Written By: Logan Evers
The New Orleans Saints are a National Football team located in New Orleans, Louisiana. The New Orleans Saints bring in a net total revenue of 1.97 billion dollars this year. The profit that this organization makes is astonishing. The New Orleans Saints have an operating cost of 370 million. 1.97 billion dollars was made this year that is greater than last years total by 36%. (BIZNO)
I am sure some of you don’t even know who the New Orleans Saints are or what even professional football is, so here's a little backround on the Saints franchise. In 1966 the team was founded by John W. Mecom Jr., David Dixon in the “Big Easy” New Orleans. They developed a way of doing things down in New Orleans that created a winning tradition entering the 21st century. The teams most valued player and the top jersey seller, quarterback Drew Brees who has broken and continues to set all-time NFL records is now leading a 8-1 team in the 2018 season.The Saints have made a 36% increase in revenue this year, thats a huge jump that was made from last year but it’s because there has been an increase in demand this year because of the success of their franchise so far in 2018. The Saints only have one loss and eight wins, when you’re winning the fans are entertained and tickets sales will increase in demand. The revenue made by the Saints is from the success of their team.
Works Cited
Price, Chris. “Forbes Values Saints at .52 Billion.” Biz New Orleans, www.bizneworleans.com/The-Pennant-Chase/September-2015/Forbes-values-Saints-at-152-billion/.
This increase in revenue is not definitive. If the Saints were to start losing games, demand may decrease and that would cause less products and tickets to be bought. This could lead to a surplus in paraphernalia and tickets that may cause the Saints to lower their prices in order to increase quantity demanded. As well, just because the Saints are making an increased total revenue does not mean they are necessarily making an increased profit. With more products being demanded (probably of varying prices), the total cost of producing may have increased as well. If total cost has increased as well, depending on how much it has increased, it is possible that profit has decreased. This is highly unlikely as the NFL probably has cheap means of manufacturing its products. However, it should be remembered that increased total revenue does not mean increased profit.
ReplyDeleteI agree, because the saints are doing well they are selling more, filling more seats, and selling more jerseys. This is a typical thing that happens with winning teams, especially when fans are disappointed because their team is projected to lose and don't look as good like the saints did in the beginning of the year. The team does better=They sell more, and make more profit. It's been like that for years.
ReplyDeleteFor many teams at the professional level, the revenue has a strong correlation with how well a team is doing. For example, when the Brewers made it to the NLCS, their revenue was very high as many games were packed at the stadiums and merchandise was being bought very quickly. With the Saints, they are having a lot of success. Last year they made it into the post season, and now they are having a very successful year so far. With this, there is a high demand for tickets and merchandise, all of which bring the franchise a lot of money.
ReplyDelete- Colin Pham
Something to add, while people are attending Saints games, buying a legends jersey(Drew Brees) supply will increase. This is because since the Saints are doing so well companies can afford to raise prices and increase supply. Since the demand for Drew Brees jersey is so high prices will rise. It will keep rising until something happens. Drew Brees is getting old, which means he may retire. A "down year" is ahead for the Saints. This year is extremely important that they can make money now when in the future without Drew Brees leading a winning team revenue will be harder to achieve. With the way the Saints are performing they could be a Super Bowl bound team, which is huge!, the revenue that the Saints are currently making is high but if they can finish the season off, it will be higher. The equilibrium price will be higher as there is an increase in demand, and supply, so people will be paying more money for certain prices, so keep equilibrium in mind as well.
ReplyDeleteThe saints are doing very good this year they have a recorder of 8-1 this season witch is amazing. This means fans and other people are going to want to buy jerseys and tickets when this happens the demand increase because they want stuff. This means they can raise prices and then increase in supply. Everything will keep increases until something happens and then the demand will go down. With Drew Brees getting older now everyone is trying to get his stuff so they are making the price super high because you don't know when he is going to retire and when that happens it will be a bad year for the Saints.
ReplyDeleteI agree that there constant wins are causing more people to buy tickets and go see the games live are causing there revenue to increase, but also there constant winning is causing more people to support them and buy their merchandise online or at the stadium when they go see them live, causing there revenue to increase.
ReplyDeleteMy friend is a saints fan and every time there is a game that is coming up or is a game that day he always tells me or talks about it. Do to the saints doing so well the tickets will be selling faster and sooner cause everyone that is a saints fan will want to see theses games in person.
ReplyDeleteThat revenue increase is crazy, but something I’d like to know is how that compares to other NFL teams with how much they’re making per year or how much they’ve increased this year. Great information in the first paragraph to start it out, it helped me get a view on what the numbers for what the Saints are. It was also very smart that you explained what the Saints are because not everyone does follow football. It was an okay way to end the paper by finishing saying what you did but I feel like it was sort of just tossed in there and if you could go just a little deeper it would be a great ending.
ReplyDeleteOther aspects can affect the team more so than their success, it can be affected by who actually plays for them. Fans want to see great players play, and even if your favorite team isn’t playing that great, if there is going to be a superstar player on the field every time, you are going to want to buy tickets to see that player play. This isn’t all because of Drew Brees either, there are other superstar caliber players on their team that make the game exciting, such as Michael Thomas and Alvin Kamara. A teams star players make a significant impact on their financial gain.
ReplyDeleteThe increased revenue not only come from an increased demand for game tickets, but also a increased demand for a variety of merchandise like Drew Brees jerseys. Because of the winning streak that the Saints have been on, the franchise now has the ability to raise the prices of various products, and a majority of consumers won’t care because they want that product. This is especially true with the tickets because there is a limited supply, because the supply of tickets is low, but the demand is high, this raises the equilibrium price allowing at Saints to charge more for their tickets and make more profit. However if the Saints are unable to keep the winning streak, then the demand for their products and tickets will decrease and the Saints will be forced to lower their prices and lose revenue.
ReplyDeleteI agree that it is truly astonishing and I was thoroughly surprised by the amount of economic growth they have made in only a year. This is very impressive because they were a very good team last year and to improve that much is amazing. Their players continue to make bigger names for themselves which certainly helps with revenue from merchandise. All of these factors add up to the Saints being one of the most economically strong NFL teams.
ReplyDeleteI think that it’s crazy to say that the New Orleans Saints has almost a revenue of $2 billion. I would have to agree that economically the Saints revenue kept increasing throughout the years but maybe explain about how the Saint’s revenue kept increasing and why the revenue is so much than it was last year.
ReplyDeleteIt's crazy how one of the hottest teams in football has had such a huge increase in their total revenue since last season. The 36% increase even just a couple of weeks into the season is mind blowing. But it also makes sense, since the Saints are off to such a hot start and have one of the best quarterbacks of all time it only makes sense their revenue is increasing. The demand for tickets is increasing, but supply is staying the same. With this the ticket prices will most likely increase, and increase dramatically. Then also with merchandise, there's now a new found demand for merchandise which will then lead to an increase in merchandise revenue too. Just because of their hot start the Saints have not only benefited on the field but also financially.
ReplyDeleteThis is interesting to see how much the Saints revenue has gone up in the past few years. When Hurricane Katrina hit New Orleans in 2005, the Saints stadium was completely demolished. In a way, the franchise had to rebuild and now to see them making a large amount of revenue is very impressive. With the help of their future hall of fame quarterback Drew Brees, the Saints are going to continue to improve and sales are just going to keep increasing.
ReplyDeleteI agree that the success is a big part of the amount made increase, but I believe some people think Drew Brees's time in the NFL may be coming to an end as he has been in the league for around 20 years. I don't think ticket sales have effected the amount the team makes because a they sell out any game and the ticket prices have been the same, they just go for more to the scalpers.
ReplyDelete