The Super Bowl is worth billions of dollars a year.
It is almost time for the Super Bowl.The Bud Light commercials are about to start, and the fans are getting ready for the biggest football game of the year.
The Los Angeles Rams will play the New England Pats at the Super Bowl.On February 3, retailers, broadcasters and sponsors will be waiting to cash in on the biggest sporting event in the U.S.
For more accurate figures, it's better to look at the season as a whole.CBS, Fox and NBC will pay around $3 billion a year collectively to broadcast regular season football games, with a total of $27 billion for the period 2013 to 2022, according to a report.Each network gets to host the Super Bowl three times.
The Green Bay Packers in Wisconsin break out their finances because they are fan-owned.According to an income statement sent to CNBC, the Packers had revenue of $450.4 million for the fiscal year that ended on June 30.The revenue figure by the 32 teams equates to around $8 billion per year for the league.
Visa renewed its partnership with the National Football League on Tuesday, an alliance that started in 1995), and according to figures released Tuesday by IEG, the league earned more than $1 billion from sponsorship deals in the last football season.IEG said that this is up 5.9 percent on the previous season, and was driven by new sponsorships from companies.
On January 3, the NFL signed up Caesars, its first casino partner, in a contract reportedly worth $30 million, and as viewing habits continue to change, it has signed deals with Facebook for video content and Amazon Prime for streaming.
In May of last year, the NFL said it would fine players who did not stand for the National Anthem.According to Jeff Gagne, the league has seen fewer issues recently.He said in an email to CNBC that this was a good year for the league.
Super Bowl ad spots are the most expensive in the US, with a 30-second spot costing $5.25 million.That works out to about $175,000 per second.The average price for a 30-second ad during a regular-season NFL game is $625,000.
CBS will show the Super Bowl this year.During NBC's Super Bowl broadcast last year, the total ad spend was $482 million.The Big Game has been broadcasted by CBS for 20 years, and at a January 10 press conference it was said that 90 percent of ad spend was sold.
The network takes close to half a billion dollars in advertising for just one football game, which contributes a lot to the total amount it pays the league for the right to broadcast.It will make a nice profit according to Rick Burton, professor of sport management at Syracuse University.Ad spending has gone up.Every year it goes up.CBS will make money.He told CNBC that the Super Bowl is one of the most profitable pieces of programming.
The winners of the Super Bowl made an estimated $112,000 each, while their opponents made $56,000.According to an estimate by CBS, referees make between $4,000 and $10,000 a game, and their annual salary is about $200,000.
The Los Angeles Rams are said to be worth $3.2 billion, while the New England Pats are worth $3.8 billion according to Forbes.
The winning team will get $118,000 for Sunday's game, per the collective bargaining agreement.The players on the losing team will be paid.
The teams have earned a total of $83,000 per player in the playoffs, meaning the winner will get $200,000 and the loser $150,000.
According to a survey conducted by Prosper Insights & Analytics for the National Retail Federation, stores are expected to make $14.8 billion in sales around the game, with most of that money spent on food and drink to consume while watching.That equates to $81.30 per person, up from $81.17 last year.As fewer people watch the Super Bowl, retailers will make less money than they did last year.
Phil Rist said that the big game is a day for big spending regardless of who plays or wins.
The 60-second Walmart commercial is called "Grocery Pickup" and features famous movie cars like the Batmobile.It will be hoping that some of the $14.8 billion spend goes through its register this weekend and beyond.
The Atlanta Falcons will play in the Super Bowl at the Mercedes-Benz Stadium.AMB Group is the investment arm of Arthur Blank.The stadium has raised close to $1 billion in sponsorship, but it does not break down financials.
Mercedes bought naming rights to the Falcons' stadium for a reported $324 million over 27 years.The logo on the roof of Atlanta's Hartsfield-Jackson Airport is the biggest Mercedes-Benz logo in the world, according to a post by the chair of Daimler.
In an email to CNBC, Dan Conti, director of Sports & Live and a partner at media group Wavemaker, said that naming the stadium is more about generating "love" for the brand.
These deals aren't directly related to product sales, but are about driving awareness, brand love, and shifting perception.It makes sense for the company to have its name attached to the Atlanta stadium since it will get a lot of exposure in the media.
Fans can expect to pay between $4,000 and $6,000 for a ticket to watch the game in person this year, according to the general manager of StubHub.At the time of writing, the NFL's official hospitality partner was selling hotel and ticket packages for $5,645 per person when sharing a room.
Advertisers will spend close to $500 million to air their commercials during the Super Bowl, but what returns can they expect?The cost per lead, or the amount of money spent to convert a viewer into a buyer, was between $27 and $100 on the day of the game, according to a measurement company.After a fortnight, the CPL went down to $3.41 for one big game advertiser it tracked.
Return on investment can be hard to measure, so brands should focus on return on objectives.Half of the advertisers think that they killed it, and the other half think they didn't.Will companies get a return on their investment?He told CNBC that some companies want to sell more cars or cheeseburgers which can be measured by a spike in sales.Other companies are trying to increase their brand awareness.Will all of these companies get a return?Most will believe they did.
Music acts that perform during half time don't make any money.Expenses and production costs are paid for by the audience.Maroon 5 decided not to hold a news conference ahead of the big game and instead will participate in a social and digital media roll-out.Colin Kaepernick, the former San Francisco 49ers quarterback who started kneeling during the national anthem in order to protest police brutality, was the subject of controversy because of the band's decision to perform.
Along with paid-up sponsors, official merchandisers and big-money teams, many other vendors will cash in on Sunday, Burton said, although it's almost impossible to put a figure on it.Every man and his dog is making money.Legal gambling, illegal gambling and the network make money.Vendors selling t-shirts on the street, people selling parking spots in their backyard.For the last 45 years the Super Bowl has been a big deal and there are a lot of people familiar with how to monetize the event.