The NFL is big money, estimated from $8.5 billion to $9 billion in annual revenue. While TV contracts are about half of that, ads and sponsorships make up over a quarter of revenue the Super Bowl alone is about 10 percent of that revenue, with prices around $3 million per 30-second ad.
All of this, however, could go up in a puff of smoke if the NFL owners lock out the players if a new collective bargaining agreement is not reached. It could be bad for a lot of peripheral businesses, bad news for key sponsors like Budweiser and General Motors, and has reportedly resulted in EA asking for a $30 million reduction in rights because of the labor situation.
“There are dire consequences on so many levels,” said Rick Horrow, sports business analyst and chief executive of Horrow Sports Ventures. “The Super Bowl is now generating $300 million to $400 million of economic impact in each host region, so that would be at risk, and the advertising is now selling for $100,000 a second — and that’s not replaceable by another event.”
Source: Minyanville.com
