The NHLPA "has socked away" C$80M tax-free, and Denis
Coderre, a member of the Canadian Parliament (MP) from
Quebec, "says it should invest part of that 'war-chest' in
Canadian amateur sport or lose its tax-exempt status,"
according to Paul Hunter of the TORONTO STAR. Coderre made
his remarks yesterday during a House of Commons subcommittee
hearing studying sport in Canada. Coderre, on the NHLPA:
"If we're helping (it) to make money then (it has) to
reinvest in the sport's development, especially at the
amateur level. ... Or we might amend the Income Tax Act and
get rid of that exemption." While labor groups are tax-
exempt in Canada, the NHLPA "has raised stunning amounts of
revenue" -- between C$15-20M in some seasons -- "from the
sale of trading cards and other licensing opportunities."
Toronto MP John Nunziata said that the NHLPA has found a
"loophole" in the tax laws and the tax-exemption was "never
meant to become a source of huge revenue" for pro sports
organizations, but a way for unions to "protect their
members during strikes of lockouts." NHLPA Exec Dir Bob
Goodenow told the subcommittee that the NHLPA "is involved
in many charitable causes and is already helping to develop
hockey at a grassroots level in Canada." Goodenow said he
was "not worried at all" about possibly losing the tax-
exempt status: "Our organization has undergone strict
scrutiny of our affairs over the last few years. There's no
impropriety" (Paul Hunter, TORONTO STAR, 11/11).
A BIG GAMBLE? Subcommittee Chair Dennis Mills said that
a "federally regulated sports betting industry could be the
answer to Canadian amateur sports' funding woes." Mills
favors "betting kiosks attached to restaurants or tourist
establishments across Canada that would serve as an outlet
for sports betting" (Toronto GLOBE & MAIL, 11/11).
