The National Football League (NFL) has offered voluntary buyouts to around 200 employees as it prepares for the start of the playoffs this weekend, according to a memo obtained by CNBC. The league, which has approximately 1,100 employees, stated in the memo that it is continuously evaluating ways to enhance efficiency and improve outcomes. The buyouts come at a time when the NFL has demonstrated financial strength, with revenue reaching nearly $12 billion in 2022. Commissioner Roger Goodell has set a goal of reaching $25 billion in annual revenue by 2027. Additionally, teams within the league are valued at high levels, as evidenced by the recent sale of the Washington Commanders for a record $6 billion.
The buyout memo was sent to employees aged 50 and older who qualified based on their years of service in the league office. The exact number of buyouts the NFL is aiming for remains unclear. Eligible employees have been offered three weeks' salary for every year served, along with bonuses. They have until the end of February to decide whether to take the buyout.
The NFL's future strategy includes international expansion, the growth of flag football, and the continued development of media and digital operations. The league acknowledges the need for evolution in how it operates, where it invests its capital, and its workforce in order to align with these strategic priorities and position itself for continued success.
This is not the first instance of downsizing within the NFL. In May, the NFL Network laid off approximately 5% of its workforce. The news of the recent buyouts was first reported by Sports Business Journal.
Overall, the NFL's decision to offer voluntary buyouts to employees appears to be part of its ongoing efforts to enhance efficiency and adapt to changing priorities. With the league's strong financial position and ambitious revenue goals, these measures may serve as a means to streamline operations and reallocate resources towards strategic initiatives such as international expansion and digital development.