Packers report another year of record revenue.
$441.4 million marks 8% increase from high set in 2015-’16
GREEN BAY – Another year, another report of record revenue for the Green Bay Packers.
The NFL’s smallest market team said Wednesday revenue for the fiscal year ending March 31 totaled $441.4 million, 8% more than the 2015-’16 record of $408.7 million. The team’s revenue has increased in every year since Lambeau Field was renovated in 2003.
An increase in national television revenue, ticket price increases, sponsorships and Packers Pro Shop sales drove revenue higher.
“It’s similar to the last few years, but that’s a good thing,” said Packers President and CEO Mark Murphy. “Eight straight years in the playoffs and the fan support we have is crucial to our success.”
The Packers are the only fan-owned team in the NFL and the only one to publicly report its finances. The report is the best public information available on the financial status of an NFL team.
The Packers have 363,948 shareholders. Shares are not traded and are rarely sold. The last sale was in 2012 to help pay for south end zone expansion. No new sale is being contemplated.
The team reported profit from operations of $65.4 million, a 9.7% decrease from a record $75 million the year before. Murphy said the decrease was the result of a cyclical increase in player expenses and depreciation related to more than $450 million in investments in Lambeau Field and the Titletown District.
Net income was higher, at $72.8 million, because the Packers had to account for $27.1 million as its share of relocation fees that will be paid by the Los Angeles Rams, Los Angeles Chargers and soon-to-be-Las Vegas Raiders. The team will not receive the money for 21⁄2 years and then it will be parceled out over 10 years, but accounting rules require the Packers to claim the income now.
Total revenue, rather than net income, is the more significant number in Packers finances because profit isn’t paid out as dividends and doesn’t affect stock price. All money, whether profit or not, goes back into the team or community. Net income does show, however, how well the team is keeping expenses under control.
The Packers reported national revenue of $244 million, a 9.6% increase over the previous year. Most of that is from the NFL’s national TV contracts, which are shared equally among the 32 teams.
National revenue also includes road-game revenue sharing and other income, such as from NFL media operations. Television revenue increases about 5% a year under the TV contracts, which continue through the final three years of the current collective bargaining agreement.
Local revenue totaled $197.4 million, a 6.1% increase. It includes gameday revenue, local broadcast fees, sponsorships and atrium-business revenue, including the Packers Pro Shop, which contributes tens of millions of dollars, the Green Bay Packers Hall of Fame and Atrium rentals. The Packers do not break down individual results.
“The Lambeau Field Atrium renovation continues to serve us well,” Murphy said.
“We continue our efforts to grow revenues and diversify our revenue streams. We don’t want all our revenue to come from the backs of ticketholders.”
That said, Murphy admitted that ticket prices will continue to increase as more new stadiums are built.
Minnesota opened a new stadium last year and Atlanta will open one this year, with new Los Angeles and Las Vegas stadiums on the horizon. Each new stadium results in higher ticket prices, raising the league average. The Packers have said they want to be near the league average.
Total expenses for the year were $376.1 million, a 12.7% increase, again, due in part to increased player costs.