NFL, which is also known as the National Football League can be considered as the richest sports league in the modern world. It has come a tremendous journey over the past few decades, overcoming basketball, baseball and all the other sports business industries in America. From the statistical information, it can clearly be seen that NFL has generated more than 6 billion dollars of profit throughout 2013.
According to an article published by the Forbes Magazine in 2007, it has been identified that the value of 32 NFL teams is around $957 million each. In addition, they have estimated the cost of five franchises to one billion dollars each. Even the newest franchise of NFL is worth of $782 million, which is much higher than the value of all the basketball, hockey and baseball teams that you can find across United States. In the year 2008, Wayne Huizenga, who is the owner of Miami Dolphins agreed to sell half of his team for $500 million. It clearly shows the demand that NFL teams have in the present world. However, this research was conducted seven years back and experts predict that it will be much higher in the present world.
How do they get all this money? Well, a majority of their revenues come through television broadcasts. The National Football League receives more than 2 billion dollars through its television broadcast. In addition, they receive over one billion dollars by selling tickets, merchandise and through advertising. Since they get a good profit, all the NFL players have got the opportunity to experience amazing salaries. According to the player contracts, the players are entitled to receive more than 59.5 percent of the gross revenues. A single player can therefore receive around $1.4 million a year as the salary.
A large percentage of the NFL revenues have to be spent on stadiums. Unlike other sports, NFL is played in palatial stadiums, which are associated with a wide variety of expenses. They also have to spend a lot of money as taxpayers. However, NFL can be summarized as a veritable cash machine that Americans have got. The incredible popularity and wealth of NFL has even motivated them to think of expansions. Even though it holds the number one position in the sports industry for profits, the entire league is humble in the extreme. That can be considered as the main reason behind their increasing popularity throughout the past 7 decades.
