In the NFL, revenue sharing is a key component of the league’s business model. The NFL operates a robust revenue sharing program where a significant portion of the league's revenue, including advertising revenue and ticket sales, is pooled and then distributed among all 32 teams. This revenue sharing plan helps maintain competitive balance by ensuring that smaller-market teams receive a fair share of the league’s total revenue, enabling them to compete with larger-market teams.
The NFL's revenue sharing agreement includes shared revenues from national television contracts, which constitute a major source of income for the league. Additionally, merchandise sales and licensing fees are part of the revenue sharing funds. This system ensures that even teams in smaller markets can achieve sustainable revenue and maintain their operations. By distributing operating profits across the league, the NFL creates a profit-sharing system that supports the financial health of all its franchises, fostering a competitive and exciting environment for fans and key stakeholders alike.