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Deloitte Study Reveals London NFL Team Could Be Worth More Than $160M Per Year

A report into the economic impact of American football in the U.K. revealed that a London-based team "could be worth" more than £100M ($160M) per year to the city, according to Ben Rumsby of the London TELEGRAPH. A study carried out by Deloitte, the commissioning of which suggests the NFL is closer than ever to launching a permanent Wembley franchise, "found that the two International Series fixtures played there last year" contributed £32M to the London economy. The report forecasts that "an expanded series of four matches could generate" £58M ($93M), and an entire eight-game home season might yield as much as £102M ($163M). The prospect of that eventuality "moved closer than ever last week" after Chancellor George Osborne confirmed that "he had held talks over creating a Wembley franchise" (TELEGRAPH, 10/29). In London, Tom Sheen wrote the average attendance for last year "was found to be 15,000 higher" than the league average for U.S.-based games, or around 22%. Of that £102M figure, Deloitte estimated that £68M of that is based on spectator spending. The NFL has a significant British fanbase of 13 million, with 2.8 million of those classed as "avid fans" and interest in the league has grown by more than 30% in two years. Of the 167,000 spectators in '13, more than 80% came from outside of London, with 4% coming from overseas. Dan Jones, of Deloitte, said, “Our analysis demonstrates the impact the NFL International Series has on the London economy. It is a valuable addition to the capital's calendar of major sporting events" (INDEPENDENT, 10/29).

GETTING A BREAK: The BBC's Matt Slater wrote the report "was launched" by Secretary of State for Culture, Media & Sport Sajid Javid. Support "is likely to include the type of tax breaks that have been offered to major sporting occasions such as London 2012, the 2014 Commonwealths and next year's Rugby World Cup, but not to one-off athletics, golf and tennis events." With rates of income tax lower in the U.S. than in the U.K., the lack of such a deal for a London team "would cause problems for the league" and its relationship with the NFL Players' Association (BBC, 10/29). The AP's Rob Harris wrote while the 30-page report "paints a positive picture, there are reservations" about Wembley Stadium hosting the Super Bowl. A "major hurdle to overcome with a Super Bowl in London would be selecting a suitable kick-off time." Predicting that "fewer die-hard fans and season-ticket holders would be able to cross the Atlantic, Deloitte cautions that the atmosphere inside the stadium and on television could be affected and impact on the 'wider global brand presence'" (AP, 10/29).

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