Sunday, October 9, 2011

49ers' Stadium Subsidies: Pure Lucre for the NFL in TV Royalties

Santa Clarans,

One of the biggest delusions engaged in by the 49ers' Stadium Boosters is about the money.

The problem is, they won't admit to you that the money goes into the 49ers' very own cash box, and not into the accounts of our city's agencies.

The Real Stadium Facts:  The Ground Lease payable to our city's General Fund is a pathetic $180,000 the first year.  The rent payable to our Santa Clara Stadium Authority at this writing is a paltry $5 million against what will be a Stadium Authority operating tab of at least $20 million and possibly $30 million - every year. 

Remember:  NO operating overruns will ever be reimbursed by the San Francisco 49ers. 

So:  Where is all the money really going?

The bulk of the money to be made in fielding an NFL team - and not in a losing stadium operation - are what are known as NFL Revenues.  The Term Sheet attached to Measure Jed from last June spells this out, and it draws a sharp, black line between those Revenues and the pittance that will go to us or to our Agencies.

A big part of those NFL Revenues, untouchable by us, are television royalties.  To stay abreast of the dollar amounts, one can use a search engine to yield the usual pile of information - but in general, you may count on $4B to $6B per year, divided equally among the NFL owners.

Conservatively, that's over $100,000,000 to Jed York every year - for the broadcast rights alone.  Consider the many other streams of NFL Revenue flowing out of a stadium - like the luxury box dough - and you have a lot of money that Santa Clara Agencies and Santa Clarans are simply not getting.

The 49ers and the NFL are extremely secretive about this.  They really don't want you looking too hard at what they'll be scooping out of a stadium here.

However, just a little online searching will give you a good idea of why NFL teams make money - and why NFL stadiums don't. 

All the best,
Bill Bailey, Treasurer,

ESPN - alone - Pays $63 million to each NFL team ($2B/32) 

Early, from 2007:

AdWeek took down their coverage of the NFL's TV money - but they published data from Barclays Capital Estimates showing that the NFL collected $4.04 BILLION from five networks in the 2010-2011 NFL season alone.

1 comment:

Anonymous said...

The stadium will bleed the city of $15 million or more a year through SA operating shortfalls.

Anyone believing otherwise needs No-Doz because they are dreaming.

This whole process is corrupting the city. It's so discouraging to see.