Like if the team wins a league, do the owners get paid any amount from the league itself? Or do owners make money from sponsorships, business deals etc
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Tv rights are the biggest source of income of sports teams. Owners share profits of say, the nfl, being on tv. Also traditional routes of ticket sales, merchandise and concessions, etc…
So they make the most money off advertisments and tv deals. 30-second ads are 7 million this year for the Super Bowl. Plus, they make money through advertisements that are in the stadiums. They also take money from jersey sales, ticket sales, concessions, and parking. They get tax breaks and other things, too.
TV broadcast rights, radio contracts, ticket sales, concessions sales, parking fees, team merchandise (jerseys, coffee mugs, etc) are a few of the ways the team owner cashes in.
The real money is when the owner sells the team and potentially doubles or more the initial investment.
The team as an entity brings in a lot of money from merchandise, concessions, sponsorship, and ticket sales at the venue not to mention licensing for things like video games and the TV rights which is a huge amount of income.
This money is split between parties the team, the League, and the venue using a pre-arranged deal.
Generally speaking the more popular and successful the team the more money you make. If you can’t fill half your stadium for any given game you don’t get those ticket sales, concessions, and advertisers are not going to be willing to pay as much to have their name in your stadium. Where-as if your one of the very popular teams you’ll fill your stadium regularly and advertisers will bend over backwards to give you money.
How much money a team gets from the league depends on the sport.
The NFL splits league money (TV contracts and advertising) evenly between the teams, this has the advantage that each team gets an equal amount of base-pay for players etc.
Where-as in Formula 1 this is defined by the Concorde Agreement and the teams are paid based on performance. Only the top 10 teams earn income from the governing body of the sport, and teams that do well and win are paid more than the bottom teams. This results in a haves and have-nots situation where the lower teams can never get enough money from the sport to improve, which is why corporate sponsorship (particular from a big auto manufacturer) is such a big deal in F1 because the arrival of a Honda or Audi and their investment can turn a small team into a winner. Ferrari also famously gets bonus pay just for showing up…
A lot of teams don’t make much or break even but the return on investment is incredible when they sell or just adding to their net worth and they’re wonderful rich people toys.
But 3 recent sales to back this up are the Ottawa senators of the NHL. Team broke even or lost money most years but 20 years after buying the team for under 70 million they sold the franchise for almost a billion.
The other is Michael Jordon who bought the Charlotte bobcats for 235 million 14 or so years ago and just sold for 2 billion.
Mark Cuban just sold a majority stake in the Dallas mavs similar idea ,he said it was the best investment he ever made.
It really depends on the Leagues contractual obligations to their players versus the broadcast revenues and merchandise sales they can generate.
In the case of the NFL, for instance, all teams could play their entire season in empty stadia, and they would still be earning a profit, so valuable is the League’s broadcast revenues.
In the case of the NHL, however, the only sure way for a franchise to guarantee profitability is to make the playoffs. All playoff gate revenues are basically pure profit for the home team.
Some leagues like the NHL have revenue sharing where the most profitable teams subsidize the teams that aren’t turning a profit.
But as someone else mentioned, the main sources of revenue are TV broadcasting deals and ticket sales, and then secondary sources like merchandise revenue.
Lots and lots of ways.
Merch, ticket sales, food sales, tv rights, commercials around the stadium, VIP stuff, the list goes on.
Merchandise, and advertisements. They also get revenue from the league for selling tickets
Teams make money from their cut of national TV deals that leagues sign, local broadcast deals; ticket sales, concessions, parking at their home stadium; sponsorship deals; merchandise revenue. Teams do not make any sort of prize money, although players do.
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