New attractions like the Titletown District help the Packers net record revenue in the past yearTITLETOWN
The Packers yesterday "reported record revenue -- and record expenses -- for the year," according to Richard Ryman of the GREEN BAY PRESS-GAZETTE. The Packers said that revenue for FY '17-18, which ended March 31, was $454.9M, $13.5M "more than last year." Expenses were $420.9M, a $44.8M increase. Packers President & CEO Mark Murphy said that "increases in player salaries and travel costs," plus a $5M allowance for construction, "drove expenses higher." Revenue benefited from "additional money from shared national television contracts and growth in local income, largely as a result of new sponsorship agreements." The Packers reported net income of $38.6M, $34.2M "less than last year." The previous year's net income included $27M "worth of relocation fees." Total revenue, rather than net income, is the "more significant number in Packers' finances because all money, whether profit or not, goes back into team operations or the community." Net income, however, does "show how well the team is keeping expenses under control." National revenue of $255.9M "was up" 4.9%. National revenue includes "TV deals, road-game revenue sharing and other income, such as from NFL media operations." Local revenue, which was $1.6M higher, includes "game-day revenue, local broadcast fees, sponsorships and Lambeau Field Atrium-business income." The latter includes the "Packers Pro Shop, the Packers Hall of Fame, stadium tours, 1919 Kitchen & Tap restaurant and atrium rentals." Tourism-type spending "decreased, primarily because the Packers last year failed to make the NFL playoffs for the first time in nine years." Murphy said that celebration of the Packers' 100th season of football should "add to tourism-type spending this year and next" (GREEN BAY PRESS-GAZETTE, 7/17).
GET IT DONE: Murphy said that he "hopes the CBA," which will expire after the '20 season, "can be extended." He said that the NFL "doesn’t have the guaranteed money seen in NBA contracts, though 'over the last 10 years or so, a higher percentage of the players’ money is guaranteed.'" Murphy: "To me, the best thing about our collective bargaining agreement is the rookie pay is under control. We’ve got a system in place that I think is working well. More of the money is going to the veterans, who deserve it and have earned it. There were times under the old agreement that the highest paid players in the league were rookies at their positions, which was crazy" (AP, 7/16).
PLAYOFFS OR BUST: Murphy said that the team's first playoffs miss since '08 was "one factor in a 'pretty significant drop' in profits for the team's latest fiscal year," but the team still possesses the "financial wherewithal to extend" QB Aaron Rodgers' contract. In Milwaukee, Rich Kirchen noted despite the Packers missing the playoffs, fans "show no sign of slowing demand for tickets to games." Murphy said that the Packers have "thousands of people on the waiting list for season tickets." Murphy: "The end-of-year games didn't have the same meaning that they normally do at the end of the year, but we didn't see a huge drop-off in terms of the attendance. And our renewals continue to be over 99 percent on our season tickets. So -- knock on wood -- we're still staying very strong here" (BIZJOURNALS.com, 7/16).
