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NFL Expands Internationally with Historic Game in Brazil
The National Football League (NFL) is set to make history this Friday night by hosting its first official game in South America, marking a significant step in the league’s efforts to expand its global presence.
Currently, the NFL is experiencing unprecedented financial success, having generated approximately $13 billion in revenue last season. Furthermore, the average valuation of a team stands at around $6.5 billion, according to insights from CNBC.
In its quest for growth, the NFL has recognized international markets as key opportunities. Ahead of the much-anticipated matchup in São Paulo, NFL Commissioner Roger Goodell shared with CNBC’s “Squawk Box” that the league is committed to becoming a recognizable name in the global sports arena. This season, the NFL will conduct five games outside the U.S., with plans to increase that number to eight by the next season.
Goodell emphasized the transformative effect of bringing regular season games to international locations, stating, “It creates a whole new environment. It creates a spark and everything seems to really take off after that point in time.”
As the NFL ventures into international territories, it faces logistical challenges, particularly regarding player adaptability to long flights and varying time zones. Goodell remarked on the experience gained from previous games abroad, noting, “When [the players] get back to their home cities tomorrow, they’ll be on a similar time zone, and eight days before their next game.” He highlighted the complexities involved in evaluating how many games can be realistically held outside the continental U.S.
The league’s international games not only foster enthusiasm among new fans but also present valuable opportunities for sponsorships and collaboration with global media outlets. Since beginning its games in Germany in 2022, the NFL has seen a substantial increase in sponsorship deals, growing from two to fifteen agreements.
Moreover, the NFL has been proactive in enhancing its brand visibility through the Global Markets Program, which allows teams to establish their brand in various international markets. Currently in its third year, this initiative includes participation from 25 NFL franchises across 19 different countries.
Notable examples include the Miami Dolphins, who are authorized to market in Argentina and Colombia, while the Los Angeles Rams hold rights in South Korea and Japan. The Seattle Seahawks are expanding their reach from Canada into Austria, Germany, and Switzerland.
Goodell also discussed the evolving landscape of NFL media rights during his interview with CNBC, noting that the emergence of streaming platforms has been advantageous for both the league and its fan base. Current broadcasting deals with major networks like Fox, Disney’s ESPN and ABC, NBCUniversal, and CBS—as well as streaming services such as YouTube, Netflix, Amazon, and Peacock—are estimated to be worth $11.4 billion in 2024. Particularly, Friday’s game in Brazil will be available exclusively on NBC’s Peacock platform.
“The bottom line is you have to go where your fans are and our fans are moving onto streaming platforms,” Goodell stated, while also acknowledging that 85% of NFL games remain accessible via traditional broadcast channels.
He concluded by highlighting the positive impact of the league’s current policies on growth and viewer enjoyment, reaffirming the commitment to adapt to the changing media landscape.
Disclosure: NBCUniversal is the parent company of CNBC.
Source
www.cnbc.com