Is NFL under a socialist business model?

NFL is a $10 billion-a-year business, with 32 member teams whose players compete on the field, but whose owners cooperate in a socialist business model keeping America's favorite sport very profitable.

Is NFL under a socialist business model?
Under NFL rules, all the teams are required to share 80% of their revenue with each other.

So, even teams that generate more revenue, only keep 20% of that advantage for themselves. The rest 80% revenue which they generate are sent to a shared pool of revenue and then distributed among all other teams.

Also, NFL has a draft model for new players and there are salary caps, to control irrational competition among teams.

Why this creative business model works?
Applying this model allows NFL to create the most competitive league. Every season, all teams have a real shot to win the Super Bowl, even the smaller ones.

That always create a magnetic interest effect over this sport, generating a huge fan base all over the USA, because their favorite local team, always have a shot of winning the trophy.

Therefore, if you successful increase your fan base and keep their interest on, you will raise ticket sales (25% of NFL revenues) and increase TV ratings, then profits go through the roof as NFL profits did.


Note: If you want to know more about this topic I recommend that you check "60 Minutes" interview of NFL CEO Roger Goodell, which inspire this article.