My Thoughts on the NFL's Conflicting Responsibilities

          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?