MLB may be America’s sport, and the Premier League has the biggest worldwide reach of any sports club. The NFL is the undisputed king when it comes to making income, though, as it kicks off its 105th time the following year.
Private equity firms with more than$ 2 trillion in assets under management sought a piece because of the NFL’s financial might and trajectory, which the league approved on Tuesday with passive stakes up to 10 % from a select group of institutional funds.
The NFL’s 32 clubs generated an predicted$ 20.5 billion in revenue last year, 72 % higher than MLB. The Premier League only has 20 teams, but its$ 8 billion for the 2022-23 season is more akin to the NHL than American football. NBA team made around$ 12 billion during the most recent season.
All of these teams earn money the same way, from gate receipts, endorsements, agreements, products, luxury apartments and media agreements. However, the size of the income sources differs madly among the various activities.
The average NFL franchise is worth$ 5.93 billion, 15 % ahead of last year in Sportico’s NFL team valuations. The NFL’s income cap —$ 225 million final year—is a benefit to NFL owners, but the driving force of the league’s economy and its revenue is the leaguewide advertising offers.
Owners are expected to opt out of the deals following the 2029 season after seeing how much ESPN, NBC, and Amazon have already made an NBA commitment, which is typically worth$ 12 billion annually. In 2023, 93 of the 100 most popular TV channels were NFL games, but NBC and Amazon are now paying substantially more for the rights to both teams ‘ annual fees.
NFL teams received$ 13 billion, or just over$ 400 million apiece, from leaguewide media, sponsorship, licensing and merchandise deals last year. In addition, teams got$ 25 million each as part of the NFL’s shared gate receipt system, which calls for 34 % of each team’s ticket revenue to go toward a general pool to be shared equally. The result: 67 % of the$ 20.5 billion in 2023 NFL revenue was distributed in equal parcels to the 32 teams.
The Cincinnati Bengals ‘ value has increased by 120 % over the past four years as a result of the league’s guaranteed annual checks.
The second biggest income source for NFL team is ticket sales and luxurious suites, accounting for 15 % of the overall revenue. Need continues to outstrip supply for NFL cards, with each group hosting merely 10 house games per month, including training, and nearly every venue at or near power. According to the Team Marketing Report, 19 team raised rates by double digits for 2023, and the average increase was 8.6 %.
The San Francisco 49ers led the NFL in ticket revenue for the second straight year at$ 151 million, followed by Dallas ($ 145 million ) and Philadelphia ($ 129 million ). Tennessee ($ 73 million ), Arizona ($ 74 million ) and Washington ($ 80 million ) ranked at the bottom. One of the five NFL teams that “hosted” an international game in 2023 saw a 10 % drop in ticket sales, leaving only one game at their home stadium.
The Dallas Cowboys made about$ 130 million in revenue in luxury suites. As teams look at facility renovations or new construction, new and expanded advanced seating is a top concern.
Sportico estimated team sponsorship revenue at just over$ 2 billion last year, or 10 % of the total. The biggest sponsorship categories for the 2023 season were ticketing ($ 253 million ), financial services ($ 225 million ) and alcohol ($ 180 million ), per Sponsor United.
Revenue from concessions, parking, team stores and non-NFL events was$ 1.5 billion. The group got a big boost from Taylor Swift in 2023, as she performed all 53 of her U. S. shows in NFL arenas. Swift managed to retain about all ticket sales, with teams receiving a small cut or charge for their location. However, teams cashed in with concessions, driving and products at the sold-out events, as well as from significant advanced seating demand.
And while the MLB, NBA, and NHL obsess about local TV revenue because of the RSN business’s continued mess, the NFL wins the game as well. The group level controls almost all of the TV inventory, and the only native media rights are from preseason and radio broadcasts. Local advertising represented less than 2 % of total income, than more than 20 % for MLB.