How much money does the NFL make per year?
September 21, 2018
The National Football League (NFL) is probably the richest sporting association in the world. Though its reach is the highest in North America, thanks to the sizzling first world economy, its value and monetary impact are far higher than the world most favoured sport, soccer.
The athletes who take part in the NHL are also some of the highest paid professional sportsmen in the world. The combination of the TV appeal and endorsements value in North America makes the series the biggest of all the sports in America.
So, how does NFL make money?
The league makes its money in several ways. They make money on ticket sales, TV rights, merchandise, sponsorship deals and a few other ways.
In 2017, NFL sold about 17 million tickets at an average price of $109. Just in that ticket sales, they made over 1.5 billion dollars. But that is only a part of its revenue and that number does not include the premium tickets like the skybox
According to estimates, the league’s total revenue in 2017 was $14 billion. $7.8 was split between the 32 teams that make up the league.
Looking back, this is a massive jump in revenue. In 2005, the NFL’s revenue was just $6.5 billion, and it is expected to reach $25 billion by 2027.
But it is not all good news at the collections. The traditional media like TV is struggling to maintain its hold over viewership numbers as the younger generation prefers to stream shows rather than stick to the TV time slots. And they don’t like Ads. This is posing a unique challenge to the sport as a substantial amount of its revenue comes from selling the TV rights.
SuperBowl commercial rights are the hottest ad space in the US television advertising market. In 2017, the event attracted 111 million viewers. That is almost one-third of the country watching the sport.
In addition, the series has unique ways to keep their fan base engaged even when the game is not on. For example, Fantasy Football. This seemingly free entertainment is already a $2 billion sport and is getting the advertiser’s attention. Another big reason for the growth of the stature of the sport is the NFL personalities. The league boasts of some of the most colourful players and their lavish lifestyle stories keep millions of their followers engaged, giving the sport free publicity.