US Markets
Friday, September 6th, 2024 3:31 pm EDT
Key Points
- NFL’s First Game in South America: The NFL is expanding its international presence, with its first-ever game in São Paulo, Brazil, as part of efforts to grow its fan base and brand overseas. This season, five games will be played abroad, increasing to eight next year.
- Financial Growth and Global Expansion: The NFL is financially strong, generating $13 billion in revenue last season, and aims to expand through international markets and sponsorship deals. The league’s Global Markets Program allows teams to secure marketing rights in 19 international markets, boosting brand awareness.
- Embrace of Streaming Platforms: The NFL is adapting to changing media consumption by increasing its presence on streaming platforms like YouTube, Amazon, and Peacock. Despite this shift, 85% of games are still available on broadcast television, ensuring wide accessibility for fans.
The NFL is making history by hosting its first-ever game in South America, marking a significant step in the league’s efforts to expand its global presence. As the league kicks off in São Paulo, Brazil, NFL Commissioner Roger Goodell emphasized the importance of international growth, with the goal of transforming the NFL into a globally recognized sports brand. This season, the NFL will hold five international games across Europe and South America, with plans to increase that number to eight next season. Goodell highlighted how playing abroad generates excitement and attracts new fans, while also presenting logistical challenges such as long flights and time zone adjustments for players. Brazil’s time zone, just one hour ahead of the Eastern U.S., offers a relatively smoother transition, allowing teams ample recovery time before their next game.
Financially, the NFL is thriving, generating $13 billion in revenue last season, with the average team valued at $6.5 billion. As the league explores new markets, its international strategy is multifaceted, focusing on expanding sponsorship deals and cultivating relationships with media partners in countries like Germany, the U.K., and Brazil. For instance, the league had just two sponsorship deals in Germany before it began hosting games there in 2022, but now boasts 15 agreements in that country alone.
A critical component of the NFL’s international expansion is the Global Markets Program, now in its third year. This initiative grants NFL teams marketing rights in various countries, allowing them to build their fan base and brand recognition abroad. Currently, 25 franchises are participating across 19 international markets. For example, the Miami Dolphins hold marketing rights in Argentina and Colombia, while the Los Angeles Rams have rights in South Korea and Japan. Meanwhile, the Seattle Seahawks are expanding their presence in Canada, Austria, Germany, and Switzerland.
In addition to international expansion, the NFL is also benefiting from the growing influence of streaming platforms. Goodell pointed out that while 85% of NFL games are still available on traditional broadcast networks, the league is increasingly moving into streaming to meet fans where they are. Major broadcast deals with networks such as Fox, ESPN, ABC, NBC, and CBS, alongside streaming platforms like YouTube, Netflix, Amazon, and Peacock, are set to bring in $11.4 billion in 2024. Friday’s historic game in Brazil will be available exclusively on NBC’s Peacock platform, reflecting the NFL’s adaptation to changing media consumption trends. Goodell emphasized that these changes are designed to ensure the NFL’s continued growth and provide fans with more ways to enjoy the game.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/09/06/nfl-brazil-game-packers-eagles-key-to-growth-goodell-says.html
