Hungry For More Revenue

Every couple years, owners grumble that the rise in player salaries and transfer fees outstrips the rise in revenue. This is true of all major sports, not just football, and owners have become adept at envisioning new revenue sources. I wanted to discuss the advancements made in each sport and come up with some best practices. Forgive me for speaking in generalities - I don't have the time or access to the right data to precisely quantify my insights.

Baseball
Though broadcast rights are negotiated collectively, the Yankees found a pot of gold when they started the YES network in 2002. Though YES does not have rights to live Yankee games, it shows other team content as well as minor league games.

American Football
American football not only has a salary cap, but contracts are not guaranteed. If a player is waived (due to injury or poor performances) he essentially becomes a free agent!

European Football
European football has made two significant innovations in this arena: first, most leagues allow teams to sell advertising space on their jerseys. No American sports do this. Second, they tap into foreign markets with lucrative summer tours. The NFL and NBA are just starting to do this with early-season games in Europe, though they seem more like a publicity stunt than a focused moneymaking effort.

Having reviewed innovations in each major sport (and the absence of basketball and hockey is simply because those sports have made zero contribution to this discussion), it's time to give advice. For football teams, the uncharted territory would seem to be in television. FC Barcelona already creates special content on their web and loosely calls it Barca TV. Why not launch a cable channel and earn revenue from subscribers and advertisers?

American sports could learn from soccer, too. Why not sell advertising on jersey space? It gets cluttered if you go to the lengths of South American teams where every inch is filled, but one or two sponsors isn't too tacky. And, more importantly, why not launch summer tours of in-demand markets? Teams like the Yankees, Red Sox, and Dodgers are incredibly popular in Latin America. Having a piece of spring training there would be a major moneymaker for them. The NBA is also gaining popularity as the league globalizes, though not to the extent of MLB.

To be continued...