These are the best of times for the NFL.
The money keeps rolling in: The Packers, a community-owned team and the only one to issue a public financial report, had a record total revenue of $753 million last year while reporting a net income of $132.5 million. They took in $453.2 million in national revenue before they sold a ticket. They did have a $1.1 million operating loss because of some new contracts along with paying the “dead” money of the contracts of departing players. But with a salary cap, it is almost impossible to lose money in the NFL. And franchise values keep going up. The Seahawks — hardly a marquee franchise despite their recent Super Bowl crown — recently sold for more than $9 billion. And revenue should keep going up because the league still gets the highest ratings of anything on TV.
Despite all that success, in the recent book called Football by Chuck Klosterman, he argues there is no guarantee the NFL will remain on top and noted that in the 1930s, the three top sports were baseball, horse racing and boxing. Obviously, they no longer are.
And Klosterman sees some red flags that could lead to a decline for the NFL. He starts with the fact that far fewer boys are playing high school football and as a result may not grow up to be big NFL fans. And then there is the violence coupled with players getting CTE, ALS and dementia that can turn off some fans.
And Klosterman asks what happens if advertisers decide it is just too expensive to buy advertising during NFL games, especially since there is no definite evidence that TV advertising still works except for introducing new products. If advertisers don’t keep paying, the NFL will have no leverage in future TV negotiations.
As a result, Klosterman argues that there could be a time — unthinkable as it seems at the moment — when “no one cares” about the NFL.
It seems hard to believe this scenario, but the football audience isn’t growing. The Sunday TV ratings haven’t increased since 1989, when the league averaged 19 million viewers. Last year it was at 18.7 million. And the NFL’s ratings are only the best in TV because — in an era of numerous TV channels, streaming and iPhones — no one drama or sitcom gets huge ratings like many did in the past, while the NFL ratings remain steady.
For now, the good times keep rolling for the NFL. Only future generations will know how long those good times last.