How Does the NFL Make So Much Money?

By Tara Dooley

A major source of revenue for the National Football League is merchandise. With over 32 teams spread across the United States, the NFL is well positioned to market a wide variety of team-related merchandise. From jerseys and tee shirts to coozies, stadium seats, and even high end personalized golf club sets, there is something available for every fan bearing their teams logo. At the heart of this operation is the contract signed with manufacturers and retailers to produce and sell the NFL trademark logo and team logo. However, the marketing push is not solely centered on the United States. It is a worldwide effort. In 2006, for example, the NFL took in over 3.2 billion dollars worldwide in merchandise sales. Replica jerseys by themselves accounted for twenty percent of the take.

Merchandise

A major source of revenue for the National Football League is merchandise. With over 32 teams spread across the United States, the NFL is well positioned to market a wide variety of team-related merchandise. From jerseys and tee shirts to coozies, stadium seats, and even high end personalized golf club sets, there is something available for every fan bearing their teams logo.

At the heart of this operation is the contract signed with manufacturers and retailers to produce and sell the NFL trademark logo and team logo. However, the marketing push is not solely centered on the United States. It is a worldwide effort. In 2006, for example, the NFL took in over 3.2 billion dollars worldwide in merchandise sales. Replica jerseys by themselves accounted for twenty percent of the take.

Advertising

One has only to watch the Super Bowl to understand the power and money associated with NFL advertising. In 2009, it is estimated that one second will cost a little over one hundred thousand dollars. For a thirty second ad, just do the math.

There is money at stake. In fact, demographic research has shown that there is a growing number of people who do not even enjoy watching the game of football who gather to watch the commercials featured at commercial breaks and at half-time. The payoff is huge for an advertiser who hits a home run.

At the Stadium

The NFL is a spectator sport, and Americans flock to their favorite teams stadium. There is a structured ticket scale which allows just about everyone, regardless of budget, to watch their favorite gladiators do battle. From the nose bleed upper deck, to the fifty yard line, to the private booth, tickets range from the forty to fifty dollar range up to the thousands for a booth. While you are at the stadium, don't forget the Coke, nachos, beer, and hot dogs. This is also a good source of revenue for the league as you may pay upwards of twenty dollars for a hot dog, nachos and beer.

About the Author

Tara Dooley has written for various websites since 2008. She has worked as an accountant, after-school director and retail manager in various locations. Dooley holds a Bachelor of Science in business management and finance.

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