Latest Issue. Past Issues. The train travels south, dips underground through downtown Oakland, hangs a froom around Lake Merritt, and resurfaces in Fruitvale. I and my fellow passengers walk over the sloping concrete bridge, where vendors hawk tickets, T-shirts, and beers amid the din of train whistles and street drummers, and we merge with other fans. We all go inside, having given our money to John J. Money has to change hands. To help hw, cities fund public infrastructure to facilitate commerce. But whereas nearly every other business funds the construction of its facilities and pays taxes too, cities often give money to private pro-sports franchises to entice them to come, and then give them even more to stay.
Ticket Sales
By any measure, the NFL is the most successful American sports league in history. In , in response to mounting criticism for its quickly growing revenue, the NFL gave up the tax-exempt status it had held since The league now exists as a trade association made up of and financed by its 32 member teams. Other revenue streams include ticket sales, merchandising, and licensing rights and corporate sponsorships. Despite steadily declining viewership since and recent controversies about concussions and the national anthem, the NFL is making more money than ever. And the league is showing no intentions of slowing down. National revenue consists of TV deals along with merchandising and licensing deals, which are negotiated at the national level by the NFL itself. This money is then divided evenly between the 32 teams regardless of individual performance. Local revenue, which consists of ticket sales, concessions, and corporate sponsors, is earned by the teams themselves. However, the costs of running a professional football team are high.
Education Requirements
Football is, hands down, the most-viewed sport in the U. Nineteen of the 20 most-viewed TV broadcasts in U. These games are consistently the highest rated shows on TV, so media companies have shelled out big bucks for the rights to broadcast them. Although the majority of its national revenue comes from its monster TV deals, the NFL also makes money by selling companies the rights to sell items that represent the NFL. For instance, the NFL, in partnership with Nike, signed a year licensing deal with online sports-retailer Fanatics in On average, NFL stadiums seat about 70, people, and games usually sell out. The one thing teams can do is choose to renovate their stadiums to add more seats and concession stands. Such renovations are costly and disruptive, but usually pay off. NFL teams can also use their stadiums to host non-football events, like concerts, but opportunities for revenue growth from these events have the same limitations.
Hospitality Tickets
The stadium is still under construction; revenue and capacity figures are projections, and a naming deal is pending. Photo courtesy of dbking , Creative Commons 2. Game day can only generate so much revenue, so the Pats developed an additional way to profit from stadium land — Patriot Place, a 1. As the season opened, merchants had already committed to 90 percent of the retail space. Photo courtesy of Ed Schipul , Creative Commons 2. At «the Linc,» the Eagles score serious cash from one of the most expensive premium seating options in the NFL — the Touchdown Club, which includes front-row seats, front-row parking, access to the luxury lounge, and gourmet champagne-and-crab-legs tailgate fare. The seat licenses raised millions to offset construction costs, setting an NFL trend for club seating in new stadiums.
Hospitality Tickets
While the work is hard, it is possible to earn a considerable income and retire at an early age. If the growth of TV deals in the last few decades are any indication, these deals will also continue to grow rapidly over the coming decades. In days of yore football grounds were named after the area in which they were built or some other geographical point of interest; see White Hart Lane , the Riverside or Bramall Lane for proof. The offers that appear in this table are from partnerships from which Investopedia receives compensation.
Cowboys Stadium
Football Stadiums can be iconic venues in certain cities. From the likes of St. So how do football stadiums make money? Is it just down to when they host sporting events, or is there more to it than that?
Well, spoiler alert, if it was just about ticket sales then this would be a short and somewhat boring page. Even ticket sales is a complicated business, of course, with hospitality packages being a crucial part of the way clubs make money.
It would be silly, though, to pretend that ticket sales are nothing to do with the income that arrives courtesy of stadiums. Old Traffordfor example, has a capacity of 75, Manchester United have room for more than 75, people to enter their ground, whilst Bournemouth can only fit just under 12, supporters in the Vitality Stadium. The reality is that ticket sales used to be a huge part of how football clubs make money.
Nowadays, though, there are countless other ways that sides bring home the bacon, meaning that ticket sales are arguably less relevant than. So if ticket sales is only one string to a football stadiums money-making bow, what else is there?
Technically this is a continuation of the ticket sales conversation, especially as hospitality sales are included in those calculations. When Liverpool Football Club opened their new Main Stand, for example, the number of hospitality seats within it doubled. Clubs in London, as an example, are able to charge significantly more for their hospitality packages than those up North.
Hospitality is a very lucrative business. By renting them out to businesses who want to have an impressive backdrop for meetings, conferences and events. Clubs can also appeal to the most loyal of their supporters by allowing them to get married at the stadium, with some even letting them get their photo taken on the pitch. Clubs also allow events such as Play On The Pitch days, should that tickle your fancy. Not all football stadiums either can be or are used for external events such as concerts.
In Take That had played eight sell-out concerts at Wembley, for example. In days of yore football grounds were named after the area in which they were built or some other geographical point of interest; see White Hart Lanethe Riverside or Bramall Lane for proof.
Then, as football became a bigger and more globally recognised sport, clubs realised that money could be made from getting their stadiums sponsored by companies. When Arsenal decided they wanted to leave Highbury for pastures new, they looked for sponsors for their new stadium. Another small bit of income for football clubs comes in the form of food and drink sales on the day of games or other events.
Reports into this income often include programmes, mainly so that they can refer to it as the ‘Triple P Index’ of a Pie, a Pint and a Programme. Perhaps somewhat unsurprisingly, clubs based in the capital tend to charge you the most for what you want to eat, drink and read. Add in the likes of a pint, a hot dog, a chocolate bar or a soft drink and you can see how clubs are able to turn a decent profit courtesy of flogging food and drink to supporters.
You can also see why local fans tend not to indulge when inside the ground, instead spending their money with nearby vendors. It is common for top-flight football clubs to offer tours of the stadium to people all-year round. This is particularly the case with sides like Chelsea, Manchester United or Liverpool who have stadiums that folk are likely to want to visit, irrespective of their own personal footballing allegiance.
Far from being an exercise in philanthropy, the museums charge people to enter them and offer football teams yet another income stream. Football grounds are multi-purpose venues more than at any time in their history, so clubs will look for as many ways as possible to earn money from.
That is especially the case with the newer stadiums that have cost hundreds of millions of pounds to build. We should also point out that clubs at the top of the profession find it far easier to make money from their stadiums than those further down the divisions. Head to League Twofor example, and the majority of grounds have capacities of under 10, By Lensicle’s bio www.
TV is the NFL’s golden goose, but gambling and streaming show potential.
Stadium boosters often claim a new Chargers stadium could bring in hundreds of events. It can host many other events — and those concerts, expos and conventions can help pay the bills for a pricey new facility. The numbers bear that out — sort of.
The League’s True MVPs: Top 10 Stadiums by Revenue
Only mega-events, which are relatively rare, make a significant dent in a stadium budget and the specifics of each deal stadimus the football team calling the facility home drive just how much koney events matter to taxpayers helping pay for the new venue. Think bar mitzvahs, corporate meetings, proms and birthday parties, plus a smattering of events with more than 20, attendees. Concerts and college football games — both of which draw lots of ticket sales — make a lot. Mhch the Marion County, Ind. In San Diego, the city collects all cash associated with dozens of non-Chargers and Aztecs events held at Qualcomm each year. Steeg said companies such as Anschutz Entertainment Group or SMG could more aggressively promote the new San Diego stadium and get more creative about potential events. But he cautioned that big, lucrative events are concetrs available in limited number, even if a professional events company takes over, as the task force is envisioning. Steeg should know. He thinks a new nvl and events arrangement could help San Diego bring in more of those large gatherings. Yet there are no guarantees the money those events make will go to the city or the county. It could go to the team, instead.
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