NFL Industry Analysis:
The overall sports industry is at a whole new level in the last few years with increasing television contracts as well as evaluations of sports franchises at an all new high. NFL Franchises as a whole are valued at roughly $46 Billion and profits of nearly 9.5 billion dollars a year (Business Week). The unique thing about the NFL is that it technically is not a formal business rather a non-profit organization who essentially gives back money to its franchises.
So, the NFL while thriving, is in a congested industry of sports and entertainment options. Typically when we look at any industry it is typical to use Porters 5 Forces.
• Supplier Power
• Buyer Power
• Competitive Rivalry
• Threat of Substitution
• Threat of New Entry
This may be one of their weaker aspects of the NFL when we review all 5 forces. Since, technically the players are the actual suppliers they do have some bargaining…show more content… The corporate sponsors power is relatively low as typical of many things in the NFL, the rights to be an official sponsor are auctioned off to the highest bidder. So, if one sponsor cannot compete with the price of doing business there are multiple replacements to take their place considering the value of the media real estate that the NFL has created. Now, the real threat to the NFL is the power of the fan. The fans themselves evolve in what they want and if the NFL does not fall in line with what the fan or consumer want they will just stop showing up or buying their cable packages. Which then in turn lowers what corporate sponsors are willing to pay for their