I was recently spending time with a pretty well-accomplished businessman and we got into a discussion about the business of the NFL. Basically the NFL is controlled by 32 individuals (the majority owners of each team) and it operates on both free-market and socialist terms.
There are many free market aspects to the NFL. Each team is its own individual asset that is privately owned. As the team becomes worth more the owners of this asset realize such profits. If the team drops in value they realize this loss. If they build a new stadium with their own capital this gets added on to the team's asset list. If they increase ticket sales this is revenue. They have to figure out how to manage salary expenses all on their own. In many ways the NFL is a capitalistic, free-market venture.
There are also many socialist aspects to the NFL. Although each team is owned privately by an owner, these owners all get together and decide the overall direction of the NFL. While each owner has their own team's best interest at had, this doesn't mean that they won't help other teams. If another team needs a new stadium all the teams from the NFL may contribute 1/3 of those costs. So if the stadium is $1 billion they will cover $333 million, or ~$10 million each ($333 million/32 owners). Since this new stadium will increase the overall brand and ticket sales for this team it will help all the other teams... especially when you consider that all NFL product sales are split between all the owners. So if they sell a Dallas Cowboys jacket at the Dallas stadium all 32 owners split these revenues. It doesn't matter where an NFL product is sold and for what team it belongs to, they all share these revenues.
There is obviously a lot more to it, but this is just a quick overview outlining some of the free-market and socialist aspects to the NFL. Certain finances go to 1 team while other finances are split between all 32 teams.
Now let's move this on to the world stage. We all know the NFL is a very profitable and well-respected business (well by some anyway, I think it's a complete distraction for most but respect the business end of it). So couldn't we find a way to take these elements of the NFL and apply them to the world? Can't we find a way to make it so each team is a country? Can't we have it so each country is owned by an individual or group and they all work together both privately and collectively? Couldn't we have it to where the nations had the best interest of other nations at hand? Why not have each nation focus on generating its own industry and revenue while sharing in profits and losses of other nations?
Obviously this is a very simplistic view and we do have many private and collectivist things we do practice between existing nations. And obviously there is the HUGE element of corruption and graft, but it doesn't seem to really work its way into the NFL like it does our political system. Perhaps the stakes aren't as high in the NFL?
Anywho, I just wanted to throw this idea out there and see if anyone else can do anything with it. I just know that the NFL is done right and those guys know exactly what they are doing. Everything runs relatively smoothly and profits are rendered year after year. Sounds pretty healthy to me.
Filed under:Politics / Government, Sports, NFL