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Packers turn $21.4 million profit, but concerns linger

Discussion in 'Packer Fan Forum' started by Mortfini, Jun 22, 2008.

  1. Mortfini

    Mortfini Cheesehead

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    From NFL.com

    After a 13-3 regular season, two home playoff games and a final bow from Brett Favre, the Green Bay Packers figured to have a pretty good year from a financial perspective
    And they did -- but it wasn't the moneymaking blockbuster some might have expected, a development that reinforced Packers executives' long-term concerns about the financial health of the NFL.

    The Packers took in about $241 million in operating revenue for the 2007-08 fiscal year that ended March 31, about 10 percent more than the previous year. But thanks to a significant rise in player costs, the team's total operating profit fell more than 37 percent to $21.4 million.

    "We had a good year," Packers president and CEO Mark Murphy said. "But not as strong as you might have anticipated."

    Packers executives believe the team ranks just outside the league's top 10 most profitable franchises despite playing in its smallest media market. But they're worried about the future after watching the team's player costs skyrocket from $110 million in the 2006-07 fiscal year to $124 million last year.

    Murphy said the increase was mainly because of bonus payments due to veteran players, but also was an example of a growing trend around the league. Teams are spending more money to remain competitive without seeing a corresponding increase in revenue.

    That's why, Murphy said, NFL owners voted in May to opt out of their collective bargaining agreement with the players union. The current agreement remains in effect through the 2010 season, but owners hope to negotiate a new deal that would allow them to keep a bigger chunk of the money the league and teams take in.

    NFL owners recently said they are paying $4.5 billion to players this year, just under 60 percent of their total revenues.

    "Player expenses are increasing at a more rapid rate, and that concerns us," Packers treasurer Larry Weyers said.

    As a public corporation, the Packers are the only NFL team that releases annual financial statements. But Murphy said other teams are in similar situations and have the same concerns.

    "When you really look at it carefully, it shows why the owners have the concerns they do," Murphy said.

    The Packers have their own concerns about any new CBA -- namely keeping revenue sharing and the salary cap in place.

    "I think it's extremely important that we protect the mechanisms the league has in place," Weyers said.

    Representatives of the owners and the players union have expressed optimism that a new agreement will be worked out before a potential work stoppage in 2011.

    But just in case, the Packers socked away another $2 million into its savings account, the so-called "franchise preservation fund." It now stands at $127.5 million.

    "We obviously want to solve the collective bargaining agreement and extend it," Murphy said. "But we also have to be prepared in the event of a work stoppage."

    Despite signs of trouble, the Packers still had a pretty good year in the boardroom -- even if it wasn't quite as spectacular as it was on the field.

    The team's local revenues surged from $93 to $105 million, thanks to a record year for the Packers' Pro Shop at Lambeau Field and fans spending more money at the stadium during two home playoff games.

    Weyers said the Lambeau Field renovation is paying off as promised, generating money to help the team remain competitive and drawing tourists to the Green Bay area throughout the year -- not just during football season.
    In order to be successful in this league, you've got to depend more and more on local revenue," Weyers said.

    Packers vice president of finance Vicki Vannieuwenhoven said the team ranked 11th among NFL teams in local revenue last season, and expects to remain in the same range when the league calculates new rankings later this year.

    Under NFL rules, teams share equally any national revenue that comes into the league through television contracts and other sources, but can keep local revenue.

    And by making a significant purchase of land near the stadium last year, the Packers are putting together long-term plans to draw more local revenue. The land could eventually be developed into retail stores or entertainment venues.

    "We don't have any definite plans right now, but there are a number of options," Weyers said.

    Then there's the Favre factor -- something the team can't really quantify, but certainly made a difference to its bottom line.

    To be sure, Favre's decision to play last season contributed to the team's financial success. And while Favre has retired, Murphy and Weyers emphasized that the Packers are bigger than one player.

    Besides, the Packers still plan to sell plenty of Favre jerseys and souvenirs this year. Not to mention the potential appeal of the player tabbed to replace him.

    "We'll also sell a lot of Aaron Rodgers jerseys," Murphy said
     
  2. PackinSteel

    PackinSteel Cheesehead

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    Looks like they're counting on ARod to bail them out more ways than one :lol: (see last sentence of article).

    Team seems to be doing alright for a town of only 100,000+
     
  3. TheEngineer

    TheEngineer Cheesehead

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    If the stock did trade, that sounds like a 10% intraday fall right there!

    How do you guys think the Packers will cope in the next 10 years with all this CBA mumbo jumbo?
     
  4. nathaniel

    nathaniel Cheesehead

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    I think L.A. is still looking for a team...how much do you think we could get? Haha!
     
  5. Zombieslayer

    Zombieslayer Cheesehead

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    We'll be fine. This is something that is hitting all teams, not just us. Players want more of the cut. They're the ones taking the hits and getting crippled out there. They want their due.

    We're still profitable. As a business, if you look at our income statements, I'd love to have a business as successful as the Green Bay Packers. So would you.
     
  6. retiredgrampa

    retiredgrampa Cheesehead

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    Anytime a corporation, in any line of work, doesn't increase it's profit from last year, the warning flags go up. This comes from the competitive nature of things in these United States. But the cruel fact is that increases in profit never occur on a regular basis. And there are franchises with much more to worry about than ours does. Look at Buffalo, Cinncinati, Minnesota, and a few others who yearly get extra money from teams like the Packers to help them stay in the black. If we ever reach the point where WE are the ones GETTING that money, that's when I'll worry for the franchise.
     
  7. CaliforniaCheez

    CaliforniaCheez Cheesehead

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    1) Some of you forget 20 million spent on buying real estate around the stadium.

    2) Cost of expending the Pro Shop.

    3) The costs of digging up the field and putting in yet another heating system, subsurface drainage, and specialized turf.

    In good times you can easily invest in the future without it hurting.


    The Packers are not paying to resod Lambeau. The money spent on custom turf saved that cost this season.

    The expanded Pro Shop brings in more revenue.

    The real estate not only is a good long term investment but it could be used for several creative projects.

    (Even if only used for parking that is local revenue)

    These are investments that will either save money or generate more revenue in the future.


    Don't bemoan the numbers. The Packers had a great year financially.
     
  8. Zombieslayer

    Zombieslayer Cheesehead

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    Bingo!

    I'm not worried. When you have extra money (as a company), it's best to invest it in the future.

    This organization is well-managed. We're also managed to survive a storm.

    Regardless of what happens, there will be a GREEN BAY Packers twenty years from now (unless we don't survive the zombie plague). We simply have too many fans who purchase merchandise to perish.

    You compare the numbers to the other teams and our numbers look good. Keep in mind, this is a reporter writing the original article, not an economist.
     
  9. nathaniel

    nathaniel Cheesehead

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    I'm not too worried about the zombie plague, cause I've watched Night, Dawn, Day and Land so many times that I know what not to do in such situation. I'm more worried about the robots that look like Arnold. They went back in time THREE TIMES to change the future, and it didn't work, with the exception of Eddie Furlong turning into Nick Stahl.
     
  10. Zombieslayer

    Zombieslayer Cheesehead

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    Yeah, but are your family and friends?

    If not, are you prepared to shoot them in the head if they're trying to bite you?

    Something to consider.
     
  11. TheEngineer

    TheEngineer Cheesehead

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    Do they release the actual financial reports?
     
  12. PWT36

    PWT36 Cheesehead

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    Engineer

    Green Bay Packers, Inc. are required by Federal law to publically release their yearly finanacial report . The Packer shareholders receive their copy Packer yearly financial report for Packer FY3/31/08. The Packer financial report is discussed by Packer treasurer Larry Weyers at Packer's share holders meeting at Lambeau Field , I think on July 24th, 2008. The share holders can ask question concerning the Green Bay Packers at share holders meeting.

    Green Bay Packers, Inc is the only NFL franchise that has to make public their financial report and it must be published in news paper of record in Green Ba y, which is The Green bay Press-Gazette,because it is publically owned non profit Corporation
    All other NFL franchises are privately owned by owner or a partnership. They do not have to make their financial reports public.

    The Green Bay Packers are the only Major league franchise in any Major League professsional Sport , which is a publically owned non profit corporation. An there will never be another one. The Packers are " grandfathered" in, because they have been around since 1923 and it has worked for this organization for 85 years. So the Federal, government, State of Wisconsin, and NFL allow the Packers to operated with the present Articles of Incorporation and charter, but it will never be allowed to have similar Corporation to the Packers be formed again.
     
  13. TheEngineer

    TheEngineer Cheesehead

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    Thanks for the information. Is there a link to these published financial reports? I guess I'll need to wait until July 24th for the AGM.
     
  14. PWT36

    PWT36 Cheesehead

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    Scroll down to article I posted on 6/22,08.
    "
    Post subject: Packer's profit less than hoped by PG's R. Ryman
    Posted: Sun Jun 22, 2008 05:57 AM

    --------------------------------------------------------------------------------
    For those Packer fans who are interested in financial condition of the Green Bay Packers, Inc. at end of Packer FY ending 3/31/08. This is article just published in Green Bay Press-Gazette today- Sunday, June 22, 2008.

    "Packers profit less than hoped--Revenue increases, by so do expenses."

    By Richard Ryman- of the Green Bay Press-Gazette
     
  15. TheEngineer

    TheEngineer Cheesehead

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  16. Cdnfavrefan

    Cdnfavrefan Cheesehead

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    I think this is a problem all MLB, NBA, and NHL would love to have. Not even a million Zombies could stop the green and gold. They may just be Zombies but they're smart enough to move their plague 4 hours west of GB
     
  17. Zombieslayer

    Zombieslayer Cheesehead

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    Considering most of Wisconsin are pretty good shots, we may be one of the only teams remaining after the plague ends. :cool:
     

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