In Fantasy Football, people make up fantasy teams using real football statistics based on how players do in real NFL games. The Fantasy Sports Trade Association says about 25.1 million people play fantasy football, spending $2.54 billion. Stadiums now try to capture revenue from this audience by creating special fantasy sports lounges with high definition (HD) TVs and Internet access to allow players to make changes to their fantasy teams. This increased interest in the fantasy game is an indirect benefit to the NFL because it increases overall fan interest in real teams.
Have you worn a hat sporting your favorite football teams logo? Played the EA Sports football video game? Then youve seen merchandising in action. In 1963, NFL Properties was created as a subsidiary company to the NFL. It looks after the licensing and merchandising for the NFL.
The Super Bowl, individual teams, and the NFL each have a logo thats put on merchandise.
Super Bowl team winning shirts and hats are out as soon as the final whistle blows, because manufacturers preprint them for both teams. So what happens to all that apparel created for the losing team? It used to just be destroyed, but that’s a waste of resources. Now the major sports leagues and major sports apparel manufacturers donate the misprinted items to World Vision, a charity that gives the merchandise to people living in poverty or in disaster regions all over the world.
Here, the football field announces loud and clear to viewers in the stadium and watching at home on TV that it is an NFL football game.
But the NFL isnt in the business of making and selling goods and souvenirs, or merchandise, with its logos on them. Instead, it licenses or gives permission for other companies to make and sell these goods in return for a fee. This means that companies pay the NFL for the right to put the Super Bowl and other NFL logos on their merchandise.
BIDDING FOR BUCKS
Companies that want to sell official Super Bowl merchandise send proposals to the NFL in a competitive bidding process. The NFL chooses the companies that best meet their needs and have the best proposal, which can include the best offer for percentage of sales going to the NFL. But the NFL does not choose just one company. It fragments, or breaks up, the market for its merchandise to take better advantage of sales from different companies. For the 2014 Super Bowl, MainGate, Inc. won the contract to sell merchandise at 40 hotels during the ten-day celebrations leading up to and including Super Bowl Sunday. The company beat 14 other bids to handle these sales for the NFL in exchange for a small cut of each sale. A different company won the contract to sell merchandise inside the stadium on game day.
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