How the NFL makes money

nflstreaming.net

In this blog post I am searching to answer the question “How does the NFL produce revenue?” By answering this basic question i can get a basic understanding of what the NFL seeks to maximize and minimize when trying to make profit.

The NFL is the most profitable pro sports team. Its teams altogether collect an extrapolated $6 billion. Every team is private and therefor its its financial records are private, except for the Green Bay Packers. They’re the old public team left, and their annual revenue recently was ~$188 million. This multiplied by 32 yields about $6 billion. This makes the NFL one of the most profitable pro sports today. It does this by very pricey sponsorships, ticket sales, and television deals. All of this combined makes the NFL a money-making machine. During the regular 2015-2016 season, I have observed on my channel that over half of the advertisements in between when the game is live consist of fantasy football websites. The NFL gets well overpaid for any commercial time in between the game, and DraftKings is a clear example of a company throwing large sums of money at the NFL for a just a minute or two in commercial breaks.

The NFL is a tax-free business. This means the NFL just has one less hurdle to jump when it comes to making money. There league collects money from all 32 teams, and spends it on non-taxed things, like the $44 million rent for for the commissioner’s office in 2012 and 2013. It is making the decision to spend its revenue on things that are beyond the reach of taxes before they pay their employees salaries (which do get influenced by taxes)