To break it down real quick:
50% - retailer
37.5% - manufacturer
8.5% - ACS for research
3.25% - ACS administration (they need it, lost $100mm both of the last 2 years)
1.25% - NFL for costs of the campaign
I can almost kind of understand the manufacturer taking 37.5%, though I'm surprised nobody has given VF and Nike shit for this. I can understand the total of 11.75% to the ACS. I can understand the 1.25% to cover costs of the campaign for the NFL.
I can't understand 50% to retailers. We all know most of that is going to the NFL's online store and teams' retail stores in stadiums. The more I look into the NFL, the more I realize they're a perfect business - and an enormously shitty one, too.
Agreed. And now it makes perfect sense why they run this campaign for the full month of October. They can hide the fact that they only donate such a small percentage with the fact that the dollar amount donated is so large.
Always irritates me when non finance friends get giddy/irritated with a huge dollar amount of a purchase/donation/tax without understanding the underlying business and economic factors behind it.
It's better than the alternative of 100% of nothing. You're also downplaying the fact that the NFLs massive pink campaign (can't watch a game without seeing pink gear and hearing about the importance of early detection) effectively subsidizes the breast cancer awareness campaign ACS does which is about 1/6 of their budget. 17.5 million people watched NFL games on average in 2011.
http://nflcommunications.com/2012/01/05/more-than-200-million-tune-in-t…
The CEO of ACS also gets paid $2.4mm or nearly 1% of their $300mm budget.
http://www.bbb.org/charity-reviews/national/cancer/american-cancer-soci…
Just because the ACS 'only' gets 11.75% of rev doesn't mean they're getting a bad deal.
I'm not saying ACS gets a bad deal, I'm saying cancer research gets a bad deal. Awareness is great and all, but finding a cure and better ways to prevent cancer is much more important. It's better all around if less people find out they have cancer. Cold? Yes, but true. The less money spent on screening and charities paying for treatment means more towards research. More towards research means finding a cure more quickly.
And the fact that the ACS CEO gets paid $2.4mm is fucked up.
I can agree with your point on research getting a bad deal. Something else interesting I found is the NCIs budget breakout ordered by incidence (breast cancer gets a huge cut):
Cancer Type 2010 Spending 2011 Spending 2012 Spending (in millions) (in millions) (in millions) Lung $281.9 $296.8 $314.6
Prostate 300.5 288.3 265.1
Breast 631.2 625.1 602.7
Colorectal 270.4 265.1 256.3
Bladder 22.6 20.6 23.4
Melanoma 102.3 115.6 121.2
Non-Hodgkin Lymphoma 122.4 126.4 119.5
Kidney 44.6 46.2 49.0
Thyroid 15.6 16.2 16.5
Endometrial (Uterine) 14.2 15.9 19.1
Yea, it's pretty obnoxious. There are like 180,000 deaths every year because of lung cancer and they get less than half the funding of breast cancer. To be fair, 85% of those deaths wouldn't happen if people quit smoking. Still, the fact that breast cancer gets as much funding as 2 of the top killers is ridiculous. Gotta love that sexist society.
50% to retailers is absurd. This is almost purely profit after the 37.5% cost of goods sold, 1.25% advertising and overhead costs that are already covered by other sales / revenue.,
What makes it worse is the blatent attempt to court female viewers while in the process of ripping them off. Let women have The Bachelor and the men have football. With the way the Giants are playing this year I'm about ready to boycott the NFL anyway. CFL anyone?
CFL? Do they have Tebow yet?
I'm honestly shocked that it is that high.
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