Wednesday, September 28, 2016

Overseas Expansion for the NFL

Overseas Expansion for the NFL

By: Kyle Turba

The National Football League (NFL) is one of the most dominant professional sports leagues in both the United States and the world. The NFL has become a professional and household brand name over the past 20 years. During this time, they basically have developed ownership for one day of the week: Sunday. Millions of fans across the country are attracted to either the stadiums or their couches for an afternoon or evening of football.

The demand for the NFL in the United States has never been higher. In 2015, television stations Fox and CBS recorded their highest viewership ever. According to an article from Sports Illustrated, “Fox drew an average of 20.75 million viewers per game, which is a slight increase from 2015 season, and CBS drew an average of 19.1 million viewers which is a 2% increase from the 2015 season” (Deitsch). In addition, attendance has stayed very consistent over the past seven seasons at around 17.25 million attendees with only sight increases or decreases over the years.  

NFL Fan Attendance from 2008-2015

Even though the economy of the NFL always grows, it hasn’t grown as much as it had been expected to in the United States over the past few years. “The NFL has enough potential roadblocks to hinder its growth here in the U.S to worry about. Health and safety concerns, for starters, as well as the run of high-profile off the field incidents that that have taken some of the sheen off the shield” (Vrentas). This has prompted the NFL to look to new markets to expand into and developed new economic growth in new areas.     

Since 2007, the NFL has been playing a small number of regular season games outside the United States in cities like London, Mexico City and Toronto. This notion is hinting that the NFL may possibly be considering to expand overseas to a brand new market in the near future. This may be the best option for the NFL in terms of growth, because according to Jenny Vrentas, a writer for Sports Illustrated, “the biggest growth for the NFL in the future will happen outside the United States” (Vrentas).

This international growth has begun. “Since the NFL began its International Series back in 2007, participation in amatur football in the U.K has increased around 15% every year since then” (Vrentas). Also, fans are constantly selling out the 80,000 person stadiums for these football games, showing that there is indeed an interest in the NFL outside the United States.

The only thing missing is the presence of a team in a foreign city. The demand for the NFL is there, all they need is the supply of a team that will play there eight times in a given season. Adding or moving a team outside the U.S. would produce much needed growth for the NFL. It would increase many things such as overall revenue for the NFL, the number of jerseys sold, commercial revenue.  It would also create new target markets and a new audience who will be partaking in either watching the game in person or on TV. This is the growth the NFL needs, because adding a team in London, or in another international city, is the gateway to becoming an international brand like the NBA, MLB and NHL. Expansion outside of the United States has worked for these sports, and the NFL would probably have just as much success, if not more due to the brand that they have already established in the United States.   

The NFL needs to decide if they want to place a franchise overseas. The opportunity cost of not doing this would be to miss out on a new full-time market that could boost economic growth for the entire league. It would increase ratings, attendance and so much more. It would create an international presence that the NFL has never truly had and it could carry them to a new height that they have not been at before.

There is a lot of hesitation among owners and players in the NFL as to whether or not the move should be made. There are several backs such as the travel concerns for the teams, the need for division realignment and how attractive the city would be to free agent players. Although the concerns are valid, I feel that the positives outweigh the negatives.  As a fan, I think it would be better for the NFL to remain primarily in the United States, with the exception of a few games a year. But looking at it in terms of the economic potential, the NFL has a major opportunity to become a global brand with this expansion opportunity. They would finally be able to compete with other professional sports in America on the global level. This is something that the NFL needs to take advantage of, because they have not had a better opportunity to establish themselves as a global brand.




Works Cited

Deitsch, Rischard. “Why there is no ceiling in the near future for NFL ratings, more Media Circus.” Sports Illustrated, Time Inc, 10 Jan. 2016, http://www.si.com/more-sports/2016/01/10/ Media-Circus-NFL-Playoff-Ratings-ESPN-NBC-CBS.   

“NFL International Series.” Wikipedia, Wikipedia, 15 Sep. 2016, https://en.wikipedia.org/wiki/ NFL_International_Series.  

Roling, Chris. “Projecting the 5 Biggest Drawbacks of Relocating an NFL Franchise to London.” Bleacher Report, Bleacher Report, 28 Oct. 2012, http://bleacherreport.com/articles/ 1387627-Projecting-the-5-Biggest-Drawbacks-of-Relocating-a-NFL-Franchise-to-London.   

“Total Attendance at National Football League regular season games 2015.” Statistica, Statistica, https://www.statista.com/statistics/193420/Regular-Season-Attendance-in-the-NFL-Since-2006/.   

Vrentas, Jenny. “The NFL’s Future in Europe.” Sports Illustrated MMQB, Time Inc, 24 Jul. 2015, http://mmqb.si.com/mmqb/2015/07/24/NFL-Future-Europe.   

20 comments:

  1. Having lived over seas, I have recognized there to be very little interest in football outside America. Therefore I am curious what percentage of attendees in games held in the UK are actually X pats, and were already interested in the sport. This was very interesting to read for that matter, that the popularity is happening in amateur leagues, and I would be curious to see how the NFL goes about popularizing football globally, possibly by introducing it in schools and growing the sport in the coming generations.

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  2. As a follower of the National Football League and huge football fan, I personally think that an over seas expansion team would bring a new spice to the NFL. Along with this new change, would come a lot of controversy. How would and American run cooperation feel about a non American team winning a super bowl, or how would other country's sports teams feel about an American team taking followers from their sports such as soccer, cricket and baseball. Another thing that has to be taken into consideration is who is going to cover the cost for a new expansion team? The city that the team is going to be in or the NFL? Having the popularity it does, if the NFL really thought it would help the popularity I feel as if it would have been a thing already. Although I am not sure how successful it would be I would love to see a new team in the NFL.

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  3. As a fan of the sport of football, I think it would be a great experience to have teams centralized in overseas regions of the world. That being said, I do see one other major obstacle for the creation of the team: the owner. While it certainly would lead to corporate growth for the company, I can't imagine that owning a team in a European market would be a financially sound decision for an owner for at least a decade. Getting stadiums built and acquiring fans is one thing, recruiting players and coaches is another. Any team owner would likely have a nightmare trying to convince good players to have a home playing field on the other side of the world. Couple that with the presumed limited funding they would have due to their likely resistant market; finding any willing player or coach would be near impossible. Any financially successful person would have that in mind when thinking of starting an overseas franchise, and might very well reject the notion outright.

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  4. I love football, as I am a die hard Eagles fan. Personally I don't want to see a foreign NFL team, the possible economic benefits are there, however I don't see this outweighing the negative effects on the game itself. Having a visiting team travel all the way to London would provide an unfair advantage to the home team. That long of a flight just a day or two before the game could leave the entire team tired and jet lagged. Not to mention London's time is far ahead of that of the United States, I, as a fan, do not want to wake up around 8:00 in the morning to catch the noon game in London, but that's just me. I feel like the negative effects on the game itself outweigh the possible economic benefits.

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  5. I agree that there is large market of untapped football fans abroad, and expansion of the NFL will suit that need. However, as all 32 teams of the NFL are based in the U.S. expansion into Europe or Asia can cause massive problems with current teams and players. Having teams travel for one to four hours on a jet is fine, but a flight for 7 to 11 hours is asking a lot. Giving traveling players jet lag from such long flights can cause an unfair advantage to the home team and some players to flat out refuse to work overseas. This can lose revenue for teams, owners, and the NFL.

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  6. I believe there are many people across the world that are football fans and that this expansion would open the possibilities of a huge overseas market. The only problems that come along with this is the fact that many teams and their players will be unwilling to convert to this major game changer. Although everyone knows this would be a good way to increase business it would mean a loss to the current American football programs.

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  7. The travel to other countries on a weekly basis would be too much to ask of a professional athlete. Playing a couple games a year outside of the U.S draws interest from other countries and grows the fan base which I think is the goal of that. Sell more apparel and spark NFL interest in countries that don't have it. At this point in time it is not sensible to locate a home team outside of North America Perhaps you could put one in Canada but that would be a stretch as they have their football league already.

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  8. I too agree that the expansion of the NFL is a good idea overtime, however somethings do worry me. For example, if a new team is created, although there may be a great amount of demand at first, if the team is terrible, and the competition is good, the demand for football will go down. It could also be argued that if the team is bad, there might still be a demand for the skill of the opponent. Overall, the expansion will bring in lots of revenue due to the high demand.

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  9. Being a football fan, I believe that this transition from the United State to a few games overseas would be bring in more revue. More publicity, revue, and more fans would add to Sunday afternoon/evening football. But there are concerns that are being raised with it and that is would the outcome be the same year after year, will the excitement remain? Even though it is an interesting idea and concept, The NFL Players Association is concerned how their player would react to the issues that comes with flying over seas. Such as: food, sleep and being jet lag. How would something like this affect a Sunday afternoon. Overall it is a good idea, but there are questions that need to be answered before jumping into something like this.

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  10. An international expansion of the NFL would be economically beneficial. The NFL would generate a lot more revenue due to a wider target audience, more jerseys sold, and more attraction to the entire league. The NFL has already established a very successful franchise here in the United States. However, moving internationally would make them that much more prosperous. As mentioned in the blog post, the opportunity cost of not moving internationally would be missing out on an opportunity to enhance the market and influence economic growth. A downside of this choice would be how the players and their families are affected. It would be very exhausting for the players to have to travel internationally each week, but it is worth it because of how much the NFL's market will grow. The NFL should expand their franchise overseas to maximize the potential of their league.

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  11. I absolutely agree with Grace on this one. The NFL would greatly benefit from the overseas expansion, but that's not the only thing that you have to think about in this situation. You always have to think about both the positives AND the negative effects that could be found in this situation. The massive growth that the NFL could get from the expansion could cause bad effects on those who have to do all the traveling in the short period of time between games as well as the cost of flying and the time spent away from family members. Overall, it would be a generally good idea for the NFL to expand overseas.

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  12. I see how NFL expansion overseas could be a demand in some countries. It may seem like a good idea as far as additional fans, merchandise, and overall interest for American football and NFL. However being a football and soccer fan, if there ever comes a time I can only watch one game, I would choose the soccer game. Many countries all over the globe support soccer as it is there number one choice for entertainment much like football is (for most people here) in the US. This being said, there would be an opportunity cost for people to watch a Sunday NFL game instead of watching their favorite soccer team play and ultimately them resorting back to what they prefer more, soccer. If that were to happen, how much attention would this expansion truly get after the initial launch of the new league? Researching the NFL's possible revenue, league competition, and controversy from players, coaches, and outsides would all need to looked into before making this major switch, to determine if this expansion would really be worth it.

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  13. The economic growth that the NFL would pertain if expanded overseas would be incredible. With the amount of games most likely tripling, the revenue from these sold out games across the globe would absolutely make an impact on the total revenue of the NFL. Financially and economically, going global is the best move for the professional sport. However, on the more personal side, the players would suffer some major opportunity costs. By traveling more, they will not be able to spend that quality time with their family. This could strike up some serious issues for all players and create problems within the industry. As an NFL fan, I also think that the authenticity would go away. Football is recognized as an American sport, and Sunday night football is the American tradition. What is the point of having a national tradition if it decides to international? Whose tradition is that anymore? In conclusion, Kyle, I agree with your entire opinion. Economically, global expansion is the right call, but personally, let's keep the Packers right here at home.

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  14. While reading your post, I was very intrigued with the fact of global expansion of the NFL. I understand how many people think that it's best for all of our favorite football teams to stay here in the U.S., and that is true. But I was thinking that if the NFL went global, eventually different cities in different countries could and would have their own teams and Superbowls would be almost like the Olympics, where different teams from around the world meet in one city and play against each other. That kind of an NFL would be an incredible growth to what the NFL is right now, and even though there would be many opportunity costs along the way, overall, I think it would lead to huge economic growth and would result in very successful expansion of the company.

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  15. Personally, on an economic level, the expansion of the NFL overseas may be a good idea as you stated in your post. But on the same token, on a personal level, I would not like to see teams over sea. I feel like the connection between the teams would not be the same as just in the United States. The players would presumably not want to play overseas not only because they would have to fly a long way every away game, but also, there's no greater country than the U S of A baby.

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  16. It is a fascinating idea to consider that the NFL may have a team in Europe. Although I’m not too sure about how valuable it would be. Although each game in London was sold out, it may be more of a cultural event than people deseperately wanting a team there. For example, if a premier league match was played in New York City, there’s an extremely high chance that it would sell out because of the rarity and prestige. Likewise, that could be the case for London. It’s just something to think about; we cannot know for sure if London would keep up sales. Regarding Mexico, it would be interesting to see if they could sell out their game/s and potentially support a franchise.

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  17. I agree that economically, this would be a very beneficial decision for the NFL or at least for the owners of it as they would increase their profit greatly. However, I feel like that it would affect the fans and players in a negative way, as football and the NFL has always been an American tradition. They would also need to make many changes to the league if this expansion were to happen and new teams were added. For example, the NFL would have to be changed to the INFL because it is not just national anymore. Also the new divisions and conferences would need to be set up. It would also upset American fans because it would seem like the rest of the world is trying to intervene in their pasttimes. Also, what if someones favorite team was playing overseas for the playoffs for example and they could not travel to the game because it is just too far. This would be upsetting to many fans. Economically, it is a good decision for the NFL as everyone would get paid more due to the increased revenue but I feel like many people in the NFL already make way more than enough money and dont need much more, its honestly just greed at this point. They are already successful enough in the US and I believe this expansion would only just upset the die-hard American fans.

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  18. I think the overseas expansion would be a great opportunity for the NFL because when you think about it, football is mainly an American sport, thus being called American Football in several other countries. Expanding the franchise overseas would certainly increase the revenue and market to other customers, but it might make some US fans a little upset. When their favorite team goes overseas to play a foreign team, they’re not as capable to fly over and watch them due to the amount of money that would require. Additionally, adding another team could cause some separation between the American teams versus the single foreign team. Personally I think it would be a great opportunity for the NFL, but considering some of the drawbacks, the NFL should make a careful decision and consider all the costs involved.

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  19. First off I haven’t ever heard of games that were played overseas before so that was a interesting fact to know. I really liked that you stated and explained the positives of the outcome of the expansion, but because at the end your opinion was to probably not have that full expansion it would have enhanced the blog even more I think if you explained some of the negative outcomes that would have happened. The overall structure and organization really made the blog flow nicely starting with the NFL popularity background and then into the past oversea games and then ending with the positive/negatives and your opinion. I think that you are definitely correct on the economic aspect of the transfer, but the players and fans I think wouldn’t like that this all American game would be moving across the world. I was a little confused whether or not these overseas teams would be played by mostly Americans or mostly citizens from that country, or more of a mix like the NBA. If it was more of a mix do you think that the teams would be played with a more equal level of skill or would the better players continue playing in America? Overall thought the blog was really well thought out and interesting.

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  20. I agree that NFL should keep all the teams and leagues in the U.S. I do understand why the NFL is doing what they are doing. If they can have one or two games a year in Europe or Mexico, just imagine the millions and millions of fans they are now introducing to the sport. Once they are hooked on the sport they will watch it on TV and this should increase sales. So although I think all the actual teams should stay in the U.S I don't mind the overseas games.

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