Why are NFL teams valued higher than other professional sports teams?

In this blog post I set out to compare Major League Baseball teams values along with NFL teams values and see the difference. I found an article from CNBC about how NFL teams make the most of any other pro sport, and also an article in Forbes that talks about the huge deals that the NFL as a league signs that benefit to all of their teams values.

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NFL teams are valued more than other pro sports teams because of the major deals that their league signs and continue to sign year after year.According to a CNBC article titled How the NFL makes the most money of any pro sport, "The NFL profited $1.07 billion in sponsorship revenue for the 2013 season, that was an increase of 5.7 percent over the 2012 season". One big part of that was because "the NFL and Microsoft agreed on a $400 million deal that secures the exclusive right for Surface tablets and other Microsoft technologies on the sidelines for all 32 teams". Another major money maker for the NFL is its "four-year $4 billion partnership with Direct TV for a service called Sunday ticket", a service that allows viewers to watch every football broadcast on several channels. With all the money that the NFL make in yearly revenue, there is no question why the NFL teams are now being valued higher than other professional sports teams. Now almost all NFL teams values are increasing at a high rate and are bypassing other sports teams that they used to be making less than in the past.

According to Forbes, "the latest valuations of NFL teams put franchise average at $1.43 billion that is a 22.5%increase from a year ago". With the NFL signing these enormous deals and profiting unheard of amounts of money it truly is boosting the values of NFL franchises across the league. In a Business Insider article titled, The 32 NFL Teams Are Worth More Than Every MLB And NBA Team Combined states "Overall, that means the 32 NFL franchises have a combined value of $45.7 billion. That is more than the 30 Major League Baseball teams ($24.3 billion) and 30 NBA teams ($19.0 billion) combined". It is crazy how much NFL teams are valued at and that just the NFL added up is worth more than all MLB and NBA franchises.


Next Blog Post: I plan on researching how much does an NFL stadium make for their team and how that helps boost their value overall.