Sports League Tax-Exempt Status Limitation Act

This bill, S 2519, amends federal tax law to limit tax-exempt status for professional sports leagues. It establishes a $500 million asset threshold: if a league's average annual asset value (reported on annual tax returns) exceeds this amount over any three-year period starting after 2020, it loses tax-exempt status under section 501(c). The rule applies to taxable years beginning after December 31, 2023, directly affecting large professional sports leagues meeting the asset test. The provision targets leagues with significant financial assets, altering their tax classification without changing other tax rules.