Colts move to more than $600 million transaction tax bill
The Indianapolis Colts are moving forward with plans to pay more than half a billion dollars in tax after moving into an amended tax bill that includes a $6 million fee for every sale of the team’s stadium naming rights.
The NFLPA released a statement on Wednesday, saying the “ambitious” plan was finalized in the “early hours of Tuesday morning” and will “allow us to continue our momentum in 2018.”
The deal, which includes the $1.5 billion relocation fee to the city, will allow the Colts to spend at least $6.5 million on stadium naming-rights sales in 2019, which is a substantial amount for a franchise that will be competing with the Dallas Cowboys for the top spot in the NFL’s Super Bowl.
It’s unclear how much of the new tax will be used for stadiums, but the move to pay a $1 billion tax will make it easier for the team to compete with the Cowboys and the New York Jets for the most valuable NFL stadium.
The move is expected to save the team about $1 million a year in tax revenue.
The $600,000 tax fee is expected be paid in two installments of $500 per year.
The fee was already approved by the team last summer, but its inclusion in the new legislation was a surprise.
The new tax legislation includes a provision allowing teams to pay as little as $1,000 to any franchise in the league for naming rights in their stadium.
It also eliminates a provision that would have allowed teams to have a “general relocation” tax on the purchase of naming rights from the city.
It is unclear whether the move will be included in the $600 billion stadium tax package, which the NFL is planning to release later this month.
The Indianapolis Colts’ proposed tax bill is pictured at left.