House Rules: New Stadiums Make Big Difference In NFL Revenue

Newer Stadiums Boosting Coffers For Teams Such As Broncos, Redskins

The difference in annual revenue among NFL teams is as high as $100M, according to NFL execs cited by USA TODAY's Jarrett Bell in a sports section Cover Story, who noted the disparity is due to "changing economics driven largely by stadium deals." In March, NFL Commissioner Paul Tagliabue appointed a 12-member committee to study "myriad financial matters, including the disparities." Patriots Owner Robert Kraft: "There's concern that the disparity between the first quartile and the fourth quartile is getting too great." But Cowboys Owner Jerry Jones said, "If you don't have some unshared revenues, stadiums never get built because of all the debt. You think people are going to build those stadiums if they were sharing the revenue 32 ways? No. Why did they get built? Because of the incentive." Univ. of Oregon Warsaw Sports Marketing Center professor Dennis Howard said at least six NFL teams are at a "significant disadvantage because of their venues" and that "several others have trouble keeping pace with richer teams." Howard said that the Broncos' annual operating income, "boosted by a new stadium, is at least" $60M more than that of the Raiders. Bell noted the Colts paid more than 70% of their revenue to salaries in '03, "while richer teams paid roughly 38%." Since '95, the NFL has dispersed funds to lower-revenue teams from a supplemental revenue-sharing pool, which has grown from $18M to $40M. But NFL Exec VP/Labor Relations Harold Henderson said that the pool "has fallen short of diminishing huge revenue gaps," as the most a team has ever drawn in a year is $8.5M (USA TODAY, 7/6).