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Old 08-14-2012, 01:39 PM  
Direckshun Direckshun is offline
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Where do NFL teams make their money?
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?
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Old 08-14-2012, 02:42 PM   #2
Hoover Hoover is offline
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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.
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Old 08-14-2012, 02:42 PM   #3
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Considering our last few years, I'd guess it was on the beer. Jackson County gets the cash on the parking.
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Old 08-14-2012, 02:44 PM   #4
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TV money pays for the players.
Tickets, marketing, merch, etc. pay the rest including the cash for signing bonuses.
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Old 08-14-2012, 02:45 PM   #5
Hoover Hoover is offline
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Chiefs from 2009

$235 million revenue (TV rights +ticket sales = corp sponsorships I imagine)
$47.8 million operating income (Parking, concessions, merch)
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Old 08-14-2012, 02:45 PM   #6
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Our asses in the seats. TV rights and ticket sales.
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Old 08-14-2012, 02:46 PM   #7
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Old 08-14-2012, 02:46 PM   #8
ToxSocks ToxSocks is offline
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Pfffff.....

The better question is: Where DON'T they make money?
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Old 08-14-2012, 02:48 PM   #9
DaneMcCloud DaneMcCloud is offline
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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.
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Old 08-14-2012, 02:49 PM   #10
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NBC, FOX, and CBS each pay 1Billion a year, ESPN chips in another 1.9 for MNF.
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Old 08-14-2012, 02:50 PM   #11
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Old 08-14-2012, 02:51 PM   #12
Amnorix Amnorix is offline
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Lots of discussion around revenues and such here:

http://www.forbes.com/sites/kurtbade...aluable-teams/
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Old 08-14-2012, 02:58 PM   #13
Amnorix Amnorix is offline
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Quote:
Originally Posted by wikipedia
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.
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Old 08-14-2012, 03:20 PM   #14
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So what happens during a blackout? Assuming somebody like the Jags can't get butts in the seats.

Who is getting penalized? How much?
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Old 08-14-2012, 03:32 PM   #15
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Quote:
Originally Posted by Direckshun View Post
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.
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