Abstract
The NFL is clearly one of the most successful sports leagues in the world. The value of the franchises and the amount of consumer surplus generated illustrate this fact. Over the past 2 decades profits have dramatically increased. Forbes estimates that in 2010 the 32 teams combined are worth over $32 billion dollars. Media contracts have been growing at a very rapid pace and bigger stadiums are being built, as evidenced in Dallas and New York.
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Notes
- 1.
Since Forbes estimates the 2010 value of the Washington Redskins to be $1.55 billion, the nominal yearly return over 83 years is 28.6%.
- 2.
Revenue and cost data is available from 1990 to 2009, which correspond to the franchise values which are available from 1991 to 2010.
- 3.
In looking at the Packer’s Income Statements from 1997 to 2009, net income averages about 75% of profit from operations.
- 4.
FCI is from teammarketingreport.com, and includes four tickets and various concession and parking prices.
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Winfree, J. (2012). NFL Franchise Values, Locations, and Stadium Economics. In: Quinn, K. (eds) The Economics of the National Football League. Sports Economics, Management and Policy, vol 2. Springer, New York, NY. https://doi.org/10.1007/978-1-4419-6290-4_3
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