AP Exclusive: PAC challenges tax-exempt status of Fiesta, Sugar and Orange Bowls

By Frederic J. Frommer, AP
Wednesday, September 22, 2010

AP Exclusive: Tax status of bowl games challenged

WASHINGTON — Opponents of how college football crowns its champion say three of the nation’s premier bowls are violating their tax-exempt status — by paying excessive salaries and perks, providing “sweetheart loans” and doing undisclosed lobbying.

Playoff PAC plans to file a complaint with the Internal Revenue Service on Thursday against the operators of the Fiesta, Sugar and Orange Bowls. They are three of the five games that constitute the Bowl Championship Series. The others are the Rose Bowl and the BCS title game.

Playoff PAC is a political action committee that wants the bowls replaced with a championship playoff system.

The Sugar and Fiesta Bowls dismiss the report as a rehash of old complaints. They say they comply with IRS rules.

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