Broncos Facing a Loss of $162M in Revenue if Fans Can't Attend Games in 2020
With the scheduled start of training camp almost exactly two months out, fans remain hopeful that when the Denver Broncos finally take to the field, they'll be able to safely join their team in the stands at Empower Field at Mile High.
However, due to the unpredictable nature of the coronavirus pandemic, there's no way to guarantee that right now. The NFL front office and owners are stoically holding firm to the 2020 season and have no doubt put contingencies in place in the event that fans aren't allowed in the stands.
Odds are, the show will go on in some form because the NFL makes so much money from its television licensing and the broadcasting of games. However, don't think for a second that owners won't feel the pinch in the event that fans aren't allowed in attendance.
Forbes recently published a report that shows how much each of the 32 NFL teams generated in total revenue and how much of that was stadium-sourced revenue. The numbers are based on 2018 and it paints a stark picture of just how much money the Broncos stand to lose if fans aren't allowed to attend games in the 2020 season.
The Broncos checked in as the No. 13 highest-earning NFL franchise, grossing $446 million in 2018. How much of that was generated from the stadium? $162 million.
$162 million.
Keep in mind, that's just revenue the team stands to lose. That includes ticket sales, merchandising, concessions, parking — you name it. It won't just be the owners who feel the pinch, but also the players, as Forbes succinctly reported.
A season without fans would also hurt the players. In March, the league agreed to a new collective bargaining agreement that allocated 47% of football-related income to the players in 2020 and 48% in 2021.
The salary cap could be impacted in 2021 and beyond if revenue falls that drastically in 2020 due to a moratorium on fan attendance. That would really hurt the players. Here's the other thing, though. That $162M also represents a lot of people's jobs.
If fans aren't allowed to attend games this year, those people who work at the stadium and its grounds will be left without a job. And it's not just the stadium jobs but also the people whose businesses depend on the Broncos' season — from August to January — to makes ends meet.
From the local bars close to Mile High Stadium, to the restaurants, bistros, and pubs, to the streetside merch dealers, to even the Uber drivers. It would be financial devastation.
Anyone who's been to a game at Mile High Stadium understands the economy built around it. It's important to remember that it won't just be the Broncos who feel the pinch if fans are barred from attending but countless individual Coloradoan workers and business owners, too.
When it comes to coronavirus and the nation living in thrall to it, the epidemiologists say that it'll be the virus that decides when the economy fully opens and normalcy can return, not the people, and not governments. Outside of a vaccine hitting the market, that might be true — if epidemiologists were the only voice responsible for policy in this country.
As time marches on, the American people and its elected leaders will decide how much they're willing to sacrifice on behalf of the virus as the advice of the scientists is balanced with other pressing factors. It's a no-win situation at this point with the nation now facing unprecedented unemployment numbers — deaths of despair are correspondingly rising, creating yet another level of analysis for policy-makers to consider.
It's a full-blown Catch 22.
NFL owners and players, and the subsequent tens of thousands of Americans whose livelihoods depend on it, hope that games will be able to be played with fans in the stands. New York Governor Andrew Cuomo has green-lighted pro sports teams to reopen facilities after two months of being closed. That's a good omen but it in no way means fans will be able to quickly return to the stands in a relatively safe manner.
We're still a long ways out from a resolution and the NFL regular season doesn't officially kick off until September 14. Here's to hoping that the virus continues to dwindle across the country throughout the summer months so that fans and vendors can return to the Mile High stomping grounds to watch the Broncos play football.
Follow Chad on Twitter @ChadNJensen and @MileHighHuddle.
