Net Profit Up, So Are Operating Costs

Stakeholders league wide are examining the Packers annual financial report, released today, to arm themselves with information to be used in the upcoming labor negotiations.

It boils down to this. On one hand the Green Bay Packers turned a net profit of $5.2 million over the past year, an increase over the $4 million the previous year.

On the other hand, operating costs also went up to $248 million compared to $228 million the year before, a majority of that number accounting for player salaries.

According to Don Walker of the Milwaukee Journal Setinel:

In interviews, team executives said the franchise remained in a strong financial position. At the same time, however, they stressed that player costs continue to be a concern. That is and will be the mantra the entire National Football League wants to stress as it continues negotiating with the players’ union on a new collective bargaining contract.

The Packers reported earning $100.4 million on local profit, down just slightly from the $100.8 million they made the previous fiscal year. Local income does not have to be shared with other NFL teams, and as such, Packers president Mark Murphy confirmed that's an area the team wants to grow. Walker writes:

Murphy and other executives noted that, in order to grow more local revenue, the franchise did not want to do it on the backs of season-ticket holders. Rather, Murphy said, the team is looking and planning at possible projects that include land the team owns west of Lambeau Field, and the possibility that the south end zone will get more seating in the future.

Financial details will be shared with Packers shareholders at the team's annual meeting on July 29 at Lambeau Field in which NFL commissioner Roger Goodell will attend.

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DaveK's picture

July 14, 2010 at 04:21 pm

With a season ticket waiting list of 80,000+ I would think adding 3,000 more seats would make sense. That's at least a couple million more a year in ticket sales, concessions, parking, etc...

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bomdad's picture

July 15, 2010 at 01:17 pm

Ticket sales are shared with other teams, so adding seats is not a simple answer. Ideally they want a medium ticket price and alot of spending on something else like proshop merch, concessions, and other non-shared revenue. For example if they develop the land next door, they get all that revenue.

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