It has become big news as of late that the NFL operates as a non-profit organization. I got to thinking (probably too much) about all the working parts of this relationship. I constructed an answer to 'Who' is responsible to 'Whom' for 'What' question pertaining to the world of electronic media. In this post, I am suggesting that the NFL has a greater responsibility to their charity work, being a non-profit. This doesn't necessarily reflect my opinion on whether or not the NFL should, indeed, be a non-profit organization. Thanks for reading!
National Football League commissioner Roger Goodell
is responsible to television networks holding rights to broadcast NFL games for
maximizing viewership ratings, and to the audiences served by the NFL for
ensuring affordable, responsible entertainment.
The television rights
to broadcast NFL games are the most expensive of any American entertainment
property. The NFL offers (on a regular basis) what other programming seldom can
– a large, diversified, and live viewing audience. The rights to broadcast games
are held by CBS, FOX, ESPN, NBC and the NFL Network. With the power that the
NFL holds due to its marketability and its long-standing dominance of
television ratings comes the leverage to greatly influence network content.
This power holds true from the vantage point of advertisers on the five
aforementioned networks and their competitors alike. As commissioner, Roger
Goodell is responsible for negotiating television deals and initiating efforts
to maximize viewership - thus satisfying involved networks. In order to do so
effectively, Goodell is also responsible for establishing the NFL as an
affordable product. Not only does making the brand affordable satisfy the television
audience, it also facilitates the generation of interest surrounding the product- theoretically increasing viewership. While it might seem that satisfying the terms of the television agreements also
evidences the fulfilment of his responsibility to audiences served by the NFL,
as the commissioner of a non-profit organization Goodell faces an even more
intensely scrutinized responsibility.
“Freedom means
responsibility. That’s why most men dread it!”-G.B. Shaw
NFL: 2012 Fiscal Year (from GuideStar)
Members of
audiences served by the NFL typically pay federal income taxes while the NFL league office is exempt from paying
federal corporate taxes. This fact
has been the focus of many activist groups and legislators recently, as United
States Senator Tom Coburn (R, Okla) filed a bill in September 2013 to revoke
the NFL’s tax-exempt status as it doesn't appear fair to the average tax-payer.
However according to the ‘990 federal tax form,’ submitted by the NFL League
Office for 2012, the league took in approximately $255.3 million in revenue and
spent $332.9 million. All 32 NFL teams pay annual membership dues to the league
office, which accounted for over 250- of the 255.3- million dollars. And while
the league office is exempt from paying taxes on the membership fees, the
respective teams don’t share the tax-exempt status so the revenue is ultimately
to be taxed at the municipal level. To fulfil their obligation to the federal
tax-paying United States’ citizen, Goodell and the NFL reportedly donated $2.3
million in grants to community groups in 2012, including $15,898 to the United
Way and $10,000 to the March of Dimes.
It is important
to understand that all federal tax-payers, even those with no interest in the
NFL, make a monetary sacrifice to support organizations which are tax exempt.
Millions more choose to make further investments by way of purchasing
merchandise and tickets. Goodell’s commitment to the charitable work that the
NFL does is due to every federal-tax paying citizen. He has a responsibility to
use a portion of the league’s untaxed revenue to improve the well-being of neighbourhoods in, around, and outside of NFL cities. Another important aspect
of this responsibility is that Goodell must work to ensure affordable and
responsible entertainment.
“People better get what they want or else they will
end up wanting what they get.” –G.B. Shaw
Affordable Entertainment
As a result of
the federal-tax paying citizen helping to support the NFL, Goodell is
responsible for keeping the product on the field affordable. An affordable
product also helps the NFL to satisfy their television agreements by giving the
television-viewing audience exposure to their local teams and thusly
advertisers on rights-holding networks.
“Audiences
are created by broadcasting.” –Gilbert Seldes
Television Blackout
Rules
There are many
factors that go into determining which games are aired in regional television
markets. The restrictions that most commonly affect fans within a respective
team’s primary or secondary market pertain to blackout rules. Each of the 32
NFL teams are assigned a ‘primary market,’ and most also have a number of
secondary markets. Typically areas that fall within 75 miles of an NFL stadium
are considered part of that team’s primary market. In regards to regular season
Sunday afternoon games, all away games are aired in the primary and secondary
markets of the teams featured in the contest. All sold-out home games are aired
in primary markets but if a game is not sold out 72-hours before kickoff, it
gets blacked out in all primary and secondary markets.
Goodell has a responsibility
to the audiences served by the NFL to work with teams to sell tickets at a
profitable, yet affordable-enough rate for fans to buy enough to sell out the
stadium. If they fail to sell the game out, those in local television markets
see a game that they’re likely to be less interested in. In instances where
games get blacked out, Goodell doesn't completely fulfil his responsibility to
provide the utmost exposure to advertisers on rights-holding networks. From the
standpoint of a fan within the television-viewing audience which has been
subject to blackout, Goodell fails to provide coverage to some federal-tax
paying NFL fans.
Responsible Entertainment
Consequently,
Goodell is responsible to the audiences served by the NFL for holding employees
of the NFL to a high standard of conduct as to set examples for those who vest
interest in the product. Due to the make-up of television markets in today’s
media environment and the leverage held by the NFL to influence network
content – the product must be presented as responsible entertainment. Members
of the NFL’s youngest demographics are, in part, future football players. Goodell
has a responsibility to federal-tax payers to encourage a positive development
in today’s youth. This responsibility transcends the families of future athletes as the NFL
provides charity to all members in a targeted community.
National
Football League commissioner Roger Goodell is responsible to television
partners of the league for maximizing viewership ratings, and to the audiences
served by the NFL for ensuring affordable, responsible entertainment. He
strives to fulfil these responsibilities by ensuring responsible entertainment
in generating viewership, partly by using untaxed corporate dollars to provide
charity throughout the United States. This is enhanced by efforts to make
ticket prices affordable, while still generating television viewership to
satisfy the NFL’s television audience. Thus he satisfies his responsibility to
the NFL’s network affiliates and the audiences served by the NFL in the
national community.
How do you think the NFL, as a whole, is handling this responsibility?