How The NFL Screws Viewers and ATT Wants To Help

[Avid Listener]

The only glaring gubmint foible as I see it is the declaration of the NFL as a tax-exempt corporation. That is absolutely ludicrous.

All 36 teams ARE taxable corporations. The NFL itself is basically a trade association for the 36 teams. Even if the NFL was taxed, it wouldn't be difficult for it to show zero profits on its books because every dime it makes is passed along to the member teams. More specifically, even if it were subject to taxation, it could be made to look like it made no profit on its books for tax purposes.

That isn't as unusual as it might seem. There are many enterprises in when the overall umbrella organization, such as a hospital or other medical facility is "not-for-profit", though the reason its profits are zero is that all income is paid to the professional staff.

 

[TheBigA]

Not sure if broadcast considerations were part of this or not but it does make a certain amount of sense to me.

Let's clarify something. The local team always gets broadcast in the local town. That's not what this is about. This is about Sunday Ticket, which allows games to be seen out of market. So a Chicago Bears fan can watch his team in San Francisco, regardless of what the networks do. Or a guy who plays Fantasy Football can watch all of his players at the same time. Some people do that. Having the FCC mandate that Sunday Ticket is free because the team plays in a city-owned venue doesn't benefit the local taxpayers. They already get their team for free.

 

[landtuna]

It's called a "typographical error". Get over it and move on.

Could be a brain fart. Personally, I would love to see Shaq on skates.

 

[landtuna]

All 36 teams ARE taxable corporations. The NFL itself is basically a trade association for the 36 teams.

Thanks for the clarification. I always thought when someone referred to "the NFL" they were talking about the entire organization top to bottom.

 

[KML0224]

I'd love to see if this will affect places like Hooters and other establishments which attract customers by offering the out-of-market games? I only did the Hooters deal one time...the day Denver had their Tebow-led comeback to win at Miami (I live in central Connecticut).

 

[Avid Listener]

Thanks for the clarification. I always thought when someone referred to "the NFL" they were talking about the entire organization top to bottom.

When people refer to "McDonalds", they're actually referring to both the entire national chain, as well as thousands of individual, independent, franchise owners. When they refer to "NBC", or any other TV network, they're referring to both the entire network as well as all of the independent affiliate stations. When it comes to structuring organizations to avoid taxes, things always get more complicated than it needs to be. I'm surprised that fact takes you by surprise.

 

[newsmark]

First of all, broadcasters aren't restricted from covering these things.

Maybe they weren't at one time. They are now.

In most cases, in order to get a credential to cover a team or a game, you have to agree that anything shot on team property or inside the stadium is subject to team and NFL rules. That means any video you shoot of the game CANNOT be used on your website. You cannot use your own video as you see fit. There are also limits on how much video you can use. If you violate their rules, they'll send you a nice letter from their lawyer the first time. The second time won't be so nice.

 

[TheBigA]

Maybe they weren't at one time. They are now.

My point was that the general media has access. Obviously someone who pays broadcast rights gets full access. That's the case with the Olympics too.

 

[landtuna]

When it comes to structuring organizations to avoid taxes, things always get more complicated than it needs to be. I'm surprised that fact takes you by surprise.

I quit watching the NFL decades ago and don't give it much thought at all. And since I don't live in Glendale, AZ I don't pay their stadium taxes either. The only football I watch is the occasional NCAA (or whatever it is now) matchup but the way that is going (ala school specific network) it won't be in my future much longer either.

 

[Avid Listener]

I quit watching the NFL decades ago and don't give it much thought at all. And since I don't live in Glendale, AZ I don't pay their stadium taxes either. The only football I watch is the occasional NCAA (or whatever it is now) matchup but the way that is going (ala school specific network) it won't be in my future much longer either.

If you prefer AAA minor league football to major league football, I cannot fault your preference. It's a matter of taste. Lots of people prefer lower-tier, amateur entertainment to the top professional stuff. When it comes to spectator sports, I have many friends who prefer local dirt-track racing over NASCAR, or who would rather watch a minor league baseball game over a major league game. The same goes for other entertainment. I know people who would rather watch a local community theater play than to shell out big bucks to see a touring Broadway show, or who'd rather go to a local dive to hear a local cover band instead of paying the outrageous prices for concerts by top name acts. I don't see anything wrong that that.

I don't know what it has to do with the structuring of the NFL, but what the hell.

I did think of a few other examples of organizations structured similarly to the NFL. The Public Broadcasting System is a non-profit organization, yet the content producers like Ken Burns, Rick Sebak, and all the others make a nice, profitable living. Many big hospitals are non-profit organizations, yet the doctors who work for them are earning huge paychecks. So, why should it be difficult to understand that the NFL is a non-profit organization that coordinates the activities of 36 very profitable member organizations?

 

[TheBigA]

ASCAP and BMI are non-profit, and distribute billions of dollars to writers and publishers. Only SECAC is for profit.

 

[vchimpanzee]

Let's clarify something. The local team always gets broadcast in the local town.

That assumes no blackout for a home game due to the stadium not selling out.

 

[FredLeonard]

The problem is not in a given team's home market. The problem is a team's secondary market, which gets dead games whether they want them or not.

 

[umfan]

That Atlatinc article was very interesting. Sunday Ticket has to be a key aspect of AT&T seeing value in acquiring DirecTV. Otherwise, the deal makes little sense. While DirecTV has lots of subscribers, the technology and location of many of those, makes integrating them into the AT&T network to offer true bundles difficult, if not impossible.

Pro Sports is a racket. The subsidization of stadiums and other infrastructure is, without fail, the most crass form of corporate welfare. Detroit, currently in bankruptcy, is ceding millions in tax revenue to allow a new hockey arena to be built. The current arena is servicable, but doesn't allow the billionaire owner of the Red Wings to maximize revenue. Now understand that Mr. Illitch is among the finest corporate citizens any city could want, but diverting tax revenue for corporate gain from a bankrupt city is not right, nor will the economic benefit validate it.

This is a topic worthy of debate. Thanks to Fred for posting this. Having written that, I think Sunday Ticket, because of its cost, is a product only the most ardent football fans buy, but the way the business end of the product is handled is instructive on the bad policy present in how government interacts with the professional sports leagues.