HOW DOES A SUPER BOWL TEAM MAKE MONEY?

SOURCES OF INCOME

Football teams make money from game ticket sales, concession sales of food, drinks, and souvenirs; merchandise license fees (money from selling other companies the right to make official NFL team merchandise), and TV rights. The home team keeps profits from food and drink sales and parking at their home stadium. The amount of profit varies depending on the size of the stadium and on the lease contract (a rental agreement) with the stadium. For example, the Atlanta Falcons earned $500,000 from one game, whereas the New England Patriots have received more than $2 million.

The NFL collects the ticket sales revenue from all the NFL teams games, then distributes 60 percent of the money to home teams and 40 percent to visiting teams. In 2012, the league distributed $17 million in ticket sales. The NFL

After a successful college football career that won him the Heisman Trophy, Tim Tebow has a large fan following. But, in the NFL, he has struggled to play quarterback well. Can you use the concept of demand to explain one possible reason a team might want to sign him? Could you argue that he brings with him intangible benefits?

also divides the money received from TV broadcast deals (at least $6 billion a year) and merchandise licensing, then shares it equally between all the teams in the league.

DO PLAYOFFS PAY?

The NFL gives the teams in the playoffs a payment for each game to help cover travel and other expenses, and also to pay their players during the playoffs (player contracts only cover the regular season). But if a team isnt doing much more than covering its expenses, why would it bother being in the playoffs? Thats because of the intangible benefits of being in the Super Bowl, such as more fans for the team.

HOW DOES A SUPER BOWL TEAM MAKE MONEY?

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