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The NFL Business Model: Franchise

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Posted 04-23-2012 at 07:33 PM by Saintsfan4ever

This is my first attempt at a blog. So, I'll give it my best shot.

I think I speak for most Saints fans when I say we're literally in a state of shock and dismay at the recent fallout from the penalties bestowed upon our team's coaching staff for league violations stemming from the infamous "Bountygate" in New Orleans. The harsh and seemingly unfair sanctions handed down by league commissioner Roger Goodell has many of us asking the question; "How can he do that? What gives him the authority to fire a coach from the league, and suspend coaches for a season, and suspend players at will?". On the surface the practice seems down right communist, dictator-like, or a form of despotism. Well, it's none of the above. It's the NFL business model; Franchise.

Yes, the NFL is a Franchise business model. And just like a McDonalds franchise, the owner agrees to legal terms and conditions for "owning" a franchise, and a percentage of the gross profits go to the company. So, in order for the company to insure it's success it must first insure the success of the franchise. We see this clearly in the NFL's Draft where the teams that suck the most get to pick the best players first to help bring about success of their franchises.
Franchising is THE most successful business model in world history because it's predictable and it duplicates success. The downside of franchising is that it leaves the franchise owner very few liberties and options. You'll never see a McDonalds serving a hotdog unless every single McDonalds on the planet has a McDog on their menu. The company that grants the franchise contract holds all the cards and makes all the rules. Though the franchise owner receives the most profit from the franchise, the only thing the franchise owner brings to the table is the money to facilitate and operate the business. The franchise owner can also hire his own managers and staff, but their wages are pre-determined and the staff can be fired by the company at will.
Roger Goodell, as commissioner of the NFL, is the franchise compliance executor. He is the first and last word in all franchise compliance matters. He can be as lenient or as harsh as he chooses, and he basically answers to no one for wielding authority. Love him or hate him, that's how franchises operate.
So, my question to you is this; Does the unfair sanctions layed out on the NFL's franchise of the New Orleans Saints rest squarely on the shoulders of Roger Goodell? Or does the deeper problem lie in the nature of the NFL's business model of Franchising? If so, what would be your ideal business model for the NFL? Or how would you "re-structure" the current model?

P.S. I really really hope the league owners are now asking themselves these same questions.
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    Posted 04-30-2012 at 11:29 PM by Halo Halo is offline

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