Congress Broadens Inquiry into College Sports, Focusing on Academic Problems and Lucrative Programs
By Brad Wolverton, Chronicle of Higher Education, September 14, 2006

A Congressional committee that oversees legislation affecting nonprofit organizations has broadened its inquiry into college sports in recent months, say nearly a dozen college officials who have participated in the investigation. … Ways and Means staff members started questioning athletics officials in January about whether certain revenue generated by athletics programs and the NCAA should be taxed as unrelated-business income.

Lawmakers are concerned that big-time sports programs are evolving into entertainment businesses that are only marginally connected to the tax-exempt purposes of colleges and universities, according to college officials interviewed by the aides.

If the House committee’s inquiry leads to legislation requiring colleges, conferences, or the NCAA to pay taxes on their athletics revenue, it could cost colleges hundreds of millions of dollars.

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