The NFL is an absolute cash cow. If Webster's Dictionary ever decides to define the phrase, they could simply write 'see National Football League.' In 2001, the league generated $4.28 billion in revenue. By 2013, this figure rose to just over $9 billion, and last season, it reached an impressive $11.09 billion.
Currently, projections indicate that the league will generate over $12 billion this season. With such tremendous revenue being produced, one can't help but wonder if Donald Trump’s answer to the country's debt could involve nationalizing the NFL. However, that $12 billion would barely make a dent in the national debt. If that were to happen, it could mean the end of the commissioner position and the creation of a new cabinet spot: Secretary of the NFL for Roger Goodell.
Additionally, this could put Goodell in a position to potentially aspire to the presidency, in a rather improbable scenario where enough people become incapacitated. It's a thought that leaves one shuddering, but it highlights the immense financial power that the NFL wields.
The cash cow wasn't always as lucrative as it is now. Back in 1994, the league generated a modest $1.62 billion in revenue. With the revenue generated, the value of team stadiums, media contracts, and other assets, the total value of the 28 teams in the league as of 1993 was $3.64 billion. Fast forward to the present day, and the most valuable team in the NFL, the Dallas Cowboys, is now worth more than the entire league was in 1993, estimated at $4 billion. The second most valuable team in the NFL in 2015, the New England Patriots, is almost worth more than the entire league was in 1993, valued at $3.2 billion. Overall, the league is now worth a staggering $62.9 billion.
What a difference a couple of decades makes! In 1993, the average value of an NFL team was just $130 million. Last season, every team in the NFL generated more than double that amount in revenue. The Dallas Cowboys earned $270 million, while the New England Patriots made $195 million in operating income.
Team values have certainly evolved remarkably over the last couple of decades. The average NFL team is now valued at $2 billion, representing a 38 percent increase over last season and double the amount from five seasons ago. Comparing this to the average team value in 1993 reveals a staggering increase of 1,538 percent.
This growth should not come as a surprise when considering the numerous revenue streams the NFL now has compared to 1993. With networks beyond just NBC and CBS competing for television rights, the league's 32 teams shared $4.4 billion in national broadcasting revenue last season. Additionally, the league sold streaming rights to Verizon for $1 billion two years ago. Stadium values have also significantly contributed to current valuations. Nowadays, constructing a new NFL stadium costs no less than $1 billion, with many recent stadiums reaching costs of $2 billion. The only stadium built in the 80s was Sun Life Stadium, home of the Miami Dolphins, which cost just $115 million.
If Roger Goodell has his way, the league is projected to generate over $25 billion by the year 2027. Should this vision materialize, one can only speculate on what the value of each team and the league as a whole will reach.
