College sports is big business. Senator asks 'whether it is time to rethink tax-exempt' status
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College sports is big business. Senator asks 'whether it is time to rethink tax-exempt' status
Brent Schrotenboer, USA TODAY·USA TODAY Sports
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2 min read
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A U.S. senator is asking questions aboutall the money being spent on fired college coachesand wants to know what would happen if NCAA conferences and schools no longer were allowed to operate as tax-exempt organizations.
Sen.Maria Cantwell(D-Wash.) brought up these subjects in a letter Monday to the chief of staff for the U.S. Congress Joint Committee on Taxation. The letter signals that this year's wild spending commitments for thecontract buyouts of fired football coacheshas gotten the attention of Congress and could lead to new legislative proposals to crack down on it.
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"Given the evolving market dynamics of college sports, coupled with changes in the legal framework affecting college athletes, legitimate questions have been raised about whether it is time to rethink the tax-exempt regime under which college sports currently operates," Cantwell wrote in the letter.
The letter asks for information from the Joint Committee that could help her develop legislative proposals.
"Are there other measures Congress could consider with respect to addressing excessive compensation for coaches?" Cantwell asked in the letter. "Are there measures Congress could consider to address excessive compensation paid to coaches or other athletic department personnel who are fired (i.e. buy outs)?"
Cal fired Justin Wilcox on Nov. 23 with one game left in the regular season. The Golden Bears are 6-5 this season but 48-55 in Wilcox's seven seasons in charge.
(Brian Bishop-Imagn Images)
Auburn fired coach Hugh Freeze on Nov. 2 following a home loss to Kentucky. Freeze was 15-19 in two-plus seasons on the Plains.
(John Reed, John Reed-Imagn Images)
LSU fired Brian Kelly on Oct. 26 after an embarrassing home loss to Texas A&M the night before.
(Tyler Kaufman, Getty Images)
Florida fired Billy Napier on Oct. 19 during his fourth season as Gators coach. UF was 22-23 during Napier's tenure.
(Matt Pendleton-Imagn Images)
Penn State fired James Franklin on Oct. 12 after a third straight loss. The Nittany Lions were 104-45 in 11-plus seasons under Franklin.
(Matthew O'Haren-Imagn Images)
UAB fired Trent Dilfer on Oct. 12 after a 2-4 start to the 2025 season. Dilfer was in his third season as head coach of the Blazers.
(Randy Sartin, Imagn Images)
Sam Pittman was fired by Arkansas on Sept. 25, a day after the Razorbacks were blown out by Notre Dame, 56-13. Pittman was 32-34 in his five-plus seasons as Hogs coach.
(Nelson Chenault, Imagn Images)
Virginia Tech fired Brent Pry on Sept. 14 after the Hokies started the season 0-3. Virginia Tech was 16-24 overall in Pry's three-plus seasons.
(Brian Bishop-Imagn Images)
UCLA fired DeShaun Foster on Sept. 14 after the Bruins fell to 0-3 following a home loss to New Mexico. The Bruins were 5-10 in Foster's one-plus season in charge.
(Gary A. Vasquez-Imagn Images)
Mike Gundy was in his 21st season as Oklahoma State coach when he was fired on Sept. 23. Gundy was 170-90 as Cowboys coach, but started 1-2 this season after going 3-9 in 2024.
(William Purnell, Imagn Images)
Oregon State fired Trent Bray on Oct. 12 after the Beavers started the season 0-7. The Beavers were 5-14 in Bray's season-plus in Corvallis.
(Troy Wayrynen-Imagn Images)
Colorado State fired football coach Jay Norvell on Oct. 19. Norvell was 18-26 in his four seasons in Fort Collins.
(Logan Newell/The Coloradoan)
Stanford coach Troy Taylor was fired prior to the 2025 season following allegations of mistreating staff. He was 6-18 in two seasons with the Cardinal and was replaced by interim coach Frank Reich.
(Eakin Howard-Imagn Images)
Kent State coach fired coach Kenni Burns on April 15 after he posted a 1-23 record of and was placed on administrative leave by the school in March. Mark Carney is serving as interim coach.
(Matthew O'Haren, Imagn Images)
1/14
College football coaches fired already in 2025 season. See who's on the growing list
Cal fired Justin Wilcox on Nov. 23 with one game left in the regular season. The Golden Bears are 6-5 this season but 48-55 in Wilcox's seven seasons in charge.
(Brian Bishop-Imagn Images)
1/14
College football coaches fired already in 2025 season. See who's on the growing list
Cal fired Justin Wilcox on Nov. 23 with one game left in the regular season. The Golden Bears are 6-5 this season but 48-55 in Wilcox's seven seasons in charge.
(Brian Bishop-Imagn Images)
2/14
College football coaches fired already in 2025 season. See who's on the growing list
Auburn fired coach Hugh Freeze on Nov. 2 following a home loss to Kentucky. Freeze was 15-19 in two-plus seasons on the Plains.
(John Reed, John Reed-Imagn Images)
3/14
College football coaches fired already in 2025 season. See who's on the growing list
LSU fired Brian Kelly on Oct. 26 after an embarrassing home loss to Texas A&M the night before.
(Tyler Kaufman, Getty Images)
4/14
College football coaches fired already in 2025 season. See who's on the growing list
Florida fired Billy Napier on Oct. 19 during his fourth season as Gators coach. UF was 22-23 during Napier's tenure.
(Matt Pendleton-Imagn Images)
5/14
College football coaches fired already in 2025 season. See who's on the growing list
Penn State fired James Franklin on Oct. 12 after a third straight loss. The Nittany Lions were 104-45 in 11-plus seasons under Franklin.
(Matthew O'Haren-Imagn Images)
6/14
College football coaches fired already in 2025 season. See who's on the growing list
UAB fired Trent Dilfer on Oct. 12 after a 2-4 start to the 2025 season. Dilfer was in his third season as head coach of the Blazers.
(Randy Sartin, Imagn Images)
7/14
College football coaches fired already in 2025 season. See who's on the growing list
Sam Pittman was fired by Arkansas on Sept. 25, a day after the Razorbacks were blown out by Notre Dame, 56-13. Pittman was 32-34 in his five-plus seasons as Hogs coach.
(Nelson Chenault, Imagn Images)
8/14
College football coaches fired already in 2025 season. See who's on the growing list
Virginia Tech fired Brent Pry on Sept. 14 after the Hokies started the season 0-3. Virginia Tech was 16-24 overall in Pry's three-plus seasons.
(Brian Bishop-Imagn Images)
9/14
College football coaches fired already in 2025 season. See who's on the growing list
UCLA fired DeShaun Foster on Sept. 14 after the Bruins fell to 0-3 following a home loss to New Mexico. The Bruins were 5-10 in Foster's one-plus season in charge.
(Gary A. Vasquez-Imagn Images)
10/14
College football coaches fired already in 2025 season. See who's on the growing list
Mike Gundy was in his 21st season as Oklahoma State coach when he was fired on Sept. 23. Gundy was 170-90 as Cowboys coach, but started 1-2 this season after going 3-9 in 2024.
(William Purnell, Imagn Images)
11/14
College football coaches fired already in 2025 season. See who's on the growing list
Oregon State fired Trent Bray on Oct. 12 after the Beavers started the season 0-7. The Beavers were 5-14 in Bray's season-plus in Corvallis.
(Troy Wayrynen-Imagn Images)
12/14
College football coaches fired already in 2025 season. See who's on the growing list
Colorado State fired football coach Jay Norvell on Oct. 19. Norvell was 18-26 in his four seasons in Fort Collins.
(Logan Newell/The Coloradoan)
13/14
College football coaches fired already in 2025 season. See who's on the growing list
Stanford coach Troy Taylor was fired prior to the 2025 season following allegations of mistreating staff. He was 6-18 in two seasons with the Cardinal and was replaced by interim coach Frank Reich.
(Eakin Howard-Imagn Images)
14/14
College football coaches fired already in 2025 season. See who's on the growing list
Kent State coach fired coach Kenni Burns on April 15 after he posted a 1-23 record of and was placed on administrative leave by the school in March. Mark Carney is serving as interim coach.
Cantwell asked the committee for an analysis that addresses "the implications of no longer allowing the NCAA, member institutions, and their affiliated athletic conferences to operate as tax-exempt organizations."
Cantwell is a senior member of the Senate Finance Committee and is the ranking member of the Committee on Commerce, Science, and Transportation. She's waded into college sports issues before, including in October, when she wrote a letter to the presidents and chancellors of the Big Ten Conference. In that letter, she warned them of the dangers ofselling a part of their assets in exchange for a a big private capital investment.
In her new letter, she noted how NCAA schools benefit from their tax-exempt status as educational institutions while college sports have become "a multi-billion dollar industry whose growth and potential growth have attracted the attention of private equity and venture capital investors."
"It is important that the Congress be proactive in determining the tax rules that should apply as stakeholders adapt to these changing market dynamics, especially given that so much of this activity currently is tax advantaged," the letter stated.
