Super Bowl is returning to Arizona for the fourth time this year. The championship league created an economic impact for Arizona by generating revenue worth $719.4 million back in 2015, based on a study by the W.P. Carey School of Business at Arizona State University. With the same hosting committee managing the Super Bowl LVII, hopes are again high and positive.
So how much money is made from the Super Bowl? Let’s delve into the revenue-generating model from different sectors during the mega event.
NFL
The National Football League charges $3 billion for collectively providing Super Bowl broadcasting rights to Fox, NBC, and CBS networks. This agreement also provides the rotating right to host the Super Bowl to one of them.
With the most expensive Super Bowl seat expected to be around $27,500, ticket sales also add to the profits for NFL. Supposedly, even the lowest revenue value from ticket sales can be around $66.5 million for this season.
Brand partnerships are another significant revenue source that accounts for millions of dollars for the NFL.
Teams
Do teams make money from Super Bowl? Of course, yes. As per NFL’s Collective Bargaining Agreement, every winning team player got a $150,000 cash bonus last year.
So, how much money does the losing team of Super Bowl get?
NFL even rewards the losing team’s footballers with an enormous bonus! The players received half the amount of the winning team in Super Bowl 2022, i.e., a whopping $75,000.
However, players who fulfill the following conditions receive the full bonus payout from both winning and losing teams:
- Players on the roster for a minimum of eight previous games
- Players on the roaster minimum of three last games even though not on the team’s active or inactive list
- Injured players, still under contract during Super Bowl season
The rest of the team members receive the half cash bonus.
Local Revenue
This annual championship has always been behind economic development in all the host cities. No other international sports events generate several millions of dollars into a local economy the way the Super Bowl does.
According to the NFL, the championship league raised around $500 million for the host city. This revenue includes costs for hotels, restaurants, airlines, and other expenses the audience bears during the visit.
Arizona can experience the same ROI (Return on Investment) with several new developments during the Super Bowl LVII league. The host committee is ready to welcome worldwide fans and pull off week-long fun.
Broadcasting
The Super Bowl is amongst the most watched television events, with an estimated 100 million viewers during live streaming. Hence, broadcast partners also churn huge profits during the mega event by running ads.
According to reports, CBS and NBC sold 30-second Super Bowl ad slots during previous seasons at around $5.6 million and $6.5 million, respectively.
Advertising
Further, global viewership generates millions of dollars through advertising for the brands, NFL, and its broadcast partners.
Like any previous year, the official sponsors and advertisers will spend millions to reach the massive audience that tunes in to watch the SB 2023 games.
For instance, Pepsi is campaigning its recently launched Zero Sugar collection in the Super Bowl this year. Besides, you’ll see ads by brands like Frito-Lay, Rémy Martin, WeatherTech, Booking.com, Doritos, TurboTax, and M&M’s, amongst others.
Sports Betting
Myriad legal and offshore betting sites provide lucrative punting opportunities throughout the Super Bowl championship. The bookmakers entice NFL fans from all across the world by offering competitive odds. From Moneyline, Total, Parlays, and Prop bets to Live bets, punters find excellent lines for every market.
Besides, more US states are legally allowing Super Bowl betting this year. As per American Gaming Association (AGA), there will probably be a 35 percent increase in Super Bowl wagering compared to the previous year.
Thus, opening doors wide open for regulated e-sportsbook operators to generate millions of revenue.
Merchandising
The National Football League makes tens of millions of dollars every year through merchandise sales. According to a study by Statista, consumers presumably spent US $14.6 billion on Super Bowl merchandise during the 2022 season.
On average, the audience spent US$ 167.37 on merchandise sales and premium dining at SoFi Stadium last year.
Bottom Line
Undoubtedly, the Super Bowl is a mega sports festival that generates gigantic revenue for the NFL and the host city. From local businesses, charities, sponsors, and broadcasters to teams, the annual event brings money for everyone.
Now, the big question is – how much money will the Super Bowl make this year? As the famous annual championship is around the corner, Arizona is all geared up to make the event highly profitable. We’ll know the statistics when the 2023 season concludes.
