Section 1 Special rules relating to professional sports leagues
In general— Section 501 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:
“(s) Special rules relating to professional sports leagues—No organization shall be treated as described in subsection (c)(6) for any taxable year if such organization or entity—
“(1) is a professional sports league, organization, or association, a substantial activity of which is to foster national or international professional sports competitions (including by managing league business affairs, officiating or providing referees, coordinating schedules, managing sponsorships or broadcast sales, operating loan programs for competition facilities, or overseeing player conduct), and
“(2) has annual gross receipts in excess of $1,000,000,000 during any of the 5 preceding taxable years.”
Effective date— The amendment made by this section shall apply to taxable years beginning after December 31, 2022.