Revenue Sources
1) TV/Radio Broadcast Revenue is either negotiated individually by a
franchise (in which case the revenue is retained by the franchise)
or collectively by the league (in which case the revenue is
shared according to the league's revenue sharing arrangement).
The broadcast rights contracts will be renegotiated throughout
the season and will change based on the competitiveness and
popularity of the league.
2) Merchandising Revenue is divided among franchises
according to the league's revenue sharing agreement. Total league
merchandise revenue is determined by the competitiveness and
popularity of the league.
3) Ticket Revenue will be divided between home and away teams for
every contest according to the league's revenue sharing arrangement.
Ticket revenue will be determined by attendance. Attendance
will be dependent upon ticket prices, the popularity and success
of the home and away teams, and the size of the local market.
Ticket prices in four separate sections of the stadium (lower,
middle, upper, and luxury) will be set by the franchise owner
and may vary for each individual contest.
4) Concessions Revenue will be divided between home and away teams for
every contest according to the league's revenue sharing arrangement.
Concessions revenue will be determined by attendance. Attendance
will be dependent upon ticket prices, the popularity and success
of the home and away teams, and the size of the local market.
Concession prices for hot dogs, nachos, beer, and t-shirts will
be set by the franchise owner and may vary for each individual
contest.
5) Stadium Sponsorship Revenues are not shared (each franchise receives
an individual sponsorship contract) and are only collected for
the regular season. For weeks 1 and 2 each franchise will receive
a $1 million sponsorship each week. For each week 3 through
10, the teams will receive offers for sponsorships. Each team
will receive a menu of contracts to sign based on the number
of weeks remaining in the regular season. If there are six weeks
remaining, a team will receive six possible contracts: a one
week contract, a two week contract, etc. The owner must select
one of the contracts. If he/she selects a three week contract,
he/she will not receive another sponsorship offer for three
weeks. The contracts will be based on each franchise's market
base and its on-the-field success to date.
6) Trades and Deals Revenue should not be budgeted for, but it may
be a source of revenue for a franchise during the season. All
franchises will have opportunity to trade players and include
cash as a component of the deal.
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