Why Super Bowl Halftime Performers Aren't Paid
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Why Super Bowl Halftime Performers Aren't Paid
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Today At A Glance:
This year’s Super Bowl will be watched by more than 200 million people globally, and the NFL will make hundreds of millions of dollars in one weekend. But the halftime performer at this year’s game, Rihanna, won’t be paid a dime. So today’s newsletter breaks down the fascinating economics behind the Super Bowl halftime show.
This newsletter is also available in audio format via Apple and Spotify.
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Friends,
The Super Bowl is one of the world’s biggest sporting events. The average fan spends more than $10,000 to attend, and it’s watched by more than 200 million people globally.
Brands pay more than $7 million for a 30-second commercial during the game, and cities across the country spend billions of dollars in taxpayer money to build state-of-the-art stadiums just for the *chance* to host the NFL’s annual championship game.
But the biggest part of “the big game” might actually be the halftime show.
For example, last year’s show included performances by Dr. Dre, Snoop Dogg, Eminem, Mary J. Blige, Kendrick Lamar, and 50 Cent. The 15-minute concert was watched by 200 million people and generated billions of impressions on social media.
But here’s the craziest part: All of the artists that performed at last year’s Super Bowl did it for free. That’s right; even though artists like Snoop Dogg and Kendrick Lamar typically charge $1 million-plus for a show, the NFL didn’t pay them a dollar.
And it’s not just them. The NFL has convinced some of the world’s biggest artists, including Prince, Michael Jackson, Beyonce, Justin Timberlake, The Rolling Stones, Shakira, Jennifer Lopez, and Lady Gaga, to perform at the Super Bowl for free.
Heck, in 2021, The Weeknd even spent $7 million *of his own money* to produce the show exactly how he wanted it.
But these artists aren’t stupid, and the financials behind the Super Bowl halftime show are fascinating. So here’s everything you need to know about why Super Bowl halftime performers aren’t paid.
History Of The Super Bowl Halftime Show
The Super Bowl halftime show has been going on for more than 50 years, but it hasn’t always been the huge, glamorous spectacle you see today.
The first Super Bowl halftime show had marching bands and two men in jet packs. A hot air balloon crashed into the stands during halftime of Super Bowl 4. And Coca-Cola shipped out 26 million pairs of 3D glasses in 1989 for a disastrous halftime show at Super Bowl 23 that featured strange graphics and a magician named “Elvis Presto.”
But while the Super Bowl was becoming more popular every year, the halftime show was quickly becoming a joke amongst fans.
Super Bowl Viewers By Year (United States)
1967: 27 million
1970: 44 million
1980: 76 million
1990: 74 million
2000: 88 million
2010: 106 million
2020: 100 million
So the NFL set out to change this in the 1990s. They convinced New Kids on the Block to perform in 1991, Gloria Estefan performed in 1992, and fans rushed the field during Michael Jackson’s show-stopping performance in 1993.
This new era completely changed the perception among fans. And more importantly, it convinced the world’s top artists that the Super Bowl was a valuable marketing platform.
This enabled the NFL to convince headlining artists like Paul McCartney, Madonna, Beyonce, and Bruce Springsteen to perform during the Super Bowl halftime show.
But as I said before, the NFL doesn’t actually pay any of these artists.
The Financials Behind The Halftime Show
The NFL has created a system where top-tier artists agree to perform (for free) at halftime of the Super Bowl in exchange for exposure. Here’s how it works:
The NFL signs a sponsorship deal with a company like Apple, which recently agreed to pay $50 million per year to be the new sponsor of the halftime show.
The NFL will then keep about $35 million of that deal (roughly speaking) and use the remaining $15 million to cover production costs for the show.
This includes about 2,000 to 3,000 part-time workers, and it covers everything from production crews and set design to dancers, security, logistics, and marketing.
And some artists take it even further. Take The Weeknd, for example. He didn’t think the NFL’s $13 million production budget in 2021 was enough.
So he spent $7 million of his own money to create the show he envisioned. The show ended up costing about $20 million in total, and the NFL didn’t pay him a dime.
But the reality is that these performers are happy to do it for exposure.
Think about it this way: Brands will spend more than $7 million for 30-second commercials during this year’s Super Bowl. But this year’s halftime performer, Rihanna, will get a 15-minute commercial for free — and it comes with much more media attention and billions of impressions on social media.
That’s objectively a great deal — and the numbers back it up.
Lady Gaga’s album Joanne went from #66 on the charts to #2 after Super Bowl 51
Justin Timberlake saw a 534% increase in music sales after Super Bowl 52
Travis Scott’s performance fee doubled from $500k to $1M after Super Bowl 53
Jennifer Lopez & Shakira gained over 3M followers after Super Bowl 54
And the payoff is even bigger for artists who can time it up with a concert tour.
For example, The Weeknd sold 1 million concert tickets a week after Super Bowl 55. The Rolling Stones set a record with $558 million in revenue for their concert tour after their performance at Super Bowl 40, and StubHub says that artists typically see a 50% increase in concert ticket searches after performing at the Super Bowl.
How Rihanna Plans To Capitalize
Rihanna hasn’t released a new album since 2016 and doesn’t have an upcoming tour scheduled — but she still has plenty of ways to capitalize on this year’s Super Bowl.
Rihanna is reportedly being paid several million dollars by Apple TV+ to be the focus of a documentary about her return to the stage at Super Bowl 57. Rihanna’s brand Savage x Fenty dropped limited-edition football-themed items ahead of the Super Bowl, and she is also releasing a line of Super Bowl merchandise with Mitchell & Ness.
So while Rihanna will still make plenty of money without being paid directly by the NFL, not everyone is as fortunate.
For example, the NFL has come under fire recently for attempting to hire professional dancers as volunteers. These volunteers must attend 72 hours of rehearsals across nine days leading up to the Super Bowl, and they even have to pay for their own transportation to and from the stadium.
But after the leaked contract went viral last year, the NFL reached an agreement with SAG-AFTRA — the entertainment union that represents professional dancers — and the league now pays all professional dancers at a rate of $15 per hour.
Still, the bottom line is clear: The Super Bowl halftime show presents a fantastic opportunity for artists to showcase their talent and increase their brand recognition.
The NFL makes millions of dollars off the 15-minute performance and can certainly afford to pay talent their fee. But given the promise of 200 million viewers and billions of impressions on social media, there is no shortage of names willing to do it for free.
If you enjoyed this breakdown, please share it with your friends.
Have a great weekend, and enjoy this year’s game. We’ll talk on Monday.
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Huddle Up is a 3x weekly newsletter that breaks down the business and money behind sports. Subscribers include investors, professional athletes, team owners, and casual fans. So if you are not already a subscriber, sign up and join 86,000+ others who receive it directly in their inbox each week — it’s free.
Why Super Bowl Halftime Performers Aren't Paid
I will date myself by mentioning the Up with People troup that appeared in some early halftime shows. My mom loved them, but my brother and I couldn't stand them.