Does the NFL or NBA bring in more revenue? The answer may surprise you. At money-central.com, we break down the revenue streams, player salaries, viewership, and team valuations of both leagues, offering a clear picture of their financial performance. Explore our data-driven insights to understand which league reigns supreme in the business of sports. Learn how revenue sharing, endorsement deals, and global expansion influence the financial landscape of these major sports leagues.
Table of Contents
1. NFL vs. NBA: Revenue
- 1.1. Which League Makes More Money, NFL or NBA?
- 1.2. What’s the Difference in How the Two Leagues Share Their Revenue?
- 1.3. Which Makes More Money – the Super Bowl or the NBA Playoffs?
2. NFL vs NBA: Team Values - 2.1. Which Teams Are Worth More, NFL or NBA?
- 2.2. Why Are NBA Teams Worth 22% More in 2018 Than in 2017?
- 2.3. Is the NFL as International as the NBA?
3. NFL vs NBA: Salaries - 3.1. What Is the Average NFL Salary Compared to the Average NBA Salary?
- 3.2. Why do NFL players make less total money than NBA players?
- 3.3. Why Do NFL Players Make Less Total Money Than NBA Players?
4. NFL vs NBA: Viewership - 4.1. Which Is Viewed More in the U.S., the NFL or the NBA?
- 4.2. When Did the NBA Start Playing and Broadcasting in China?
5. Frequently Asked Questions (FAQs)
6. Take Control of Your Finances with Money-Central.com
1. NFL vs. NBA: Revenue
1.1. Which League Makes More Money, NFL or NBA?
The NFL generates more revenue than the NBA. Despite the NBA having significantly more games per season, the NFL raked in $14 billion in total revenue last season, exceeding the NBA’s $7.4 billion. This dominance is fueled by lucrative national media deals and strong sponsorship revenue. While the NBA is rapidly growing, the NFL maintains a substantial lead in overall financial performance.
The disparity in revenue highlights the economic power of American football. The NFL’s business model, deeply rooted in American culture, proves highly profitable.
- National Media Deals: The NFL’s agreements with major television networks, such as CBS, NBC, ESPN, and Fox, constitute a significant portion of its revenue. These deals grant exclusive broadcasting rights, commanding high advertising rates.
- Sponsorship Deals: The NFL attracts substantial sponsorship revenue from various industries, including beer, trucks, and fast food. The visibility and popularity of the league make it an attractive platform for brands seeking to reach a broad audience.
The NBA’s revenue streams, while substantial, are distributed across a larger number of games and a more international audience. The league’s global appeal is expanding, but it has yet to reach the same level of financial dominance as the NFL in the U.S. market.
1.2. What’s the Difference in How the Two Leagues Share Their Revenue?
The NFL distributes a larger portion of its national media revenue to its franchises than the NBA. The NFL shares more than half of its $14 billion revenue, mostly from national media deals, with its individual teams. In contrast, the NBA uses a Basketball Related Income (BRI) model where revenue is pooled and redistributed, ensuring each team receives revenue equal to the salary cap.
Here’s a detailed breakdown of the revenue-sharing models:
- NFL Revenue Sharing: Every NFL team received $226.4 million in national revenue sharing last season, totaling more than $7.2 billion across the league. This model promotes parity and financial stability, enabling smaller market teams to compete effectively.
- NBA Revenue Sharing: The NBA excludes Basketball Related Income (BRI) – ticket purchases, concessions, TV deals, merchandising rights, and apparel sales – from revenue sharing. All NBA teams pool their annual revenue, redistributing it from high-grossing teams to low-grossing ones. Each team receives revenue equal to the salary cap that year; the salary cap for the 2017-18 NBA season was $99.093 million.
The NBA’s approach to revenue sharing aims to balance competitive fairness with financial incentives for high-performing teams. While the NFL emphasizes equal distribution of national revenue, the NBA encourages teams to grow their own revenue streams through ticket sales, merchandise, and local media deals.
1.3. Which Makes More Money – the Super Bowl or the NBA Playoffs?
The Super Bowl generates significantly more revenue than the NBA Playoffs. The Super Bowl brings in more revenue than both the NBA Playoffs and the MLB Playoffs combined. Last season, Super Bowl LII easily surpassed $500 million in revenue, with ad spending alone exceeding $400 million.
The Super Bowl’s financial impact stems from its status as a premier cultural and sporting event:
- Advertising Revenue: The Super Bowl is a prime advertising opportunity for major brands, commanding exorbitant rates for in-game spots. Anheuser-Busch InBev and Fiat Chrysler Automotive are consistently among the top-spending parent companies.
- Broadcasting Rights: Television networks pay substantial fees for the right to broadcast the Super Bowl, drawing massive audiences and generating billions in advertising revenue.
- Ticket Sales and Merchandise: Tickets to the Super Bowl are highly sought after, commanding premium prices on the secondary market. Merchandise sales, including jerseys, hats, and souvenirs, contribute significantly to the overall revenue.
The NBA Playoffs, while generating substantial revenue, cannot match the Super Bowl’s financial magnitude. The playoffs’ revenue varies depending on the length of the series, but the Super Bowl remains the undisputed king of sports revenue.
NFL Cheerleader
NFL cheerleaders add to the game-day excitement, contributing to the overall spectacle that draws fans and generates revenue for the league.
2. NFL vs NBA: Team Values
2.1. Which Teams Are Worth More, NFL or NBA?
NFL teams, on average, are worth more than NBA teams, but the gap is narrowing. The average NFL team is worth $2.5 billion, while the average NBA team is worth $1.65 billion, a difference of 52%. However, NBA team values have been rapidly increasing in recent years, closing the gap.
Here’s a snapshot of team valuations:
- NFL Team Values: The Dallas Cowboys are the NFL’s most valuable team and the world’s most valuable franchise, worth $4.8 billion. All but five of the NFL teams are worth at least $2 billion.
- NBA Team Values: The New York Knicks are the most valuable NBA team, worth $3.6 billion. This is the first time in the history of the league that every team is worth over $1 billion.
The higher valuation of NFL teams reflects the league’s long-standing dominance in the U.S. sports market. However, the NBA’s international growth and rising popularity have fueled rapid increases in team values.
2.2. Why Are NBA Teams Worth 22% More in 2018 Than in 2017?
NBA team values have increased significantly due to the league’s success in international markets. The NBA has positioned itself into the international market better than any other major U.S. sports league. NBA revenue outside the United States has been growing at a rate in the high teens annually.
Several factors contribute to the NBA’s international success:
- Global Appeal: Basketball’s accessibility and universal appeal make it a popular sport worldwide. The NBA’s star players, such as LeBron James and Stephen Curry, have a global following, attracting fans from diverse cultures.
- Strategic Partnerships: The NBA has forged strategic partnerships with international broadcasters, sponsors, and retailers, expanding its reach and revenue streams.
- Focus on China and Mexico: The NBA has focused its international outreach on China and Mexico, two of the world’s largest and most dynamic markets.
Sal Galatioto, the president of leading sports finance and advisory firm Galatioto Sports Partners, says, “The NBA is extremely well-positioned for international growth. The product is excellent, and interest in basketball around the world continues to flourish.”
2.3. Is the NFL as International as the NBA?
The NFL’s international presence is not as extensive as the NBA’s. The NFL hasn’t done as much as the NBA to reach international audiences, and that’s one of the factors that’s hurting its overall numbers. The NFL is primarily focusing on the United Kingdom.
The NFL’s international strategy includes:
- Games in the U.K.: The NFL has been playing regular-season games in London since 2007, attracting growing crowds and generating international media coverage.
- Marketing and Fan Engagement: The NFL is investing in marketing and fan engagement initiatives to build a stronger following in the U.K. and other international markets.
According to the Econ Review, NFL viewers in the United Kingdom increased by 60% in 2017. In 2018, there are three NFL games scheduled to be played in the U.K.
While the NFL’s international efforts are growing, they have yet to reach the same level of success as the NBA’s global expansion.
3. NFL vs NBA: Salaries
3.1. What Is the Average NFL Salary Compared to the Average NBA Salary?
NBA players, on average, earn higher salaries than NFL players. The average salary of a typical NFL player is $1.9 million per year, while the average salary for an NFL quarterback is about $4 million per year. In contrast, NBA players have minimum and maximum salary levels established, with the highest-paid NBA athletes earning considerably more than their NFL counterparts, especially when endorsements are considered.
Here’s a breakdown of salary structures:
- NFL Salaries: First-year players in the NFL can expect to make an average of $365,000 per year, with increases based on performance and experience. Rookies make their big money through bonuses, including roster bonuses, signing bonuses, and contact incentives.
- NBA Salaries: NBA salaries are based on years of experience, with a rookie expecting to be paid at least $838,464 per season. Maximum salary levels in the NBA change depending on if a player re-signs with a team or goes elsewhere.
LeBron James, who now plays for the Los Angeles Lakers, will make a salary of $33.5 million, but when you add his $52 million worth of endorsement deals, his yearly total will be $85.5 million. Steph Curry of the Golden State Warriors will make $34.9 million in salary and $42 million in endorsements for a grand total of $76.9 million.
3.2. Why do NFL players make less total money than NBA players?
The disparity in average salaries between NFL and NBA players is primarily due to roster sizes and revenue sharing agreements. There are 32 NFL teams with 53-man rosters, resulting in 1,696 players sharing endorsements and league revenue. In the NBA, there are 30 teams with 12-15 players on their roster, totaling only 450 NBA players vying for endorsement deals.
The significant difference in roster sizes impacts the distribution of league revenue:
- NFL Revenue Distribution: League revenues are split between 1,696 total players.
- NBA Revenue Distribution: League revenues are split between only 450 players.
This means each NFL player receives a smaller piece of the revenue pie compared to their NBA counterparts.
3.3. Why Do NFL Players Make Less Total Money Than NBA Players?
NFL players make less total money than NBA players due to a combination of revenue sharing percentages and the number of players in each league. The Collective Bargaining Agreement (CBA) between the NFL and the NFL Players Association (NFLPA) dictates that the NFL shares 48.5 percent of all league revenue with its players. In contrast, NBA players get about half of all league revenue before expenses.
The revenue split translates to a significant difference in earnings per player:
- NFL Revenue Per Player: In 2017, the NFL ownership kept just over $8 billion in revenue for themselves, while the players took just less than that. This equates to approximately $4.717 million per NFL player.
- NBA Revenue Per Player: NBA players shared roughly $3.7 billion last season, resulting in approximately $8.222 million per NBA player.
The combination of a slightly lower revenue sharing percentage and a significantly larger player pool contributes to the lower average earnings of NFL players.
NBA Stadium
A packed NBA stadium showcases the league’s popularity, driving revenue through ticket sales, merchandise, and concessions.
4. NFL vs NBA: Viewership
4.1. Which Is Viewed More in the U.S., the NFL or the NBA?
While NFL viewership is declining, it remains higher than NBA viewership in the U.S. NFL viewership has been decreasing for the second straight season, according to Austin Karp of the Sports Business Daily. However, the NBA’s average television viewership rose to a four-year high in 2017-2018.
Here’s a comparison of viewership numbers:
- NFL Viewership: NBC’s Sunday Night Football, ESPN’s Monday Night Football, and the shared Thursday Night Football package all declined in viewership.
- NBA Viewership: The Nielson-measured average total viewers for national telecasts of NBA games was up 8% from the 2016-17 season at 1.28 million.
The NFL’s viewership decline can be attributed to various factors, including cord-cutting, concerns about player safety, and increased competition from other entertainment options. The NBA’s viewership growth reflects the league’s rising popularity, driven by its star players and engaging style of play.
4.2. When Did the NBA Start Playing and Broadcasting in China?
The NBA became the first American professional sports league to play in China in 2004. Yao Ming’s Houston Rockets beat the Sacramento Kings in a preseason game in Shanghai.
The NBA’s early entry into the Chinese market has been instrumental in its global success:
- Massive Fan Base: “There are 300 million people that play basketball in China,” NBA deputy commissioner Mark Tatum told CNN. “We have over 100 million social media followers in China.”
- Strategic Partnerships: The NBA has established strong partnerships with Chinese broadcasters, sponsors, and government agencies, fostering a collaborative relationship.
During the 2017-18 NBA season, the Golden State Warriors and Minnesota Timberwolves played two preseason games in China, further solidifying the league’s presence in the region.
5. Frequently Asked Questions (FAQs)
Q1: Which league has the highest revenue, the NFL or the NBA?
The NFL has the highest revenue, generating $14 billion last season compared to the NBA’s $7.4 billion.
Q2: Do NBA or NFL players earn more on average?
NBA players earn more on average due to smaller roster sizes and favorable revenue sharing agreements.
Q3: Which sporting event generates more revenue, the Super Bowl or the NBA Finals?
The Super Bowl generates significantly more revenue than the NBA Finals.
Q4: Which league has a larger international presence, the NFL or the NBA?
The NBA has a larger international presence, particularly in China and Mexico.
Q5: Are NFL or NBA teams worth more on average?
NFL teams are worth more on average, but NBA team values are rapidly increasing.
Q6: How does revenue sharing work in the NFL?
The NFL distributes a significant portion of its national media revenue to its franchises, promoting parity and financial stability.
Q7: How does revenue sharing work in the NBA?
The NBA pools revenue and redistributes it to ensure each team receives an amount equal to the salary cap.
Q8: Why has the value of NBA teams increased so much in recent years?
The value of NBA teams has increased due to the league’s success in international markets and its rising popularity.
Q9: Is NFL viewership declining?
Yes, NFL viewership has been declining in recent years.
Q10: When did the NBA first start playing games in China?
The NBA first started playing games in China in 2004.
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