Unique NFL Team Facing Financial Struggles
Newsweek · C · trust 28/100
0 Share Newsweek is a Trust Project member See more of our trusted coverage when you search. Prefer Newsweek on Google to see more of our trusted coverage when you search. One of the NFL 's most storied franchises is facing a tough financial road, organization officials said.
The Green Bay Packers are acknowledging that, as the league's only publicly owned franchise, they face hurdles other teams don't, and this past year, they operated at a net loss, the Associated Press reports .
"It's like other teams have access to this ATM machine that we just don't have right now," said Packers President and CEO Ed Policy.
For the first time in 25 years (except for the pandemic), the Packers operated at a loss, even as their revenues rose 4.7%.
The problem? Spending was up 18.7%, including a $130 million increase in player costs.
"The Packers acquired All-Pro edge rusher Micah Parsons from the Dallas Cowboys last year and signed him to a four-year, $188 million contract with $136 million guaranteed," the AP explained. "They also accelerated payments to some players who were traded."
Granted, some non-operating revenues put the Packers overall into the black, but Policy noted that won't be enough to remain competitive forever.
"We're going to have to be more aggressive with revenue generation going forward," Policy said. "We all know the cost of competing in the NFL is going up, and other teams have access to capital sources that we just don't have."
Unlike most teams, the Packers play in a stadium without a title sponsor: Lambeau Field.
Policy indicated that they aren't planning to sell naming rights to Lambeau, though earlier this year, Policy noted that means they'll have to find revenue elsewhere , including by selling naming rights to the practice facility nearby.
In addition, they're likely to offer Lambeau Field for more non-NFL events, such as the Notre Dame-Wisconsin game coming up in September and a recent run of concerts for Luke Combs.
"I feel very good about the Packers' financial strength and condition in the medium term and the short term, certainly," he said. "But we are keeping a very close eye on some of these long-term trends, looking at how they impact us and our financial health in the long term.
"We do have to make sure that we're always in a position where we can continue to invest wisely in whatever it takes to field a championship-caliber team, whether that's player costs, football staff or facilities."
Read the original at Newsweek →
Open in TruthVane →