NFL Fleeces Taxpayers

How the NFL Fleeces Taxpayers

Taxpayers fund the stadiums, antitrust law doesn't apply to broadcast deals, the league enjoys nonprofit status, and Commissioner Roger Goodell makes $30 million a year. It's time to stop the public giveaways to America's richest sports league—and to the feudal lords who own its teams.

Last year was a busy one for public giveaways to the National Football League. In Virginia, Republican Governor Bob McDonnell, who styles himself as a budget-slashing conservative crusader, took $4 million from taxpayers’ pockets and handed the money to the Washington Redskins, for the team to upgrade a workout facility. Hoping to avoid scrutiny, McDonnell approved the gift while the state legislature was out of session. The Redskins’ owner, Dan Snyder, has a net worth estimated by Forbes at $1 billion. But even billionaires like to receive expensive gifts.

Taxpayers in Hamilton County, Ohio, which includes Cincinnati, were hit with a bill for $26 million in debt service for the stadiums where the NFL’s Bengals and Major League Baseball’s Reds play, plus another $7 million to cover the direct operating costs for the Bengals’ field. Pro-sports subsidies exceeded the $23.6 million that the county cut from health-and-human-services spending in the current two-year budget (and represent a sizable chunk of the $119 million cut from Hamilton County schools). Press materials distributed by the Bengals declare that the team gives back about $1 million annually to Ohio community groups. Sound generous? That’s about 4 percent of the public subsidy the Bengals receive annually from Ohio taxpayers.

In Minnesota, the Vikings wanted a new stadium, and were vaguely threatening to decamp to another state if they didn’t get it. The Minnesota legislature, facing a $1.1 billion budget deficit, extracted $506 million from taxpayers as a gift to the team, covering roughly half the cost of the new facility. Some legislators argued that the Vikings should reveal their finances: privately held, the team is not required to disclose operating data, despite the public subsidies it receives. In the end, the Minnesota legislature folded, giving away public money without the Vikings’ disclosing information in return. The team’s principal owner, Zygmunt Wilf, had a 2011 net worth estimated at $322 million; with the new stadium deal, the Vikings’ value rose about $200 million, by Forbes’s estimate, further enriching Wilf and his family. They will make a token annual payment of $13 million to use the stadium, keeping the lion’s share of all NFL ticket, concession, parking, and, most important, television revenues.

After approving the $506 million handout, Minnesota Governor Mark Dayton said, “I’m not one to defend the economics of professional sports … Any deal you make in that world doesn’t make sense from the way the rest of us look at it.” Even by the standards of political pandering, Dayton’s irresponsibility was breathtaking.

In California, the City of Santa Clara broke ground on a $1.3 billion stadium for the 49ers. Officially, the deal includes $116 million in public funding, with private capital making up the rest. At least, that’s the way the deal was announced. A new government entity, the Santa Clara Stadium Authority, is borrowing $950 million, largely from a consortium led by Goldman Sachs, to provide the majority of the “private” financing. Who are the board members of the Santa Clara Stadium Authority? The members of the Santa Clara City Council. In effect, the city of Santa Clara is providing most of the “private” funding. Should something go wrong, taxpayers will likely take the hit.

The 49ers will pay Santa Clara $24.5 million annually in rent for four decades, which makes the deal, from the team’s standpoint, a 40-year loan amortized at less than 1 percent interest. At the time of the agreement, 30-year Treasury bonds were selling for 3 percent, meaning the Santa Clara contract values the NFL as a better risk than the United States government.

Although most of the capital for the new stadium is being underwritten by the public, most football revenue generated within the facility will be pocketed by Denise DeBartolo York, whose net worth is estimated at $1.1 billion, and members of her family. York took control of the team in 2000 from her brother, Edward DeBartolo Jr., after he pleaded guilty to concealing an extortion plot by a former governor of Louisiana. Brother and sister inherited their money from their father, Edward DeBartolo Sr., a shopping-mall developer who became one of the nation’s richest men before his death in 1994. A generation ago, the DeBartolos made their money the old-fashioned way, by hard work in the free market. Today, the family’s wealth rests on political influence and California tax subsidies. Nearly all NFL franchises are family-owned, converting public subsidies and tax favors into high living for a modern-day feudal elite.

Football is the king of sports. Should the favorite sport of the greatest nation really be one whose economic structure is based on inequality and greed?

By: Gregg Easterbrook Of The Atlantic

Our Thoughts...

Are You Ready For Some Football?

By: MrJackBrickhouse (@GotMyShades) cabdofficial.com

As the summer concludes and the kids head back to school, many Americans look forward to the first week in August for another big reason besides getting their little monsters out of the house for a few hours each day. Football fans anticipate the Hall of Fame game which jumps off the NFL preseason leaving roughly 30 days until the first game of the regular season. The NFL has been under heavy scrutiny over the past decade regarding players and owners off the field actions and more recently concussion research. While marijuana arrest, drunk driving, and domestic violence cases cover the sports media circuit regarding the NFL, the real cost of football to it's millions of loyal fans is rarely highlighted as this article acknowledges.

Cash is still king and the NFL rakes it in effortlessly. Big business wins out yet again in our economy. From politics to religion, big business blankets their opposition with an unlimited cash flow until the scales tip in their favor. As an average U.S. Citizen working to keep the lights on, a few extra dollars in your pocket from your paycheck could literally change your life. However, if you are late on your taxes “Uncle Sam” will call “Omaha” and garnish your wages forcing you to go “Three and Out” for the rest of the game. Meanwhile, the nonprofit organization known as the NFL, receives a portion of your hard earned dollars regardless if you even watch the sport if you live in an NFL town! So after reading the above article and knowing that if you live in a football town, you are footing the bill for much of the NFL's presence in your city, what accommodations are you going to demand change the next time you attend a football game at your local stadium?

The Shear Hypocrisy Of The NFL

By: Koffee Black (@koffeeblacklies) cabdofficial.com

The Shear Hypocrisy Of The NFL has been known now for years. The problem is fans don't give a flying fuck! The billionaire owners have developed a product and brand that is quite simply unmatched by the other major sports leagues... Baseball is considered Americas "Past Time" right? Well with the product that they have been putting out, even though it has been consistent, the problem is just that they haven't changed much in the game to make it more appealing to the eye or the t.v. viewer which is how it is viewed more now than ever do to its non salary cap and luxurious stadiums. Middle class fans can barely afford to attend. Let's face it, it's a bad product on television to watch. Nobody has truly embraced hockey. The next best thing is the NBA and with rule changes and a top priority of globalizing the league, the NBA has CONSISTENTLY been about revolutionizing the game. But the NFL Has Done The Best... Some how the owners have put a product out that captures the essence of the the true meaning of Spectacle! I'd be all day getting into how they were able to accomplish such a feat. But what is more mind blowing is the fact that they did this while pulling a fast 1 on everyone involved... Players, Fans, Local City Governments! Hell Its a reason why these guys are billionaires... this isn't shocking! What is shocking is that I'm able to try to have an opinion on this while drinking Bulliet Burbon and make some sort of sense. At least I think so!!!!

Know Yourself, Know your Worth

By: Hollow Tip (@hollowtiptalks) cabdofficial.com

So it’s obvious that people all over the board are being bent over by the NFL, so Ill take a somewhat different perspective on the topic. The fact that survivors of Hurricane Katrina are willing to pay an “inducement payment” illustrates the ultimate desire to “get that old thing back”. But just like any relationship what if you run into “The Right One”. I use the term “Right One” using a voice that digs deep and speaks to every frequent Love & Hip Hop fan. The NFL has become that cocky ex that believes your so called freedom is a luxury until they decide to turn on pheromones that would make even Screaming A sacrifice his edges. Introducing “The Right One” a.k.a. Hollywood.

Hollywood is the new love interest that doesn’t care about your status, money or social media followers because they can hold their own. Let’s step outside the analogy and address what is really going on. The NFL has grown tired of the “yes men” around them and now want to conquer another challenge. A king needs a queen and Hollywood is the perfect trophy wife/husband. The passive behavior of the tax payers, government etc. have created a monster. As a result, the NFL is wanting musicians to pay to play. For a small fee the “chosen one” can perform on the biggest stage but not without a financial contribution. This contribution can range from a base rate or a portion of the tour profit post-Super Bowl. Most recently, Adele adamantly set the record straight stating that she will not be performing at the Super Bowl. Uh oh….Not to be outdone, the NFL rushed to the media to inform the masses that the offer was never on the table. Sound familiar? Classical behavior of a scorned lover who just took Ceelo Green’s “F*** You” off repeat only to switch to “These Hoes Ain’t Loyal”.  Nevertheless, the point is that an Alpha will only continue what the Beta allows. Until the public decides to know their worth the NFL will continue to maintain dominance on and off the field.

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