Quote:
Originally Posted by mlyons
The NFL doesn't have markets, though. The vast majority of their money comes from national TV contracts, which pay Green Bay the same amount of money that they do New York. Tickets sales make up a miniscule part of NFL team revenue (and supply is so limited that revenues don't have much relation to on-field success) and local TV contracts (the vast majority of MLB revenue) don't exist. It's an entirely different model, and one which you can't conceivably compare with baseball's.
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Indeed. If one parses the latest
Forbes repoprt on NFL club values, one finds that ticket and concessions sales account for about 24.9% of NFL revenue. Broadcast revenue accounts for 49% of league revenue. The source for the remaining 26.1% of revenue isn't mentioned, but presumably it includes such things as merchandise sales, advertising, promotions, and sponsorships.
In comparison, here's the breakdown of revenue for MLB as a whole for 2006, in millions of dollars:
Ticket sales: $1,933 (34.6%)
National broadcasts: $935 (16.8%)
Local broadcasts: $837 (15.0%)
*Other local revenue: $1,212 (21.7%)
**Other national revenue:$34 (0.6%)
Domestic merchandising & licensing: $207 (3.7%)
International merchandising & licensing: $105 (1.9%)
MLB.com: $317 (5.7%)
TOTAL: $5,580 (100%)
*includes luxury suites, sponsorships, advertising
**includes All-Star Game revenue, royalty payments from minor leagues, miscellaneous items
Local and national television combined only accounts for 31.8% of total MLB revenue, a smaller percentage than ticket sales.