Valuation of NFL Teams

[milani]

I think this is fair to chat about, because it is a very real thing and can upheave everything the Packers have done the last 30 plus years to keep the team financially sound.

I have never been one to savor government involvement in much of anything except when and where it becomes absolutely necessary.

Recall when players fought to have a union with a collective bargaining agreement in all the major professional sports. Suddenly, Bart Starr is on the opposite side of Lombardi. The government did get involved and professional sports was no longer the same.

If we want to talk about pricing there are many more places to call out than just professional football. You can start with the medical industry, the insurance companies, and do not forget college institutions. I look at prices in 2 ways. The linear volatility, such as the price of a fast food combo meal on a graph over 5 or 6 decades, and the established fixed price relative to the inflation rate over a long period of time.
E.G. The cost of a one night hospital stay in 1970 vs. one in 2026. Or the cost to insure a driver in 1970 with the same new vehicle, same age, in the same locale relative to the base price of the vehicle in 2026. And lastly, compare the price of one college credit hour in 1970 with that same credit hour at the same higher institution in 2026. Then ask what was the price of a single Packer game ticket in the same seat at Lambeau in 1970 compared to today, independent of a season ticket holder.
Are consumers paying more, paying less, or paying about the same in real dollars relative to the overall inflation rate compared to 56 years ago? So which becomes more value added for its price? A Packer GameDay ticket or a Big Mac?

 

[Pokerbrat2000]

I have never been one to savor government involvement in much of anything except when and where it becomes absolutely necessary.

Recall when players fought to have a union with a collective bargaining agreement in all the major professional sports. Suddenly, Bart Starr is on the opposite side of Lombardi. The government did get involved and professional sports was no longer the same.

If we want to talk about pricing there are many more places to call out than just professional football. You can start with the medical industry, the insurance companies, and do not forget college institutions. I look at prices in 2 ways. The linear volatility, such as the price of a fast food combo meal on a graph over 5 or 6 decades, and the established fixed price relative to the inflation rate over a long period of time.
E.G. The cost of a one night hospital stay in 1970 vs. one in 2026. Or the cost to insure a driver in 1970 with the same new vehicle, same age, in the same locale relative to the base price of the vehicle in 2026. And lastly, compare the price of one college credit hour in 1970 with that same credit hour at the same higher institution in 2026. Then ask what was the price of a single Packer game ticket in the same seat at Lambeau in 1970 compared to today, independent of a season ticket holder.
Are consumers paying more, paying less, or paying about the same in real dollars relative to the overall inflation rate compared to 56 years ago? So which becomes more value added for its price? A Packer GameDay ticket or a Big Mac?

All about supply and demand economics. If demand keeps growing exponentially over supply, so do the prices for said good.

Over the past several decades, the growth of NFL ticket prices has vastly outpaced the federal minimum wage, significantly reducing the purchasing power of lower-income workers. An average NFL ticket cost approximately $15 in 1971 compared to over $300 today. By contrast, the federal minimum wage was $1.60 in 1971 and has only reached $7.25.

 

[Heyjoe4]

I do not see any answer. A price comes with anything. If the fans would stay away, turn off their streams, and give their attention to something else change may happen. But we are hooked. A lot like snack foods.

Yeah the NFL is addictive. The league has a captive audience willing to pay a lot to see games. Capitalism at it's finest, sort of…...

 

[milani]

All about supply and demand economics. If demand keeps growing exponentially over supply, so do the prices for said good.

Over the past several decades, the growth of NFL ticket prices has vastly outpaced the federal minimum wage, significantly reducing the purchasing power of lower-income workers. An average NFL ticket cost approximately $15 in 1971 compared to over $300 today. By contrast, the federal minimum wage was $1.60 in 1971 and has only reached $7.25.

It has even affected that purchasing power of other income levels as well. Even if they can afford the tickets they ask themselves if it is worth it and am I being ripped off.
Minimum wage can be one analogy. But in 1971 most minimum wage businesses paid around minimum wage because there were less jobs and because of the abundance of baby boomer youth there was an ample work supply.
Today, very few so called minimum wage businesses actually pay minimum wage because virtually no one will work for $7.25 and many state minimums exceed that.
In 1971 I did get around $1.60 because I worked at McDonalds. There was no OT, no holidays, and no benefits, not even free food.
Today, a kid can make around $20 at a McDonalds and they do offer some benefits simply because there are so many alternatives down the street who will vulture your employees.
But even so, the 15-300 is 20 times greater in price. That means the 1.60 would be 32.00! Not even close.

 

[Pokerbrat2000]

Yeah the NFL is addictive. The league has a captive audience willing to pay a lot to see games. Capitalism at it's finest, sort of…...

I wouldn't call the NFL, Capitalism at it's finest. The NFL operates as a legal monopoly, utilizing a single dominant market position, high barriers to entry for rival leagues, and centralized control over broadcasting. While it faces competition for viewer attention from other sports, it has no direct competitors in elite professional American football.

 

[milani]

I wouldn't call the NFL Capitalism at it's finest. The NFL operates as a legal monopoly, utilizing a single dominant market position, high barriers to entry for rival leagues, and centralized control over broadcasting. While it faces competition for viewer attention from other sports, it has no direct competitors in elite professional American football.

Might say that it is a form of capitalism from a bygone day when monopolies were not by law, illegal. But it harkens way back.

 

[Pokerbrat2000]

Might say that it is a form of capitalism from a bygone day when monopolies were not by law, illegal. But it harkens way back.

Yup. While NFL tickets are not considered an essential service like gas, electricity and water, I do wish they would self regulate their prices better. It's like watching a King fleece the pheasants, because he can.

 

[Heyjoe4]

Yup. While NFL tickets are not considered an essential service like gas, electricity and water, I do wish they would self regulate their prices better. It's like watching a King fleece the pheasants, because he can.

Part of the problem, or maybe all of it, is that the NFL has no real competition -or at least not enough that they have to change their pricing.

But they are a monopoly by almost any econ 101 definition. They can't be broken up, but they could be regulated. They are like tobacco companies. We all know there should be stronger laws on their products, but it's allowed to continue because it always has been allowed to continue. Lousy reasoning, but that's how it is.

In the not too distant future it will be impossible to watch even a local NFL team play without paying some kind of streaming fee.

 

[Pokerbrat2000]

Part of the problem, or maybe all of it, is that the NFL has no real competition -or at least not enough that they have to change their pricing.

But they are a monopoly by almost any econ 101 definition. They can't be broken up, but they could be regulated. They are like tobacco companies. We all know there should be stronger laws on their products, but it's allowed to continue because it always has been allowed to continue. Lousy reasoning, but that's how it is.

In the not too distant future it will be impossible to watch even a local NFL team play without paying some kind of streaming fee.

Well said.

Really, the power is all in the fans hands, they just don't realize it, nor would they probably use it if they did. Imagine what would happen to the NFL if fans said "Enough is enough, the money involved has become outrageous. We are not going to games, nor will we watch them on TV, until your business self regulates ticket prices, Media charges and salaries paid within."

NFL Fan Strike 2027! Who's with me?

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[OldSchool101]

Well said.

Really, the power is all in the fans hands, they just don't realize it, nor would they probably use it if they did. Imagine what would happen to the NFL if fans said "Enough is enough, the money involved has become outrageous. We are not going to games, nor will we watch them on TV, until your business self regulates ticket prices, Media charges and salaries paid within."

NFL Fan Strike 2027! Who's with me?

You must be logged in to see this image or video!

Truthfully I think it would only take less than reaching a 50% Boycott. At around 1/3 losses just from the United States imo the NFL would experience pandemonium setting in. It’s interesting everyone else goes on strike except the actual people who flip the bill for the Show. The Referees do it. The Players Do it (NFLPA) The Government does it. It’s probably not as far fetched that a fan strike is near.

We need an NFLFA. Fan Association. We can start with a few trial runs and take certain games off. The ability to communicate is faster than ever and could be shut on and off like a light switch. I’d like to see a poll first but I’m pretty sure we could get to 20% buy in pretty easily. 5-10% during Covid timeframe was very damaging and just the tip of an iceberg. Often people like to surprise and do the trendy thing it might shock us to see how many people are willing to just let go until we see a serious correction in $$. Once others see empty seats everywhere they might just do it for the heck of it.

 

[Pkrjones]

I think a boycott will be much tougher to sell than you think. Dallas, Green Bay, Giants, KC, Philly & LAR are the top teams in attendance. All have very solid fan- bases.

https://www.pro-football-reference.com/years/2025/attendance.htm

 

[OldSchool101]

I think a boycott will be much tougher to sell than you think. Dallas, Green Bay, Giants, KC, Philly & LAR are the top teams in attendance. All have very solid fan- bases.

https://www.pro-football-reference.com/years/2025/attendance.htm

I don’t know that there’s ever been any concerted effort. I do remember some years ago when the whole Kapaernick thing was going on I saw #’s over 10% and then it scaled back to 7-8% losses etc. a good size group of People were turned off by all that. The NFL did their best to pretend it didn’t happen but hundreds of millions were lost. Yet that wasn’t any organized event, it was just a small tremor aftershock compared to making a formal announcement of planning out with a strategy. This isn’t to be vindictive or bring the NFL to its knees over trivial matters. I think many believe the League has been on an unfair trajectory by exploiting its customers past a normal or fair level of profit. In layman terms it’s reeling in what’s evolving into a financial business monopoly. I can’t be the only one having difficulty tuning into games. It’s an all over the map money hungry grab until someone calls foul and that’s coming from me, a Capitalist!

 

[Heyjoe4]

I don’t know that there’s ever been any concerted effort. I do remember some years ago when the whole Kapaernick thing was going on I saw #’s over 10% and then it scaled back to 7-8% losses etc. a good size group of People were turned off by all that. The NFL did their best to pretend it didn’t happen but hundreds of millions were lost. Yet that wasn’t any organized event, it was just a small tremor aftershock compared to making a formal announcement of planning out with a strategy. This isn’t to be vindictive or bring the NFL to its knees over trivial matters. I think many believe the League has been on an unfair trajectory by exploiting its customers past a normal or fair level of profit. In layman terms it’s reeling in what’s evolving into a financial business monopoly. I can’t be the only one having difficulty tuning into games. It’s an all over the map money hungry grab until someone calls foul and that’s coming from me, a Capitalist!

As far as economics, yeah I'm in the school of capitalism as well. The NFL is a non-regulated monopoly in this world, and with almost unlimited demand, they can charge whatever they want for whatever they decide to produce.

And it's not just the NFL. Netflix has the exclusive rights to broadcast MLB's All-Star Game HR Derby. This is the trend, and people will pay to participate.

We aren't that far away from having to pay to watch NFL games for a fee, locally - in the team's hometown that is.

 

[Heyjoe4]

Truthfully I think it would only take less than reaching a 50% Boycott. At around 1/3 losses just from the United States imo the NFL would experience pandemonium setting in. It’s interesting everyone else goes on strike except the actual people who flip the bill for the Show. The Referees do it. The Players Do it (NFLPA) The Government does it. It’s probably not as far fetched that a fan strike is near.

We need an NFLFA. Fan Association. We can start with a few trial runs and take certain games off. The ability to communicate is faster than ever and could be shut on and off like a light switch. I’d like to see a poll first but I’m pretty sure we could get to 20% buy in pretty easily. 5-10% during Covid timeframe was very damaging and just the tip of an iceberg. Often people like to surprise and do the trendy thing it might shock us to see how many people are willing to just let go until we see a serious correction in $$. Once others see empty seats everywhere they might just do it for the heck of it.

As much as I like Poker's idea of an NFL Fan Strike 2027 - I just don't see it happening. It's hard to organize people unless they can clearly see how they'll benefit from such an action.

Poker is correct - the power is in the hands of the consumers, the people who watch the games and events and buy products from sponsors, subscribe to streaming channels or PPV. What's changing is that the NFL has found another way to extract a pound of flesh from us. Make that multiple ways.

I like the idea - just think it would be like herding cats……. I don't understand why the government hasn't stepped in to impose some rules on the monopoly.

 

[Pokerbrat2000]

I think a boycott will be much tougher to sell than you think. Dallas, Green Bay, Giants, KC, Philly & LAR are the top teams in attendance. All have very solid fan- bases.

https://www.pro-football-reference.com/years/2025/attendance.htm

Oh no doubt that there are many fan bases that are entrenched and dug-in. That said, social media and other free avenues are quick, available and could allow a well delivered campaign to strike with some impact.

I can't imagine that at least 50% of the NFL fan base feels just like some of us folks do about the NFL taking advantage of its fans. Grass roots campaign start slow, but they can really pick up steam quickly. Start with a "National Shut-Off NFL Football Week" and go from there.

The NFL might try to ignore empty seats, but media companies and advertisers won't ignore ratings going down.

 

[OldSchool101]

As much as I like Poker's idea of an NFL Fan Strike 2027 - I just don't see it happening. It's hard to organize people unless they can clearly see how they'll benefit from such an action.

Poker is correct - the power is in the hands of the consumers, the people who watch the games and events and buy products from sponsors, subscribe to streaming channels or PPV. What's changing is that the NFL has found another way to extract a pound of flesh from us. Make that multiple ways.

I like the idea - just think it would be like herding cats……. I don't understand why the government hasn't stepped in to impose some rules on the monopoly.

So what I learned is consumers have already filed a Private Class Action lawsuit against the NFL in the past. It had to do with bundling NFL Ticket into a broad package. They argued it was a form of price gouging. They initially Won a $4.8Bil Lawsuit but the decision was reversed with further investigation. So this consumers going to battle apparently is not unheard of.

Also I learned in Perusing the articles is the Federal Government is increasingly aware of this problem. Which for me = if it becomes deemed as increasingly unfair (us pressuring our Government Representatives on the matter) it also gradually moves into focus on the price fixing or price gouging our even price collusion fronts. We may not be as far away from tilting your question into the legality crosshairs of the Feds after all!

https://www.findlaw.com/legalblogs/legally-weird/doj-targets-nfl-amid-soaring-subscription-requirements/

A squeaky wheel gets its grease and much more grease in an election year!