What Is the Main Source Of Revenue For the NFL?
Anushree Gupta
|Published
The NFL has progressed gradually to constitute a $20 billion industry, with its revenue soaring higher each passing year. As the most watched sport in the United States and with a far-reaching effect in countries like Germany, it reigns as the world’s top-grossing sports enterprise.
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The primary source of income for the NFL comes from its enormous TV deals. The deals, alongside merchandising and licensing contracts, are from the crux of the league’s national revenue. Each team benefits from this revenue pool, receiving a chunk of $374.4 million in the most recent season. According to the Wall Street Journal, it was the TV deals that popularised football as a sport in America in the 1960s, contributing to the NFL’s success further on.
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Interestingly, TV deals are taken seriously due to their expensive nature. The Super Bowl is the most-watched show of the year with current deals running with ABC, ESPN, and Disney worth $2.7 billion each, YouTube and Google for $2.0 billion, NFL Network worth $1.3 billion, and others like Fox, CBS, Amazon, etc. Under the current contracts, seven networks renewed their deals in 2022, which have broadcasted the 2023 regular season games.
NFL’s Financial Success Beyond TV Deals
Apart from the TV deals, the NFL rakes in substantial revenue from merchandising and licensing. The merchandising touched new heights this year as women’s apparel designer Kristin Juszczyk garnered attention for her ‘Origin’ pieces, closing a deal with the NFL to use their tag. This is an example of how the NFL uses its brand appeal, captivating fans worldwide with an array of products to add to its revenue. On the flip side, licensing is also an important part which brings in another $3 billion annually.
While the TV deals and licensing constitute the lion’s share of the NFL’s revenue, other sources also contribute significantly. Local revenue comprising ticket sales, concessions, and local corporate sponsors provides teams with additional financial stability.
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As the NFL charges towards its ambitious revenue target of $25 billion by 2027, it continues to explore new growth areas. With legalized sports betting gaining momentum, the league eyes a potential windfall with sponsorship deals already making millions. This year’s Super Bowl alone is a $60 million affair, but as it’s said, it takes money to make money!
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