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Fr. Algeria
Title: Pepsi and American Express tied to his stadium
The NFL and its players are butting heads at seemingly every turn regarding player discipline on and off the field. TV ratings declined 8 last season and dropped again during the NFL’s opening weekend. The league s image is taking a hit from the long term health problems of players, and some fans are getting turned off by the gladiatorial nature of the sport. Yet for all the bad press surrounding the NFL, the league remains a financial juggernaut.

The average NFL franchise is worth 2.5 billion, up 8 by FORBES’ count over last year. The Dallas Cowboys were the only NFL team worth 2 billion five years ago. Now all but five of the NFL’s 32 teams are worth at least 2 billion the Buffalo Bills bring up the rear at 1.6 billion .
NFL owners are minting money thanks to hefty TV contracts and a favorable labor deal with the players. Operating profits earnings, before interest, taxes, depreciation and amortization were a record 101 million per team last season, with every team north of 40 million. The 3.2 billion in league wide income is 500 million more than the combined earnings of teams in the NBA, NHL and MLB.

The Cowboys are the NFL s most valuable team for the 11th straight year and the world s most valuable sports franchise. America’s Team is worth 4.8 billion, up 14, with profits of 350 million thanks to a booming merchandise business and the revenue opportunities at their new practice facility, The Star.

The Cowboys generate more than 150 million annually from sponsors. Owner Jerry Jones revolutionized the sponsorship template in the NFL two years after he purchased the team in 1993. He secured agreements with big brands Nike, Pepsi and American Express tied to his stadium, instead of the team, to get around the NFL s control of sponsorships for clubs. Lawsuits flew before Jones settled with the NFL, and a new era was ushered in with teams actively selling sponsorships. The NFL’s 32 teams generated 1.4 billion in revenue last season from sponsorships Chidobe Awuzie Jersey, ad signage and stadium naming rights.

Jones renewed one of his landmark deals at the end of 2016 with a 10 year extension with PepsiCo. He is now actively selling sponsorships at The Star. The practice facility alone had 20 million in sponsor revenue last season more than some teams generate overall from sponsors.


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2017-09-20 10:00:36

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