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Originally Posted by Giantone
To clear up some questions...
Revenue Sharing in the NFL
The NFL's revenue-sharing model is universally lauded as the reason pro football continues to thrive in tiny markets like Green Bay, Wisconsin.
The bulk of the league's revenue - approximately $4 billion in 2011 - comes from broadcast deals with NBC, CBS, Fox, ESPN and DirecTV. That income is shared equally among all teams. Income from licensing deals - everything from jerseys to posters to team-logo beer coolers - is also shared evenly.
Ticket revenue is split using a slightly different formula: the home team keeps 60 percent of "the gate" for each game, while the visiting team gets 40 percent.Other sources of revenue - things like the sale of luxury boxes, stadium concessions and the like - are not shared, which does give teams in bigger markets or with state-of-the-art arenas a significant edge in profitability. The new CBA attempts to remedy that in two ways. First, the league will set aside a percentage of revenue in a stadium fund, which will be used to match teams' investments in their facilities. Second, there will be an additional "luxury tax |
Thank you for the nice break down. But forget about 60/40 splits. The top 10 or 15 most profitable teams have to put money in the revenue sharing for the bottom 10 or 15 teams. Of their total income or profits. So if the Redskins are the most profitable team in the NFL and the Giants are #12, it stands to reason the Redskins would put more money into the revenue based off % of their profits.