Some members of Congress are not happy with the NFL, and they are attempting to strike back by hitting them where it hurts—in the wallet. In this article, attorney Samuel Dewey talks about the introduction of a “No Tax Subsidies For Stadiums Act.”
To put it shortly: Three Democratic members of the House of Representatives have proposed a new bill that would eliminate tax breaks for the construction of new sports stadiums.
Dubbed the “No Tax Subsidies for Stadiums Act,” the bill seemingly comes in the wake of Congress’s investigation of allegations brought against team owners and the overall workplace.
The Bill’s Impetus
California Democratic Representative Jackie Speier, one of the bill’s co-sponsors, said when the bill was unveiled that the investigation into the workplace of the Washington Commanders franchise was the impetus behind her proposal.
Along with Democratic Representatives Earl Blumenauer of Oregon and Don Beyer of Virginia, Speier introduced the bill in late February.
Speier, who is also a member of the influential House Oversight Committee, said in a news release that the allegations of sexual harassment against Washington’s organization as well as the NFL’s response to the initial investigation were the motivation behind the bill.
In part, she said that since the “NFL has proven once again that it can’t play by the rules,” teams don’t deserve to receive subsidies when they build new professional sports stadiums.
What the Bill Would Do
If the bill were to become law, it would eliminate the ability for NFL franchises to use tax-exempt municipal bonds to finance the construction of new stadiums. It would directly impact the Commanders, who are looking to construct a new stadium for their team.
The franchise’s lease on the land on which its current stadium, FedEx Field, sits will expire after the 2027 NFL season.
The news release that accompanied the announcement of the bill reported that the federal government experienced a loss of $4.3 billion in revenue due to the usage of these municipal bonds.
A March 2020 report from the National Tax Journal revealed that amount was the total lost revenue attributable to the 43 stadiums that were built since 2000 that received at least part of their funding from those bonds.
A New Investigation
The NFL will be starting a new investigation into Dan Snyder, the owner of the Commanders franchise. That is inspired in large part by testimony Tiffani Johnston gave at a congressional roundtable in early February.
As Sam Dewey explains, Johnston—who alleges that Snyder made advances on her on multiple occasions—never spoke with the attorney who led the initial investigation, Beth Wilkinson. The new investigation will be led by Mary Jo White.
After months of investigation, the NFL fined the Washington franchise $10 million for workplace misconduct. The league refused to release full findings of the investigation as a written report which led to the House Oversight Committee taking an interest in the case and holding a hearing.
Samuel Dewey, A Short Bio
Samuel Dewey is the former Senior Counsel to the US Financial Services Committee. He also served as the Chief Investigator and Counsel for the Special Committee on Aging, which is based out of the U.S. Senate. Sam specializes in white-collar investigations and litigation, regulatory compliance and litigation, and complex public policy matters.
In these areas, Sam Dewey is considered by many of his peers to be a subject matter expert when it comes to Congressional Investigations and related issues. Mr. Dewey holds a J.D. from Harvard Law School and is admitted to practice in both Maryland and Washington, D.C.
