Thread by @JoePompliano

Apple is paying the NFL $250 million over 5 years to sponsor the Super Bowl halftime show.

But here's the craziest part:

Rihanna won't be paid a dime for this year's show, and performers often spend millions of dollars of their own money on production costs.

Here's why 👇

1) The NFL has convinced some of the world's most prominent artists to perform at the Super Bowl:

• Prince
• Michael Jackson
• Bruce Springsteen
• Beyonce
• Justin Timberlake
• The Rolling Stones
• Shakira
• Jennifer Lopez

But NONE of these artists were paid.

2) Here's how the financials work:

• NFL signs a $50M sponsorship deal
• Artists get a $10M to $15M production budget

This budget covers 2,000 to 3,000 part-time workers, including set design, security, dancers, and marketing.

But artists don't get any of the money.

3) In fact, some artists end up spending millions of dollars of their own money on the performance.

For example, The Weeknd spent $7 million of personal cash on his show at Super Bowl 55, and Dr. Dre reportedly spent a similar amount last year.

So why do they do it?

Exposure.

4) The Super Bowl is watched by 200 million people globally.

So while brands spend $7 million for 30-second commercials during this year’s game, Rihanna will receive a 15-minute commercial for free.

That is much more valuable than her performance fee.

And the data backs it up.

5) Justin Timberlake saw a 534% increase in music sales after Super Bowl 52.

Travis Scott’s performance fee went from $500k to $1M after Super Bowl 53.

Jennifer Lopez & Shakira gained 3M followers after Super Bowl 54.

And it's even better when artists time it up with a tour.

6) The Weeknd sold 1 million concert tickets a week after Super Bowl 55.

The Rolling Stones set a record with $558M in revenue for their tour after their show at Super Bowl 40.

And StubHub says artists usually see a 50% increase in concert ticket searches after each Super Bowl.

7) Rihanna hasn't released an album since 2016 and doesn't have an upcoming tour scheduled.

But she still has plenty of ways to make money.

Ex. Apple TV is paying her several million dollars for a documentary about her Super Bowl performance.

But not everyone is as fortunate.

8) The NFL previously asked professional dancers to volunteer during halftime at the Super Bowl.

The dancers were required to attend 72 hours of rehearsals across 9 days leading up to the game.

But after a leaked contract went viral last year, the NFL now pays dancers $15/hour.

9) Still, the bottom line is clear:

The NFL makes millions off the Super Bowl halftime show and can afford to pay talent their fee.

But given the promise of 200 million viewers and billions of impressions on social media...

Plenty of people are willing to do it for free.

10) If you enjoyed this thread, you should:

1. Follow me; I tweet cool stories like this every day.

2. Join 86,000+ others and subscribe to my free newsletter, where I break down the business and money behind sports.

huddleup.substack.com