Hper P-426 Article Review
The article I read is called, “Road to $25 Billion: Where could the NFL’s revenue growth come from?” The aspiration of getting to $25 billion was introduced during an annual owners meeting in Orlando in 2010. This number was figured based on the amount of money the NFL needed to compete as a global entertainment brand. They wanted the NFL to compete not only against other sports leagues but also against well-known companies such as Apple. The league hopes to reach this goal by 2027. As of 2012, the NFL had $9.5 billion of revenue. In order to reach their goal, they will have to average over $1 billion dollars of revenue annually for the next 15 years. The NFL has their goals set really high and they are going to have to innovate substantially to reach this target. The article says they will have to get even more out of media and create new lines of business in order to do this. The NFL is going to make a substantial amount of money from media deals over the next 15 years. In 2014, they are going to have new TV contracts that will increase rights fees. Also, the NFL’s deals with Fox, NBC, CBS, and ESPN expire in 2021 or 2022. This will lead to new increased negotiations with the popularity of the NFL. The only way this could be interfered with is if player health and safety hurts the popularity of the NFL or if a tragedy happens such as an economic or military disaster. Another media aspect that will bring in an extensive amount of revenue is through Direct TV’s out-of-market package that expires in 2014 and their deal with Verizon that expires in 2014 also. Direct TV already pays $1 billion annually so I feel the NFL can definitely have cable companies compete and outbid each other for the new NFL contract. Once the Verizon contract ends, the NFL will be able to test the mobile market. I think this will be very effective with the occurrence of smart phones and tablets. If the NFL is able to get a contract with ESPN and their Watch ESPN app, I think this will