In the midst of all these labor negotiations, where billions of dollars are being tossed around with players and owners are fighting for their own share like two dogs fighting over the same bone, we lose sight of where all this money really comes from.
Well the easy answer you will get is it's from the television networks and ticket sales. It's pretty obvious where ticket revenue comes from so let's look at the TV network money.
Where does all these billions of dollars that the networks, DirecTV, NBC, CBS, and FOX give the NFL in exchange for the right to broadcast the games?
From the advertisement sales division of course, you say. So all these companies are paying millions of dollars to advertise their products to you during these games.
OK so now we move one more rung down the ladder and now we see the source of revenue to pay for all this advertising is product sales. Now we see that the goods and services we buy and pay for goes up the ladder to these sports leagues and funds all these people who are squabbling about how much of our money they get.
So far nothing earth shattering yet. It's all pretty obvious stuff, right? Well, here's the part that concerns me. During all these talks I keep hearing that the projected TV revenue is supposed to double over the next 4-6 years. REALLY? Double? Holy crap, double the TV revenue over 6 years? How many companies can project a 200 percent increase in profits? And these are the owners that are saying they are losing money. How much is a Super-Game (don't want a copyright infringement lawsuit) commercial going to cost? Just how much are the end products' retail prices going to go up to support that extra money?
I'm not saying the sports leagues are single-handedly responsible for the entire problem, but it sure isn't helping.