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View Full Version : Football Where do NFL teams make their money?


Direckshun
08-14-2012, 01:39 PM
A topic of conversation from a friend and myself.

Broadcasting rights, merch, tickets, and parking/concessions were the three target sources of income.

But for your average NFL team, what percentage do these all usually account for?

Anybody have inside knowledge of the biz?

Hoover
08-14-2012, 02:42 PM
I think most of it is TV contracts. FOX, NBC, and ABC pay $1 billion a year for the rights. ESPN pays $1.9 billion. Now not every team is getting a yearly check for $156 million, but you get the point. Then comes individual sponsorships and tix sales, merch, and parking and concessions.

I'll put it this way, I wish I owned an NFL team.

oldman
08-14-2012, 02:42 PM
Considering our last few years, I'd guess it was on the beer. Jackson County gets the cash on the parking.

ChiefsCountry
08-14-2012, 02:44 PM
TV money pays for the players.
Tickets, marketing, merch, etc. pay the rest including the cash for signing bonuses.

Hoover
08-14-2012, 02:45 PM
Chiefs from 2009

$235 million revenue (TV rights +ticket sales = corp sponsorships I imagine)
$47.8 million operating income (Parking, concessions, merch)

Big Smoke
08-14-2012, 02:45 PM
Our asses in the seats. TV rights and ticket sales.

loochy
08-14-2012, 02:46 PM
true fans

Detoxing
08-14-2012, 02:46 PM
Pfffff.....

The better question is: Where DON'T they make money?

DaneMcCloud
08-14-2012, 02:48 PM
It's ALL broadcast rights. Stadium and merch are a tiny slice of the overall pie.

They're earning a minimum of $3 billion a year for TV broadcast rights (if not $4 billion) and that's set to increase shortly.

Hoover
08-14-2012, 02:49 PM
NBC, FOX, and CBS each pay 1Billion a year, ESPN chips in another 1.9 for MNF.

Saulbadguy
08-14-2012, 02:50 PM
I have tons of inside information on the biz. PM me for more details.

Amnorix
08-14-2012, 02:51 PM
Lots of discussion around revenues and such here:

http://www.forbes.com/sites/kurtbadenhausen/2011/09/07/the-nfls-most-valuable-teams/

Amnorix
08-14-2012, 02:58 PM
From 2014 to 2022, the same networks will pay $39.6 billion for the same broadcast rights.

Assuming a flat annual amount, the $39.6 billion for 9 years (2014 and 22 inclusive) is $4.4 billion per year. Across 32 teams (because they share TV revenue equally) that's $137 million per team per year.

The Forbes article I linked above estimates current NFL revenues at over $8 billion, so TV revenue is about half of that. The rest is from stadium, parking, merchandising etc.

That doesn't count the side businesses some of these teams have, of course. Stadium naming rights, TV and radio partnerships (non-game), other sponsorships, etc. ad infinitum.

Direckshun
08-14-2012, 03:20 PM
So what happens during a blackout? Assuming somebody like the Jags can't get butts in the seats.

Who is getting penalized? How much?

Amnorix
08-14-2012, 03:32 PM
So what happens during a blackout? Assuming somebody like the Jags can't get butts in the seats.

Who is getting penalized? How much?


Because people in the Jacksonville region would be 50% (more or less) of the highest percentage viewing audience for a Jags-whoever game, I wouldn't be surprised if there was some small reduction given by the league to the station carrying the game involving them, but I'm sure it's fairly minimal.

The rule, after all, is entirely an NFL rule. If the reduction/penalty was at all significant, they'd just dump the rule.

Amnorix
08-14-2012, 03:40 PM
Interesting

The NFL authorized a new rule loosening the league's blackout restrictions during the 2012 offseason. For the first time in NFL history, the new rule will no longer require a stadium to be sold out to televise a game; instead, teams will be allowed to set a benchmark anywhere from 85 to 100 percent of the stadium's non-premium seats. Any seats sold beyond that benchmark will be subject to heavier revenue sharing.

MORE INTERESTING (as in HOLY CRAP!):

Since 1973, the NFL has maintained a blackout policy that states that a home game cannot be televised locally if it is not sold out 72 hours prior to its start time. Prior to 1973, all games were blacked out in the home city of origin regardless of whether they were sold out. This policy, dating back to the NFL's emerging television years, resulted in home-city blackouts even during championship games. For instance, the 1958 "Greatest Game Ever Played" between the Baltimore Colts and New York Giants was unavailable to New York fans despite the sellout. (Many fans rented hotel rooms in Connecticut to watch the game on Hartford TV, a practice that continued for Giants games through 1972.) Similarly, all Super Bowl games prior to 1973 were unavailable in the host city's market.

ChiefsCountry
08-14-2012, 03:43 PM
Assuming a flat annual amount, the $39.6 billion for 9 years (2014 and 22 inclusive) is $4.4 billion per year. Across 32 teams (because they share TV revenue equally) that's $137 million per team per year.

The Forbes article I linked above estimates current NFL revenues at over $8 billion, so TV revenue is about half of that. The rest is from stadium, parking, merchandising etc.

That doesn't count the side businesses some of these teams have, of course. Stadium naming rights, TV and radio partnerships (non-game), other sponsorships, etc. ad infinitum.

The tv broadcast rights go to pay the players salaries.

Setsuna
08-14-2012, 03:43 PM
So what happens during a blackout? Assuming somebody like the Jags can't get butts in the seats.

Who is getting penalized? How much?

Why you gotta butt bang my team all the time?

-King-
08-14-2012, 04:05 PM
So what happens during a blackout? Assuming somebody like the Jags can't get butts in the seats.

Who is getting penalized? How much?

The owner has to pay for all the unsold seats at a price of 34 cents on the dollar.

cosmo20002
08-14-2012, 11:33 PM
Because people in the Jacksonville region would be 50% (more or less) of the highest percentage viewing audience for a Jags-whoever game, I wouldn't be surprised if there was some small reduction given by the league to the station carrying the game involving them, but I'm sure it's fairly minimal.

The rule, after all, is entirely an NFL rule. If the reduction/penalty was at all significant, they'd just dump the rule.

I think who really gets "penalized" on the blackouts (other than the fans) is the local network affiliate who gets a handful of ad slots each game where they get to sell local ads and keep all the revenue. So when the game is in danger of getting blacked out, the local network will often buy enough tickets at the last minute to keep the game on in the local market.

Count Zarth
08-14-2012, 11:46 PM
http://i.imgur.com/5SW7d.gif

cosmo20002
08-14-2012, 11:57 PM
Interesting



MORE INTERESTING (as in HOLY CRAP!):

Originally Posted by Wikipedia
Since 1973, the NFL has maintained a blackout policy that states that a home game cannot be televised locally if it is not sold out 72 hours prior to its start time. Prior to 1973, all games were blacked out in the home city of origin regardless of whether they were sold out. This policy, dating back to the NFL's emerging television years, resulted in home-city blackouts even during championship games. For instance, the 1958 "Greatest Game Ever Played" between the Baltimore Colts and New York Giants was unavailable to New York fans despite the sellout. (Many fans rented hotel rooms in Connecticut to watch the game on Hartford TV, a practice that continued for Giants games through 1972.) Similarly, all Super Bowl games prior to 1973 were unavailable in the host city's market.



So SB IV wasn't seen in Kansas City? Why the fuck would they black out those games? They were not even played locally.

Chiefnj2
08-15-2012, 07:21 AM
So what happens during a blackout? Assuming somebody like the Jags can't get butts in the seats.



It's a Matlock or Murder She Wrote marathon!! The retirees love it!

BoneKrusher
08-15-2012, 07:50 AM
http://i.imgur.com/5SW7d.gif

Money in the Bank...
hell he probably owns the banks.

The Iron Chief
08-15-2012, 09:01 AM
The answers Obvious..

IjEdWTk1l9o

:rolleyes: