For the entire league, I could see it. The average SPHL budget is $1.2 M so I could see a six (four) team league having payroll north of $2 M.
WRONG AGAIN!
Using a calculator may help. Let's go through this step-by-step.
Start with $2,000,000.
Now, the claim was that the $2M was paid out to players and coaches, so let's low-ball the coaches' salaries and say they each make $25,000 a year. In a six team league, that leaves $1,850,000 per year for player salaries.
Divided equally amongst the six teams, that suggests that player payroll is $308,333.33/season. The FHL had a 23 week season last year. Divided evenly among each of the 23 weeks, that makes the weekly payroll in a six team FHL $13,405.80 - right around the ECHL's weekly cap number. I doubt that any FHL club save maybe Danbury pulls in enough money weekly to cover that kind of payroll, not to mention league dues, insurance, travel costs, etc.
But hey, coaches might make more that that, right? Ok, let's do this again, assuming that coaches make $45,000. That makes the coaches' salary pool $270,000 and the players salary pool $1,730,000 - broken down among six teams, that's $288,333.33/season and $12,536/week.
Any coach that is making $45,000 in the FHL has a great agent or works for an idiot. A shaved chimp could coach a team in this league and no one would know the difference.
This $2,000,000/season claim is patently absurd. I'd maybe believe $2,000,000 total in player and coaches' salaries paid over the life of the league - but only maybe, since we all know that the FHL isn't good about paying anyone on time. Just because money is owed doesn't mean it has been paid, and the law certainly doesn't view money owed as income or having been "paid out." (
See Generally Hornung v. Commissioner, 47 T. C. 428 (T. C. 1967) (holding that a car awarded to a professional football player in 1961 was not taxable as income for 1961 because the player did not actually receive the vehicle until 1962.)