Up until April 2015, the league itself had operated as an unincorporated nonprofit 501(c)(6) association, whereby each individual team pays tax on the profit they generate, but the league itself did not pay tax. By relinquishing their tax exemption status, the league office will owe $10 million but will no longer be required to disclose their executive salaries (Myers, 2015).
Approximately 60 percent of the National Football League’s total revenue is generated centrally and distributed among the 32 teams evenly (Fisher, 2010). The league utilizes a unique ticket revenue sharing policy, the most comprehensive of any sports league, whereby the home team keeps 60 percent of gate receipts and the remaining 40 percent of receipts is distributed evenly among the 32 teams.
In terms of business strategy, the National Football League has become a 12 month
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During the season however, the league focuses on increasing football’s appeal to new demographics and new geographies. The Super Bowl is a prime example of the strategic use of advertising, marketing, and entertainment performances to draw in equal amounts of women and men, to a generally male targeted sport. Additionally, the league’s launch of NFLLatino.com, a website which focuses on hispanic players and features exclusive Spanish language content, has helped the league break into a new geographical area, primarily Mexico and Latin American countries. Overall, The National Football League is positioned to make increased profit due to the nature of the sport, it being primarily advertiser friendly as the games have natural starts and stops, with a 60 minute game lasting 3 hours, and plenty of extra time slots that can be filled by television