SBJ/February 21 - 27, 2000/No Topic Name
Redskins get busy in-house
Published February 21, 2000
The Washington Redskins will launch a new magazine and are considering producing two new television shows as owner Daniel Snyder continues to shift most of the team's ancillary business in-house.
Snyder will roll out the magazine, to be called "Redskins Weekly," in mid-April, just before the NFL draft. Unlike sports franchises that hire outside publishing firms to produce fan-based publications, the Redskins will run the magazine venture entirely in-house, allowing Snyder to maximize revenue and editorial control.
The magazine will be published weekly during the season and monthly during the summer months. Snyder will charge $50 for a yearly subscription and guarantee advertisers a controlled circulation of 40,000. The team expects at least $3 million in additional revenue from the publication, sources said.
After he bought the team last summer, Snyder took the production of the team's preseason games and a weekly television show in-house. Now, the Redskins are planning to add two television shows for next season — one Saturday evening show, the other a Monday night show to be broadcast before "Monday Night Football." The shows will complement the existing Sunday morning Redskins show, and all three will be produced in-house.
Redskins spokesman Karl Swanson would not confirm the new television shows but said the team is considering adding new broadcasts.
"We'll continue our current preseason relationships, though we are clearly looking at other broadcast opportunities," he said. "We've had requests from some people. We've got a vibrant market and six competing television stations."
The team is part of a change in how NFL teams do business. Typically, NFL teams will farm out the production of preseason games and other team-related programming as well as fan magazines. But Snyder, who made his fortune in marketing, is taking full control of the Redskins' broadcast and print properties by having the organization produce and sell the programs.
It's money that goes straight to Snyder's bottom line because, like stadium-related revenue such as luxury seating and local television rights, the cash derived from the magazine and television shows is not part of the NFL's revenue-sharing system.
After buying the Redskins last year for $800 million, Snyder has boosted stadium revenue by $20 million, giving the team nearly $100 million in stadium revenue, not including a 27-year, $215 million naming-rights deal with Federal Express Corp.
"Our trend is to do as much in-house as we can, and we've got the resources," Swanson said. "That way we can not only control the content and sell the advertising, but you can also structure more attractive deals for your marketing partners."