The NFL is a non-profit organization?!?

Tholal · 05-19-2010, 01:52 PM

I have to say that when I heard this today it surprised the hell out of me! How can you have revenues of 8 billion dollars and still be considered a non-profit?!

jbreaux · 05-19-2010, 01:59 PM

Maybe the teams have the 8 billion revenue which are all independent companies in their own right?? and the NFL does not.

AgentJRad · 05-19-2010, 02:00 PM

"The organization oversees America's most popular spectator sport, acting as a trade association for 32 franchise owners."

Hm.

Tholal · 05-19-2010, 02:32 PM

Quote:

Originally Posted by jbreaux

Maybe the teams have the 8 billion revenue which are all independent companies in their own right?? and the NFL does not.

Actually, it appears as if the teams are run as individual for-profit organizations and the NFL distributes some of its money in a revenue-sharing plan (which seems kind of shady in of itself).

Here is an article from a couple of years ago about how the NFL was trying to get Congress to create a special exemption for them so that they didn't have to abide by the financial disclosure rules that every other non-profit has to adhere to.

http://www.nonprofitquarterly.org/co...-exempt-rules/

It also mentions that in 2007, the NFL spent over $1.1 million on lobbying efforts (I imagine that number has increased over the past few years)

Considering how much they screw the fans to make money (enforced blackouts, games that are only viewable on their for-pay network, cutting away from overtime games to show the pre-kickoff BS of the next game, exclusive multi-year, monopoly deals with EA that destroyed the genre of football video games,... just to name a few examples), I am shocked that they are even allowed to pretend to be a non-profit!

Sophandros · 05-19-2010, 02:33 PM

Quote:

Originally Posted by Tholal

I have to say that when I heard this today it surprised the hell out of me! How can you have revenues of 8 billion dollars and still be considered a non-profit?!

Non-profits have revenues. In order to be a non-profit, your revenues and expenses must be equal (thus, no profit).

The LEAGUE itself does not turn a profit. The member teams, however, do.

The NFL supervises the games, etc.

As someone else mentioned, it's a trade organization that represents the individual owners and their teams. It lobbies on their behalf, and acts as a buffer to the outside.

Sophandros · 05-19-2010, 02:38 PM

Quote:

Originally Posted by Tholal

Actually, it appears as if the teams are run as individual for-profit organizations and the NFL distributes some of its money in a revenue-sharing plan (which seems kind of shady in of itself).

Here is an article from a couple of years ago about how the NFL was trying to get Congress to create a special exemption for them so that they didn't have to abide by the financial disclosure rules that every other non-profit has to adhere to.

http://www.nonprofitquarterly.org/co...-exempt-rules/

It also mentions that in 2007, the NFL spent over $1.1 million on lobbying efforts (I imagine that number has increased over the past few years)

Considering how much they screw the fans to make money (enforced blackouts, games that are only viewable on their for-pay network, cutting away from overtime games to show the pre-kickoff BS of the next game, exclusive multi-year, monopoly deals with EA that destroyed the genre of football video games,... just to name a few examples), I am shocked that they are even allowed to pretend to be a non-profit!

Why are you shocked? The NFL is like the BBB or Chamber of Commerce or any of a number of professional organizations. The people or companies who are members can have a profit, but the organization does not.

Tholal · 05-19-2010, 03:05 PM

Quote:

Originally Posted by Sophandros

Why are you shocked?

Well let's see...

How about because they pull in $8 BILLION dollars in revenue and don't pay taxes?

Because some of their basic 'services' require payment directly to them (live games that are shown only on the NFL network)?

Because they spend millions of dollars lobbying Congress for special exemptions for themselves?

These all seem like a massive for-profit company to me and the NFL claiming non-profit status seems like an abuse of the system. But maybe I'm the dumb one here because I had just assumed that it was a for-profit organization. But knowing now that they are claiming to be a non-profit makes me even more disgusted at their constant market manipulation which is often detrimental to the fans.

Comparing the NFL to the BBB seems a bit of a stretch.

gwballin · 05-19-2010, 03:38 PM

Quote:

Originally Posted by Tholal

I have to say that when I heard this today it surprised the hell out of me! How can you have revenues of 8 billion dollars and still be considered a non-profit?!

The form that non-profits have to file annually (Form 990) with the IRS is public information and can be viewed on guidestar (I think you have to register to see it though). If you were to take a look at some of the biggest non-profits in the U.S. I’m sure there will be quite a few that top 8 billion in revenue a year. I know for a fact that we have a non-profit organization based in the New Orleans metro area that does about half of that annually.

gwballin · 05-19-2010, 03:42 PM

Quote:

Originally Posted by Sophandros

Non-profits have revenues. In order to be a non-profit, your revenues and expenses must be equal (thus, no profit).

This isn’t exactly true, non-profits can have revenues in excess of expenses (which would be know as net income but not for the fact that they are a non-profit). The term non-profit has more to do with the purpose of the organization. To earn tax exempt status by the IRS the organization must meet one of a specific list of purposes.

Sophandros · 05-19-2010, 03:46 PM

Quote:

Originally Posted by gwballin

This isn’t exactly true, non-profits can have revenues in excess of expenses (which would be know as net income but not for the fact that they are a non-profit). The term non-profit has more to do with the purpose of the organization. To earn tax exempt status by the IRS the organization must meet one of a specific list of purposes.

You know what I'm getting at, though. You can't just look at how much revenue an organization has and say that it can't be a non-profit.

There are many professional and business organizations that have large revenues, represent and unite for profit companies and people, and lobby Congress who are non-profit. That was my main point.

bornnraisedwhodat · 05-19-2010, 03:59 PM

Why would you be shocked. Nobody owns the NFL or you cant buy stock shares of the NFL, it is simply and organization, it makes money but it puts the money back into the organization (so they say)

Hawkeye Saint · 05-19-2010, 04:03 PM

The only thing the NFL is doesn't have is it's own Bank.

Maybe they should call the Vatican for some financial pointers.

ClayT101 · 05-24-2010, 11:26 AM

On a related note, it looks like the NFL just got busted trying to have it both ways...here (this thread) they say that they are an organization of independent teams, yet, for the purposes of this lawsuit, all the teams act as 1 organization. The supreme court unanimously ruled against the NFL today.

http://www.msnbc.msn.com/id/37316081...ss-sports_biz/