FOS PM: The NFL’s $11.1B Year – Front Office Sports

National revenue for the NFL’s 2021 season reportedly reached $11.1 billion — totaling $343.75 million for each team.

The figure is 12% higher than in 2020, according to a report, which says it’s a record tally — though in January, Bloomberg reported the NFL’s 2019 revenue to be $15 billion, with the goal of boosting it to $25 billion by 2027.

The figure from Thursday’s report includes media rights, sponsorships, and shared revenue and royalties from NFL subsidiaries and affiliates. 

• Sponsorship revenue for the league reportedly increased 23%. Outlets recently reported that the league was nearing $2 billion in sponsorship deals for the first time.
• Before the start of the season, it was estimated the teams’ revenue would fall between $335 million and $340 million.

All but one of the league’s 32 teams are privately owned, meaning local revenue isn’t known. The Green Bay Packers are the sole NFL franchise that makes results public, though their figures give insight into the rest of the league. 

The Packers’ 2021 report will be released this month. In 2020, they reported $309.2 million in revenue — up from $296 million in 2019 — with $62 million in local revenue.

Future Finances

The NFL’s revenue is poised to go up. Last year, the NFL signed broadcasting deals worth roughly $113 billion, setting teams up for more than $400 million in revenue. Most of the deals begin in 2023, but ESPN’s deal — roughly $2.7 billion annually — began this year.

The league is also working to grow its international business to $1 billion. Last year, it began allowing teams to market in specific foreign countries.

The Chicago Cubs became at least the sixth pro team among the four major sports to face a lawsuit over alleged violations of the Americans with Disabilities Act.

On Thursday, the U.S. Attorney’s Office for the Northern District of Illinois filed a lawsuit in a Chicago federal court that alleged the Cubs “removed the best wheelchair seating in the stadium” and that many seating areas “do not have adequate sightlines” after a $550 million renovation project.

• The ADA — landmark civil rights legislation signed into law in 1990 — laid out protections for people with disabilities.
• Existing sports venues like Wrigley Field — the second-oldest ballpark in the majors (opened 1914) — had to comply with parking, bathroom and entrance/exit standards.
• New construction — and any venue built after 1990 — must follow all accessibility requirements of the ADA, as updated in 2010. 

The Cubs said in a statement that they were “disappointed” by the lawsuit, adding that they “fully cooperated” with the U.S. Attorney’s Office’s investigation.

Other ADA Issues

The San Francisco 49ers were among the defendants in a 2016 lawsuit that was settled for $24 million in 2020. Five other organizations — Kroenke Sports and Entertainment (Colorado Avalanche and Denver Nuggets), the Seattle Mariners, the Baltimore Orioles, and the New Orleans Saints — have faced ADA legal challenges in the years since.

“I don’t know why there are all these problems. I think if a bunch of lawyers can read the code, architects should be able to as well,” disability rights attorney Amy Robertson said.

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Everton FC is off the market.

Majority owner Farhad Moshiri wrote a letter to the club’s fans assuring them that any new investment in the team would only be a minority stake.

“There has been much talk of investment in our football club recently — even takeovers — but I want to clarify that there is no for sale sign currently hanging outside Everton Football Club,” the letter reads.

Last month, a group led by former Chelsea FC and Manchester United chief executive Peter Kenyon reportedly held discussions to purchase the club. Reports suggested Moshiri was open to selling equity stakes in the club and/or external investments in the franchise’s new $605 million stadium.

• Moshiri intended to talk to Kenyon’s group about stadium funding, but the discussions reportedly developed into exclusive takeover talks.
• Reported estimates for the club’s price tag ranged from $609.1 million to $1.2 billion.

“I am focused on completing the financing for our fantastic new stadium as well as strengthening the playing squad, and that might include a minority investment,” Moshiri wrote. “That will continue.”

The stadium is slated to open ahead of the 2024-25 season.

Looming Losses

It’s no surprise that Everton needs funding for its stadium. In March, the club reported a loss of more than $131 million for the third consecutive year — totaling $438 million in losses over the last three fiscal years. 

In the last seven years, Everton has only made a profit once.