Description: Well, having about 90% of your compensation based on bonus incentives for reaching performance targets might seem a bit risky. But don’t feel too bad for NFL Commissioner Roger Goodell. His new five year contract could pay him up to $200 million. The NFL owners have been concerned about recent declines in television viewership and want to ensure Goodell focuses on growing the sport’s $14 billion in revenue.
Date: December 6, 2017
1) Why do you think the NFL television ratings are declining? How will this impact the league’s revenues?
2) If you were structuring a contract for an executive of a sports league, how would you set it up? How much would you put in base salary? How would you structure the bonus targets?
3) On page 359 of Wiley’s Financial Accounting: Tools for Business Decision-Making, you can see a reference to the CFL’s Calgary Stampeders. Try to find out the total revenues of the CFL to see how this figure compares to the NFL’s $14 billion.