Reasons Why the Super Bowl Could Fit as a Business
The Super Bowl is the biggest annual event in American pro football. Moreover, it’s one of the most significant sports occasions. But it is not just a sporting event. It is also a massive business yielding a lot of returns.
From the Super Bowl bet to the ad sales and promotion, there are so many channels the NFL cash in through. This makes one wonder what exactly there are and what businesses the Super Bowl runs. For this reason, this article contains different ways in which the Super Bowl is considered a business:
Advertising
The Super Bowl has millions of views, making it a worthwhile medium to place ads. Companies spend millions of dollars on advertisements during the game, as they know they will have a large audience.
Fox network accounted for a record-breaking $5.6 million for a 30-second ad placement in 2020. Similarly, in the year before, the Super Bowl revenue was $382 million from in-game promotions.
Ticket sales
Tickets to the Super Bowl are highly sought after and can be expensive. The NFL controls the distribution of tickets and sets the prices, ranging from several hundred to thousand dollars.
The NFL also has a lottery system for ticket distribution, which allows fans to enter for a chance to purchase tickets. This scheme creates a tussle between the supply and demand margin and causes Super Bowl ticket prices to continue rising.
Merchandising and Licensing
The NFL, teams, and players all make money from the sale of jerseys, hats, and other merchandise. This includes team merchandise, player kits, and officially licensed Super Bowl merchandise.
An example is the NFL’s decade-long partnership with the Nike brand and an online sports retailer, Fanatics, in 2018. This contract made Fanatics the recognized supplier of adult-fitting Nike merchandise sold via the NFL’s virtual store.
Partnership or Sponsorship
Companies pay the NFL to be a sponsor of the game, which can include things such as on-field signage, commercial spots, and other forms of advertising. Often, it is a huge source of revenue for the NFL, as companies are willing to pay a fortune to be associated with the Super Bowl.
Visibility to Host city and local businesses
Super Bowl generates substantial economic impact for the host city, which includes increased tourism and local business. The host city typically experiences an influx of visitors, which can lead to increased hotel occupancy, restaurant sales, and other local enterprises. In addition to the foreign spenders are opportunities for new jobs for the indigenes.
The NFL says the Super Bowl event has a huge positive economic nudge on the host nation. And in numbers, that could be around $300 to $400 million.
Global Audience
The NFL has a strong following worldwide, and the Super Bowl is among the most-streamed sporting events. This means that the NFL can generate revenue through international broadcasting rights, as well as through merchandise and sponsorship deals with global companies.
The league reportedly makes $5 billion yearly from selling broadcast rights for all its games. These include the Super Bowl, which belongs to the most-rated shows on television.
From the above, the Super Bowl is not just a sporting event but also a major business. From advertising and ticket sales to merchandising and sponsorship, the Super Bowl generates enormous cash for the NFL and its partners, especially when the odds to win the Super Bowl are influenced by a variety of factors and change dramatically.
It’s a main event that captures the attention of millions of people. Hence, this makes it one of the most extensive business opportunities of the year in the NFL.