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| Don't let this man near your charity. (Credit: Arizona Republic) |
Junker, who must have been the star student at the Rod Blagojevich School of Corruption, was fired after an internal report said he used Bowl funds to reimburse employees for political contributions, then attempted to cover it up. This is not only a violation of Arizona campaign finance law, but a violation of the tax code.
The Fiesta Bowl is a 501(c)(3) organization, putting it in the same category for tax purposes as the American Red Cross (yes, really). Whether or not the Fiesta Bowl's valuable contributions to society, which include hosting a football game and nothing else, make it a true charity is a question for another day. What is not up for debate, however, is that a 501(c)(3) organization that makes campaign contributions has violated the tax code and put its tax exemption at risk.
Beyond the campaign contributions, the report says Junker visited strip clubs, restaurants and bars all on the Fiesta Bowl's tab. These are improper benefits and constitute another tax violation. As if these violations weren't enough, the Fiesta Bowl's initial investigation of Junker cleared him of wrongdoing, according to the report.
Junker's timing in all this is pretty awful for the Fiesta Bowl, because the organization is already on the IRS's radar. In September 2010 Playoff PAC, a nonprofit organization that seeks to end the Bowl Championship Series, reported a number of alleged tax code violations by 3 of the 4 bowls to the IRS.
The Fiesta Bowl board should be applauded for firing Junker, not that doing so took great courage. No major sporting event that is tax exempt has ever lost its exemption, but these are strange times, and the IRS may be looking to set a precedent and haul in some more money.
People want deficit reduction? Collecting taxes on the massive revenues of an organization that is corrupt and provides no societal benefits would probably be a good place to start.
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