Why a 5% loss in revenues is a disaster for the NFL.

Update:  Headlines yesterday,  after publishing this article,  have set the loss of commercial income at 7% (up from 5%).  Understand that 7% total income loss may be 30% or 40% of the NFL's profit.  No matter how you cut it,  this "demonstration," driven by the Angry Black man,  and it is killing the NFL and its partners  (i.e. ESPEN which has lost a billion dollars over the past 6 years and its political crap on its sports broadcasting programing).  Me?  As much as I love football,  I will not watch another game this season,  period.  Enough of raised black fists and commentators reminding us of what we already know.  Hope the league goes broke   ~  editor. 

Advertisers don’t pay for viewers watching shows, they pay for viewers watching commercials–and only during the first 3 days after broadcast.

Projected commercial revenues before the 2016 season are:  


Fox: $1.44 billion 
NBC: $909 million
CBS: $867 million 
ESPN/ABC: $285 million

A 5% loss amounts to 150 million dollars or more for the 2017 season.  NFL football will survive but 150 million is no small sum.  The loss is a reduction in pure profitability.  As 
such it is a serious financial consideration.  

Understand that total revenues and pure profitability are very differ things.  A "5%" loss in total revenues could be a 30% loss in pure profitability.   Whatever the fact,  profitability measurements will be far less than the "total profitability" sum. 

I was a building contractor for more than 3 decades.  My bottom line was 6%.  A 5% reduction in total revenues would have made my business unprofitable.  It would have taken nearly all of my profit.  The only way I could make "ends meet" in such a circumstance would have been via the management of "cash flow."  But "cash flow" is not profit.  Sooner or later,  living off cash flow will demand bankruptcy. 

Now you know why the NFL will figure out a way to save face and put these demonstrations to bed.  If not,  oh well.