Do NFL Teams Make Money? A Breakdown of Team Revenues, Expenses and Profits

As a professional football fan, you’ve probably wondered how profitable NFL teams really are. With huge media deals, expensive stadiums and big payrolls, it can be hard to understand the league‘s economics. Here, we’ll take an in-depth look at how teams make money, their typical revenues and expenses, and how profitable they are. After reading, you’ll have a much better grasp of the NFL’s financial landscape!

How Do NFL Teams Generate Revenue?

NFL teams have several major revenue streams that allow them to pull in billions of dollars per year:

Broadcast Rights Deals

The biggest revenue source comes from national broadcast rights to air NFL games. These deals with networks like CBS, NBC, ESPN/ABC, Fox and Amazon Prime bring in over $10 billion per year and account for about 60% of total league revenue. This money is shared equally between all 32 teams.

The current rights deals run through 2033, and the NFL recently approved a new 11-year deal worth over $100 billion starting in 2024. These massive broadcast revenues provide each team with around $250-300 million per year even before they sell a single ticket!

Ticketing Revenues

Ticket sales to home games provide NFL teams with significant revenues. The average ticket price for an NFL game in 2021 was $151 according to Statista. With 8 regular season home games, plus preseason and potential playoff games, NFL teams can make big money at the box office.

Teams keep around 60% of ticket revenues. Premium seating like luxury suites and club seats can run tens of thousands per game, making them especially profitable. For instance, the Cowboys made nearly $120 million in gate receipts in 2019 according to ESPN.

Sponsorships

NFL teams can sell sponsorships and naming rights deals for their stadiums and practice facilities. They also sell space on banners, signs and other promotional areas inside their venues. Company sponsor logos even appear on team jerseys now.

For example, the LA Rams and Chargers will make over $30 million per year from SoFi in naming rights. Stadium naming rights deals are usually $10-30 million per year over 10+ years for NFL teams. Jersey patch deals are also worth around $10 million annually.

Merchandise Revenues

The NFL splits merchandise revenue like jersey sales for all 32 teams equally, similar to national broadcast money. Each team also runs its own retail operations like team stores that provide added revenue from merch sales.

For example, the Cowboys made over $150 million from their pro shop and online store in 2019 according to Forbes. Merch is a major revenue generator, with the NFL making around $2 billion annually in licensed apparel and product sales.

Local Media Deals

Many teams negotiate separate local media rights deals for radio broadcasts and preseason TV telecasts. For instance, the Patriots have a 10-year radio deal with Beasley Media that pays them $25 million annually through 2024. Local media provides supplemental income.

Other Revenue Sources

Teams make money from parking fees & concessions at their stadiums. Advertising inside venues provides additional income. Some teams like the Patriots even own their stadiums, which allows them to reap all revenues the facilities generate. Many also bank on non-NFL events held at their stadiums.

Revenue Sharing

One key fact about the NFL is that it shares national revenues like broadcast deals and merchandise equally between all 32 teams. This is different than leagues like the MLB. Revenue sharing ensures that teams in smaller markets remain financially stable.

How Much Revenue Do NFL Teams Generate?

Adding up all their revenue sources, NFL teams bring in significant money each year. According to Forbes, the average NFL team made $420 million in revenue for the 2021 season. However, there is a large gap between the top earners and lower revenue clubs:

• The Dallas Cowboys led the NFL with a record $1.1 billion in revenue in 2021. They are the sports world’s only $1 billion team.
• Low revenue teams like the Lions and Bengals make around $300-350 million annually.

Huge markets like Dallas have a built-in advantage for driving revenues through bigger sponsorships, ticket sales and merch demand. But all NFL teams are highly profitable enterprises due to those equal shared national revenues.

Team	2021 Revenue
Dallas Cowboys	$1.1 billion
New England Patriots	$600 million
New York Giants	$579 million
Los Angeles Rams	$570 million
San Francisco 49ers	$549 million

Table showing top 5 NFL teams by revenue according to Forbes in 2021

What Are the Major Expenses for NFL Teams?

After totaling up all the revenues, what are the major costs that come out of those earnings?

Player Salaries

The largest expense for NFL teams is player salaries. Each team must spend at least 89% of the salary cap each year on player compensation. The 2022 salary cap is $208 million. Signing bonuses and guarantees mean teams commit tens of millions in future salary obligations.

Teams must balance expensive stars with cheap rookies/role players to construct rosters under the salary cap. Bad contracts can cripple a team’s ability to spend on other players.

Stadium & Operating Costs

State-of-the-art NFL stadiums require hundreds of millions in construction costs. For example, the Raiders’ new Las Vegas Stadium cost $1.9 billion to build. Teams spend heavily each year on stadium upkeep and enhancements.

Day-to-day expenses like travel, equipment and training facilities also add up. The average NFL team has around 150 full-time employees. when you own a massive operation like an NFL franchise, costs stack up quickly.

Player Benefits & Taxes

NFL teams fund player health/retirement benefits and pay into league pension plans. Teams also pay “visitors shares” – about $2 million per game goes to the visiting team. Tax bills can run into the tens of millions for some teams.

Coaching Staff Salaries

NFL head coaches earn $5-10 million per season. Top coordinators make around $2 million. Teams also employ position coaches, support staff and personnel execs that drive up the coaching payroll. The Ravens had a $34 million coaching staff payroll in 2021.

Other Expenses

Marketing, advertising and promotions to drive ticket/merch sales. Travel costs for away games and scouting. Legal fees and insurance policies also contribute to the bottom line. Running an NFL team provides plenty of avenues for spending.

How Profitable Are NFL Teams?

After subtracting expenses, how much profit do NFL teams typically make? Operating income indicates profitability after expenses:

• The average operating income for an NFL team in 2019 was $109 million according to Statista.
• The Cowboys led the NFL with $420 million in operating income.
• The Bengals and Lions were among the only teams with operating losses.

NFL teams earn big profits, but the league also shares revenues evenly, which helps ensure stability. There are no teams hemorrhaging money like you see in other leagues.

However, NFL franchises have become even more profitable in recent years as rights fees and team values skyrocket:

• NFL revenue reached $16 billion in 2021 and profits have grown alongside it.
• Multiple teams reportedly made over $300 million in net profit last season.

The NFL‘s new $110 billion media deal will provide another boost to revenues and profits over the next decade. Football is simply a very lucrative sport to be in from a business perspective. Even teams in smaller markets are firmly in the black.

Does On-Field Performance Impact NFL Team Earnings?

Does winning translate to making more money in the NFL? There are certainly some financial benefits to better on-field performance:

• More Playoff Games – Reaching the playoffs means more home games and ticket sales. Playoff teams share an extra $15+ million per playoff game from the league’s bonus pool money. The Super Bowl winner takes home over $100 million.
• Increased Attendance – Winning generates more fan enthusiasm and higher ticket sales. Losing teams often struggle with blackouts and attendance late in losing seasons.
• Merchandise Sales – Fans are more eager to buy gear for winning, popular teams and players.
• Sponsorship Appeal – Brands pay more for deals with winning, high-profile teams that draw interest.
• TV Ratings – Big ratings equals higher ad revenue when local TV deals are renegotiated.

However, the NFL’s robust revenue sharing model still means on-field performance has less impact on bottom line than other leagues. The gap between the NFL’s most and least valuable teams is smaller than any other sport.

For example, the Bengals went to the Super Bowl last season yet remain one of the NFL’s least profitable teams. Meanwhile, the Giants missed the playoffs but still made huge profits. In the NFL, market size is still the key factor, but winning clearly helps maximize revenues.

How Much are NFL Teams Worth?

Thanks to surging revenues, skyrocketing broadcast rights fees and the scarcity of franchises, NFL team values have grown exponentially:

• The average NFL team is now worth $3.48 billion according to Forbes.
• The Dallas Cowboys are the NFL‘s most valuable team at $6.5 billion.
• Even lower revenue teams like the Lions and Bengals are worth over $2 billion.

NFL franchises have become arguably the best investments in all of professional sports thanks to their extremely high revenues and massive growth:

• Team values are up 300% over the past decade. Every team is worth at least double what they were 10 years ago.
• Owners who bought teams 20+ years ago have made returns of 500-1000% on their initial investments.
• New NFL owners are paying $2-3 billion just for expansion fees to join the league.

With deep-pocketed corporations and wealthy individuals eager to enter the exclusive NFL ownership club, team values should continue rising steadily in the coming decade.

NFL Player Salaries: How Much Do Pros Make?

Let’s look on the other side at what NFL players make. The average NFL salary is $2.7 million per year. The highest paid stars like Aaron Rodgers can earn over $50 million per season with bonuses and endorsements. Minimum salaries for rookies and veterans are between $500,000-$1 million.

The salary cap has risen about 35% in just the past 5 seasons thanks to the NFL’s ballooning revenues. That has allowed star player salaries to skyrocket:

Position	Highest Paid by AAV	Contract Details
QB	Aaron Rodgers, $50M	3 years, $150M
WR	Tyreek Hill, $30M	4 years, $120M
Edge	Joey Bosa, $27M	5 years, $135M
CB	Jalen Ramsey, $20M	5 years, $100M
LT	Trent Williams, $23M	6 years, $138M

Table showing highest paid NFL players by position

NFL contracts are also unique with non-guaranteed deals and bonuses tied to performance. Just a $1 million base salary could end up yielding $20+ million for a star QB or pass rusher.

Do Coaches Make More Than NFL Players?

For top coaches, their salaries rival or even surpass the league‘s highest paid players:

• Bill Belichick is the NFL’s highest paid coach at $12.5 million per year.
• Pete Carroll, Jon Gruden, Sean Payton, Matt Rhule and Sean McVay all make between $8-11 million.
• The average NFL head coach salary is around $6.5 million.
• Many assistant coaches like coordinators make $1-2 million.

New TV money could push top coaches like Belichick to over $15 million annually. Experienced head coaches earn CEO-level pay but are still below the salaries for top quarterbacks and pass rushers.

How Do NFL Team Owners Get Rich?

Many current NFL owners inherited their teams from a parent or other relative. However, others have managed to buy into the league through business success:

• Robert Kraft, Patriots – Built his fortune through paper and packaging companies. Bought the Patriots for $172 million in 1994. They are now worth $5 billion.
• Jerry Jones, Cowboys – Made his money in oil and gas. Bought the Cowboys for $150 million in 1989, the team is now worth $6.5 billion.
• Shahid Khan, Jaguars – Became a billionaire in auto parts manufacturing. Paid $770 million for the Jaguars in 2012.

NFL franchises have been tremendous investments historically. Owners who bought teams decades ago for less than $100 million are now sitting on assets worth over $3 billion.

Today it costs over $2 billion just to buy an expansion franchise. Billionaires see owning an NFL team as one of the most exclusive status symbols and valuable assets in all of sports.

How Have Team Values Changed Over Time?

It’s amazing to look at just how much NFL team valuations have grown over the decades:

• In 1995, the average team was worth $197 million. Only the Cowboys were worth over $200 million.
• By 2005, the average franchise value had grown to $898 million. The Redskins were the first $1 billion team.
• Flash forward to 2022, and the average team is worth $3.48 billion. There are multiple $5 billion franchises.

This growth has been driven by an enormous increase in revenues, from rights fees to sponsorships. Rising valuations also stem from a scarcity of teams and high demand from billionaires to join the NFL ownership club.

Team values are certain to continue rising in the future. The next NFL TV contracts in the 2030s could bring annual revenue close to $15 billion per team! Tremendous profitability and exclusivity will keep franchises appreciating at a rapid rate.

How Has COVID Impacted NFL Revenue?

The global pandemic has had some notable financial impacts on the NFL, though the league has weathered the storm well compared to other sports:

• Lost ticket revenue from restricted attendance cut into profits, especially for teams like the Cowboys.
• Lower attendance caused declines in concession and parking income.
• Merchandise and apparel sales were also reduced with fewer fans.
• Teams took on big expenses to meet health protocols for safe games and practices.

However, massive TV contracts meant the NFL‘s bottom line was largely unaffected:

• Soaring ratings during COVID shutdowns had networks eager to pay up in rights fees.
• New broadcast deals were still signed at over $100 billion, proving the NFL‘s recession-proof appeal.
• Expanded playoffs added inventory and more revenue streams.

While COVID caused shortfalls, smart leadership kept the NFL juggernaut moving with little disruption. Incredible fan demand underlined how audiences craved the return to normalcy represented by the NFL.

Final Thoughts on NFL Team Revenue and Profitability

The business of the NFL has never been bigger or more profitable. Surging rights fees and growing streams like legal gambling provide amazing growth opportunities going forward. Owners of long-time franchises like the Giants and Bears have already made back 10 times or more on their initial investments.

New owners are still willing to pay record prices of $2-3 billion to get a piece of the NFL, the world‘s most powerful and profitable sports enterprise. With just 32 teams and tremendous demand to join that exclusive club, the increasing value of teams should continue for decades to come.

While players and coaches make life-changing money of their own, the NFL remains a league where billionaire owners and massive corporations reap the biggest financial rewards. As broadcast rights continue growing towards $20 billion annually, you can expect more and more of the NFL‘s massive revenues to end up in the pockets of owners.