Everybody knows the NFL is big business, largely because of its draw on television. In some ways, just how big that business is and how to grow revenue even more is at the center of the current lockout standoff between NFL players and owners. But there are others that stand to lose a ton of money, at least in the short term, if there’s no deal in time for the football season -- and TV tops the list.
How NFL Lockout Would Hurt The Economy, Starting With TV Networks
“A strike would risk over $3 billion in gross national advertising dollars generated by the NFL,” said Nomura analyst Michael Nathanson in a client report.
Of course, much like the owners tried to do with their sweetheart deal with DirecTV, most of the broadcasters have some contingency plans for dealing with a lockout. CBS expects to have its contract extended in exchange for missing out on games now. That doesn’t keep the network from seeing less money now, but it could protect it in the future.
And Electronic Arts, makers of the Madden video game, says it would be “largely insulated from the financial hurt” by its contract, though company executives aren’t saying how.
The people who could get hurt worst are not the millionaires and billionaires in the league or the networks that cover it, but the people who run apparel shops and restaurants around stadiums -- some of which do healthy business during the season to offset leaner times when football isn’t being played. For them, there might not be a next year during which they can recoup losses if there’s not a solid football season this year.
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