How Much Does Each NFL Team Make?
Contents
How much does each NFL team make in revenue? Here is a breakdown of each team’s earnings.
Revenue
The National Football League (NFL) is a professional American football league. The NFL is the highest professional level of the sport. NFL teams make money from a variety of sources, including ticket sales, merchandise sales, sponsorship agreements, and television contracts. The NFL also generates revenue from other sources, such as licensing and concessions. Let’s take a look at how much each NFL team makes in revenue.
National Revenue
The NFL collects a large sum of money from many different sources of revenue. The main source is from television networks that broadcast NFL games. In the 2014-2015 season, the NFL generated $5.5 billion in revenue from television rights fees. This was an increase from $4.9 billion the previous year. The NFL also generates revenue from ticket sales, merchandise sales, and sponsorship deals. In total, the NFL generated $12.4 billion in revenue in the 2014-2015 season.
Local Revenue
Local revenue is the lifeblood of any NFL team. It comes from three primary sources: ticket sales, concessions, and local broadcasting rights. Of course, there are other sources of local revenue (like parking and merchandise), but those three make up the vast majority.
Ticket sales are obviously dependent on how well the team is doing. If a team is winning, its fans will be more likely to buy tickets (and pay premium prices for them). Concessions are also dependent on attendance, but to a lesser extent. Even if a team is losing, its fans will still buy food and drink at the stadium. Local broadcasting rights are not as dependent on on-field success as the other two sources, but they are still significant. The better a team is doing, the higher its local TV ratings will be (and the more money it will make from broadcasting rights).
Expenses
The NFL is a business, and like any business, it has to make money to survive. In order to make money, the NFL charges its teams for a variety of things. One of the main ways the NFL generates income is through the sale of television rights to its games. The NFL also charges teams for things like stadium rent and insurance.
Player Salaries
In 2016, the average NFL player salary was $2.1 million, a significant increase from the $1.9 million average in 2015. The median salary for all players was $860,000 in 2016, up from $775,000 in 2015. These figures do not include signing bonuses or other forms of deferred compensation. The minimum salary for an NFL player in 2016 was $450,000, an increase from the previous year’s minimum of $435,000.
Stadiums and Maintenance
Many factors go into how much an NFL team is worth, including the value of its stadium and the cost of maintaining it. The average NFL stadium is worth $1.2 billion, and it costs an average of $33 million per year to maintain. The most expensive stadium in the NFL is the Dallas Cowboys’ AT&T Stadium, which is worth an estimated $4 billion. The Cowboys also have the most expensive stadium maintenance costs, at an estimated $100 million per year.
Coaching Staff
In the NFL, the average team spends $4.5 million on its coaching staff each year. That’s more than any other professional sports league in the world. The average NFL head coach makes $6 million per year, while the average assistant coach makes $1.5 million.
Other Expenses
However, while they are the biggest expense for most teams, player salaries are not the only thing that NFL teams have to pay for. In addition to player salaries, teams also have to pay for:
-Coaching staffs
-Front office personnel
-Training staffs
-Equipment and travel costs
-Stadium operations and maintenance
Profit
The NFL is a billion dollar industry and each team makes a significant amount of money. In this article, we will take a look at how much each team makes in terms of profit.
Operating Income
Operating income is a measure of a company’s financial performance that seeks to calculate the amount of profit realized from a company’s operations after deducting expenses, including both costs and taxes. This metric can be used to evaluate the overall efficiency of a company in terms of how well it translates revenue into profits. For example, a company with high operating income is generally considered to be more efficient than one with low operating income.
Operating income is different from net income, which includes all sources of revenue and expense, including interest, taxes, and other one-time items. Operating income is typically used to compare companies within the same industry because it eliminates the effects of different accounting methods and tax rates.
Operating income is also sometimes referred to as “operating profit” or “EBIT.”
Net Income
The National Football League (NFL) raked in a reported $9.5 billion in revenue during the 2017 season, an increase of $500 million from the 2016 season. The NFL distributes this revenue among its 32 teams equally, meaning each team earned a little over $297 million last year. But how much of that revenue actually ends up as profit?
Forbes magazine publishes annual valuations of NFL teams and estimates their operating income (earnings before interest, taxes, depreciation and amortization). According to Forbes, the average NFL team is now worth $2.52 billion, up 8% from last year. The Dallas Cowboys are once again the most valuable team in the league, worth an estimated $4.8 billion.
The Cowboys generated an estimated $365 million in operating income last year, more than any other team in the NFL. That means they had a profit of about $68 million after deducting all their expenses (not counting things like interest payments or depreciation). The New England Patriots were second with an estimated operating income of $351 million, followed by the Washington Redskins ($324 million), San Francisco 49ers ($313 million) and New York Giants ($302 million). At the other end of the spectrum, the Buffalo Bills lost an estimated $32 million last year, while the Cincinnati Bengals and Miami Dolphins both lost an estimated $21 million.
