NFL Franchise Could Bring £100 Million To British Economy
An NFL franchise could bring around £100 million into the British economy a report has revealed as interest in the all American sport grows in Europe.
The report, which was compiled by accountants Deloitte, found that the two games held at Wembley in 2013 brought an extra £32 million into London. With the international series expected to increase to four games a year as of 2016 then that figure could rise to £58 million.
But with the aim of bringing a full time NFL team to London by 2022, there would be at least eight games a season in the capital which would see 3102 million pouring into the country’s coffers.
This report was launched by the Secretary of State for Culture, Media and Sport Sajid Javid, shortly after Chancellor of the Exchequer George Osborne said he would do everything he could to ensure a team relocates to London permanently and after seeing the economic benefits, it is little wonder why.
However, there are still several large obstacles in the way which have to be overcome before the process goes any further as the NFL operates under a collective bargaining agreement between the team owners and the players which limits the total amount each team is able to spend, but also sets minimum salaries based on each player’s time in the league. As such, British income tax (which is higher than rates in the United States) would affect the way this is portioned out.
This revenue sharing set up also affects players contractual freedom which also comes up against European Union employment laws and so the NFL is currently in discussions with the European Commission.
These discussions do not just affect the franchise in the United Kingdom however as the NFL is also looking at expanding out into Germany as well which could see them receive an economic boost as well.
Since 2007, Wembley has hosted seventeen of the NFL’s thirty two teams in eight games, seven of which have been to sell-out crowds. Mr Javid has said of the potential of a team playing in the UK:
“The NFL games at Wembley have been a huge success showing that there is a big, growing fan-base for the sport in the UK, if the NFL decide that the time is right to base a team overseas, London and the UK will welcome it with open arms.”
With the potential of £100 million coming to British shores and greater income for the NFL from overseas franchises, as well as government backing and the English Football Association keen on an American tenant, it may not be too long before the NFL comes to London.