- The Washington Times - Tuesday, June 21, 2011

Maryland could lose about $40 million in tax revenue this year if the NFL’s ongoing lockout wipes out the league’s entire season, according to a report released Tuesday by the state’s comptroller.

Comptroller Peter V.R. Franchot said state and local governments could lose as much as $42 million in direct and indirect revenue if the work stoppage prevents the two teams that play home games in the state — the Baltimore Ravens and the Washington Redskins — from playing any games this year.

NFL players and owners have been locked in a dispute since March over the conditions of a new collective bargaining agreement, leaving the upcoming season in question.

The Redskins — which are headquartered in Ashburn, Va., but play home games in Landover — and Ravens are each scheduled to play two preseason and eight regular-season home games this year.

“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,” Mr. Franchot, a Democrat, said.

According to the report, a season-long lockout would rob state and local governments of as much as $37.1 million in direct revenue from taxes on player and team-employee salaries, game tickets, general sales, parking and hotels. About $21.8 million of the revenue would go to the state.

The governments could also lose more than $3 million in indirect revenue from taxes collected on non-NFL businesses like restaurants, bars and grocery stores that could lose sales and potentially reduce staff without an NFL season.

If the lockout wipes out only a portion of the season, state and local governments could lose $2 million for each canceled home date.

The report also pointed out that Ravens‘ games would have a greater revenue impact than Redskins‘ games, as many Redskins players and employees live and pay income tax outside the state.

The report did not study the possible effects if games continue with replacement players.

A work stoppage has not affected the NFL regular season since 1987, when an in-season players’ strike canceled one week of play and forced the use of replacement players for three weeks.

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