TY Schalter breaks down the finical debacle that would be known as the re-expansion of the NFL to Europe. Every year the eyes of the NFL light up with dollar signs at the thought of another sell out weekend in London. But of course the
circus NFL is going to sell out when it comes to a town once a year. The rarity of this event is what makes it special and is what drives fans to turn out in droves. Yet the NFL has already attempted expansion once to the cross Atlantic continent and we all know how that turned out.
Like any successful company, the NFL wants to expand their Empire across boarders. Their ambition is to be admired but the logical person knows that there is no way the expansion would be successful. First off it would be logistical nightmare. With Seattle and London seven hours and over 4000 miles apart, the NFL could not ask teams to make this journey even with a BYE week. The jet lag and travel time would not only completely drain the players, it would create a perfect recipe for injury. The team making the jump across the pond would completely be at a competitive disadvantage. Sportsgambing.com breaks down the disadvantage West Coast teams already have when traveling to the East Coast. That is just a cross country trip!
Not only will you have the competition decrease but the players will also see a pay decrease. The following is finacial breakdown of a player playing in London by Forbes.com
Example: Wide receiver Justin Blackmon earns $8 million of base salary in 2015 when the Jaguars are permanently based in London. $5 million of the income is sourced to the U.K. and is taxed at 50 percent*, resulting in a tax bill of $2.5 million.
On his U.S. Form 1040, assume Blackmon pays tax at 30 percent on the full $8 million of income, resulting in a tax bill of $2.4 million. Even though Blackmon has paid $2.5 million of tax to the U.K., his foreign tax credit is limited to the $5 million of U.K. income multiplied by his U.S. tax rate of 30 percent, or $1.5 million. As a result, Blackmon pays tax of $900,000 to the U.S. and $2.5 million to the U.K. on $8 million of income, an effective rate of approximately 42.5 percent.
Now I am not a expert by no means, but I do not believe for one second prima donna players of the NFL would let this fly.
If the NFL is truly wanting to expand internationally I believe the only logical move would be to either Canada or even Mexico. I believe a move to Europe would only prove the NFL is all about the dollar and could care less about the product they are putting on the field. I also believe the once a year regular season game is an unfair disadvantage to the players and is unfair to the customers that keep this business afloat. If the NFL wants to host a game in Europe it should only occur during the preseason.