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Packers' operating profit cut in half

Discussion in 'NFL Zone' started by Arch Stanton, Jul 14, 2010.

  1. Arch Stanton

    Arch Stanton it was the grave marked unknown right beside

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    Packers' operating profit cut in half

    Associated Press
    GREEN BAY, Wis. -- The Green Bay Packers posted an operating profit of $9.8 million in their most recent fiscal year, down from $20.1 million the previous year.
    Team officials attribute the decrease mostly to escalating player costs, putting the team's annual financial disclosure squarely in the middle of a contentious debate between players and owners over a new collective bargaining agreement.

    As a publicly owned team, the Packers are required to report financial information to shareholders. Team officials briefed selected media outlets, including The Associated Press, on the team's finances Wednesday.

    Taking into account investment losses, the team posted net income of $5.2 million, up from $4 million last year.


    Copyright 2010 by The Associated Press

    http://sports.espn.go.com/nfl/news/...ce=NFLHeadlines&utm_medium=Twitter&id=5379673
  2. sureletsrace

    sureletsrace Official CZ Homer

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    One thing that's nice about being a Cowboys fan. We don't really have to worry about financials and if we'll lose our beloved team to money.
  3. burmafrd

    burmafrd Well-Known Member

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    Green Bay has a very fanatical fan base that buys a lot of tshirts and the like. If they only made a few million last year that supports the owners contention that more then a few teams lost money.
  4. FuzzyLumpkins

    FuzzyLumpkins The Boognish

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    theyre also in the smallest media market in all of professional sports.
  5. burmafrd

    burmafrd Well-Known Member

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    the media market thing is not realy true. Pretty much all of wisconsin is their territory, and milwaukee is fairly close and pretty good sized with its suburbs.
  6. joseephuss

    joseephuss Well-Known Member

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    They are fortunate that being the in the smallest market doesn't matter in the NFL since the television revenues are shared equally amongst franchises.
  7. FuzzyLumpkins

    FuzzyLumpkins The Boognish

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    http://www.theticketking.com/tickets/green-bay-packers-tickets.htm

    Its plain true. They are the smallest media market in sports. Milwaukee is good size? Compared to what? Lubbock?

    It also goes beyond TV ratings. The Cowboys are so lucrative because of sponsorships with companies like Pepsi and Ford.
  8. burmafrd

    burmafrd Well-Known Member

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    media market is not that critical for them with their fanatical fans. Its a problem for newer franchises without the history and generational fans.
  9. perrykemp

    perrykemp Well-Known Member

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    Actually, I believe the Packers are one of the top 10-12 revenue teams in the NFL.

    Didn't Jerry Jones get fined last year for commenting that it's a crime that the Packers are are helping fund other teams like the Vikings who don't generate very much revenue (due to Stadium issues and the like)?
  10. FuzzyLumpkins

    FuzzyLumpkins The Boognish

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    The fans that are so fanatical that they lost half their profit?

    The whole point of this discussion is that their bottom line is dwindling and obviously the fans are not fanatical enough to help that.
  11. joseephuss

    joseephuss Well-Known Member

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    Too bad we don't know how the Packers situation fully compares to the other 31 franchises in the NFL. I would bet that several teams are going through similar financial situations.
  12. burmafrd

    burmafrd Well-Known Member

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    The Pack is up there is total revenue. Sad some here just do not get that. And they really do not spend that much on FA's and the like. So the fact that they are not making that much of a profit does seem to indicate that several teams probably lost money last year.
  13. FuzzyLumpkins

    FuzzyLumpkins The Boognish

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    IF their operating profit was cut in half then that means their 'up there in total revenue' went down or they spent more. As you say, they don't spend so that leaves.....

    No what reasons could they be suffering such losses compared to other teams? Could it be becasue of their small market or could it be their 'up there in total revenue?'

    You keep on missing the point so much its sad.
  14. SaltwaterServr

    SaltwaterServr Blank Paper Offends Me

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    The TV contracts pay out X dollars which is defined at Y dollars per team. Those variables don't change over the life of the TV contracts IIRC unless a new franchise changes the number of fingers in the pie.

    Green Bay didn't make the playoffs in 2008. They did in 2009. A playoff game, home or away, still generates extra revenue over a season that ends for a team in week 17.

    If the team did not lose or gain any major revenue streams, and the team took in more than they did in 2008 then they should be making more than they did in 2008.

    Player costs escalated at a rate that has flattened the growth curve for the franchise. 11.8% growth in player costs versus a 5.5% growth in revenue. The cost of the players now accounts for over 50% of the revenue appropriations for operations.

    Those numbers mean you have to create new revenue streams or that the teams themselves are being bled dry by the players. Operating under the former CBA makes no sense whatsoever from an ownership standpoint.
  15. burmafrd

    burmafrd Well-Known Member

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    fuzzy is being fuzzy again. You are so obsessed with this small market BS you miss the elephant in the room- the bad economic times.

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