For the year 2016, NFL franchises split a league record revenue figure of $7.8 billion, according to a report from the Green Bay Packers.
The publicly owned Packers recently presented their financial outlook, and reported that they had received a record total of $441.4 million in revenue–up from $409 million in the previous year. While revenue did improve at the local level, the Packers report (more on that can be read here) shows a significant increase in the team’s share of national revenue.
According to the financial report, the $7.8 billion in national revenue split by the NFL’s 32 teams gave the Packers a share of $244 million, an uptick of about $21 million from the previous year. Looking at the broader picture, it is apparent that the NFL’s media contracts are proving to be a major factor. The NFL’s most recent agreement for Thursday Night Football is cited as a having a role in the latest revenue increase. More from Bloomberg:
The teams’ bigger payout is mostly a reflection of a new Thursday night TV deal with NBC and CBS, which agreed to pay $450 million, up from $300 million the previous cycle. As for the players, they can’t renegotiate their share of league revenue until 2020.
“We’re very fortunate that we’ve seen the kind of growth that we have, and I feel very confident that we’ll continue to see it, at least through the rest of this collective bargaining agreement,” Packers President Mark Murphy said on a conference call with reporters.
The $7.8 billion is just one piece of the league’s overall revenue, which is estimated at $14 billion for 2017. Goodell has stated he’d like the league to reach $25 billion by 2027. That growth will depend largely on the NFL’s ability to navigate a media marketplace that is rapidly evolving, as younger generations abandon traditional cable packages and streaming becomes more important.
National revenue is influence by more than media deals, as factors such as lisceneing and merchandise sales, and league sponsorships can come into play. As noted, the NFL’s revenue increases at the national level were supported by local revenue upticks for the Packers. The team managed to exceed $400 million in revenue for the second straight year, and reported a profit of $65.4 million.