How to make the NFL great again!
1) The professional sports leagues need to partner with the major sportsbooks/casinos
2) Continue to develop direct-to-consumer broadcast formats
3) Improve the game flow and shorten the game length
The National Football League
The NFL is comprised of 32 teams that compete for the Lombardi Trophy every year. Each team plays 16 regular season games over a 17-week span. The league is divided into two conferences, the AFC and the NFC. The final team remaining from the AFC and NFC competes against each other in the championship game, known as the Super Bowl.
Most of the NFL’s revenue comes from the national television deals. These television deals are highly sought after and worth billions of dollars. After the television deals, the other sources of revenue are corporate sponsorships, licensing, and merchandise sales. (Novy-Williams)
The National Football League on top
In a Gallup poll conducted in December of last year, football came out on top, with 37% of Americans stating it as their favorite sport to watch. Next came basketball at 11% and then baseball at 9%. At its peak, the NFL was the most popular in 2007 at 43%. Since 1964, the NFL has remained America’s favorite sport to watch (Gallup).
Further evidence of its popularity, in the 2016/2017 season, $13.3 billion
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These leagues have been lobbying to help overturn the old law and make sports wagering legal nationwide. The National Basketball Association is currently in talks to receive a 1% “integrity & rights” fee from all sportsbooks. The 1% fee not only allows the NBA to be compensated for its intellectual property, but also allows the NBA to control and monitor wagering data to keep the integrity of the game. (Liptak & Draper) By following the NBA’s model, the NFL has an opportunity to not only grow their fan base but also increase their revenue
America needs the NFL for it is the biggest thing in American. People from various beliefs and backgrounds can come together for the same common goal in their team. It gives Americans something to believe in, something to rely on. Its reputation is held high, regardless of politics or religion the NFL is something Americans can agree on. Football means so much to Americans that they have projected so much belief and desire onto football it has been there for whatever Americans have needed it to be when times have been tough.
The 8-year media deals that the NFL did with ABC, CBS, FOX, ESPN, and Direct TV in January 1998 are worth $17.6 billion. It has fewer games than any other professional sport, but takes in the most money by far. To ABC, broadcasting Monday Night Football for eight seasons was worth $4.4 billion ($550 million per year). CBS agreed to pay $4 billion ($500 million per season) for exclusive rights to AFC games. FOX also agreed $4.4 billion for the right of NFC games. ESPN agreed to pay $4.8 billion ($600 million per year) for Sunday night
The NFL has become the most popular sport in the United States. It is watched my millions every weekend. The NFL is only growing in popularity. With new fans joining the fun every day. The NFL has faced its share of problems too. With concussions scaring away many future players, the NFL is hoping to lower the possibility of concussions in the future. Each NFL team plays a total of 16 games over a span of 17 weeks. There are two conferences in the NFL, the AFC and the NFC. There are four divisions in each conference, each with 4 teams. The playoff teams are decided by the division rankings. The winner of each division makes the playoffs, with the two best 2nd place teams making it in as a wild card.
Professional football is known to dominate all other American sports. Prime-time football is an essential part of American culture. Each year anticipation for the start of the new season builds as dedicated fans eagerly await for game time. People can’t help but love the high energy and intensity each game provides. Once a favorite team is picked, fans follow the season in hopes that their team makes big at the Super Bowl. Whether going to experience a game in person or being able to watch it on T.V the love people have for football is evident. The National Football League’s popularity draws in the largest amount of fans who fill stadiums to full capacity and even more viewers who watch the broadcasts. The NFL is a huge market that many consider displaying monopoly power. I believe that the NFL is indeed a monopoly due to the lack of competition/substitutes at that level, the high barriers to entry, and their economies of scale.
The league is also in the process of try to ensure their five year deal does not expire with DirectTV and other satellite providers. The NFL has already showed they are on top of the mountain by occupying the top eight most watch spots on TV last year. “A new labor deal. The 2011 collective bargaining agreement ends in 2020. Labor peace is essential for the league’s economic growth. Expect Goodell and the owners to start trying to get a new deal done sometime well before the current one expires (Burke, 2013). The NFL is working on signing with Verizon to incorporate their own mobile network that will be worth somewhere around 1 billion dollars over five years. This product will enhance the game by allowing the fans to watch more games on the move from cellphones and other mobile devices. The NFL is working on make their fantasy football league more competitive and competes with ESPN and Yahoo. “The NFL’s fantasy game, at 3 million players, is still well behind ESPN and Yahoo YHOO -2.19%, which have an estimated 14 million and 12 million player, respectively (Burke, 2013)”. The league’s fantasy football league can be worth around $100 million dollars. Last but not least the NFL is try to expand the game into more countries; this process may result in other teams that will bring more viewers and more revenue.
The benefit of getting Congress involved is that the NFL is more likely to act. For example, on March 2012, “Senator Dick Durbin announced plans to hold hearings regarding bounties being paid to players for injuring other players.” Then on June 20, 2012, Commissioner Goodell of the NFL called for reforms to deal with the practice causing Durbin to cancel the hearings. However, the drawbacks of legislative action are that legislators lack the expertise in the field of football, there are “political costs for legislators who might be viewed as interlopers” for reforming football, and former NFL players might not have the money necessary to hire lobbyists. However, one solution that might benefit both the NFL and its players is associational
The National Football League(NFL) is running one of its own games on the public, and as one the most supported non-profit organizations in American history. The NFL excels at tackling the American taxpayer. It should be of no surprise that with its religious-like following, the NFL receives the same tax-exempt status as a church, exempted under the IRS 501 (c)(6) code from paying federal taxes. The legislation puts the NFL as a non-profit trade association which it has been under since 1942. This statement intends me to ask what Steve Almond asked in his book “Against Football: One Fan 's Reluctant Manifesto” how did this happen (Almond pg.81)? Imagine driving through a city. The things you see around you are: average constructed schools, average constructed houses, bumpy roads, and very old structured buildings. Oh but wait, in the middle of the city you see a huge modern electrical sign on top of a huge modern structure saying “The Coca Cola Arena”. At this minute you may ask, how can a very average sized constructed town have one the most fascinating buildings in the world? This to me is very controversial and leads me to agree with Steve Almonds claim that the NFL is an ideal model of crony capitalism and a corporate oligarchy.
Would you like to have more football team in the NFL? I want more football because what if you
The creation of the NFL network (NFLN) is one of the most significant broadcast developments in NFL history. NFLN was launched in November of 2013. The league invested $100 million to fund the network’s operations. The league and its owners wanted to create a platform that could be 24/7 programming that featured the NFL. At the time of its inception people questioned if there was a big enough market for this type of programming. However, the NFLN has become extremely popular and continues to grow today. In 2012, Forbes valued the NFLN somewhere between $5 and $5.3 billion with $1 billion in revenue and $350 million in operating income (Ozanian).
The NCAA’s greatest fear about paying student athletes is the money itself. They worry it will be spread thin between all the sports departments, but with all the money circulating around the college sports industry, they should not have any concerns. The two most popular college sports, football and men’s basketball, generate over $6 billion in annual revenue combined; more than the amount the National
Economic theory introduces us to four different types of markets: perfect competition, monopolistic competition, oligopoly, and monopoly. Professional sports teams operate in an environment that is different than the typical business structure. The goal of this paper is to look at this industry, in particular the NFL, in an economics context and gain an understanding of the market structure of this unique industry. To do this I will discuss a brief history of the National Football League in the U.S. and how this organization is structured. I will also discuss typical market structures and type of
My ideal system would be one where each sport team is viewed as its own entity. This would eliminate the monopolistic nature of the NFL. Teams would arrange games with each other independent of leagues. While an issue might arise from larger teams taking over, competition would still be fierce between mid range teams. If teams began to get out competed by bigger teams, smaller teams could enter for a whole new class of competition. There would be no leagues, but rather a scale of teams from best to worst.
Another major business decision that Pete Rozelle made that further solidified football as America’s favorite sport was the creation of the Super Bowl, which is now the most profitable single event for NFL every year. The Super Bowl today has become something like a national holiday for the people. It is the most anticipated sporting events every year as many people look forward to the Half-Time Show as well as commercials from specific companies like Doritos and the ever popular Mt.Dew. The Super Bowl was only possible from the NFL and AFL agreeing to merge in 1966. In January 1967, the first ever Super Bowl, which at the time was known as the NFL-AFL National Championship showcased the Green Bay Packers and the Kansas City Chiefs. Although the first Super Bowl did not sell out the stadium the game managed to reach the largest television audience for a sporting event with an astonishing 65 million viewers. According to Wallace (1996), “Soon after the first championship matchup between the established N.F.L. and the upstart American Football League in 1967, the Super Bowl became one of the most watched television programs, garnering ever higher rights ' fees from the networks and escalating ticket prices (p. 1). When the two leagues officially merged in 1970 the following season started to integrate the regular season games which brought new rivalries and more profit. The NFL has had their most profitable Super Bowl with its 50th appearance which could not have been
And since it is not condoned, online gambling organizations are based outside of the country so those funds which are in the billions are not tracked or taxed. Online internet betting has a major impact on the professional sports league in our country; which prohibit their players and staff from gambling within their sport. Online betting brings fans closer to the sport and its players since in some cases it is too expensive to attend a live event. So what leagues need to understand is that having legalized and regulated sports betting has the potential to positively impact the game along with the fan experience for fans that do and don’t gamble. Sports’ betting is already a big business, and leagues don’t see a dime from it. By legalizing sports betting it will provide regulation, so leagues can openly encourage fantasy sports; a fascination of major financial recourse for sports fans in today’s
Purpose Statement: In 1992, congress passed the Professional and Amateur Sports Protection Act to outlaw sports gambling in 46 states. Although sports gambling has been banned, it is still happening under the table. In 2018, the NBA's support under present Commissioner Adam Silver for nationwide legalized sports gambling is reaching new heights. This analysis is to discover the history of sports gambling and the NBA's attitude to sports gambling.