The Packers reported record revenues today, hitting $375.7M, but core profit rose modestly in comparison despite declining player costs because of debt and capital expenses, including a $9M-per-club debt assessment imposed by the NFL. While player costs, usually far and away a club’s highest expense, were down, total team expenses still jumped 12.7% to $336M as the club aggressively added to Lambeau Field and an adjacent development dubbed Titletown. The club promised an announcement shortly regarding details about that development.
The team’s revenues rose 16%, while the capital costs kept net income at $29.1M for the 12 months ended March 31, 2015, up $3.8M from last year. Operating income, which filters out certain expenses not tied to core football operations, was $39.4M, a 54% increase (if one excluded the league-imposed debt assessment, the figure would have been over $48M).
“Over the last few years we have brought on line new seats in the stadium, new areas and renovated spaces around the stadium,” said Packers President & CEO Mark Murphy, explaining the non-player rise in expenses, which “increased depreciation.” He noted real estate development costs rose “in line with the Titletown development.” He explained the expense rise was due to an "additional league assessment … related to debt refinancing at the league level."
Read the full story.
The league has a stadium financing pool known as G-4 that teams borrow from (the Packers took out a $104M loan). The assessment is tied to when the league refinanced the pool when it transitioned to a new version (the original stadium financing mechanism, G-3, expired and the league renewed it). The slim increase in profit, combined with the revenue jump, meant the team’s margins remained for the second year in a row under 8% after hitting almost 15% in '13. Presumably, as Titletown comes on line, revenues from that development will offset the capital costs and begin to move the margins higher.
The bulk of the team’s revenues came from national revenues, boosted by new TV contracts.The Packers reported $226.4M of national revenues, up 20.6%. That means the league distributed $7.244B to its 32 teams from national money, which includes TV, sponsorship, licensing, digital and NFL Network. The national increase also bumped to above 60% the amount the Packers receive from the league, up from 58% last year.
The team ranks ninth in total revenues, Murphy said. The team’s local revenues did increase by $12.9M to $149.3M, with half of that increase boosted by gains in the team’s pro shop.
