The Economic Impact of NFL Teams: From Local Boosts to National Contributions

The National Football League has been a mainstay of the North American sporting landscape since the 1920s. Back then, the fee to buy into the league was a measly $100. In 2023, buying an NFL team would set back a football-crazy philanthropist at least a billion dollars.

When you consider the far-reaching economic benefits of even the most average of NFL teams - the ones that never feature in the top 20 in the NFL odds – it’s easy to understand why a football franchise is so expensive.

In this article, we take a closer look at the economic impacts that an NFL team can have on its home city, ranging from the immediate economic benefits such as increased footfall to some of the more tangential benefits.

According to a recent study by the NFL Players Association analysis, the NFL adds $5 billion every year to the U.S. economy. The biggest single contributor to the national economy comes in the form of television rights and subscriptions both domestically and abroad.

Fantasy football, sports betting, tourism, and merchandising sales all contribute to the truly gargantuan national impact of the NFL on the American economy. But what about individual teams and cities? Let’s take a deeper dive into the specifics of how an NFL team benefits its local area's economy.

Under the Microscope: The Cleveland Browns

The Cleveland Browns have never won the Super Bowl and finished last season with a more than mediocre 7-10 record. Yet despite that, the sheer fact of their existence has provided a major boost to the Cleveland economy.

In 2021, when the city hosted the NFL Draft, local authorities revealed that the event had injected $42 million into the local economy. In addition to that, every home game is estimated to generate local revenues of $8 million.

Ticket sales and local accommodation are among the two largest contributors to that figure, but there are also major boosts experienced in a range of different sectors. The local travel economy, including taxis and buses, receives a huge stimulus, as does the hospitality sector with home and traveling fans all flocking to bars and restaurants before and after the games.

Then there are the hidden benefits that we don’t usually think of, such as the concerts and live events that take place at NFL stadiums outside of the football season. Every NFL season is a huge venue capable of hosting some of the biggest names in music and entertainment.

Events like these attract huge interest and bring in fans from all across the country. Periodically, the US Men’s soccer team plays home games at the Cleveland Browns stadium, bringing in fans not just from the United States but also from abroad.

All in all, the impact of having even a mediocre NFL team is of huge economic importance to the local economy of Cleveland and the wider Ohio area.

The Big Dogs

The Dallas Cowboys, while not hugely successful, are still undoubtedly the biggest draw for football fans both at home and abroad. In 2022, a study found that the franchise injected $213 million into the local economy and supported 1,619 jobs.

The cultural significance of the Dallas Cowboys, combined with their appearance in a number of high-profile overseas games, has also helped boost tourist numbers to Dallas, with fans flying in from all over the globe to watch America's Team.

Places like Kansas and Foxborough are also beginning to experience huge increases in tourist numbers thanks to the exploits of players like Patrick Mahomes and Tom Brady, who have brought the love of football to new audiences in recent years.

In Summary

It's easy to look at the eye-watering amount of money spent by franchises on player contracts and wonder just how they manage to stay afloat, let alone make money. The reason teams have so much money to spend in the first place, though, is because they are financial behemoths.

Even the smallest teams in the NFL represent big bucks, not only for themselves but for a significant proportion of businesses in their local area. If, for example, you're a frustrated Cleveland Browns fan, just remember that despite your team's troubles on the field, the franchise is delivering big time when it comes to your city's local economy.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes