Can anybody explain to me how the NFL and each of its teams make money?

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  • whoatommy
    SBR Wise Guy
    • 09-29-08
    • 863

    #1
    Can anybody explain to me how the NFL and each of its teams make money?
    I would like some details. Where do they generate the most profit? How do they pay their players, coaches, stadium workers, etc. Specific numbers if you can. Possibly include financial statements, balance sheets, etc. Then, explain why those numbers are working and why these teams are worth so many millions and billions of dollars. I've been trying to search the web and really haven't found anything pertinent.

  • rsnnh12
    SBR MVP
    • 09-26-10
    • 3487

    #2
    I'm not going to write up a research paper here, but the bulk of it is advertising(including the company paying to have the stadium named after it)/tv shares/merchandise sales (in that order)

    I had a link for a good breakdown of it, will try to find it
    Comment
    • SpreadSniper
      SBR Hall of Famer
      • 02-17-09
      • 6125

      #3
      more revenue than operating costs would be the easy answer.

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      no real financial specifics, but you'll get the idea
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      • Nard Dog
        Restricted User
        • 05-18-10
        • 315

        #4
        I am assuming ticket revenue must be pretty good when you have an 80 thousand seat stadium packed every other week plus 3/4 of the people attending have bought a jersey too.
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        • AribaAriba
          SBR MVP
          • 04-03-09
          • 2922

          #5
          Recently in thescore(canadian sports channel) they mentioned that NFL makes the most revenue than any sports organization. They said that on tv alone they made 3Billion in revenue. I also watch ABC morning news and the always show the the top ten shows in america for the week base on tv viewers and on a weekly basis, SNF always get the highest tv rating second to SNF:Pregame. Im not surprised how greedy the commissioner is wanted to extend another 2 to 3 more games to the season, will add more $$$$$.
          Comment
          • smitch124
            SBR Posting Legend
            • 05-19-08
            • 12566

            #6
            HUGE TV contracts!!
            Comment
            • Ninersnut
              SBR MVP
              • 05-20-10
              • 3730

              #7
              TV $ advertising licenses and tickets....
              Comment
              • Covy
                SBR MVP
                • 01-13-11
                • 1433

                #8
                Revenue:
                Ticket Sales
                Advertising Sales
                Personal Seat Licenses(If Applicable)
                TV Revenue
                Merchandise Sales
                Licensing Fees

                Expenses:
                Employees
                Bills
                Taxes
                [SIZE=2] [FONT=Arial]Listen, they only make movies about winners - and that's me![/FONT]
                [/SIZE]
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                • whoatommy
                  SBR Wise Guy
                  • 09-29-08
                  • 863

                  #9
                  Good stuff.

                  It looks like the only financial statements you can find on the web is for the Green Bay Packers. And even then, only a snapshot is provided. It's just mind boggling how private the NFL and it's teams are regarding their financial information. Anyone have any ideas?
                  Comment
                  • Masu485
                    SBR Hall of Famer
                    • 08-14-08
                    • 7700

                    #10
                    All paid by Vegas
                    Comment
                    • whoatommy
                      SBR Wise Guy
                      • 09-29-08
                      • 863

                      #11
                      Originally posted by Masu485
                      All paid by Vegas
                      Seriously, the question I'm driving at: How financially viable is the NFL with just it's alleged revenue stream (tv, advertising, tickets/merchandise sales)? Why can't they make that public so we can have a better picture of how the NFL works?
                      Comment
                      • jackmyhoggoff
                        SBR Wise Guy
                        • 07-20-10
                        • 840

                        #12
                        BIG MONEY means one thing CORRUPT !!
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                        • ManBearPig
                          SBR MVP
                          • 12-04-08
                          • 2473

                          #13
                          Because games between the Jets and Pats can pull a 26 marketshare and the Super Bowl will probably pull 60+...especially if GB and PIT make it through.
                          Comment
                          • eberetta1
                            SBR MVP
                            • 03-27-09
                            • 1156

                            #14
                            Four television companies are paying a combined $20 billion to broadcast the NFL in 2011. Divided by I believe 28 teams, is almost a billion dollars a team in revenue from broadcast rights alone.
                            Comment
                            • GunShard
                              SBR Posting Legend
                              • 03-05-10
                              • 10031

                              #15
                              Do college football players and coaches get paid?
                              Comment
                              • falconticket
                                SBR MVP
                                • 09-05-10
                                • 3414

                                #16
                                They pimp out the cheerleaders between games. That's where the big money comes in.
                                Comment
                                • whoatommy
                                  SBR Wise Guy
                                  • 09-29-08
                                  • 863

                                  #17
                                  Originally posted by eberetta1
                                  Four television companies are paying a combined $20 billion to broadcast the NFL in 2011. Divided by I believe 28 teams, is almost a billion dollars a team in revenue from broadcast rights alone.
                                  32 teams. I'm gonna guess it's over a number of years say 6-10 years that is worth $20 billion. Which then works out to be some million dollars a year. Okay, so what are the expenses to offset that?

                                  edit:

                                  Just found these figures, major TV contracts are worth about $95 million/year and non network TV contracts are worth about $5 million/year. That comes out to a little over $3 million/year to each team. Will link these figures a little later.
                                  Last edited by whoatommy; 01-19-11, 01:56 AM.
                                  Comment
                                  • whoatommy
                                    SBR Wise Guy
                                    • 09-29-08
                                    • 863

                                    #18
                                    Originally posted by GunShard
                                    Do college football players and coaches get paid?
                                    That's a good question. But what are you trying to get at? For the most part I would say their revenue stream should be the same as the NFL's --ticket sales, merchandising, TV contracts, etc. I guess one of the differences is that colleges are divided into smaller conferences so that effects the division of some revenue.

                                    How much more money is the NFL making to be able to pay their players (supposedly a figure around 50%-60% of revenue)? Then on the flip side colleges don't pay salaries to players at all. Where does all that money go? I know players get allowances and all but there's still a lot of money that colleges are bringing in. I guess they supposedly fund other departments in the schools, which is a totally different topic.
                                    Comment
                                    • geeze
                                      SBR Rookie
                                      • 06-30-08
                                      • 38

                                      #19
                                      What EXTRA money do the players get for winning the post season games and the Super Bowl?

                                      Is there enough incentive to make them play hard?
                                      Comment
                                      • whoatommy
                                        SBR Wise Guy
                                        • 09-29-08
                                        • 863

                                        #20
                                        Originally posted by geeze
                                        What EXTRA money do the players get for winning the post season games and the Super Bowl? Is there enough incentive to make them play hard?
                                        Here's an article: http://www.nflplayers.com/Articles/P...r-NFL-Players/

                                        Not too sure of the validity of the numbers but it seems legit. From 2009.

                                        Here's another good article about player motivation during the playoffs. Very good read from 2008: http://sportsillustrated.cnn.com/200...r/12/22/takes/

                                        Basically they barely get anything compared to their regular player contract. For the super bowl about $40k for the loser and $80k for the winner. Think of Peyton Mannings 2011 salary of $14 million and Brady's $8 million salary compare them to Sanchez who makes $2.5 mil. Who do you think will play harder for that bonus?

                                        Obviously there are other motivational factors when comparing these guys but for other positions players that are not well established like quarterbacks, those guys are playing for their future. That's why teams like Seahawks really gave it their all against the Saints.
                                        Comment
                                        • bobbyk1133
                                          SBR MVP
                                          • 08-05-10
                                          • 2245

                                          #21
                                          Originally posted by Nard Dog
                                          I am assuming ticket revenue must be pretty good when you have an 80 thousand seat stadium packed every other week plus 3/4 of the people attending have bought a jersey too.
                                          The entire season can be played in front of empty stadiums and every team would still make a nice profit.

                                          The NFL is easily the most envied league on earth.
                                          Comment
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