How Much Does It Cost To Own A NFL Team?

A Look At The Costs Of Owning A NFL Franchise – Forbes

Introduction

How much does it cost to own an NFL team? The answer may surprise you. The price tag for an NFL franchise has gone up significantly in recent years, and the cost of running a team has also increased.

According to Forbes, the average value of an NFL franchise is now $2.5 billion. That’s a significant increase from just a few years ago when the average value was $1.4 billion. And the cost of running a team has also gone up. According to Business Insider, the average operating expenses for an NFL team are now $377 million per year.

So, what does it take to own an NFL team? First and foremost, you need deep pockets. It’s not enough to just have the money to buy a team – you also need to have the liquidity to cover the costs of running a team on an ongoing basis. Beyond that, you need to be prepared for a significant time commitment. Owning an NFL team is not a passive investment – you will be expected to be actively involved in the day-to-day operations of your franchise.

If you’re thinking about buying an NFL team, be prepared to pay a hefty price tag – and to make a significant time commitment.

Costs of Owning a Team

Before we dive into how much it costs to own a team, let’s first look at what it takes to own a team. In order to become an NFL team owner, you must be approved by 24 of the 32 NFL owners. The process of becoming an owner usually takes two to three years. You must also have a net worth of at least $1 billion. So, now that we know what it takes to become an owner, let’s look at the cost.

Purchase Price

To purchase an NFL team, you’ll need deep pockets. The average price of an NFL team is $1.97 billion, although the most recent sale was for the Buffalo Bills at $1.4 billion. Forbes magazine values the Dallas Cowboys at $4 billion, making them the most valuable team in the NFL.

Operating Expenses

The day-to-day costs of running an NFL team are significant. In addition to the salaries of front office staff, coaches and other employees, there are facilities to maintain, equipment to purchase and a host of other expenses.

According to a report from earlier this year, the average NFL team spent $247 million on operating expenses in 2017. That figure does not include things like player salaries and benefits, which averaged $174 million per team in 2017. When all player-related costs are included, the average NFL team’s total expenditure was $421 million last year.

The biggest expense for an NFL team is usually its stadium. The cost of building a new stadium can range from $700 million to well over $1 billion. And once a stadium is built, there are ongoing costs associated with maintaining and upgrading it. For example, the Minnesota Vikings are currently spending $200 million to upgrade their stadium.

In addition to their stadium, NFL teams also have to maintain practice facilities and offices. The New England Patriots, for example, recently spent $70 million to build a new training facility. And every year, teams have to spend millions of dollars on things like equipment, travel and lodging for players and staff.

Of course, not all teams spend the same amount on operating expenses. The Dallas Cowboys, for example, are the most valuable franchise in the NFL and generated a record $560 million in revenue last year. The Cleveland Browns, on the other hand, are one of the least valuable franchises in the league and generated just $234 million in revenue last year

Stadium Costs

The costs of owning a NFL team go well beyond the initial purchase price. There are a number of ongoing costs associated with owning a team, including but not limited to: player salaries, stadium upkeep and improvements, and front office staff salaries.

One of the biggest ongoing costs for NFL team owners is the cost of maintaining and improving their stadiums. The average NFL stadium costs upwards of $1 billion to build, and an additional $100 million or more to maintain each year. Stadiums also need to be regularly upgraded to keep up with the changing demands of fans and the league. For example, in 2013, the San Francisco 49ers spent $430 million to add 8,500 seats to their stadium.

Revenue Sources

Ticket Sales

Ticket sales are the primary source of revenue for most sports teams. In order to maximize ticket revenue, teams set ticket prices at a level that will ensure that all home games are sellouts. For NFL teams, ticket prices average more than $100 per seat. That means that the average NFL team can generate more than $100 million in annual revenue from ticket sales alone.

Merchandise Sales

One of the most important revenue sources for NFL teams is merchandise sales. The NFL licensing program is the exclusive provider of officially licensed apparel and merchandise, and it generate royalties for every item sold with an official team or league logo. The revenue from licensing is shared among all 32 teams, but the most popular teams will generate the most revenue from this source.

Broadcast Rights

TV networks compete for NFL broadcast rights because live sporting events are one of the few types of programming that people still watch live. That’s because people are more likely to record a game and watch it later if they think they might miss it. But if they know they can watch it live, they’re much more likely to tune in. And that’s why broadcast rights are so valuable.

In 2014, the NFL signed new nine-year contracts with CBS, NBC, and Fox, which will pay a combined total of $3.1 billion per year through 2022. That’s an increase of nearly 60% over the previous contracts. ESPN pays even more: $1.9 billion per year through 2021.

These TV deals are by far the biggest source of revenue for the NFL. In 2015, broadcast rights generated $7.3 billion, or 43% of the league’s total revenue.

Conclusion

If you’re a fan of the NFL and have ever dreamed of owning your own team, you’re probably wondering how much it would cost. The answer is, it depends. The cost of purchasing an NFL team can vary widely depending on a number of factors, such as the team’s value, market size, and revenue.

Forbes magazine publishes an annual list of the most valuable NFL teams, and in 2019, the average team was worth $2.86 billion. The most expensive team on the list was the Dallas Cowboys, which had an estimated value of $5 billion. at the bottom of the list was the Buffalo Bills, which were valued at $1.6 billion.

The size of the market is also a factor in determining how much it costs to own an NFL team. Teams located in larger markets, such as New York or Los Angeles, are typically worth more than teams in smaller markets, such as Green Bay or Kansas City. This is due to the fact that teams in larger markets have a greater potential to generate revenue from things like ticket sales and merchandise sales.

Finally, another factor that can affect the cost of owning an NFL team is the team’s revenue. Teams that generate a lot of revenue from things like ticket sales and advertising are typically worth more than teams that generate less revenue. In 2019, the most valuable NFL team (the Dallas Cowboys) generated $870 million in revenue, while the least valuable team (the Buffalo Bills) generated only $373 million in revenue.

So how much does it cost to own an NFL team? It depends on a number of factors, but if you’re looking to purchase an average team in an average market, you can expect to pay around $2 billion.