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  • The NFL has been a staple in American sports since 1920

  • Even after the President condemned the NFL

  • Your San Fransisco quarterback, I'm sure no body ever heard of him

  • NFL owners don't want to pick them up because they don't want to get a nasty tweet from Donald Trump, you believe that

  • Then there were the TV ratings that took a nosedive in 2016 and 2017

  • But it's still proving to be a big success for all 32 NFL teams and their owners

  • 28 NFL teams are valued over $2 billion

  • So how is it that these teams are worth so much?

  • To answer that you have to look at how hard it is to start your own franchise

  • The last time an NFL franchise was started was back in 2002

  • It's rare to start a new NFL team but when it happens owners have to pay something known as a franchise fee

  • Some NFL teams have been around since the National Football League started in 1920

  • Back then the franchise fee was about 100 bucks

  • By 1960, the Dallas Cowboys had to pay a million dollars to enter

  • And in 2002 the Houston Texans, which are the newest team to join the league, paid $700 million

  • Some NFL teams are still owned by the same families who started their franchise nearly a century ago

  • The Chicago Bears were founded for $100 in 1920 by George Halas and as of 2018 the team is still in the family

  • It's owned by his 95 year old daughter Virginia McCaskey and it's now worth an estimated $2.9 billion

  • And let's say you want to buy your own NFL team, most recent sales have been in the billion dollar range

  • The Buffalo Bills went for $1.4 billion and in 2018 the Carolina Panthers were sold for a record $2.2 billion

  • So what kind of return are team's getting back from their billion-dollar investment?

  • There's only one team we definitely know what they're making every year and that's the Green Bay Packers

  • The Packers are non profit corporation, the only one in the league, so we have access to their annual filings

  • They made $454.9 million in 2017

  • The other 31 teams are privately owned but Forbes releases the valuation for all 32 teams across the league each year

  • The values are based around each NFL team stadium along with revenue of historical transactions

  • non NFL events held at the stadiums as well as purchase and investment offers for each team

  • In 2017 Forbes said the Dallas Cowboys generated $864 million in revenue

  • the New England Patriots made $593 million and the New York Giants made $493 million

  • But a lot of that income isn't generated by the team itself, it actually comes directly from the NFL

  • For the 2017/2018 season the NFL generated a revenue share of over 8 billion dollars from TV deals

  • merchandising, and licensing deals

  • That's known as the national revenue and no matter how well or how bad your team does

  • teams split the national revenue evenly thirty-two ways

  • Meaning teams around the league received more than $255 million from the NFL in 2018

  • But that's just one way a team generates income

  • There's also something called local revenue, that's everything a team generates itself

  • For the 2017/2018 season the local revenue for the Packers made up about 43% of the team's total revenue

  • Ticket sales and stadium attendance are part of the local revenue

  • Not only do NFL teams make money on game day but they can also make money from non NFL events

  • by renting out the stadiums for concerts, live events, and tours

  • The Green Bay Packers spent more than $370 million to upgrade Lambeau Field including adding thousands of seats to the stadium

  • Since renovations began back in 2010, the Packers have seen ticket sales jump from $48 million to $71 million

  • But game attendance isn't the only source of revenue for teams

  • There are also a lot of corporate sponsors

  • Some teams like the Philadelphia Eagles have over 40 corporate sponsors

  • In the 2017/2018 season the NFL sponsorship revenue totaled more than 1.3 billion dollars

  • These sponsorship deals range from putting company logos on practice jerseys, renting out retail space and stadiums

  • to landing the sole naming rights to NFL stadiums themselves

  • The New York Giants and New York Jets share a stadium called MetLife Stadium

  • And the asking price for the naming rights?

  • Well according to the New York Times that deal's worth an estimated $19 million a year for 25 years

  • Which remains one the highest naming rights deals in the NFL

  • Teams may be generating hundreds of millions of dollars each year but there are a lot of expenses that come with it

  • Of the $454.9 million that Green Bay Packers made in the 2017 and 2018 season

  • More than $420 million dollars went to expenses

  • Most of it went to player costs which made up $212.7 million that year

  • Stadium upkeep, marketing, team costs, and general administrative costs totaled $208 million

  • So after all the bills are paid, the Green Bay Packers are left with an operating the income of $38.5 million

  • The Cowboys Patriots and Giants have huge expenses that eat up a large chunk of yearly revenue too

  • The Cowboys' operating income is $365 million

  • The Patriots is $235 million and the Giants is $149 million

  • But not every NFL team is rolling in cash

  • Some NFL teams find themselves strapped for money with large overhead costs for their teams

  • Just take the Detroit Lions, the team had a total revenue of $361 million in 2017

  • But according to Forbes, the team had an operating income of $4.1 million

  • Another issue weighing down on the NFL, a drop in popularity among up-and-coming sports fans and players

  • In the wake of the concussion debate, more than 67,000 fewer high schoolers are playing football today than in 2009

  • But that controversy isn't affecting the NFL's bottom line

  • It's still seeing revenue growth

  • From the 2016 season to the 2017 season the NFL's national revenue grows nearly 5%

  • The NFL is also seeing a boost in television ratings this season too

  • In September the top 15 most watched TV shows were all NFL games

  • Our Thursday night game, our first game on Fox and Amazon and NFL Network was up 8% last night

  • You know, in '07, 22 of the top hundred programs were NFL games

  • Then ten years later in '17, 72 of the top shows were NFL games

  • So despite all the controversy it may be a while before NFL teams take a hit

The NFL has been a staple in American sports since 1920

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How NFL Teams Make Money

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    joey joey posted on 2021/05/23
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