If the current NFL labor impasse between owners and players continues into the 2011 football season, players, coaches and fans won’t be the only losers. Companies whose business interests and revenues are closely tied to the league could take a hit as well, especially if the season is canceled. Fantasy football leagues have a huge impact on revenues all across the country. Including companies like us right here at Fantasy Football League Trophies we will feel the revenue loss!
Federal judges in two separate rulings have ordered NFL owners to cancel the lockout and get back to work. The owners are now seeking a temporary stay of the order to end the lockout. The legal battle will continue regardless of that outcome.
So what does this NFL standoff between owners and players mean for businesses? When it comes to companies that depend on the NFL for a big chunk of their revenue, the impact on profit earnings is potentially huge. Here are few companies that could take a really big hit:
1.DirectTV brought in $600 million-$750 million last year in subscription revenue from its Sunday Ticket service. Advertising revenue loss from of those games adds another $100 million.
2. Electronic Arts which is going ahead with the launch of a Madden NFL 12 video game despite the lockout, could lose up to half its projected 2011 sales of the product. More than $150 million.
3. Anheuser-Busch, if the season is cancelled, the company could lose $12 billion in lost revenue from advertising, canceled fantasy football leagues, empty sports bars and out-of-work stadium personnel. The company already has ponied up $1.2 billion over six years to make Bud Light the NFL’s official beer sponsor.
4. MGM Las Vegas and other Las Vegas sports books could lose a combined $850 million from a lost NFL season, says John Avello, Wynn’s sports book and race director.
5. The loss of NFL games can have a huge impact on broadcasters’ revenues. CBS brought in $170 million in ad money last year for the Super Bowl XLV.
6. All companies serving Fantasy Football League’s across the country. Such as bars, league administration peripherals, Fantasy Football League trophy shops, it all trickles down to even the employees of these fine establishments.
