Saturday, February 2, 2019

Report: How NFL Teams Make Money

Super Bowl Sunday is almost upon us. The TV commercials are ready, the Bud Light is chilling, and the fans are getting into a frenzy ahead of the biggest football game of the year.

As the New England Patriots prepare to play the Los Angeles Rams at the Super Bowl, kicking off at 6.30 p.m. ET on February 3, retailers, broadcasters and sponsors will be waiting to cash in on the biggest sporting event in the U.S.

CNBC took a look at who makes what:

The NFL

The NFL will reportedly pocket tens of millions for Sunday's game, but for more accurate figures it's better to look at the season as a whole. The NFL does not disclose the value of its contract with TV networks to broadcast regular season football games, but it's reported that CBS, Fox and NBC will pay around $3 billion a year collectively to do so, with a total of around $27 billion for the period 2013 to 2022. Each network gets the Super Bowl match to themselves three times over that period.

The NFL also doesn't release detailed financial data, but one league team, the Green Bay Packers in Wisconsin, does break out its finances because it's fan-owned.


How NFL teams make money from CNBC.

The terrestrial broadcaster

Super Bowl ad spots are the most expensive on commercial TV in the U.S. by far, with a 30-second slot costing $5.25 million. That works out at roughly $175,000 per second. Thirty-second ads during regular-season NFL games usually cost around $625,000, according to Kantar Media.

Of the three TV networks who alternate broadcasting the Super Bowl, CBS will show it this year. Total ad spend for pregame, in-game and post-game advertising during NBC's Super Bowl broadcast last year was $482 million, according to Kantar. CBS has broadcast the Big Game the most times and 2019 marks its 20th year, and its official line at a January 10 press conference was that it was 90 percent sold on ad spend.

The network might take close to half a billion dollars in advertising for just one football game, contributing heavily to the overall annual amount it pays the NFL for the right to broadcast.

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