The many benefits enjoyed by the NFL go well beyond state and local tax exemption, low or zero percent bonds and other funding to support the NFL, on through to the federal level such as Congress' passing of the NFL's Antitrust Exemption.
It is fair to say that NFl games are taxpayer subsidized sporting events.
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The only monetary "Federal connection" is the cost to provide honor guards and various other military tributes at the games. People and the media sloppily refer to this as Federal subsidy. So YOU might be subsidizing the owners directly through bad local decisions, but the anti-trust protection part is not a subsidy. It's an archaic decision to protect the sport as a unique product. Since it can't be patented.
I'm not happy with that. But it does prevent chaos in drafting, scheduling, and hostile takeovers.
I think you are downplaying advantages like the NFL's antitrust exemption. The power that it has given the NFL is extraordinary:
“Apple or ExxonMobil can only dream of permission to function as a monopoly: the 1966 law was effectively a license for the NFL owners to print money,” wrote Gregg Easterbrook, author of “The King of Sports: Football’s Impact on America,” in an article for The Atlantic.
Some critics say that government policies are more responsible for the NFL’s success than Goodell, who has now become something of a lightning rod."
How the government helps the NFL maintain its power and profitability
Personally I love football but prefer that the NFL focus remain on the game. If the NFL wants the many advantages given to it, it should deliver on its only stated mission - football. If the NFL opts to do without the many government and taxpayer advantages they presently receive I have no problem with them making the whole game one long political and social commentary jamboree.
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“Apple or ExxonMobil can only dream of permission to function as a monopoly: the 1966 law was effectively a license for the NFL owners to print money,” wrote Gregg Easterbrook, author of “The King of Sports: Football’s Impact on America,”
in an article for The Atlantic.
Your cited article is out of date as goes the NFL and tax exempt status.
Additional facts of the matter are these:
- One cannot legitimately blame a sports team and its league for negotiating to get the most favorable deal they can. That is what free enterprise is all about.
- Jurisdictions either want a team or they don't. Sports teams are like everything else: if one wants to have one, one must pay for it if nobody's willing to "donate" one.
- As go taxes, the NFL is like every other "pass through" organization, including Trump Organization every other S Corp, partnership and LLC. Not one of them pays income taxes -- though they pay other kinds of taxes rather than paying no taxes, which is what a non-profit enjoys -- because the organization's income passes through to the partners, who are the owners of the organization. The partners pay income taxes via their respective 1040 filings. Complaining that the NFL doesn't pay taxes is ridiculous because the recipients of NFL net income do eventually pay taxes on that income. [1]
“Apple or ExxonMobil can only dream of permission to function as a monopoly:
the 1966 law was effectively a license for the NFL owners to print money,” wrote Gregg Easterbrook, author of “The King of Sports: Football’s Impact on America,”
in an article for The Atlantic.
Monopoly Status
I don't know what on earth you and others think they are talking about. Are others prohibited from forming a football league that competes with the NFL? The answer is, of course, no. Indeed, for a time, there was the
USFL in the 1980s that tried unsuccessfully to complete against the NFL. There has also been
recent interest in trying again to institute a football league that competes with the NFL.
There is only one professional football league in the U.S.; however, unlike actual monopolies -- water and electricity, for example -- there's nothing stopping willing and able entrepreneurs from creating a competing league. Additionally, unlike telephone service prior to the breakup of "Ma Bell," there's nothing essential about professional sports. Accordingly, the "monopoly" gripe is little other than sophistic rhetoric, not a legitimate basis for complaint. The U.S. has some 500 or 600 billionaires and many more multi-hundred-millionaires; t
hey could form a new football league if they want to. Thus, it's nobody's fault that as yet, no competitor has risen to successfully challenge the NFL. (Truth be told, some rich folks once did try...see the "aside" below.)
Aside: Trump and the USFL and NFL
It's not surprising that Trump has been engendering animus toward the NFL. One of his failed ventures was the USFL New Jersey Generals. Trump is merely manifesting his long-held grudge over having drove the USFL to failure and, as is typical of Trump, he blames the NFL for it instead of seeing that he, quite simply, "screwed the pooch" himself. (These articles are well worth reading.)
Trump, from the very beginning, wanted to be an NFL owner, so he crafted a plan to create a competitor to the NFL that the NFL would later absorb, thus getting him into the NFL owners club. His plan didn't work and it destroyed the USFL.
Note:
- As there are only 32 NFL owners, and all of them are one-percenters, I can't say what be the effective tax rate they pay, individually or collectively. I can share what I know about the effective tax rate on average paid by one-percenters, and that rate averages to ~25%, but there are, without question, some comfortable individuals who pay notably lower effective tax rates. Some owners -- notably the Green Bay Packers, which is a non-profit corporation -- have setup their teams as non-profits (I don't know which others are), which makes their compensation wages rather than distributions.
Your position from what you wrote seems to be built around "
One cannot legitimately blame a sports team and its league for negotiating to get the most favorable deal they can". And I agree that companies operating in a free market environment should strive to get the best possible deal for their companies and their stakeholders.
However, given that the NFL has received such incredible financial and legal support from local, state and federal government while operating as a monopoly begs the question of whether football fans can expect something in return? Everything from the cost of tickets, to food and beverages at the game, merchandising as well as certain TV packages continues to climb higher and higher. Is it too much for fans to ask that focus be put on the game and not the politics?
I didn't vote for Trump and understand that you want to make clear your dislike for the man. Personally my argument is simply that as long as the NFL take the tax payer subsidies and other government advantages, then the NFL needs to focus on the game. If the NFL decide to forgo the many advantages they presently receive they are free to do as they please.
The NFL receives huge advantages to deliver its primary mission - sports entertainment. Do it or don't do it, they need to decide.
given that the NFL has received such incredible financial and legal support from local, state and federal government while operating as a monopoly begs the question of whether football fans can expect something in return?
The only thing the NFL and its teams are on the hook to provide is entertainment in the form of two teams competing in a football game. That is what fans have a right to expect. It may be that fans desire more than that, but the NFL doesn't promise much other than that.
- NFL Mission statement: "To provide our fans, communities and partners the highest quality sports and entertainment in the world, and to do so in a way that is consistent with our values."
Some teams commit to even less. Take the Steelers, one team for which I could even find a mission statement, for example. Their mission statement doesn't promise to deliver anything.
The Pittsburgh Steelers are proud to be a part of the Western Pennsylvania community. The organization’s strong commitment to this area dates back to 1933 when Arthur J. Rooney, Sr. founded the team. Steelers Chairman Dan Rooney and President Art Rooney II are known as two of the most active NFL owners and are some of Pittsburgh’s most involved executives in civic affairs. Steelers players, coaches and front office staff are involved in appearances, charitable donations and outreach programs with nonprofit and community groups. It’s our way of giving back to the community that has given us so much for 81 years!
Accordingly, Steelers fans have no basis for expecting from the Steelers more than what the NFL promises.
Everything from the cost of tickets, to food and beverages at the game, merchandising as well as certain TV packages continues to climb higher and higher.
- Across industries, everything goes "retro" except prices. One can attribute that to inflation or increased demand for profit. I don't here care which; both push prices higher.
Inflation is beyond the NFL and NFL team owners' control, and the demand for increasing profits is within what one would expect of any enterprise owner for earning money is why they are in business.
- Everything about entertainment spending is optional. Nobody needs to in any way patronize NFL football.
Would you consider one's griping about the rising cost of dinner at a Michelin Star restaurant as a legitimate beef? I wouldn't were someone to complain about that to me. There's ample low cost or free football entertainment available. That individuals choose to consume the most expensive form of football they can is on them.
Is it too much for fans to ask that focus be put on the game and not the politics?
The NFL's focus is on the game.
Look at the NFL's homepage. There's no mention of Colin Kaepernick or "the kneel." We heard that the entirety of the Patriots' roster knelt this past weekend (Monday night?).
Is there any mention of it on the Patriots' website? Nope. Everything on the NFL and Patriots' websites is about the game and nothing else.
It's individuals who've chosen to place focus on things other than the playing of the game. CK chose to kneel during the Anthem. That's a pretty quiet protest/advocacy action. Indeed, it's an action that many individuals present in the stadium might easily have not noticed. I mean, really. One dude on his knee amidst a whole bunch of big guys. To wit...
Here're some shots of what one can see with a camera or vision enhancement device.
It's clear that CK isn't calling attention to himself...he's reduced his visibility, not increased it.
What do you think the people in the stands would have observed?
If one's seats were this good (below) maybe one might have been able to pick CK amidst the rest of his team if they have a viewing aid.
The NFL is most certainly focused on the game. The NFL isn't talking about Colin or "the kneel." The NFL is promoting the game.
So don't try presenting some specious BS about the NfL not focusing on football. Quite simply, "that dog won't hunt." Football is all the NFL is focused on.
