NFL revenue grew more than 15% in 2018 - growth trend expected to continue (along with salary cap) (1 Viewer)

superchuck500

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Revenue information made public last month by the Packers (a public company) reveals by extrapolation that the NFL made more than $16 billion in 2018 - this following $13.68 billion in 2017. The move from 2017 to 2018 is more than 15% if these numbers are correct. Per team distribution for FY 2018 was more than 7% higher than 2017, which, itself, was a nearly 5% jump from 2016.

While NFL revenue has been growing for years, the curve has steepened a bit since 2014 with the NFL seemingly on its way to meet the league's $25 billion target in 2027. With new revenue streams (literally) from digital and streaming rights and the major television packages all coming up for renewal in the next three and four years, this growth trend seems entirely reasonable barring some major economic turn. And of course, as NFL revenue grows, the salary cap grows. Contracts that seem excessive will age into far more reasonable deals.


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Saint Jack

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Wait a minute, I thought all of the "Patriots" were boycotting the NFL...
Contrary to what was perceived during the protests, the NFL still had the highest ratings on television. It wasn’t even close.
As cable dies a slow death, those rights to NFL games are becoming more valuable. Just wait until streaming services start to put bids in for MNF or when the NFL starts it’s ow streaming service.
 
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superchuck500

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Contrary to what was perceived during the protests, the NFL still had the highest ratings on television. It wasn’t even close.
As cable dies a slow death, those rights to NFL games are becoming more valuable. Just wait until streaming services start to put bids in for MNF or when the NFL starts it’s ow streaming service.
Yeah, the NFL is unquestionably the hottest sports broadcast right in the world - and as the others lose viewers, the NFL's appeal only grows. The NFL draft gets more viewers than the other league's playoff games . . . think about that for a second. The NFL dominates sports and dominates the TV viewing numbers in total.

Streaming is going to be interesting - I don't think the future of streaming is as a stand-alone right. I think the TV bids will partner with a digital platform to include streaming, but who knows.

Another revenue line that might become significant is gambling, as states come online with legal NFL betting, the league is likely to be involved in that revenue as well.
 

Saint Jack

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Yeah, the NFL is unquestionably the hottest sports broadcast right in the world - and as the others lose viewers, the NFL's appeal only grows. The NFL draft gets more viewers than the other league's playoff games . . . think about that for a second. The NFL dominates sports and dominates the TV viewing numbers in total.

Streaming is going to be interesting - I don't think the future of streaming is as a stand-alone right. I think the TV bids will partner with a digital platform to include streaming, but who knows.

Another revenue line that might become significant is gambling, as states come online with legal NFL betting, the league is likely to be involved in that revenue as well.
I think the NFL will adopt the NBA model once the Direct TV contract ends.
I pay a certain amount to get Lakers games on the NBA app live, but I can also pay extra for every game. All on one app.
That’s the future.
 
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superchuck500

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I think the NFL will adopt the NBA model once the Direct TV contract ends.
I pay a certain amount to get Lakers games on the NBA app live, but I can also pay extra for every game. All on one app.
That’s the future.
So that's two separate things - there's the national television contracts, and then there's the out-of-market package. I don't know if the NBA model is all that appropriate when you consider that at least 25% of regular NFL games are nationally broadcast, and the other games are broadcast in-market on the major networks. (Unlike the NBA where only a small fraction of regular season games are nationally broadcast an in-market games are on regional sports networks).

But certainly the growth of streaming makes the out-of-market package more interesting. You could even make an argument for having the major networks (or network agreements) acquire the out-of-market package and show all NFL games on tv in every market. It would be sort of like how CBS handles March Madness, with the ability to broadcast every game (using CBS, CBSSports, and the Turner Sports networks) - with the in-market game appearing on the main network as it does now, and the out-of-market games appearing on the secondary sports networks. That would certainly be a win for the NFL fans (not having to pay Sunday Ticket anymore). I suppose that would just depend on whether the ad revenue model made sense.
 

Saint Jack

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So that's two separate things - there's the national television contracts, and then there's the out-of-market package. I don't know if the NBA model is all that appropriate when you consider that at least 25% of regular NFL games are nationally broadcast, and the other games are broadcast in-market on the major networks. (Unlike the NBA where only a small fraction of regular season games are nationally broadcast an in-market games are on regional sports networks).

But certainly the growth of streaming makes the out-of-market package more interesting. You could even make an argument for having the major networks (or network agreements) acquire the out-of-market package and show all NFL games on tv in every market. It would be sort of like how CBS handles March Madness, with the ability to broadcast every game (using CBS, CBSSports, and the Turner Sports networks) - with the in-market game appearing on the main network as it does now, and the out-of-market games appearing on the secondary sports networks. That would certainly be a win for the NFL fans (not having to pay Sunday Ticket anymore). I suppose that would just depend on whether the ad revenue model made sense.
I think the March Madness scenario is a possibility, but not likely in my opinion. March Madness doesn’t have the reach that a regular NFL season game has.
I do expect the NFL to end the exclusivity deal with Direct TV soon and launch its own app with at least a single season pass for a team, possibly with the NFL Network included.
 

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Yeah, the NFL is unquestionably the hottest sports broadcast right in the world
In what context? In terms of viewers or value?
Because the viewing figures aren’t even close.

The Champions League final gets FOUR times as many viewers worldwide as the super bowl.

More than a billion watched the World Cup final.

Without looking at the numbers I’d guess a premier league game between two of the top 6 probably draws more viewers world wide than a Superbowl.
 

SystemShock

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Yeah, the NFL is unquestionably the hottest sports broadcast right in the world
I don't think so. By far, it is FIFA's World Cup.

Now, no one is going to disagree with the fact that the NFL, as a single sports league generates an amount of money that eclipses the dollar amount generated by many (if not all) of the premier sports leagues around the world. But, you also have to consider, where this revenue is coming from. A tiny example, neither Camp Nou or Estadio Azteca has a mall attached to it, or corporate luxury suites, or PSL's. And the purchasing power/discretionary income varies significantly from one country to another.

The money broadcasters in the U.S. pay for the rights to broadcast games is significantly higher than what broadcasters in other countries pay. Televisa is not going to give $1B to Fox for the right to broadcast NFL games in México.
 
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superchuck500

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In what context? In terms of viewers or value?
Because the viewing figures aren’t even close.

The Champions League final gets FOUR times as many viewers worldwide as the super bowl.

More than a billion watched the World Cup final.

Without looking at the numbers I’d guess a premier league game between two of the top 6 probably draws more viewers world wide than a Superbowl. Thanks
I meant regular season as a broadcast contract right - the price paid reflects the broadcaster demand for the right. So not talking about World Cup or Olympics, as they aren’t annual. Champions League TV rights aren’t expensive (see below).

The EPL isn’t even close - but a lot of that has to do with how it is packaged and sold. The US gets more EPL games on TV than England does.


 
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DoubleSaint

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The US gets more EPL games on TV than England does
Yeah and that won’t change any time soon.
There’s been a blackout on Saturday 3pm kickoffs from all 4 professional leagues in England since the 60’s. Something to do with the impact it would have on the lower league attendances.
I can’t see it changing unless lower league clubs were compensated yearly.
 

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