Do NFL Players Get A Percentage Of Jersey Sales? As an ardent NFL fan, you may have pondered whether NFL players receive a portion of jersey sales revenue, given the enormous market for these commodities.
This article aims to shed light on this intriguing aspect of the sports business. It reveals that NFL players receive approximately two-thirds of the revenue from jersey sales, according to an agreement reached in 2021.
Additionally, players are also paid royalties based on the number of jerseys sold that depict their initials and numbers.
This revenue forms a significant part of their annual earnings, contributing to their financial prosperity.
The sales of jerseys and other merchandise serve as crucial revenue streams for sports teams, impacting their overall finances.
Hence, as a fan, whenever you purchase your favorite player’s jersey, you are inadvertently contributing to their earnings.
Unraveling the Profit Of The NFL Jersey Sales
As fans of the National Football League (NFL), it’s common to want to wear the jerseys of our favorite players or teams, especially when a new NFL season begins.
Selling jerseys and other team merchandise is an important revenue stream for sports teams.
However, the retail side of the NFL isn’t as straightforward as it may seem.
When it comes to NFL players and jersey sales, it’s not as straightforward as some might think.
Unlike European soccer leagues, where players usually receive a direct cut from their individual jersey sales according to their contract agreements, the NFL operates differently.
Do NFL Players Get A Percentage Of Jersey Sales?
Percentage of Revenue
Do NFL Players Get A Percentage Of Jersey Sales? It is the question that is heard often.
NFL players receive around two-thirds, or approximately 67%, of the revenue generated from jersey sales, according to the agreement between the NFL Players Association (NFLPA), the players’ union, and the league in 2021.
Royalties From Jerseys Sold
NFL players also get paid royalties for the number of jerseys sold that bear their names and numbers.
The royalty rates are set by the NFLPA. These royalties can add up significantly, providing a lucrative bonus to a player’s annual income.
For example, in 2022, Zach Wilson received $465,660 in royalties, while back in 2018, Tom Brady received a whopping $2.35 million in group licensing endorsement royalties.
Certainly, not every player makes millions from royalties, but they reap a substantial amount.
For example, Dak Prescott took home $2 million in royalties. Meanwhile, the league’s union also benefits, as it gets a share of the revenue produced by jersey sales.
The NFLPA pools this income, financially benefiting all players, even those with lower jersey sales.
Do NFL Players Get A Percentage Of Jersey Sales?
NFL Jersey Sales By Player
Market trends, player performance, and popularity play substantial roles in the overall sales of NFL jerseys.
Top Selling Jerseys
Jersey sales vary from player to player. As of August 2023, Philadelphia Eagles’ quarterback Jalen Hurts led the NFL in jersey sales.
His jerseys cost $129.99 each. Some other top-selling jerseys in August 2023 included Micah Parsons, Aaron Rodgers, Patrick Mahomes, Jason Kelce, Justin Jefferson, Josh Allen, Kenny Pickett, Sauce Gardner, and Christian McCaffrey.
Tom Brady’s NFL jersey has been the top-selling jersey overall. Despite his retirement after the 2022 season, his jersey still remains high on the sales chart, ranking 8th for the season.
Meanwhile, sales for Travis Kelce, Chief’s jersey, increased by 400% on Fanatics since a particular Sunday, indicating the impact of a player’s performance on the field on their jersey sales.
NFL Profit Sharing
The monetary aspect of the NFL extends far beyond jersey sales, with media deals and profit sharing playing crucial roles in the league’s overall revenue.
According to Forbes, NFL profit sharing resulted in each team receiving a share of $372 million from the league’s national revenue of $11.9 billion in 2022.
This was an increase of 7% from 2021.
Contributors to NFL Revenue
National media are the major contributors to the NFL’s revenue, making up 67% of the total in 2022.
The contracts from media outlets amounted to $12.3 billion, which outpaced the media rights for other U.S. major leagues, including MLB, NBA, and MLS.
Media Deals and Revenue
CBS, NBC, Fox, ESPN, Amazon, and YouTube are some of the major media powerhouses the NFL has deals with, running till 2033, creating a stable and dependable income source for the League.
NFL Teams By Revenue
The revenue generation varies widely between teams.
Top Revenue-Generating Teams
According to 2022 figures, the Dallas Cowboys were the highest income earners, generating $1.14 billion in revenue, making them the most-valued team at $9 billion as of 2023.
They also led the league with an operating income of $504 million, far surpassing the Giants, who had the next highest operating income of $216 million.
Average Revenue and Team Worth
The average revenue of all 32 teams increased by 8% to reach $581 million.
The average team worth jumped 14% from the previous year to a value of $5.1 billion.
This upward trend is expected to continue in 2024, thanks largely to the extensive TV deals and changes in debt limits.
Teams also generate around $200 million in revenue from hosting concerts and other events unrelated to the NFL at their stadiums.