Albeit not the most interesting football topic, but it's good news right?
http://www.packers.com/news/stories/2007/06/23/1/
Packers Financial Picture Solid
by Mike Spofford, Packers.com
posted 06/23/2007
The Green Bay Packers continued to post strong profits during the past fiscal year while adding $10 million to the Franchise Preservation Fund.
Those were the two key pieces to the team's financial state as its annual figures were released this weekend, a report that indicates the Packers are on solid financial ground with the revenue-generating opportunities provided by a renovated Lambeau Field over the past four years.
"Obviously that's very good because if we're in financially good shape, we can support the football (operations) and provide them with all the resources necessary for them to be successful on the field," Packers treasurer Larry Weyers said. "And we can never forget that's what we're all about."
The team's profits rose from $18 million last year to $22 million this year, a 22 percent increase that pushed net income near the franchise-record $25.4 million recorded two years ago.
Total operating revenues were up approximately 4 1/2 percent, from $208.4 million to $218.1 million, while operating expenses dropped from $187.5 million to $183.8. That helped allow for a $10 million addition to the Packers Franchise Preservation Fund (PFPF), boosting that to $125.5 million.
Where the $218.1 million in revenues ranks in the NFL is unknown at this point. The Packers ranked an all-time best seventh in revenue last year, but the NFL is not expected to release revenue rankings this year until the fall.
Weyers and vice president of finance Vicki Vannieuwenhoven said the team expects to be ranked in the second quartile, or between 8th and 16th in the 32-team league, which will have the Packers contributing a yet-to-be-determined amount to the league's revenue sharing plan. The top 15 teams in the revenue rankings contribute to revenue sharing.
"We'll know that for sure when we find out our ranking in the fall, but we're anticipating it to be approximately $4 million," Vannieuwenhoven said. "It could be a little less or a little more, but somewhere in that ballpark."
Revenues up, expenses down
The nearly $10 million rise in total revenues was due mostly to an increase in national revenues from $115.3 million to $124.9 million. National revenues, which are shared league-wide, encompass all television money (broadcast, cable, satellite), plus radio, internet and licensing revenues.
The team's local revenues remained stable, totaling $93.1 million last year and $93.2 million this year. A large portion of those local revenues comes from the trio of marketing, Atrium and Pro Shop business, which this year totaled $40.7 million, a slight drop from the $41.4 million of a year ago but the third straight year that has stabilized in the $40 million range.
"Local revenues are revenues we don't have to share with the rest of the league, for the most part," Weyers said. "So we'd like to see those increase, but the fact that they stabilized is pretty good news."
With the newness of the redeveloped Lambeau Field wearing off and first-time visits consequently in decline, the Packers must continue to find successful revenue-generating opportunities with the stadium.
On the expense side, the drop was due to a significant reduction in team expenses, from $33.7 million last year to $17.7 million this year. Last year's number was higher primarily because of the change in the coaching staff and some financial moves to strengthen the balance sheet.
Player costs rose again, as expected under the league's collective bargaining agreement with the players' union, from $102.9 million to $110.7 million.
PFPF still growing
The Packers Franchise Preservation Fund was created two years ago from the team's corporate reserve fund and is designed to give the team resources to compete in the NFL should the franchise's viability be threatened, and to assure the team's long-term future in Green Bay.
The $10 million increase to $125.5 million remains less than the combined total of player costs and team expenses for one year ($128.4 million this year). And Weyers and Vannieuwenhoven noted that figure increases each year with the regular increases in the salary cap.
Plus, with the possibility of the collective bargaining agreement being re-opened in the fall of 2008, which could lead to the possibility of future "uncapped" years, continuing to add to the PFPF will remain a priority.
"It would be very difficult for the Packers organization financially if we had uncapped year," said Weyers.
Community involvement remains strong
Continuing the franchise's commitment to the community, Packers contributions resulted in an impact of roughly $4.6 million to charities and other organizations in the past year.
More than half of that, or $2.5 million, was money raised by charities and foundations from donations made by the Packers, such as autographed footballs or jerseys that were raffled or auctioned off. Those donations had an impact on around 8,000 charities, Weyers said.
The other $2.1 million consisted of $1 million donated through the NFL to support youth football and other charities across the country, and another $1.1 million the Packers contributed directly to charitable or community organizations.
"The community involvement of the Packers has increased a great deal in the past few years," Weyers said. "The Packers continue to do exactly what they told the community they were going to do when they asked for support of the stadium's redevelopment, and that is to continue to be a big part of the community and to support it."
Future status
The Packers hope to remain in the second quartile in league revenues in the years to come, but it will be challenging with new stadiums in Indianapolis, Dallas and New York opening in the next three years. Also, Arizona opened its new stadium last year.
And the possible re-opening of the collective bargaining agreement creates some uncertainty as to what the long-term future holds financially. But in the near-term, the outlook remains very positive.
In addition, with the team doubling its win total from 2005 to 2006, a return to the NFC playoffs could happen sooner than later, and postseason appearances virtually guarantee a financial boost for the organization.
"I don't know what numbers I'd put to it," Weyers said. "But just to make the playoffs and maybe perhaps have a game or two here is very helpful to the popularity of the team and also the financial success of the team.
"Football is what we're all about, and winning is what it takes to be really successful."
http://www.packers.com/news/stories/2007/06/23/1/
Packers Financial Picture Solid
by Mike Spofford, Packers.com
posted 06/23/2007
The Green Bay Packers continued to post strong profits during the past fiscal year while adding $10 million to the Franchise Preservation Fund.
Those were the two key pieces to the team's financial state as its annual figures were released this weekend, a report that indicates the Packers are on solid financial ground with the revenue-generating opportunities provided by a renovated Lambeau Field over the past four years.
"Obviously that's very good because if we're in financially good shape, we can support the football (operations) and provide them with all the resources necessary for them to be successful on the field," Packers treasurer Larry Weyers said. "And we can never forget that's what we're all about."
The team's profits rose from $18 million last year to $22 million this year, a 22 percent increase that pushed net income near the franchise-record $25.4 million recorded two years ago.
Total operating revenues were up approximately 4 1/2 percent, from $208.4 million to $218.1 million, while operating expenses dropped from $187.5 million to $183.8. That helped allow for a $10 million addition to the Packers Franchise Preservation Fund (PFPF), boosting that to $125.5 million.
Where the $218.1 million in revenues ranks in the NFL is unknown at this point. The Packers ranked an all-time best seventh in revenue last year, but the NFL is not expected to release revenue rankings this year until the fall.
Weyers and vice president of finance Vicki Vannieuwenhoven said the team expects to be ranked in the second quartile, or between 8th and 16th in the 32-team league, which will have the Packers contributing a yet-to-be-determined amount to the league's revenue sharing plan. The top 15 teams in the revenue rankings contribute to revenue sharing.
"We'll know that for sure when we find out our ranking in the fall, but we're anticipating it to be approximately $4 million," Vannieuwenhoven said. "It could be a little less or a little more, but somewhere in that ballpark."
Revenues up, expenses down
The nearly $10 million rise in total revenues was due mostly to an increase in national revenues from $115.3 million to $124.9 million. National revenues, which are shared league-wide, encompass all television money (broadcast, cable, satellite), plus radio, internet and licensing revenues.
The team's local revenues remained stable, totaling $93.1 million last year and $93.2 million this year. A large portion of those local revenues comes from the trio of marketing, Atrium and Pro Shop business, which this year totaled $40.7 million, a slight drop from the $41.4 million of a year ago but the third straight year that has stabilized in the $40 million range.
"Local revenues are revenues we don't have to share with the rest of the league, for the most part," Weyers said. "So we'd like to see those increase, but the fact that they stabilized is pretty good news."
With the newness of the redeveloped Lambeau Field wearing off and first-time visits consequently in decline, the Packers must continue to find successful revenue-generating opportunities with the stadium.
On the expense side, the drop was due to a significant reduction in team expenses, from $33.7 million last year to $17.7 million this year. Last year's number was higher primarily because of the change in the coaching staff and some financial moves to strengthen the balance sheet.
Player costs rose again, as expected under the league's collective bargaining agreement with the players' union, from $102.9 million to $110.7 million.
PFPF still growing
The Packers Franchise Preservation Fund was created two years ago from the team's corporate reserve fund and is designed to give the team resources to compete in the NFL should the franchise's viability be threatened, and to assure the team's long-term future in Green Bay.
The $10 million increase to $125.5 million remains less than the combined total of player costs and team expenses for one year ($128.4 million this year). And Weyers and Vannieuwenhoven noted that figure increases each year with the regular increases in the salary cap.
Plus, with the possibility of the collective bargaining agreement being re-opened in the fall of 2008, which could lead to the possibility of future "uncapped" years, continuing to add to the PFPF will remain a priority.
"It would be very difficult for the Packers organization financially if we had uncapped year," said Weyers.
Community involvement remains strong
Continuing the franchise's commitment to the community, Packers contributions resulted in an impact of roughly $4.6 million to charities and other organizations in the past year.
More than half of that, or $2.5 million, was money raised by charities and foundations from donations made by the Packers, such as autographed footballs or jerseys that were raffled or auctioned off. Those donations had an impact on around 8,000 charities, Weyers said.
The other $2.1 million consisted of $1 million donated through the NFL to support youth football and other charities across the country, and another $1.1 million the Packers contributed directly to charitable or community organizations.
"The community involvement of the Packers has increased a great deal in the past few years," Weyers said. "The Packers continue to do exactly what they told the community they were going to do when they asked for support of the stadium's redevelopment, and that is to continue to be a big part of the community and to support it."
Future status
The Packers hope to remain in the second quartile in league revenues in the years to come, but it will be challenging with new stadiums in Indianapolis, Dallas and New York opening in the next three years. Also, Arizona opened its new stadium last year.
And the possible re-opening of the collective bargaining agreement creates some uncertainty as to what the long-term future holds financially. But in the near-term, the outlook remains very positive.
In addition, with the team doubling its win total from 2005 to 2006, a return to the NFC playoffs could happen sooner than later, and postseason appearances virtually guarantee a financial boost for the organization.
"I don't know what numbers I'd put to it," Weyers said. "But just to make the playoffs and maybe perhaps have a game or two here is very helpful to the popularity of the team and also the financial success of the team.
"Football is what we're all about, and winning is what it takes to be really successful."
