April 23, 2014

NFL Playoffs less profitable than NBA

2013/01/08 6:02 pm 001 1 comment

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Bottom Lines: NBA playoff basketball vs. NFL playoff Football profits

The NFL playoffs started this past weekend, but the football league’s postseason isn’t quite the financial boon that one would expect.

For instance, a long run deep into the NBA playoffs can generate anywhere from 20-30 million, with the team pocketing as much as 50% of the profits.

Why is that? It has a lot to do with the overall profit-sharing strategy the leagues impose.

From Forbes:  The NFL’s socialist model continues in the playoffs. Playoff home teams in baseball, basketball and hockey keep anywhere from 50% to 100% of ticket revenues, depending on the sport and the number of games in the series. In football, all gate receipts flow to the league. The New England Patriots generate more than $10 million in gate receipts for each home game, but don’t see a dime of that. Teams get a stipend to cover expenses for each NFL game. Teams also receive money from the NFL to pay players for their participation in the playoffs (contracts only run through the regular season).

It also is impacted by the total number of playoff games played. A team that wins the Super Bowl, like the New York Giants last year, played a total of just four games en route to the championship.

Compare that to the Miami Heat, who had to play 23 playoff games to their championship. Add to that the fact the NBA teams keep most all of that money. That’s just a lot more money to go around.

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