The Steve Dangle Podcast – Jan 22, 2015 – Skillz


On this episode, the guys talk cool ideas for the All-Star Game, the draft, and school stories.

  • Why are the guys all hot and bothered that the NFL is a not for profit? The league does not make money. The profit is earned by the 32 individual teams. The same is true for the NHL. Check the latest CBA –
    “the National Hockey League, a joint venture
    organized as a not-for-profit unincorporated association.”

    All sports leagues are not for profit. That does not mean they are charitable organizations under the Internal Revenue Code of the US. All charities (under Section 501(c)3 of the IRC) are not for profit organizations (within Section 501(c) of the IRC) but not all not for profit organizations are charities.

    The NFL and NHL may have slightly different organizational structures. The NFL was organized in the US under US law. The NHL was originally organized in Montreal under Canadian law. For US tax purposes, they make no money – the constituent clubs do.

    The NCAA is not a charity. It is a not for profit association – although it does run some charitable organizations. Its constituent members (i.e. the colleges and universities) are all charities under 501(c)3. There is some controversy over the fact that some for profit schools in the US are starting to have athletic programs and may want to join the NCAA. Right now, they are either independent or in the NAIA.

    • I should add that the member schools of the NCAA have lost control of the organization. The primary purpose of the NCAA appears to be to advance the interests of coaches, athletic directors and other sports administrators. I think the only solution is to break big time revenue sports away from the schools and turn them into semi-professional leagues. Schools can license their names and make money for use of their facilities.

      Truly collegiate sports should adopt the Division III model – no scholarships. Big time programs can pay a combination of cash and education vouchers. Pro teams can draft kids at age 18 and assign them to a college – just like junior hockey.