Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I learned something new today. I didn't realize the NFL organization was operating at a loss. I'm very surprised by that. How does a head of a highly-lucrative $10B industry operate at a loss?
I dont have actual figures obviously so let me just make them up and show you how it happens
NFL spends $1M a year on salaries
NFL has $10B a year in revenues but passes on $1B a year to 10 teams
LOL because the NFL isnt a lucrative 10B industry. It is the Member Association of 32 Member teams that ARE a highly-lucrative $10B industry.
The money made by the teams does not belong to the NFL. The NFL gets dues from its members. NONE of the big money actually goes to the NFL. well... they get like $200M a year but they spend more than that on behalf of their members.... so...
Now those 32 teams? they are awash in Cash and pay BIG dollars to the feds every year.
I get that the NFL doesn't actually receive the $10B...but it defies good business sense to operate any business at a loss, especially if the business is tax-exempt. What good does it do to run in the negative? I can certainly see running at break-even, but a loss just doesn't make sense when revenues are available to make the organization whole through its members.
I learned something new today. I didn't realize the NFL organization was operating at a loss. I'm very surprised by that. How does a head of a highly-lucrative $10B industry operate at a loss?
The "National Football League" is legally a trade association. It's not a charity any more than the Motion Picture Association of America, representing big movie studios, is. The tax exemption status is for 'civic' or 'commercial' organizations. The players aren't their employees any more than Tom Cruise is an MPAA employee. While Goodell weilds a lot of influence in the league's operations, he is ultimately at the service of the NFL's paying members - owners of the teams.
The "National Football League" derives its income from membership dues from each of the teams and fines handed out to players/coaches and investments.
I get that the NFL doesn't actually receive the $10B...but it defies good business sense to operate any business at a loss, especially if the business is tax-exempt. What good does it do to run in the negative? I can certainly see running at break-even, but a loss just doesn't make sense when revenues are available to make the organization whole through its members.
not really sure. but i suspect as a trade association, it spends money on behalf of its members and at times that money exceeds its revenue....but i also suspect every dollar they spend is spent with the agreement of the 32 men who are the actual members of the association...
I get that the NFL doesn't actually receive the $10B...but it defies good business sense to operate any business at a loss, especially if the business is tax-exempt. What good does it do to run in the negative? I can certainly see running at break-even, but a loss just doesn't make sense when revenues are available to make the organization whole through its members.
The good in running at a loss is thats pretty much whats mandated as a non profits. Non profits by design, can not make profits.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
