting their own network (just in Texas and some surrounding areas) and profit solely from it.
ESPN gets $4.50 average per month per household from cable companies and dish companies. That goes to over 100m households. You do the math. Wow.
Football is 75-80% of TV value for colleges except in the ACC where it is slightly lower (but not much). It really is all about football.
He thinks that BYU was so pissed and jealous that the PAC 10 took Utah instead, caused their move to be Independent. He has “never seen so much hatred between 2 schools” and yes that included OSU and UM.
It was a very cool way to spend an hour at work today!
September 23rd, 2010 at 2:27 PM
My favorite part was Oscar popping out of his can and gawking at her ass.
My favorite part was only noticing Oscar on the third viewing.
September 23rd, 2010 at 2:28 PM
Either Elmo’s gay(nttawwt) or Katy
September 23rd, 2010 at 2:29 PM
‘uge quote fail.
September 23rd, 2010 at 2:31 PM
Awesome Wally.
September 23rd, 2010 at 2:32 PM
Cornholio is David Wells?
If David Wells ever calls is ‘J school’ rather than journalism school, your question will be answered.
September 23rd, 2010 at 2:33 PM
I stand
correctederectedSeptember 23rd, 2010 at 2:33 PM
ESPN gets $4.50 average per month per household from cable companies and dish companies. That goes to over 100m households. You do the math. Wow.
4.50 is the retail charge to the consumer, no?
September 23rd, 2010 at 2:35 PM
Yes. $4.50 of your cable bill goes to ESPN, so Disney obviously doesn’t see all of that, but see a big chunk.
September 23rd, 2010 at 2:36 PM
It actually amazes me how much the B10 makes off that network because they rarely have the marquee game for the week. Obviously their programming outside of games is valuable to some people but to most, it’s the games.
September 23rd, 2010 at 2:37 PM
Here’s a link about the 4 dollars being a retail charge. It was in the roundup a few weeks ago.
September 23rd, 2010 at 2:38 PM
Gee whiz, fellas, where’s your sense of history? Football has only recently become an also-ran at Syracuse. Eagles fans blame McNabb
September 23rd, 2010 at 2:38 PM
Yes. $4.50 of your cable bill goes to ESPN, so Disney obviously doesn’t see all of that, but see a big chunk.
but it probably halves the wow factor of your above WOW statement. And it’s not like they just pocket that money and do nothing with it. All those sports they broadcast get fees from ESPN.
September 23rd, 2010 at 2:39 PM
It’s the cable rights that really do it. BTN gets $0.70 per customer per month in Big 10 territory and $0.10 per customer outside of Big 10 territory. This is why Rutgers and BC and Maryland were all bantered about strongly (or quietly) because of the households it would add into the $0.70 per month group.
All of that is before the advertising. The adverts are just icing on the cake.
September 23rd, 2010 at 2:40 PM
I’ve never watched anything on the B10 network but they’ve made just as much mojney off my subscription as they would have if I actually tuned my tv there 24 hrs/day
September 23rd, 2010 at 2:41 PM
I think the B10 Network also becomes more valuable for games during basketball season. The cable rights for sure, Wally, are the wheelbarrow full of money.
No complaints from this guy. My school is benefiting. All I care about.
September 23rd, 2010 at 2:43 PM
Really missing out on this Illinois-East Carolina football game from 1991 they seem to show three times a week
September 23rd, 2010 at 2:43 PM
I think the B10 Network also becomes more valuable for games during basketball season.
Apparently no one cares about basketball. I’m a little lost, why is ESPN SO MUCH more expensive than every other channel?
September 23rd, 2010 at 2:44 PM
And is TNT .99 entirely because of the NBA?
September 23rd, 2010 at 2:46 PM
Just to piss Breesus off
September 23rd, 2010 at 2:46 PM
And is TNT .99 entirely because of the NBA?
Drama
September 23rd, 2010 at 2:47 PM
The Closer.
September 23rd, 2010 at 2:47 PM
I’m not sure, but you can probably massage the actual reason enough to blame the BCS, and/or the contract that ESPN has with the SEC.
September 23rd, 2010 at 2:47 PM
Drama
he he, that’s funny
September 23rd, 2010 at 2:49 PM
Good post, though the last 2 grafs were because Duffy couldn’t help himself (nothing wrong with that, though)
Wally: Great stuff about the CFB guy. College football will look totally different 5 years from now. The re-allignment stuff will be wrapped up a plus-one will be in place.
September 23rd, 2010 at 2:50 PM
Dana Jacobsen’s Brazilian waxes don’t come cheap
September 23rd, 2010 at 2:50 PM
HawthoRNe
September 23rd, 2010 at 2:50 PM
Katy Perry really knows how to market her boobs, I’ll give her that
September 23rd, 2010 at 2:52 PM
Interesting chart, thanks. I’m paying over 50 cents a month for CCN in Spanish? It be cool to be able to pick and choose which of those channels you wanted
September 23rd, 2010 at 2:53 PM
the original L&O reruns.
September 23rd, 2010 at 2:54 PM
I don’t even need ipecac if I swallow poison. I just need to think of this.
September 23rd, 2010 at 2:55 PM
Because they can get it. For sports ESPN is all the exists on TV. No other channel can compete.
September 23rd, 2010 at 2:55 PM
Interesting chart, thanks. I’m paying over 50 cents a month for CCN in Spanish? It be cool to be able to pick and choose which of those channels you wanted
This is why universities try not to itemize their fees. (I read USA Today yesterday)
September 23rd, 2010 at 2:57 PM
It be cool to be able to pick and choose which of those channels you wanted
if they let you do that, most of these would go down to zero, and you’d be paying 17.50 for ESPN.
September 23rd, 2010 at 3:12 PM
Only a couple weeks. Michigan-ND preview was very rich, old and white.