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NFL Team Valuations Surge: Massive Returns for Owners

NFL Team Valuations Surge: Massive Returns for Owners

NFL teams are now worth an average of $6.5 billion each. Owners have seen returns far exceeding those of traditional stocks. For instance, the Houston Texans, bought for $600 million in 1999, are now valued at $6.35 billion.

The surge in team values is driven by massive media deals. The NFL's current TV agreements, worth $9.2 billion annually, are 85% higher than previous contracts. Streaming deals with YouTube and Amazon Prime add another $3.2 billion yearly.

Revenue sharing ensures all teams benefit equally from national media deals, sponsorships, and gate receipts. This helps small-market teams like the Green Bay Packers and Buffalo Bills compete with larger markets.

However, stadium revenue—from luxury suites, on-site sales, and non-NFL events—remains unshared. This creates a disparity in team values. For example, Taylor Swift's Eras Tour generated $4 million per show for hosting stadiums.

Overall, the NFL's revenue-sharing and salary-cap agreements make it highly profitable. The league's total revenue in 2023 was $20.47 billion, with $13.68 billion shared equally among teams.

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