NFL has its cake and eats it too with billion dollar revenue push

Discussion in 'NFL Zone' started by RS12, Feb 15, 2014.

  1. RS12

    RS12 Well-Known Member

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    Nearly four years ago, Roger Goodell outlined a rather audacious annual revenue goal of $25 billion by 2027 to NFL owners, his de-facto employers. At the time, the NFL was doing about $8.5 billion annually meaning that Goodell was hoping to raise revenue $1 billion a year for 18 years to hit the mark. Surprisingly, with the help of recently renegotiated television deals as well as the new CBS Thursday Night partnership, the NFL is on track. Not bad for a non profit organization right?

    There are a lot of interesting things to ponder in light of the NFL's latest big step towards the goal with a shrewdly conceived gameplan on the Thursday night front but what sticks out to me is just how brilliantly efficient and aggressive the NFL is becoming as a business. As a fan, some of this is troubling but as a guy who just started watching syndicated programming on CNBC, it's damn impressive.

    When I heard the revenue goal back in 2010, I thought it was insane. Inflation would help, media rights would help, but there was a huge gap from getting from under $9 billion all the way to $25 billion. Ticket holders would revolt at some point, the media companies would too, and at some point there wouldn't be any more treasure maps for the NFL to pull out to start digging for revenue.

    And yet the NFL is on pace to reach that goal and the snowballing revenue rolls over whoever it wants. The networks are paying up, advertisers are too, ticket prices rise while blackouts decline, and there is no end in sight.
  2. Cowboy Brian

    Cowboy Brian Augmented. Zone Supporter

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    If the WWE Network takes off this goal could become a reality, NFL follows the model and brings the NFL Network online with archived games (which they already offer) and content for a reasonable price, something like $12.99 a month. Could easily see 4-5M subscribers, even without live games adding about $1b per annum. If they were able to put live games they could easily charge $29.99 per month and get 10m+ subscribers ($3.6b per annum).
  3. JackWagon

    JackWagon Well-Known Member

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    When is the NFL gonna start being a "good corporate citizen" and begin to start paying taxes like you and me?

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