system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5:Why does The NFL, NHL and PGA Have Tax Exempts?
gpt
The leagues themselves are organized as pass through entities, but the teams are not.  The NFL is the most famous example of this, so I'll use it as an example.  If the NFL generates profit, every last dime of profit gets passed through to the teams themselves.  The NFL itself, for business purposes, is more like a Chamber of Commerce or a trade organization that itself is not doing business.  But the teams can (and do) pay taxes.  

Even if you wanted to 'make 'em pay' or anything like that, there would be nothing to tax because all the profit is passed through to the teams.