Despite slipping television viewership, the National Football League (NFL) has hit record sponsorship revenue during the 2016-17 season. NFL’s sponsorship hit the $1.25 billion mark for the first time.
Sponsorship revenues for NFL and its 32 constituent team saw a 4.3 per cent uptick for the season against 4.4 per cent last year, according to IEG research. It has been showing a smart uptick in the last few years.
Overall sports spending during 2016 saw a 4.2 per cent increase while spending on sports increased 4.7 per cent during the year.
NFL secured one major new partner in the 2016 season: Ford Motor Compay. Ford will be the official truck of the NFL. That deal that splits the auto category with Hyundai Motor, focused on cars, SUVs, crossovers and luxury passenger vehicles.
The category that has the highest spending during NFL is beer. Anheuser-Busch and the brewer’s six-year-old league partnership, lead the spending for these companies. Beer companies spent 5.5 times more on NFL properties than the average category in the 2016-2017, IEG research data shows.
Driven by the new association with Ford Motor Company, the auto category was the second biggest spender for the NFL.
Insurance was the most active category in terms of number of deals. They were 3.3 times more likely to sponsor the NFL than the average of all sponsors.
Revenues and reach of the iconic 96-year-old NFL is, obviously, miles ahead of the Indian Premier League (IPL). IPL is the biggest T20 league in the world, being copied by several other countries. But its reach and earnings are a pale shadow of NFL.
It is the biggest sports league in India which has spawned other leagues across different sport in the country. The NFL on the other hand towers above IPL as it is the biggest league in the United States.
While the IPL has more number of sponsors, the size of each deal is way bigger in the case of NFL. During IPL9, 80 companies and brands were sponsors for the IPL.
IPL is owned by BCCI, which had sponsorship income was Rs. 204.16 crore ($30 million) for 2015-16 and Rs. 183.75 crore ($27 million) the year earlier. Revenue data for seven teams available for 2014-15 and it adds up to Rs. 931.64 crore ($137 million). The IPL clubs do not give a break up of sources of revenue. The amount includes other income in the form of gate receipts, income from television rights and others.