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The Business of Sport: NFL, F1, PGA Tour - [Business Breakdowns, EP. 96]

Business Breakdowns

NOTE

Revenue Sharing Reinforces NFL Dominance

Fan interest significantly drives revenue for brands associated with the NFL, such as Fanatics and DraftKings. The NFL distributes $10 billion in shared revenue, which is equally divided among the 32 teams after deducting league-level costs. This shared revenue forms the baseline for team revenues and impacts player salaries through a guaranteed amount. The NFL's distinct hard salary cap and its high revenue sharing—approximately 60%—distinguish it from other leagues like the NBA, which shares under 50%, and MLB or NHL, which share even less, in the 30s or lower. This substantial revenue sharing contributes to the NFL's uniqueness and financial strength in professional sports.

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