Packers Set Record Highs for Revenue and Expenses in 2017
The Packers released their financial report for the last fiscal year.
By TimBackes
On Monday, the Packers released their annual revenue reports, which will be discussed in greater detail at the team's shareholder meeting on July 26. While many will debate the merit of the shares themselves, the revenue reports do have some league-wide impacts that are worth discussing.
The Packers, being a publicly owned team (the only one of its kind in the league), are required to hold the shareholders meeting and present updates about their income and expenses. Based on the figures the Packers share, analysts can estimate what the league's overall revenue looks like, and how other teams might be performing as well.
The Packers' revenue for the fiscal year, which ended March 31, was $454.9 million, coming in at $13.5 million more than last year. Total expenses were $420.9 million, $44.8 million up from last year. Both figures were record highs.
Team President and CEO Mark Murphy said player salaries and travel costs plus an extra $5 million for construction led to the increased expenses, as did some coaching changes.
Revenue increased due to several factors, including local income growth from new sponsorship agreements and league-wide shared income from national television contracts. All revenue goes directly back into team operations and the community.
National revenue increased by approximately five percent from last year. This includes money from television deals, revenue sharing and other NFL media ventures. Local revenue was $1.6 million higher from last year, and included local broadcast fees, sponsorships and other forms of gameday revenue. Tourism decreased, however, largely due to the Packers failing to make the playoffs.
Net income, meanwhile, was down $34.2 million from last year, in part because last year teams benefitted from extra income from relocation fees paid by the Los Angeles Rams, Los Angeles Charges and upcoming Las Vegas Raiders.
It is estimated that the Packers rank eighth or ninth in the league in total revenue. Not bad for a small Midwestern town.
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Tim Backes is a lifelong Packer fan and a contributor to CheeseheadTV. Follow him on Twitter @timbackes for his Packer takes, random musings and Untappd beer check-ins.
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Comments (10)
Lare
July 17, 2018 at 06:24 pm
The Packers are doing well financially, especially when considering their expenses include some significant investments in land purchases around Lambeau Field and the development of the Titletown District.
Not sure on how Mark Murphy is doing on overseeing the day to day operations of a professional football team, but he seems to be doing pretty well from a business management standpoint.
Samson
July 17, 2018 at 08:01 pm
I really don't care about the balance sheet for the Pack.
Hey, how about selling me a share of stock?
Thegreatreynoldo
July 17, 2018 at 08:26 pm
Revenue increased by 3.05%. That isn't very good. It represents very little real growth taking into account inflation. GB did not increase its reserve at all, and that is likely to take a $50M hit when AR is extended. The reserve is $320M, but probably drops to considerably under $300M when AR signs. Revenue should get better if we put a better team in place.
We won't always have AR, so we need to make hay while we can. The new CBA is likely to increase expenses for player benefits (pensions, healthcare) and for player salaries, stressing the revenue sharing amount teams receive. Just 42% of expenses were player salaries/the salary cap.
Lphill
July 18, 2018 at 05:38 am
There was a report yesterday on another network that the Packers actually took a loss because of not making the playoffs, I guess it depends how you spin it .
Handsback
July 18, 2018 at 07:55 am
"Net income, meanwhile, was down $34.2 million from last year, in part because last year teams benefitted from extra income from relocation fees paid by the Los Angeles Rams, Los Angeles Charges and upcoming Las Vegas Raiders."
I must be missing something here. Net income was down $34M last year. Why? Because teams BENEFITTED from extra income from relocation fees! How can a benefit drive your income down? Maybe someone smarter than me can explain it better.
Big_Mel_75
July 18, 2018 at 09:19 am
Teams received the money last year. Thus making 34 mil less this year cause they didn't get the extra relocation money.
Thegreatreynoldo
July 18, 2018 at 10:59 pm
Right, though the relocation fees (a one-time accounting figure) total $27M, so if we're comparing 2016 to 2017, we're still down about $7M. Lots of possible reasons for that. Titletown and construction costs easily might explain it.
Due to the weird world of accounting, GB had to enter the $27M on its books for 2016 even though the $27M will be paid over the course of 10 years, and payments don't even start until 2020.
WKUPackFan
July 19, 2018 at 03:10 am
Murphy stated that an extra $5 million in construction costs led of the increased expenses, and that travel costs, increased player salaries, and costs associated with coaching changes were also involved. There is no mystery here.
Nitpicking the numbers gives ammunition to the idiots who are upset about the Titletown project, and the even bigger idiots who fantasize about Murphy being on some power trip.
Thegreatreynoldo
July 19, 2018 at 08:54 am
I think Titletown is a tremendous idea. From the articles I've read, the BOD and Murphy seem to have executed the idea well. I gather it is nearing fruition.
Oppy
July 18, 2018 at 12:56 pm
deleted because someone else already answered the question