How Much Money Does The Nfl Make Off Of Fantasy Football
A multi-billion dollar sport kicks off this week that fans have been eagerly awaiting for months
It involves an oblong ball, large players crashing into each other and it dominates the airwaves and the Net.
Yup, information technology'due south the render of fantasy football.
Pro football was the nation's nearly popular sport -- and the highest-grossing -- long before there was a fantasy version. Simply it wouldn't be nearly as popular or financially successful without it.
The reason: Fantasy fans put together a hypothetical team of real players from teams across the country, and that'south inverse the style people follow the sport.
It used to be that NFL fans mostly paid attention to local games, tuning into big, nationally broadcast games at present and and then. Now every game -- even those involving last place teams thousands of miles away -- can be crucial to a fans' fantasy team. The event: people are watching a lot more football, making those out-of-boondocks games more than valuable to the league than ever.
A year ago the league renewed its exclusive contract with DirecTV to show those out-of-marketplace games, for an average of $ane.5 billion a year. That's $500 meg a year more than than the previous contract.
The league also started NFL RedZone, a premium cable channel with highlights and upwards-to-the-minute fantasy stats.
Stadiums now list fantasy stats of other games on their scoreboards so fans can follow along. And teams are upgrading wireless and wifi coverage in stadiums to aid fans stay up-to-the-minute.
Related: NFL Start pumps upward big ratings for NBC
Merely it's not but the league raking in more than coin cheers to fantasy games. The fantasy companies themselves are also large winners.
Disney'south (DIS) EPSN, Yahoo (YHOO) and CBS (CBS) are all big players in what is now a $i.5 billion industry, according to an approximate from research firm IBISWorld.
Upstarts DraftKings and FanDual are right backside them. FanDuel started in 2009, DraftKings in 2012. They've each recently raised nigh $300 meg in financing, which they're using to blanket stadiums with ads. Betwixt them, they have sponsorship deals with 28 of the 32 NFL teams, worth an estimated $6 meg to $seven million to the teams, according to research firm IEG.
"These are entities (DraftKings and FanDuel) that didn't exist a few years agone now take multi-billion dollar valuations," said sports marketing consultant Marc Ganis. "Fantasy has been a major asset to the league and a meaningful driver of fan involvement."
Both DraftKings and FanDuel take opened lounges in a number of stadiums where fans can watch other games while watching their own games live.
Fantasy sports aren't limited to football -- the concept really began with baseball in 1979. Merely football accounts for about 36% of the estimated 40 million or then fantasy games that people play every year, according IBISWorld. That's twice the share of whatever other sport.
Related: NFL revenue: Hither comes some other record flavour
The popularity of fantasy sports is driven in big part by the huge prize coin involved. DraftKings expects to pay out close to $two billion in prizes this year, and some fantasy football games pay out every bit much as $10 1000000 a week.
Fantasy sports come close to the line of sports gambling, which is illegal in all states except for Nevada.
But federal law has accounted that fantasy sports are game of skill which is therefore totally legal.
Source: https://money.cnn.com/2015/09/11/news/companies/fantasy-football/index.html
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