Is the NFL Making Money?

The NFL is a multi-billion dollar industry, but is it actually making money? Here’s a look at the league’s finances and how they stack up against other professional sports leagues.

How the NFL Makes Money

The NFL is a multi-billion-dollar business that generates revenue from many different sources. TV contracts, ticket sales, merchandise, and sponsorships are just a few of the ways the NFL generates revenue. In this article, we’re going to take a look at how the NFL makes money.

TV Broadcast Rights

The National Football League generates the vast majority of its revenue from selling broadcast rights to its games. The NFL has negotiated long-term broadcast contracts with a handful of major networks—CBS, ESPN, Fox, and NBC—that run through the 2022 season. These four networks pay the NFL a combined total of more than $5 billion per year for the right to air NFL games.

In addition to the money it generates from broadcast rights fees, the NFL also brings in a significant amount of revenue from advertising. This includes both in-game advertising (such as commercials that air during game broadcasts) and sponsorships (such as company logos that appear on team jerseys). According to one estimate, the NFL generated nearly $3 billion in advertising revenue in 2017.

The NFL also generates revenue from ticket sales, merchandise sales, and licensing fees. However, these sources of revenue pale in comparison to the league’s broadcast rights and advertising dollars.

Merchandise and Apparel

The NFL is not just a football league, it’s a merchandising powerhouse. league-licensed merchandise sales totaled $3.2 billion in 2016, according to Forbes, easily outdistancing Major League Baseball, the National Basketball Association and the National Hockey League. A big chunk of that — an estimated $1.6 billion — comes from apparel sales, including jerseys and other clothing, such as T-shirts bearing team logos. The apparel is sold in more than 70,000 locations worldwide, including department stores, sports retailers and the NFL’s own website.

Ticket Sales

NFL ticket prices have risen steadily over the years. In the 2017 season, the average price of an NFL ticket was $106.91. That’s a 5.9% increase from the 2016 season, and a 44% increase from 10 years ago.

The New England Patriots have the most expensive tickets in the NFL, with an average price of $513.82. The team with the cheapest tickets is the Miami Dolphins, with an average price of $54.99.

Despite the relatively high cost of attending an NFL game, ticket sales make up a relatively small percentage of the league’s overall revenue. In 2017, ticket sales generated $8 billion, or 26% of the NFL’s total revenue.

Licensing and Advertising

The NFL generates revenue through a variety of sources, including licensing and advertising.

Licensing: The NFL licenses the use of its trademarks and logos to manufacturers of products such as apparel, toys, and collectibles. The licensing program is managed by NFLP, the league’s licensing and merchandising arm. In 2017, the NFL generated $1.32 billion in revenue from licensing deals.

Advertising: The NFL sells advertising space on its website, radio broadcasts, television broadcasts, and in its stadium In 2017, the NFL generated $879 million in advertising revenue.

How the NFL Spends Money

The NFL is a business and like any business, they have to spend money to make money. The NFL spends money on players, coaches, stadiums, and advertising. They also spend money on things like travel and security. Let’s take a closer look at how the NFL spends its money.

Player Salaries

NFL players’ salaries have been on the rise in recent years, thanks to a variety of factors including an increase in television revenue, new stadium construction and higher demand for players.

In 2015, the average NFL player’s salary was $2.1 million, up from $1.9 million in 2014, according to Spotrac.com. The website, which tracks player contracts and salaries, also found that the minimum salary for rookies increased from $425,000 in 2014 to $435,000 in 2015.

The highest-paid player in the NFL is currentlySeattle Seahawks quarterback Russell Wilson, who will earn an average of $21.9 million per year under his new four-year contract extension. Wilson’s deal includes a $31 million signing bonus and makes him the secondHighest-paid player in the NFL behind only Green Bay Packers quarterback Aaron Rodgers.

Other top earners include New England Patriots quarterback Tom Brady ($20.5 million per year), Indianapolis Colts quarterback Andrew Luck ($24.6 million) and Detroit Lions quarterback Matthew Stafford ($17 million).

While quarterbacks tend to be the highest-paid players in the NFL, there are a number of other positions that can also command big salaries. For example, Denver Broncos linebacker Von Miller is set to earn $19 million per year under his new contract, while Carolina Panthers defensive end Julius Peppers will make $13 million annually.

Stadiums and Facilities

The National Football League (NFL) is a professional American football league consisting of 32 teams, divided equally between the National Football Conference (NFC) and the American Football Conference (AFC). The NFL is one of the four major professional sports leagues in North America, and the highest professional level of American football in the world.The NFL’s 17-week regular season runs from early September to late December, with each team playing 16 games and having one bye week. Following the conclusion of the regular season, six teams from each conference (four division winners and two wild card teams) advance to the playoffs, a single-elimination tournament culminating in the Super Bowl, which is usually held on the first Sunday in February and is played between the champions of the NFC and AFC.

The NFL was formed in 1920 as the American Professional Football Association (APFA) before renaming itself the National Football League for the 1922 season. The NFL agreed to merge with the American Football League (AFL) in 1966, and effective from that season onward NFL stadiums would be required to seat a minimum of 50,000 people—an increase from their previous capacity requirements of 30,000–35,000. In 1970, after several years of failed attempts at negotiation between rival labor groups including an attempt by strikebreaker Pete Rozelle to establish a player’s union—the NFL Players Association—the league reached an agreement with its players which resulted in increased benefits such as larger pensions and not having to play exhibition games to make ends meet.

League Administration

The NFL is a nonprofit corporation, meaning it does not have to pay taxes on the revenue it generates. In addition, the league office allows each team to keep whatever profit it makes from ticket sales, local TV and radio broadcasting rights, and other sources. The only requirement is that each team reinvest a portion of its revenue into improving stadium facilities, according to league spokesman Greg Aiello.