In 1960, the NFL had two conferences, the East and the West, and there were no divisions within either conference. The East conference had 6 teams and the West Conference had 7. In 1967, the NFL broke the two conferences into four divisions, the Capitol, Century, Coastal, and Central. Four teams were in each division. When the AFL-NFL merger occurred in 1970, each conference, American and National, had three divisions. Those were the East, Central, and West. Five teams were in each conference's East division and four were in both the Central and West. In 2002, with the addition of the Houston Texans as the 32nd NFL team, each conference was divided into four divisions from three. The new divisions were the East, North, West, and South. Four teams were in each division.
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they were decided on a couple things. primarily location. its north south east west. unlike the nba, where the Memphis and Minnesota are western conference, and mlb, where moving the astros to the al west would make all divisions equal yet they chose not to (don't get me started with nhl), the nfl has done a good job putting teams in realistic regions. they also kept rivalries in mind. they wanted to make sure titans jaguars stayed together, and many other rivalries. the 8 divisions help teams and fans keep playoff dreams simple. there are 3 other teams to compete with for one spot. it really has helped enhance team rivalries and teams that have not mattered much to each other now find themselves archrivals.
The 32 teams of the NFL are divided evenly into two conferences, AFC and NFC, and each conference is made up of four divisions, North, East, West and South. Therefore, the NFL is divided into a total of eight divisions, each containing four teams.