LONDON—The Washington Commanders are technically “hosting” the Indianapolis Colts in London on Sunday, meaning the showdown at Tottenham Hotspur Stadium is replacing a game that the NFL team would otherwise have held at Northwest Stadium in Maryland.
That creates a totally different set of economics. While NFL teams keep the bulk of the ticket revenue from their standard regular season home games, the NFL operates its international series via a much more centralized system. In lieu of that standard seven-figure gate, the league delivers a set payment to the “home” team and covers a lot of the cost of travel and accommodations for players and equipment.
So how does that net out for the home team?
“It’s not good,” laughed Commanders owner Josh Harris when asked at the London pub where the team was hosting fans on Saturday. “It’s bad in a lot of ways. But I’m not so much focused on economics, honestly. I’m focused on being part of the NFL community and growing the game internationally.”
Team president Mark Clouse echoed his owner’s comments.
“I would describe it as an investment in the future of the league and the team,” Clouse said in an interview from the same bar, where about 2,000 fans had gathered. “That’s the way we have to look at it.”
The NFL’s international ambitions have dramatically increased over the past decade. During the 2015 season, there were three overseas games, all in London. This year there are a record nine, in seven countries on four different continents.
The games serve multiple purposes. Yes, they bring the NFL to new markets, helping expose new fans to world richest sports league. They also create a new time slot for games to be aired domestically—the Commanders-Colts game kicks off at 9:30 AM ET—which helps the league capture more of the weekly calendar and thus command more money from its media partners.
For the teams themselves, the games present opportunities and challenges. While the economies might not fully balance, overseas games allow a franchise’s U.S. fans to have a different kind of roadtrip, and open the door to adding new followers in far-flung places. That costs additional money—both London teams this past week set up headquarters for fans, with current and former players participating in events throughout the lead-up to the game—and also provides some additional income. By Saturday, for example, the Commanders had sold out of much of the merchandise that had been brought to London.
The Commanders are worth $9.64 billion, according to Sportico’s numbers, which ranks 11th in the NFL. Revenue last season was about $719 million.
For standard regular season games, NFL teams typically keep about 66% of ticket sales revenue, with the other 34% going to the league for its pooled sharing. Economics from other streams, such as concessions, on-site merchandise sales, parking and premium seating are overwhelmingly kept by the home team, and that’s largely what’s missed with the London games. Clouse declined to get into specifics about the stipend that the league shares with teams that “host” overseas games.
“Let’s just say we’re all in agreement: we share together. We invest together to make it a great experience,” he said. “We’re happy to do it and we’re thrilled to be here. And with each [overseas] game we play, we see more and more of our fans excited about travelling.”
For now, most NFL teams play international games less than once a year. The lone exception is the Jacksonville Jaguars, who have a special arrangement with the league that includes two “home” games in London per season. Harris said Saturday that while the teams have little say in their international games, it is an indication that something is going right.
“You really don’t have a choice,” he said. “The NFL literally just says to you, ‘You’re a good team, everyone wants to watch you, you’re an exciting team, you’re going to London.’ It’s not your choice, so what you try to do is make it a great experience for your fans, your community and your players.”
