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What is an antitrust exemption?
Sen. Specter has decided to open up an investigation regarding "Spygate" because it impacts the "antitrust exemption." What is this antitrust exemption, and how does SpyGate affect it?
Personally, I'm ecstatic that he is investigating this. You catch someone cheating, and that same year they go undefeated. Just seems fishy to me.
4 Answers
- 1 decade agoFavorite Answer
Very generally, antitrust laws say you can't create a monopoly--basically, you can't be the only person/company providing the service that you provide, because the government wants competition (so prices are competitive, products get better, etc.). But Congress has given certain entities (particularly the major sports leagues) an exemption from this. Because of this, the NFL has been able to tell certain TV networks that they are the only ones who can broadcast NFL games, etc. (Incidentally, I believe the exemption is also what allowed the AFL/NFL merger in the 60s, but I'm not sure.) In exchange, Congress has made certain demands of the NFL, including giving Congress the right to regulate some aspects of the league. Not sure exactly what the destruction of the Spygate tapes did to violate Congress's wishes, but if it's serious enough, Congress can revoke the NFL's exemption.
- RegennaLv 45 years ago
Actually, there's little evidence that the IRS was targeting any specific group at all. Less than 25% of the challenged 501(c)(4) applications were from identifiably conservative leaning groups and ALL of those were ultimately approved. On the other hand, a similar percentage were from liberal leaning groups and at last count, 5 of those were actually disapproved. If you look at the actual legislation as passed by Congress back in the 1950s, you'll see that it is very specific in what constitutes a 501(c)(4) entity: "Civic leagues or organizations not organized for profit but operated **exclusively** for the promotion of social welfare, or local associations of employees, the membership of which is limited to the employees of a designated person or persons in a particular municipality, and the net earnings of which are devoted exclusively to charitable, educational, or recreational purposes." Note the emphasis that I placed on **exclusively**. If you look at the various publications and manuals that the IRS uses, the word "exclusively" was replaced with "primarily." In truth, the IRS modified the rules without authorization from Congress. Whether this was deliberate or an administrative error is up for debate, but the law as written CLEARLY does not allow any wiggle room. Political organizations are properly formed under Section 527, not 501(c)(4). Very different reporting and disclosure standards apply for the two groups. Any group that has ANY political purpose is not properly approved under Section 501(c)(4) so culling applications looking for potential political purposes in the name of the organization is ENTIRELY PROPER as long as it's applied consistently.
- 1 decade ago
The second part of your question makes absolutely no sense at all. Are you aware that the incident happened the first week of the season? Are you also aware that it is common practice in the NFL to tape these signals and that the coach of the Jets was actually upset at the way things went down ?
Seems to me like you and alot of others are haters that the Patriots are a good team. Sounds like you are most likely a Jets or a Dolphins fan!!! Too bad, be a man and accept that the Patriots are one of the best NFL teams in history in stead of crying about insignificant things that you know nothing about.
GO PATS...4 in 7 baby