NFL REPORT – SUMMER 2005
COMMISSIONER’S VIEW

THE NFL’S ENTREPRENEURIAL SPIRIT

Looking back at almost 16 years as commissioner, I count my blessings in many ways. One of my biggest blessings is to have a league that is committed to expansion, growth and innovation – rather than a league that is self-satisfied or wed to the status quo.

I have kept a sign on my desk for many years that lists the top 10 ways for a number-one company to lose its position. Number one is: keep telling yourself how good you are. Number two: keep doing things the same way.

This dynamic, expansionary philosophy is a hallmark of NFL ownership. NFL owners understand what has made the NFL successful. Owners across the spectrum have contributed in many different ways to this approach

They all understand one thing: that the value of the NFL continues to increase when we grow, expand, and change, especially when we stay true to our traditions and time-tested values.

Operating in that spirit, everyone in the league – players, coaches, and owners alike – and everyone associated with the league has seen their boats lifted together by a dramatically rising tide.

There is one critical element we all need to remember when it comes to executing on this philosophy and making the National Football League more successful on an ongoing basis. And that is the need to take risks – capital risks – meaning the need to invest private capital in new stadiums and other ventures, and to share those risks through intelligent league policies and programs.

The television agreements that we announced in recent months brought a great deal of attention to the amount of revenue that the NFL generates, a reflection of the league’s preeminent position in sports and entertainment. What gets overlooked with so much focus on revenue is the tremendous investment – over and above the investment in player talent – that it takes to reach our goals.

The entrepreneurial spirit of NFL ownership has been an important ingredient in the league’s success. There is a long list of benefits – and costs -- associated with private investment by the NFL. Examples would include investment in stadiums and other team facilities, the NFL Internet Network, the NFL Europe League, youth football, and player development and support, including our substance abuse policies.

This philosophy of investing in the league’s growth will have to continue for the NFL to maintain its position. As we look to the future, all of the league’s key challenges will require additional risk taking. That means more private investment – significant private investment – by team owners and the league on a cooperative basis involving all of the league’s constituencies.

What are these challenges? Here are four:

Ensuring the quality of our football product. Every team has to be able to compete for the Super Bowl. This will require every team being in a relatively equal position to deal with player costs and continued investment in player development and support.

Maintaining and growing the fan base against the competition of other entertainment alternatives. A key factor is the massive demographic change that is taking place in America. This means continued investment in youth football programs and other initiatives.

Continuing to build new stadiums and team facilities. As we have projected this investment, it will entail annual costs of approximately 5-6 percent of total revenue, a significant capital cost.

Growing the NFL and American football internationally in competition with other global sports. As we have done with the Canadian Football League and NFL Europe, and in developing interest in Mexico, Japan, China, and elsewhere, this will require more investment designed to produce long-term results.