The surplus cash is not distributed to shareholders (there are none technically) and is invested in the mission business. These entities must take care to run their business in this manner so that the activities are not deem “unrelated business income” by the IRS and then those earnings become taxable.

I can’t speak for Saputo as Canadian law may be different, but this is US tax law. In San Antonio’s case, I would almost guarantee that Hartman formed a taxable subsidiary within his not-for-profit for the construction of the stadium, so that any earnings off of this would be taxed, but would not jeopardize his 502(c)(3) designation with the IRS.

So, my little godchildren, Santa Claus does exist and any business, be it for profit or not-for-profit, want revenue to exceed expenses so they have surplus cash at the end of the fiscal year. It is how these surpluses are treated from a tax perspective that is the issue.

Oh, and lastly, I am pretty sure that King Saputo has made, and continues to make, surplus cash with the Impact.

I did listen to that podcast and it was very informative. But that was even before I made that post.

I understand that FCE has a huge travel expense that may or may not increase due to the new schedule.

However, when you have a 1200 seat stadium and you regularly get 1500, it indicates that you can draw at least that much with an expanded stadium.

Sure 1500 a game isn’t viable, but that 2500 figure for an unglamorous game against the last-place Atlanta in the middle of a long-slog of a season is an inspiring one. One game sample? Well what more can I come up with when there was one game that the stadium was expanded? Was it a coincidence that 1000 more people than normal decided to show up? I think not, and the theory of supply and demand agrees with me.

So maybe my statement that they could be one of the most financially sound teams in the league was inaccurate BECAUSE of their crazy travel schedule, but either way the stadium is obviously limiting their revenues (which could go toward paying for the crazy travel schedule).

“Full-fledged salary WAR.”

The way that I heard it explained is that as non-profit (and I think with a provincial utility company sponsorship), Montreal actually ended up “too far into the black”

What a great problem to have, huh? The Impact had already been in a full-fledged salary way with the then, Rochester Raging Rhinos, so for dudes who have been lured to Montreal it was a case of “the rich getting richer” (USL rich). That was when under the certain circumstances that a guy could make more money taking a contract to play in USL (MLS forbids players from supplementing their incomes by playing indoors during the offseason and the payed fringe players were making between 11.7k-14k per year).

Bart?