The Giant Insider Online

What Controversy? NFL, Giants’ revenues up 4.9% in 2018

There was an increasing belief that the NFL was losing money in 2017 due to several factors. Changes in the rules, the decline in television ratings and the controversy surrounding the National Anthem were said to be turning fans and viewers away in droves.

That may have been the case, but whatever statement fans thought they were making by staying away from venues and tuning out apparently didn’t make much of an impact on the NFL’s bottom line. In fact, the league is more financially fit than ever.

“The NFL distributed more than $8 billion in national revenue, mostly from its television deals, in 2017,” veteran sports finance analyst Darren Rovell wrote on ESPN.com this week. “Each team pulled in $255 million, according to financials revealed Monday by the Green Bay Packers, a team that is a public company because it sells shares from time to time to raise money, even though its shares are technically worthless….The bump is an increase of 4.9 percent in national revenues, attributed to an escalator in the league’s TV deals and the league’s Thursday Night Football package becoming more valuable.”

The gravy train will continue to be ridden by the NFL owners, whose teams are all worth in the billions according to the most recent valuations in Forbes Magazine. The revenues will continue to climb over the next fews years.

From Pro Football Talk:

National revenue comes from the league’s TV deals with NBC, CBS, FOX, ESPN and DirecTV, as well as licensing and merchandise revenues. That money is split evenly among the 32 teams. Last year was the first time national revenue topped $8 billion.

For 2018, national revenue should be up again, as FOX will be paying significantly more for Thursday night games this year than NBC and CBS paid to split the package last year. A sustained decline in the league’s TV ratings could eventually cause the league’s revenues to decline, but that’s highly unlikely to happen before 2022, when the current TV deals expire.

The New York Giants were valued by Forbes at $3.3 billion last fall, which is the the third-highest among NFL teams (Dallas was worth $4.8 billion and New England $3.7 billion).

The NFL will also likely benefit from the Supreme Court’s recent ruling that paved the way for several states to legally begin taking wagers on professional sports. Football is the most popular sport for gamblers to place bets on and, even though the NFL will receive no direct monetary bump from the actual decision, it is believed that they will recognize a residual effect from the increased interest in the sport.

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