-First in the nation study reveals revenue impact of lost season-
Annapolis, Md. (June 21, 2011) – While joining the millions of National Football League (NFL) fans around the country in hoping that an agreement is soon reached, Comptroller Peter Franchot today announced that Maryland would lose more than just Sunday afternoon entertainment if the NFL season is lost. According to the study just released by the Comptroller’s Office, Maryland would lose an estimated $40 million in tax revenues if the entire season is canceled.
“As a football fan, I am anxious for both sides to come together and settle this dispute. But as the state’s chief fiscal officer and tax collector, I’m very concerned about what the lack of a season will mean for Maryland’s already tenuous revenue collections,” said Comptroller Franchot. “Our economy is still very fragile and while we’ve been meeting our recent revenue estimates, those estimates have been historically conservative. Unanticipated events, such as the lack of revenue from Ravens’ and Redskins’ games, would throw an unwanted speed bump on our road to economic recovery. So, while I want the football season to resume so we can celebrate victories over the Steelers and Cowboys, I really want to see things back on track because of the tremendous boost football gives our sense of community pride, our economic activity and our state revenues.”
Franchot asked the Board of Revenue Estimates to study the impact so that if necessary, the information could be incorporated into the next round of revenue estimates. Maryland becomes the first state to undertake such a study. The study found that tax revenue from NFL games arises from direct and indirect activity. Direct sources of revenue include income tax paid to the state of Maryland by players and other employees of an NFL team, sales tax from concession stands affiliated with the stadium or the sale of NFL merchandise, and the admissions and amusement tax, which is remitted upon purchase of an NFL ticket. Direct sources account for most of the tax revenue from the NFL, and hence would be the largest source of lost revenue in the event of canceled games.
A complete copy of the study can be found find on the Comptroller’s Website at www.marylandtaxes.com.