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Home»Economic News»How US Sports Leagues Make Money
Economic News

How US Sports Leagues Make Money

July 27, 2024No Comments2 Mins Read
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Between the years 2022 and 2023, the combined revenue of the five major U.S. sports leagues reached an impressive $49.3 billion.

The NFL emerged as the top earner, bringing in $18.7 billion, surpassing both the NBA and MLB, which each generated $10.9 billion. While the primary sources of revenue for these leagues have remained consistent for the past forty years, there are notable differences in how each sport’s revenue is distributed.

This informative graphic, sourced from Visual Capitalist’s Niccolo Conte, provides a breakdown of U.S. sports league revenue streams based on data from Sportico.

Examining U.S. Sports League Revenues

Below, we delve into how each major league generates revenue based on their primary income sources. The revenue figures for the NFL and MLB are from 2022, while those for the NBA and NHL are for the 2022-2023 season. The MLS revenue data is as of 2023.

Central revenue includes league media, merchandise, sponsorships, and shared ticket revenue.

Central revenue, primarily from media and broadcast deals, plays a crucial role in the revenue streams of the NFL and NBA.

The NFL has witnessed significant growth in viewership, with 93 of the top 100 most-watched TV broadcasts in 2023 belonging to the league. Moreover, streaming platforms are increasingly entering into lucrative contracts with the NFL, such as Netflix paying $150 million to stream two Christmas games in 2024 and Amazon securing exclusive rights to Thursday night games for $1 billion.

Similarly, the NBA signed an impressive 11-year, $76 billion deal with ESPN, Amazon, and NBC, more than doubling its previous contract value. This trend of escalating media deal worth is evident across all major sports leagues due to the high demand for professional sports content.

For the MLB, local media stands as a critical revenue source, contributing nearly a quarter of the total revenue—significantly more than any other sport. On average, 2.3 million viewers tune in daily to watch MLB games on regional sports networks.

Conversely, the NHL generates the highest proportion of revenue from seating and suite sales compared to other leagues, at 44%, primarily due to less lucrative TV broadcast agreements.

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