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THE BUSINESS OF FOOTBALL. Today  32 teams in NFL  Divided into 4 divisions:  East  West  North  South  Roots of football from soccer and rugby.

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Presentation on theme: "THE BUSINESS OF FOOTBALL. Today  32 teams in NFL  Divided into 4 divisions:  East  West  North  South  Roots of football from soccer and rugby."— Presentation transcript:

1 THE BUSINESS OF FOOTBALL

2 Today  32 teams in NFL  Divided into 4 divisions:  East  West  North  South  Roots of football from soccer and rugby

3 Birth of Pro Football Nov. 12, 1892: Allegheny Athletic Association (AAA)  William “Pudge” Heffelfinger paid $500  1 st evidence of payment  Expense sheet: “Pro Football’s Birth Certificate”

4 1 st Pro Football League Sept. 17, 1920: American Professional Football Association formed  Canton, Ohio  NFL officially started in 1920* *Renamed National Football League in 1922 1 st team: Akron Indians Now 32 teams

5 1 st Championship Game 1932: 2 teams were tied at end of season (Chicago Bears and Portsmouth Spartans)  First time in NFL history, a one-game playoff was staged to determine the 1932 championship.  The score? The losing team moved to Detroit in 1934 and was re- named……

6 1 st Player Draft Feb. 8, 1936: NFL Hall of Famer Bert Bell intro’d idea Since then more than 10,000 of the best college players have been drafted to the NFL. 1 st player picked in the draft Jay Berwanger, Univ of Chic (Heisman winner) selected by Philadelphia Eagles

7 1 st Televised Game NBC broadcast the Brooklyn Dodgers-Philadelphia Eagles game from Ebbets Field to approx 1000 sets in New York.

8 AFL Aug. 14, 1959: Dallas businessman, Lamar Hunt organized the American Football League Charter members: Dallas, Denver, Houston, LA, Minneapolis, NY, Buffalo and Boston NFL/AFL merged in 1970

9 1 st Superbowl Jan. 15, 1967: GB Packers vs. KC Chiefs, 35-10 Played in LA Coliseum 1 st Superbowl not to sell-out

10 Thanksgiving and NFL 2 cities: Detroit and Dallas hold Thanksgiving day game tradition Since 1966, Dallas has missed playing on Thanksgiving only 2 times (1975 and 1977)

11 Lions and Thanksgiving Tradition began 1934: after George A. Richards had purchased the Portsmouth (OH) Spartans and moved the team to Detroit. Earl “Dutch” Clark. Most versatile backs came with the Spartans Scheduled game was risky but thought it would be a good way to attract attention to the new team who were taking a backseat to the Tigers.

12 The Risk…and result 26,000 tickets were sold. Played at U of D stadium. Sold out 2 weeks in advance. Bears vs. Lions (19-16) 1935: Lions won NFL Championship With exception of 6 season gap (1939-1944), Turkey Day tradition has not been interupted.

13 Value of NFL teams  http://video.forbes.com/fvn/sportsmoney/sal-on-nfl  In 2011, average value $1.04 Billion  #1: Dallas Cowboys $1.85 billion  owner Jerry Jones, New Stadium- $1.2 billion in construction boasts 160 foot wide scoreboard & seats up to 100,000  Sponsorship Revenue: $50 million  Stadium Revenue: $115 million/annually from suites and club seats  $119 million earned in operating revenue last year

14 Team Values  #2: Washington Redskins $1.55 billion  #3: New England Patriots $1.4 billion

15 Value of Detroit Lions  Detroit Lions #26: $844 million  William Clay Ford purchased in 1964 for $5 million  Valuation Breakdown Sport $656 mil Market $89 mil Stadium $65 mil Brand Management $34 mil  Major corporate sponsors are Anheuser-Busch InBev (nyse: BUD), McDonald's (nyse: MCD), PepsiCo (nyse: PEP), Quicken Loans, Meijer. Naming rights sponsor is Ford Motor (nyse: F).BUDMCD PEPF  Year Opened 2002, Capacity 65,000, Cost To Build $540 mil, Concessionaire Levy Restaurants, Average Ticket Price $62

16 The Business of the Lions  Metro- Population 4.4 million  Only one blackout game last year (2009- 4 blackouts)  Media Partners TV WXYZ-TV ABC 7 Radio WXYT FM 97.1  Revenue per fan: $11  Player Expense $147 million

17 Lion’s Name & Brand Owner George A. Richards, radio exec, said “The lion is the monarch of the jungle and we hope to be the monarch of the league.” Tradition began 1934: after George A. Richards had purchased the Portsmouth (OH) Spartans and moved the team to Detroit. Colors: Honolulu Blue, Silver, White, Black

18 What determines value?  TV Revenue: about $116,000,000 for each team/year  New stadiums with luxury suites  Naming rights to stadiums (millions per year)  Growing # of female fans (fan base 40% female, 60% male)  Increased ticket, concession and merchandise sales


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