Why Usher Is Doing The Super Bowl Halftime Show For Free
What To Expect: Today’s newsletter examines the business model behind the NFL’s Super Bowl halftime show. We’ll talk through the economics of the show itself, how artists convert the attention into business opportunities, and why Usher specifically timed up the release of a new album and concert tour around this year’s big game.
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The Super Bowl is one of my favorite sporting events because the entire game revolves around sports business. $7 million commercials. $2.5 million luxury suites. $2,500 hotel rooms. 6,000 media members. There is a championship at stake, of course. But money runs the Super Bowl, and there is no better example than the halftime show.
This year’s performer, Usher, has been one of the most active artists over the last two decades, completing seven tours across North America, Europe, and Australia. He has performed at (multiple) Presidential inaugurations and has grossed nearly $100 million in ticket sales across two residencies in Las Vegas over the last few years.
Yet the Super Bowl will be Usher’s biggest show. He will perform in front of 115 million people — and the craziest part is that the NFL won’t pay him to do it.
This isn’t a new thing. The NFL has convinced some of the world’s most famous artists, including Prince, Michael Jackson, Beyonce, Justin Timberlake, The Rolling Stones, Lady Gaga, Dr. Dre, and Rihanna, to perform at the Super Bowl for free.
Here’s how it works: Apple Music pays the NFL $50 million annually to sponsor the Super Bowl halftime show. The NFL then gives that year’s artist a ~$15 million budget, covering all travel and production costs, including up to 3,000 part-time workers. Most artists stay within that budget, but other artists, like The Weekend and Dr. Dre, have spent up to $7 million of their own money to make the show even better.
The NFL can afford to pay these artists, of course. But they don’t need to — most artists jump at the chance to perform in front of 115 million, especially considering they get 13 minutes of undivided attention compared to brands paying $7 million for 30-second commercials, most of which will be immediately forgotten after they air.
The results speak for themselves. Justin Timberlake saw a 534% increase in music sales after Super Bowl 52. Travis Scott’s performance fee doubled from $500,000 to $1 million after Super Bowl 53. Jennifer Lopez and Shakira gained 3 million Instagram followers after Super Bowl 54. The Weeknd sold 1 million concert tickets within a week after Super Bowl 55, and ticketing platform Stubhub says artists typically see a 50% increase in concert ticket searches after performing at the Super Bowl.
Rihanna’s 24-Hour Super Bowl Performance Recap
#1 most-streamed artist globally
118.7 million viewers (3M more than SB)
17 songs in the Top 40 on Spotify
Gained 3 million Instagram followers
Searches for Fenty Beauty were up 833%
Rihanna’s halftime show was also watched by more viewers (118.7 million) than the game averaged (115 million), meaning a few million people tuned in specifically to see her performance but weren’t interested in watching the entire game.
So it should be no surprise Usher has found a way to leverage this year’s show, too.
Usher is releasing his new album “Coming Home” just two days before the big game, hoping his performance sends it to the top of the charts. He has also announced an upcoming 24-city arena tour, with tickets going on sale *immediately* after he steps off stage. And the 45-year-old R&B singer has signed lucrative endorsement deals with companies like BMW, Skims, Apple Music, and cognac brand Rémy Martin, appearing in a Super Bowl commercial and various ads throughout the week.
This arrangement is a win-win for everyone. The NFL gets one of the world’s top artists to perform at its biggest event for free, and the musician gets a 13-minute commercial in front of 115 million people for a fraction of what brands pay.
Cost Of A 30-Second Super Bowl Ad
1970: $78,000
1980: $222,000
1990: $700,000
2000: $2 million
2010: $3 million
2020: $5.5 million
2024: $7 million
Usher will gain millions of followers on social media. He will end the weekend as one of the world’s most-streamed artists. His concert tour will produce tens of millions of dollars in revenue. He will personally pocket millions from his array of endorsement deals, and you can all but guarantee his Google search volume will hit an all-time high.
That’s why I love sports business. There is a game behind the game. Everyone is looking for an advantage, creatively leveraging unique opportunities to maximize income. And the Super Bowl is no different — it’s just a bigger stage.
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I hope everyone has a great day. We’ll talk on Friday.
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