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11-28-2012, 10:39 PM
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charliolemieux's Avatar
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Originally Posted by Grant View Post
TV deal is the biggest contributor to NFL teams being worth so much more. As Charlio said, that extra money is huge on the bottom line.

Also with NFL which has helped tremendously over the years is that they have had a 60/40 revenue split for quite some time now. That is the home team gets 60% of the gate revenue and the away team gets 40%. This very generous revenue sharing allows the small market teams to compete with the big market teams since they get so much of the money when they go to play other teams.

That isn't necessarily because they failed, but because they could make more money elsewhere.

When the LA Rams moved to St Louis, the team was doing fine, one of the better financially in the league. They moved because they got a much better stadium agreement which allowed them to be more profitable. Things in stadium agreements that can make a big difference is the amount of money the team gets from the luxury box suites (this money isn't included in the gate revenue sharing so it all goes straight to the team), concessions revenue, parking revenue, naming rights etc. The Rams got a better stadium agreement in St Louis so they packed up and left since it got them more money than they were currently making.

Similar thing with the Dodgers in baseball. Originally in Brooklyn, they were THE MOST profitable team in the league. They got a much better stadium agreement in LA (also not many baseball teams were out west at this time so they got a larger fanbase) so they left to make better money.
I should have spaced that out more.

I was also refering to early on where teams came and went like they did early on in the NHL. There was a lot of failure before they got together and figured it out. No franchise has actually folded since 1952.

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