National Football League, San Francisco, Al Guido discussed on Freakonomics Radio
The behemoths are worried about their future. We are the dominant sport in America. But if we really want to build our business and become an international sport that's gonna take some figuring out. That's jed York of the National Football League. San Francisco forty Niners. He's the team CEO and co owner I would I say that the biggest blessing in the biggest curse of the NFL are the TV contracts where it makes you very successful. But it also makes it so you don't really try new things. And and try to disrupt how big are the NFL's TB contracts roughly six billion dollars a year number one in the world number-two just under five billion is the FIFA World Cup, which is pretty remarkable for an event whose finals are held only every four years, although they are playing to a global audience rounding out the top ten global TV contracts are the NBA and major league baseball the top soccer leagues in England Germany and Spain along with the UEFA Champions League and the summer and Winter Olympics, not cracking the top ten. Are the NHL MLS or UFC, which means that the NFL has more TV revenue than all the other big American sports leagues combined? Thirty three of the top fifty shows are still NFL TV games. That's Al Guido president of the San Francisco forty Niners. The eyeballs are still there. They're just scattered. They're just in different places. And I think the NFL along with every other league needs to do the best job. They can getting content in fans hands wherever they are. And that's changing dramatically cable. Subscriptions in the US have been dropping fast. Fifty four percent of yours between eighteen and twenty nine. You streaming services more than cable that said live sports are much better position than just about any other kind of content. The please on old fashioned TV we still do watch the Super Bowl live. The economist Victor Matheson again, we watched the World Cup live. We watch the World Series live. And that gives advertisers a chance to put their product in front of a live audience, and it's one of the last places that happens. And this is why we still see increasing contracts, even though the actual number of eyeballs watching sports contest is not going up particularly quickly. The NFL is also made big deals to stream its games. Amazon. For instance, recently renewed its NFL deal paying sixty five million dollars a year for the digital rights to eleven Thursday night games that are already being broadcast on TV. That was thirty percent bump over the same rights last season. Amazon reportedly beat out rival offers from Twitter and YouTube my nine seven and five year old don't even turn on the TV forty Niners Al Guido again, he'd like the NFL to grow especially overseas. But that is complicated in the NFL. We have what I was deemed right now is an event based strategy. We host games overseas. Right. And that is immensely successful. However is what is the global strategy and footprint long-term? What is it a league level? What is it that a team level? And how do we incentivize our clubs to invest more money outside of their footprint? I am frustrated at the inability for us to take our rights and marks across global footprints. I'll give you a specific example. Jared Hain was on our team a few years ago. Australian rugby player they said he was the Michael Jordan of Australian rugby he comes over here. He plays. He's an immediate success sells more jerseys than any player in the NFL. Right. We obviously would love to do a deal Rio Tinto or we'd love to open up for pop up retail shop in Australia. We can't while we can vote if we were to sell our rights and marks and they were to use it in Australia that revenue is split. Thirty two ways doesn't necessarily come back to the team because thirty two teams in the league. Right. So we make as much money on. Jimmy, Garoppolo jersey as we might on. A Russell Wilson.