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Peyton Manning Coming To Denver Isn’t A Slam Dunk For Business

Peyton Manning speaks during a press conference announcing his release from the Indianapolis Colts.
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Peyton Manning speaks during a press conference announcing his release from the Indianapolis Colts.

The news moved fast across the Twitterverse.

ESPN was reporting that Peyton Manning was exclusively negotiating to play in Denver with the Broncos.

And while fans of the team undoubtedly celebrated, making money off Manning will be difficult.

Why?

Well, start with the fact that Manning’s deal could average $18 million a year.

There’s not a lot of inventory to sell because the Denver Broncos are one of those teams that will have fans in the stands no matter how competitive they are. They’ve sold out every game since 1970.

Ticket prices around the stadium are locked in for 2012 and suite contracts are locked in for longer.

Selling more Broncos jerseys won’t matter. All teams split up the merchandise sales equally. National television money is also split equally, so it doesn’t matter how many games they play on the national stage. The team already negotiated a two-year deal with NBC affiliate KUSA-TV to be the official local TV partner, which runs through the end of this upcoming season.

Sure, there will be sponsorship money to make, but it’s not as if the Broncos were thin in that category either with Tim Tebow at the helm, who is owed only $1.57 million this year.

Fans, Broncos owner Pat Bowlen and Manning himself might not lead to a more robust economy in Denver. You can’t say the same for the losers in the process.

Manning going to the Tennessee Titans would have meant a lot more return on the investment. Their situation is so bad that people have returned PSL’s that they already purchased so that they don’t have to pay for tickets any longer. And although the San Francisco 49ers have sold out this season, there’s no doubt that momentum with Manning could mean a whole lot more money when the team moves into its new stadium in Santa Clara.

Questions? Comments? SportsBiz@cnbc.com

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