The 2019 NFL season officially kicked off last night with opening weekend basically classified as an American holiday… So that left us wondering, what’s the price of it all?
- Substantial gains. While you’re sitting at home enjoying the game, owners and executives are sitting in their luxurious boxed suites counting the cash. The average value of an NFL team sits at $2.86 billion, up 11% from last year.
- King of the league. For the 13th season in a row, the Dallas Cowboys top the NFL at a value of $5.5 billion. Their $950 million in revenue was the most of any American sports team in 2018!
- Best of the rest. The New England Patriots ($4.1 billion), New York Giants ($3.9 billion), Los Angeles Rams ($3.8 billion) and San Francisco 49ers ($3.5 billion)
- The cost to own a team. In 2018, the Packers spent $420 million on expenses – $213 million went to players and $208 million went to stadium upkeep, marketing, and team and administrative costs.
Regardless, Bloomberg estimated that the NFL earned around $15 billion during the 2018 season. The NFL commissioner has targeted $25 billion in revenue by 2027 or 6% annual growth.
How does this affect my wallet?
Media money. Current NFL television deals are worth, on average, $7.2 billion per season. They’re set to expire in 2022 and the next round will be worth even more.
A new era. Traditional broadcast media companies were once the cat’s pajamas, but streaming services are grabbing a piece of the prize.
- Amazon paid 30% more to extend it’s streaming deal with the NFL last season, beating out Twitter and Youtube.
It’s about the money. Sports betting is now legal in 12 states and will add to the value of media deals by increasing the size of the audience and time watched.
- The introduction of augmented broadcasts provides live statistics and betting odds, and can allow viewers to switch between games they’re (likely financially) invested in.
An NFL team is expensive to own, operate, and market, but the billions of dollars earned per year make the owners and media industry very happy. If you’re a fan, you can only hope ticket prices and viewing packages don’t continue to rise in price…
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