Does Winning Games In The NFL Equate To A Higher Franchise Value?

Football and money go hand in hand. The average value of an NFL team more than doubled in the 2000’s from 400+ million to 1 billion. On the other hand, ratings were down by 4% this opening weekend compared to 2017, Not to mention, the Raiders looked like idiots for not paying Khalil Mack, because they blew their cash on a $100 million contract for Jon Gruden, who looked terribly out-coached this weekend.

NFL isn’t poor, far from it.

So how much does an NFL team make?

According to ESPN and Packers financial statements each team made $255 million last year, which is a 4.9% increase over last year. With 32 teams and 52 players per team that’s $8 billion to be divided up amongst the players.

How much could players make if their current share of the revenue rose from 47% to 60%?

With 47% of the pie, players have a pool of $3.76 Billion to earn from. There are 1,696 NFL players so they’d get $2.2 Million each.

In comparison, 60% of revenue players have a pool of $4.8 Billion to earn from. The average NFL player would earn $2.8 Million per season.

With that said, I will always fall on the side of NFL players making more if not most of the money generated by the NFL. They have a finite window to make money to support their families for the rest of their lives. Not to mention the risk of long-term debilitating injuries.

Simply put without the players there is no NFL.

It stands to reason that NFL teams with the highest winning percentage would be most the valuable. Winning games increase ticket sales, which drives team revenue.

Which NFL teams won the most or least in the last 10 years?

32. Rams (46–113–1)

31. Browns (48–112)

1. Patriots (126–34)

The Rams come in last with a win percentage of 28% followed by the Browns 30%, who have only managed to win 5 games or less in 8 of 10 seasons. As a Dolphins fan with a 44% win percentage I can relate to their pain.

We will exclude the Rams from the statistical comparison below as their relocation to LA has skyrocketed their value to $3.7 Billion despite their last place win percentage.

Which teams have appreciated in value the most over the last 10 years?

Browns Franchise Value

Even though the Browns have only won 48 games since 2007, their franchise value has risen from $969 million in 2007 to $1.95 Billion in 2017.

The worse NFL franchise has doubled its value in the last 10 years.

Patriots Franchise Value

The high flying Patriots have won 78 more games and tripled the Browns win percentage in the last 10 years. In 2007 their franchise value was $1.119 billion. 5 Lombardi trophies later the Patriots franchise value is $3.7 Billion in 2017.

The winningest Franchise in the last decade has more than tripled its value.

Wrap Up

A rising tide lifts all boats. No matter their success rate on the field all NFL teams have seen an increase in franchise value in the last decade. This is due to their limited supply of 32 teams and increasing tv contract revenue as one of the last remaining live must-watch events on television.

Originally published at www.aspmediagroup.com on September 12, 2018.