How Much Does It Cost To Buy An NFL Franchise?

If you’re a diehard football fan, you’ve probably wondered how much it would cost to buy an NFL franchise. While the price tag can be quite high, it’s certainly within reach for some deep-pocketed fans. Keep reading to learn more about the cost of an NFL franchise.

Introduction

Many people dream of owning their favorite NFL team, but very few have the ability to make that dream a reality. For those who do have the means, it is important to know how much it would cost to purchase an NFL franchise.

The price of an NFL franchise can vary greatly depending on a number of factors, including the market size of the team, the team’s recent performance, and the financial health of the league. In general, however, it is safe to say that buying an NFL franchise would cost at least $1 billion.

While this may seem like a lot of money, it is important to remember that an NFL franchise is a valuable asset that can generate a great deal of revenue. For example, the average value of an NFL team increased by 13% in 2019 to $3 billion. Additionally, the most valuable team in the league, the Dallas Cowboys, are worth an estimated $5 billion.

Clearly, purchasing an NFL franchise is a significant investment. However, for those who have the means and are passionate about football, it can be a very rewarding experience.

The Costs of an NFL Franchise

The cost of an NFL franchise can vary depending on a number of factors. The purchase price of an NFL franchise is typically around $1 billion. However, the cost of an NFL franchise can also include the cost of a new stadium, which can range from $500 million to $1.5 billion. The cost of an NFL franchise can also include the cost of relocating to a new city, which can cost up to $300 million.

The Purchase Price

The typical NFL team is worth around $2 billion. But the price of an NFL franchise depends on a number of factors, including the team’s recent performance, the size of its market and its stadium.

The most expensive NFL team is the Dallas Cowboys, which was valued at $4.8 billion in 2019 by Forbes. The Cowboys are followed by the New England Patriots ($3.8 billion), the New York Giants ($3.3 billion) and the San Francisco 49ers ($3.05 billion).

The least expensive NFL team is the Jacksonville Jaguars, which was valued at $2.075 billion in 2019 by Forbes. The Jaguars are followed by the Buffalo Bills ($1.6 billion), the Cincinnati Bengals ($1.5 billion) and the Miami Dolphins ($1.45 billion).

When considering purchasing an NFL franchise, it’s important to remember that the price tag is just one part of the equation. You’ll also need to factor in the costs of running a team, which can include everything from player salaries to stadium maintenance.

The Operating Costs

The cost of operating an NFL franchise has skyrocketed in recent years, due in large part to player salaries and stadium construction costs. In 2008, the average operating expense for an NFL team was $257 million. This number increased to $302 million in 2009 and then to $312 million in 2010. The most recent data available (from 2011) put the average operating expense at $321 million.

Operating expenses for an NFL franchise can be divided into three main categories: player salaries, stadium construction/maintenance costs, and other operating expenses. Player salaries have been the biggest driver of increased costs in recent years. In 2001, the average salary for an NFL player was $1.17 million. By 2011, that number had increased to $2.07 million. Stadium construction and maintenance costs have also increased significantly in recent years. In 2000, the average stadium cost $287 million to construct; by 2010, that number had grown to $937 million. Other operating expenses have remained relatively constant over time, averaging between $30-$40 million per year.

The Potential Revenue of an NFL Franchise

When it comes to calculating the cost of an NFL franchise, there are a number of factors to consider. The value of the franchise, the price of the stadium, the cost of player salaries, and other expenses all play a role in the final cost. But what about the potential revenue of an NFL franchise?

National Revenue

In 2019, the NFL generated $8.78 billion in national revenue, which is money generated from sources such as broadcast rights, stadium sponsorships, and licensed merchandise. Of that $8.78 billion, $5.17 billion came from television (broadcast and cable), $2.35 billion came from sponsorship revenue (including in-stadium signage and agnate deals), and $1.27 billion came from licensed products (NFL Shop sales and non-NFLShop business partnerships).

The NFL’s national revenue has been steadily increasing over the past few years. In 2016, the NFL generated $7.8 billion in national revenue, which increased to $8.2 billion in 2017 and then to $8.56 billion in 2018 before reaching its record high of $8.78 billion in 2019.

The vast majority of the NFL’s national revenue comes from television rights deals with networks such as ESPN, FOX, NBC, and CBS. In 2019, the four networks paid a combined total of $3.1 billion to air NFL games. That figure is up from the $2.6 billion that the networks paid in 2018 and the $2.5 billion that they paid in 2017.

Sponsorship revenue is also a significant source of income for the NFL. In 2019, sponsors spent a total of $2.35 billion on deals with the league, which is up from the $2.2 billion that they spent in 2018 and the $1.9 million that they spent in 2017

Local Revenue

An NFL franchise can generate revenue from several different sources, the most important of which is local revenue. This includes things like ticket sales, concessions, merchandise, and other forms of revenue that are specific to a team’s home market. For example, the Green Bay Packers generated $262 million in local revenue in 2017, while the Dallas Cowboys generated $620 million. The league average is $377 million.

Conclusion

So, how much does it cost to buy an NFL franchise? It ranges from $1.4 billion for the Buffalo Bills to over $2.6 billion for the Dallas Cowboys. The average price of an NFL franchise is $1.78 billion.