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League fines WFT $10M due to team culture investigation


RaidersAreOne

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1 hour ago, pwny said:

In what way?

If you give away $10M, but get back $3M, you still are out $7M. It’s still, without the other half of my message, a $7M loss to your net worth.

But not $10. Unless, of course, to @Deadpulse's point, they pay the NFL and then the NFL does it.

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41 minutes ago, pwny said:

So to follow up from my above. Typically, fines are given where a team or individual gets to just cut a check to wherever they want. I assumed this was the case here as well, because it always is. It looks like this time, that won’t be the exact case, but instead the team will give recommendations of where to send what is likely to be the most significant portion of the money, as long as they fit into these categories.

The general idea that the team/Snyder can just shift around which charities get funding from them for this is still in play, though. Ultimately, it’s entirely up to Snyder and the organization how much of that $10M affects their bottom line vs just not giving out as much money through other donations.

Thanks for confirming I am right. As usual. 😉

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On 7/2/2021 at 8:26 AM, Louis Friend said:

I’m not a tax accountant, my tax knowledge comes from two accounting classes in college and speaking to a tax attorney in my practice. So please explain how being able to write of $10 million against federal income tax doesn’t benefit an organization that is arguably in the largest tax bracket. I’m not being argumentative, I’d truly like to know. Yes, he’ll have to part with $10 million, but he’ll get roughly half of that back in untaxable income (from my minuscule knowledge of write offs). 

Even though there’s an offset to taxable income, on the whole he would be down money. Hence “not a net benefit.”  There’s a benefit to his tax bill yes, but when you zoom out from the tax itemization? You have to part with much more money than you save. That’s why the idea of “but he gets to write it off on his taxes” doesn’t really work as people seem to often think. 

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20 hours ago, pwny said:

So to follow up from my above. Typically, fines are given where a team or individual gets to just cut a check to wherever they want. I assumed this was the case here as well, because it always is. It looks like this time, that won’t be the exact case, but instead the team will give recommendations of where to send what is likely to be the most significant portion of the money, as long as they fit into these categories.

The general idea that the team/Snyder can just shift around which charities get funding from them for this is still in play, though. Ultimately, it’s entirely up to Snyder and the organization how much of that $10M affects their bottom line vs just not giving out as much money through other donations.

That second paragraph isn’t really specific to this instance. A player could do the same. In your personal life you could certainly choose to give less to charity or reduce spending on other budgeted items in response to a big speeding ticket received (for example). It doesn’t make it less of a fine/punishment. 

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10 minutes ago, sp6488 said:

That second paragraph isn’t really specific to this instance. A player could do the same. In your personal life you could certainly choose to give less to charity or reduce spending on other budgeted items in response to a big speeding ticket received (for example). It doesn’t make it less of a fine/punishment. 

Yeah, it isn’t specific to this instance, but if your business model includes a number of donations at high levels, as is the case with NFL franchises, changing the charities on which the franchise spends on in any given year doesn’t do anything to create a punishment.

And yes, it is the same for players, provided that the player is already spending that much on charitable givings; players typically are allowed to pick the charity they give to when hit with a fine, so it’s literally often just a change in the date that the check gets written and nothing else. When stars get fined, it’s typically not a punishment, it’s a PR move by the NFL.

The difference is when the fines come and it is a significant amount of money relative to the income of the individual. A $15k fine to one of the vet minimum players on the roster can have major impacts as a fine; as the budget is changed by having less money for other categories to spend on.

The speeding tickets example is the same way; the expectation of a fine as a punishment is that it will cause you to have to reduce quality of life spending in a way that you feel a burden relative to the crime committed. A lot of folks don’t have $300 hanging around in a way that they can immediately spend on a speeding ticket and the struggle to work around a sudden loss of $300 of revenue when you’re only making $2k a month is the punishment. But if the fine doesn’t affect you in a way that it changes your quality of life spending, it’s not a deterrent. There’s quite a bit of data on this; higher income folks are significantly more likely to get tickets for moving violations as well as to rack up multiple violations. If a fine doesn’t have the means to impact your QOL, it doesn’t work as a deterrent.

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On 7/1/2021 at 9:25 PM, Ragnarok said:

Evidently Snyder can't take back day-to-day control unless Goodell allows it.

CAL MCNAIR TOUCHED MY BREAST!!!! CAL MCNAIR TOUCHED MY BREAST!!!

YOU ALL SAW IT!!!

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