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Derek Thompson

Derek Thompson - Derek Thompson is a senior editor at The Atlantic, where he oversees business coverage for the website.
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He is a visiting research fellow at the Committee for a Responsible Federal Budget at the New America Foundation. Derek has also written for Slate, BusinessWeek, and the Daily Beast. He has appeared as a guest on radio and television networks, including NPR, the BBC, CNBC, and MSNBC.

How the Government Subsidizes the Super Bowl Champions

By Derek Thompson
Sep 7 2010, 9:19 AM ET Comment

The offense line isn't the only thing protecting Drew Brees and the New Orleans Saints:

Recently, the Saints were sued by the IRS for paying no taxes on an annual $8.5 "inducement payment" the team receives from the state of Louisiana. Saints owner Tom Benson claims the money is "capital," not income. If this were true, any person or corporation doing business with government could claim income is "capital" and thus tax-free. Louisiana also pays the Saints $3.8 million a year to lease office space that Benson owns in New Orleans -- because the New Orleans office market in glutted, this is essentially a gift to Benson. And Louisiana has been using $85 million in federal stimulus money for yet another renovation of the Superdome.

Read the full story at ESPN.


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