Question: Needing these based on the information below: Budget analysis (a five year operating income statement with expenses and revenues) Investment financials (details of what you'll
Needing these based on the information below:
- Budget analysis (a five year operating income statement with expenses and revenues)
- Investment financials (details of what you'll spend money on)
To create a budgeting spreadsheet for the NFL to adopt the NBA's model of a 50/50 revenue split, we need to consider the current revenue sources of the NFL and how they may be affected by the new CBA rule. We will also need to analyze the potential revenue growth resulting from the implementation of the new rule.
Assuming that the NFL's total revenue for the previous year was $16 billion, a 50/50 revenue split would mean that the players' share of revenue would increase from $5 billion to $8 billion. This would leave $8 billion for the owners, with the remaining $3 billion going towards expenses such as marketing, advertising, and stadium maintenance.
The following table shows a breakdown of the NFL's revenue sources:
Revenue Source Current Revenue (in billions)
Broadcast 10
Sponsorship 3
Ticket Sales 3
Assuming that ticket sales would increase by 10% due to the increased player salaries and the overall excitement generated by the new CBA rule, we can project an additional $300 million in revenue for the NFL. Similarly, we can assume that sponsorships and broadcast revenue would increase by 5% each, resulting in an additional $150 million and $500 million, respectively.
Using this data, we can create a budgeting spreadsheet to project the NFL's revenue growth for the next five years. Assuming that the NFL's revenue growth rate would be 3% annually, we can use the following formula to calculate the projected revenue for each year:
Projected Revenue = Previous Year's Revenue + (Previous Year's Revenue * Growth Rate) + Additional Revenue from New CBA Rule
The following table shows the projected revenue for the NFL for the next five years:
Year Previous Year's Revenue Growth Rate Additional Revenue from New CBA Rule Projected Revenue
2023 $16.0 billion 3% $950 million $17.3 billion
2024 $17.3 billion 3% $1.0 billion $19.0 billion
2025 $19.0 billion 3% $1.1 billion $21.1 billion
2026 $21.1 billion 3% $1.2 billion $23.7 billion
2027 $23.7 billion 3% $1.4 billion $26.9 billion
We can see that the new CBA rule would result in significant revenue growth for the NFL, with projected revenues reaching $26.9 billion in 2027. This growth would be driven by increased ticket sales, sponsorships, and broadcast revenue, all of which would be generated by the increased player salaries and the excitement generated by the new CBA rule.
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