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The Highest-Paid Executive In Sports
Huddle Up is a daily letter that breaks down the business and money behind sports.
Join more than 49,000 professional athletes, business executives, and casual sports fans that receive it directly in their inbox each morning — it’s free.
Hey Friends,
The National Football League (NFL) is a massive business.
The 100-year-old league has media deals worth more than $100 billion over the next decade. The average franchise is valued at $3.48 billion, up from just $1 billion in 2010, and the league expects to bring in roughly $25 billion in annual revenue by 2027.
Average Franchise Valuation
NFL: $3.48 billion
NBA: $2.2 billion
MLB: $1.9 billion
NHL: $930 million
MLS: $550 million
So, it makes sense that the commissioner of the league, Roger Goodell, who is responsible for the league’s operations, officiating, and business functions, would be paid a lot of money — similar to any world-class operator or CEO.
But I’m not sure people expected him to be making this much money.
Last week, Ken Belson from the New York Times reported that Roger Goodell’s pay for the past two fiscal years totaled almost $128 million, including salary, bonuses, and other benefits.
That’s $64 million in annual compensation and, for context, is 42% more than Patrick Mahomes makes annually, the NFL’s highest-paid player.
Now, to be fair, this compensation report is slightly skewed. When Roger Goodell signed a five-year deal that took effect in 2019, his contract was restructured to rely heavily on performance-based bonuses instead of guaranteed salaries.
That deal was worth up to $200 million ($40 million annually), with the majority of that value coming over the last two years as Goodell helped NFL owners implement a new 10-year labor deal and signed TV deals worth over $100 billion.
Some people will say he is overpaid. However, the average franchise value has increased from $898 million in 2006 to $3.5 billion today under his leadership. And with other professional sports leagues like the NBA seeing similar growth rates — what difference did Roger Goodell really make?
NFL Revenue
2006: $6.5 billion
2021 (E): ~$17 billion (+161%)
NBA Revenue
2006: $3.5 billion
2021 (E): ~$10 billion (+185%)
Those are all excellent questions — but here’s how I think about it.
This could also be considered a bargain for NFL owners. Sure, you can point to the $100 billion media rights deal that Roger Goodell helped facilitate earlier this year and say that even if he made a 0.25% difference ($250 million) on the final terms, that would pay for his entire contract alone. But more importantly, he protects the shield.
The shield is the NFL’s brand. It’s everything that enables the league to grow, despite controversy seemingly popping up at every possible corner. That includes player fines, legal issues, and, of course, protecting the owners he is paid so handsomely to represent.
At $64 million annually, that’s $2 million per team (32 teams). Considering the average team brings in nearly $400 million in annual revenue, you could say that each NFL organization spends roughly 0.5% of its yearly income on commissioner compensation. That makes it sound like a much better deal than the headline reads.
Roger Goodell isn’t the perfect commissioner by any means. He has made mistakes, but ultimately, he works for the owners and has continued to protect the things they care most about — maximizing profit, increasing team valuations, and protecting their reputation.
Need an example? Look no further than how he handled the investigation into widespread workplace harassment at the Washington Football Team.
I hope each of you had a great weekend, and I’ll talk to everyone tomorrow.
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Huddle Up is a daily letter that breaks down the business and money behind sports.
Join more than 49,000 professional athletes, business executives, and casual sports fans that receive it directly in their inbox each morning — it’s free.
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