The NFL Money Machine Seen by The Numbers

The NFL Money Machine Seen by The Numbers

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The NFL Money Machine Seen by The Numbers

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Being that the NFL is the number one most watched sports league in America, we all know that it is a lucrative league which ropes in some jaw dropping revenues. While most people seem to take for granted that the NFL makes the biggest slice of its pie from ticket sales, in reality, there are plenty of other channels of revenue. We will take a closer look at how NFL teams make money and drop some figures that might just blow you away.

The NFL is not obligated to disclose how its estimated $9.3 billion worth is segregated, and so it does not. Most of us are aware that the NFL is certainly a larger money machine than the likes of the NHL, or NBA. However, did you know that the NFL’s $9.3 billion is nearly the equivalent of the sum of the figures made by the NHL, the NBA, and the MLB all put together?

So how does the NFL make all this money? Let’s get right into it!

Television

Contrary to popular belief that the NFL makes most of its money through ticket sales and concessions, the single largest source of economy for the NFL is actually courtesy of television channels buying broadcasting rights to the games. Every year, the NFL is said to redistribute over $4 billion in radio and television earnings for its 32 different teams. So, if you do the math – that is nearly $125 million per team and for the league itself. This number increases by the year, as does the viewership.

Millions are expected to watch the latest iteration of the Super Bowl

As viewership increases, the NFL and then has leverage to negotiate with the television and radio channels to further boost their earnings for the following year. This way, the amount of money coming in through the annual sale of broadcasting rights surpasses revenue generated through most other channels for the NFL and its teams.

Stadium Sponsors

Corporate companies want their names of the stadiums of teams playing in the NFL. It is stellar advertising for them and they are ready to pay through their noses to have their names prefixed to the names of NFL stadiums. With a lot of teams in the process of constructing new stadiums, corporates are willing to pay in the range of $25 million to $30 million to have their company name attached to the name of the stadium itself. These contracts generally run a decade long. One example in this regard is that of Reliant Energy that pays $10 million every year to Texans football team in order to have stadium naming rights.

Corporate Sponsors

All sorts of companies and businesses want to be associated with an NFL team. These companies are willing to pay big bucks to have their names associated with some of the biggest and best Football teams playing in America. Be it an automobile manufacturer, a pizzeria franchise, camera manufacturers, etc. everyone wants to get in on the action. Such corporates pay generously to have their brand associated with a certain football team from the NFL.

Few examples include Pepsi who have spent a whopping $560 million over the course of the last 8 years, then there is Gatorade who have splurge in excess of $45 million per month and also throw in free Gatorade for the teams. Nike is said to have spent in excess of $1.1 billion. Reebok, Verizon, Anheuser-Busch, etc. are few other companies that millions to have associations with the league and its teams.

Tickets to games

Of course, there is all the money that is raised from direct ticket sales. Ticket prices vary from one team to the other. An average Browns ticket last season was around $54 while the Patriots average ticket would have costed you $117.84. Then there are several other millions to be made via concessions, parking, and more.

Merchandise

Which football fan does not thoroughly enjoy sporting their favorite team’s jersey every chance they get? If you happen to be going to a game, it is considered uniform for you to wear your team colors and gear. The NFL itself has a shop which sells merchandise to sporting good shops locally as well as to online e-Commerce stores.

Jersey sales are soaring throughout the season as star rookies make their way to the big leagues. Then there are veteran players, break out players and all sorts of novelty jerseys that fly off the shelves.

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One of the inherent advantages for the NFL money making machine is the fact that it implicitly markets itself for no cost at all given the fact that tons of companies want to be associated with them. Then there is all the merchandise with team branding and logos that people buy like hot cross buns.

At this point, we should also mention the Halo effect. The NFL and its teams make billions of dollars. However, they also boost the economy in the process. Local business where games are happening flourish solely because of the NFL and that is just one small fragment of how it helps boost economy locally.

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