UNITED STATES—The National Football League is not just America’s most popular sport, it is a massive business empire built on the value of its 32 franchises. While fans focus on the on-field action, there are high financial stakes in the front offices that drive the league. According to Forbes’ latest valuation rankings, the average NFL team is now worth a record $5.1 billion.
The Dallas Cowboys Reign Supreme
The Dallas Cowboys are professional sports’ most valuable franchise for the 17th consecutive year, now topping $9 billion. Dubbed “America’s Team,” the Cowboys benefit from their national popularity and marketing prowess. The opening of AT&T Stadium in 2009 also significantly boosted revenues. The Cowboys generate over $1 billion annually, with sponsorships from companies like PepsiCo, Ford, and American Airlines.
Storied Franchises Round Out the Top Five
The New England Patriots ($6.4 billion), Los Angeles Rams ($6.9 billion), New York Giants ($6 billion) and San Francisco 49ers ($6 billion) round out the top five. These teams all play in major markets and have benefited from new stadiums and long track records of success. The Patriots’ six Super Bowl wins under Bill Belichick’s leadership have made them a juggernaut. The Rams got a boost from their recent relocation back to L.A. and a brand-new $5 billion stadium.
Most Valuable Doesn’t Equal Most Successful
The list shows that a franchise’s overall value doesn’t necessarily correlate with on-field success. The Cincinnati Bengals were valued at just $4 billion despite reaching the Super Bowl last season. Even the Bears, with a league-high nine championships, are worth only $6 billion – just the 16th highest valuation. The Chicago Bears odds of winning Super Bowl LVIII sit at a modest +12500.
Massive Revenue Streams
What accounts for these staggering franchise valuations? NFL teams have become cash cows thanks to lucrative media deals. Each team gets an equal share of national revenues, which will hit $12 billion annually with new TV contracts kicking in. Add in local sponsorships, premium seating, and concessions at state-of-the-art stadiums, and the money pours in for team owners.
Huge Investments
Of course, running an NFL team also requires huge investments. The average player’s salary exceeds $2 million, the Rams’ new stadium costs over $5 billion to build, and teams spend millions on training facilities, analytics departments, and other football operations. But new stadiums, in particular, have been financial boons, with naming rights deals and premium seating revenue surging.
Global Growth Potential
While football remains a predominantly American sport, the NFL sees significant growth opportunities internationally. Regular season games in London and now Germany have been a success, and the league continues to eye expansion abroad. The sport is also growing in Mexico and Canada, and global branding deals and international growth provide plenty of financial upside.
The Impact of Ownership
The individuals and families that own NFL franchises play a significant role in their profitability. Owners like Jerry Jones of the Cowboys and Robert Kraft of the Patriots have become business and sports icons. Their business savvy and willingness to invest in their teams have paid off handsomely. The outsized importance of owners is why the NFL thoroughly vets prospective buyers, like Walmart heir Rob Walton, who purchased the Broncos for $4.65 billion last year. Owners have enormous power to shape their team’s financial success.
Sharing the Wealth
While the NFL’s top teams are financial juggernauts, the league maintains surprisingly equitable economics. The league’s substantial national revenue, like TV deals, is divided evenly among all 32 teams. This gives small-market teams like the Buffalo Bills or Jacksonville Jaguars a fighting chance. There is also a salary cap that limits player spending. Revenue sharing and cost controls create a more balanced playing field. This parity helps maintain excitement and interest from fans in all NFL cities. America’s passion for pro football enriches even the league’s lesser franchises.
Conclusion
The NFL’s teams are more than sports franchises – they are multibillion-dollar corporations built on the country’s obsession with professional football. While fans obsess over playcalling and touchdown passes, the league office and owners focus on the bottom line. As always, money is the real name of the game.
