How Much Does it Cost to Buy the NFL?
The average cost of an NFL team is about $2.34 billion. As the price for an NFL franchise continues to rise, some people are wondering if it’s worth the investment.
Introduction
In order to purchase the National Football League, one would need to have a net worth of at least $32 billion. This figure comes from a recent Forbes valuation of the NFL, which is the most expensive sports league in the world.
The NFL is made up of 32 teams, each of which is worth an average of $1 billion. The most valuable team in the NFL is the Dallas Cowboys, who are worth $5 billion. The least valuable team in the NFL is the Jacksonville Jaguars, who are worth $770 million.
If you were to purchase the NFL, you would also need to be prepared to spend a lot of money on operating costs. The NFL generated $13 billion in revenue in 2017, and its operating expenses totaled $4.8 billion. This means that the NFL would need to generate an additional $8.2 billion in revenue just to break even.
The NFL has a variety of ways to generate revenue, including ticket sales, television contracts, and sponsorship deals. The league also generates a significant amount of revenue from its ownership stake in NFL Media, which operates the league’s official website and television channels.
Although it would be expensive to purchase the NFL, it is doubtful that any one person or entity could ever assemble the necessary capital. The league is currently owned by a group of 32 billionaires who paid an average of $1.1 billion for their teams. It would be almost impossible for anyone to outbid this group for control of the NFL.
The Teams
In order to buy the NFL, you would need to purchase all 32 of its teams. The most recent Forbes evaluation of all NFL teams valued them at an average of $2.52 billion. That price tag would give you the Los Angeles Rams ($3.2 billion), the New England Patriots ($3.1 billion), and the San Francisco 49ers ($3.05 billion).
The Stadiums
When you buy the NFL, you’re also buying all of the stadiums that the teams play in. The cost of these stadiums varies depending on their age, location, and size. The newest stadium is the home of the Dallas Cowboys, which cost $1.2 billion to build. The most expensive stadium is currently MetLife Stadium, home to both the New York Jets and New York Giants, which cost a whopping $1.6 billion.
The Media
One important factor in the high cost of buying the NFL is the price of media rights. In 2011, the NFL signed a nine-year, $27 billion television contract with NBC, CBS, FOX, and ESPN. This averages out to $3 billion per year, or about 10% of the league’s total revenue. The NFL also earns income from its own network, which is available in about 72 million homes.
The Business
The NFL is a business. In order to purchase the NFL, you must first understand how the league makes its money and where its revenue comes from. The NFL generates revenue through four main sources: ticket sales, television contracts, merchandise sales, and sponsorships.
Ticket sales account for the largest portion of the NFL’s revenue. In 2017, the league generated $8 billion in ticket revenue. Television contracts are the second largest source of revenue for the NFL. In 2014, the league signed new nine-year deals with CBS, NBC, and Fox that are worth a combined $27 billion. These deals run through the 2022 season.
Merchandise sales are the third largest source of revenue for the NFL. The league generated $3.2 billion in merchandise revenue in 2017. This is driven by sales of jerseys, hats, and other officially licensed merchandise. Finally, sponsorships are the fourth largest source of revenue for the NFL. The league generated $1.6 billion in sponsorship revenue in 2017 from companies like Verizon, Bud Light, and Papa John’s Pizza.
Now that you know where the NFL’s revenue comes from, you can begin to think about how much it would cost to purchase the league. If we assume that the NFL would sell for a multiple of its annual revenue, we can estimate that it would cost between $30 and $40 billion to purchase theleague outright.
The Fans
The most important part of the NFL are the fans. It is the fans that make the game what it is today. The NFL has the largest fan base of any sport in America. Football is a religion to many Americans. The game has become more than just a sport, it has become an institution. The NFL would not be where it is today without its fans.
The cost of buying the NFL would be astronomical. The NFL is a multi-billion dollar business. It would take billions of dollars to buy the league. The cost of buying the NFL would be too high for most people.
Conclusion
In conclusion, it would cost approximately $853 million to buy the NFL. This number could increase or decrease depending on a variety of factors, but it provides a general idea of the cost of purchasing the NFL.
