Unpuzzle Finance

Unpuzzle Finance > Business > The Super Bowl Is Worth Billions – Here Is Why

The Super Bowl Is Worth Billions – Here Is Why

Advertisments - Continue Reading Below

The Super Bowl is one of the most anticipated and celebrated sports events of all time in the United States.

A day’s event that keeps millions of fanatics both citizens and internationals glued to their TVs, while for the thousands who are privileged watch it lives at the stadium.

Advertisment - Continue Reading Below

The Super Bowl rakes in a tone of revenue going up to billions of dollars.

The Super Bowl generates high TV ratings through broadcasting the NFL. Broadcasting TV stations rake in tens of millions through advertisements and TV commercials.

On average, a 30-second ad would cost over 5 million dollars but would go up in the next Super Bowl.

In 2017, a 30-second ad was going on the rate of slightly over 4.5 million dollars and an average of 5 million dollars in 2018.

During a regular NFL match, 30-second ads go for over $600,000. The NFL has had talks with broadcasting partners to reduce the number of advertisements breaks because of feedback from viewers. The adverts also slow down the game.

How The Super Bowl Makes Money

Ticket sales, merchandise sales, and grant sales have also been heavy players in terms of avenues that generate revenue besides advertising which rakes in the most. In 2017, the three players raised more than 80 million dollars.

CBS has broadcast the Super Bowl for 20 years. In 2018, they garnered a cumulative $480 million on ads alone. Broadcasters; CBS, NBC, and FOX pay a whopping 3 million dollars for broadcasting rights every year from 2013 to 2022 to the NFL.

Advertisment - Continue Reading Below

Since the NFL does not release its financial reports to the public, one team which is owned by the fans does. The Green Bay Packers based in Wisconsin had a total of over 454 million dollars for the year that ended in 2017.

The NFL disburses proceeds termed “National Revenue” to all teams received from television rights. In total, since it is divided equally to all teams, the NFL gets up to over 8 billion dollars each year.

Sponsorship Deals

Sponsorship deals from big companies have also come through in the Super Bowl and through NFL games in the past years to date.

Companies like Visa, Budweiser, Pizza Hut, McDonald’s, Coca Cola, recently Facebook, Amazon and Caesars Casino among many others have signed sponsorship deals with the NFL.

Visa has been a long-time partner since 1995 and renewed its partnership extending to 2025. NFL got up to over 1.3 billion dollars in sponsorship money in the 2018-2019 season as a whole.  

Caesars, which is the first casino to partner with NFL signed a sponsorship contract amounting to 30 million dollars.

Winners and losers of the Super Bowl get hefty rewards. In 2018, each winner team member of the winning team bagged $118,000 while the “losers” each walked home with $59,000. All players also got $83,000 in terms of post-match earnings.

Advertisment - Continue Reading Below

Retailers make a lot of money from sales of food and drinks. On average, one person according to statistics would spend up to over $80.50 hence stores raking in up to $14 billion in revenue.

The Mercedes-Benz Stadium, home of the Atlanta Falcon team undoubtedly has the largest logo of Mercedes-Benz on the rooftop. The stadium rose up to over $1 billion in terms of sponsorship and Mercedes paid $324 million for naming rights.

When Mercedes sponsored that much, they did it for the love and culture for the game since the manufacturing company cannot trace back its sales to the naming rights.

Ticket prices are estimated to go up this year as compared to the $4,000 per ticket last year. Even with high ticket prices, the stadium is usually packed to the core.

People from around the world travel far and wide just for the glory of the game. Other than that, fans around the world also anticipate the “halftime act” from famous celebrities.

The city or town the Super Bowl is held gets a lot of revenue due to spending by international and local tourists. Hotels, Airbnbs, betting and gambling companies, and many others are the unofficial vendors who also get to earn a lot.

Basics like sleeping, feeding, and transportation are basic and many cannot do without hence service companies earn a lot.

Main menu

x