Packers Net Income Shoots Up, Operating Profit Doesn’t
The Green Bay Packers have reported a net income of $17.1 million, according to published figures from their annual report, which was released today.
That’s an $11.9 million increase from the $5.2 million in net income the organization reported in 2010. It primarily came from investments.
Unfortunately, the franchise’s operating profit increased only modestly — from $9.8 million in fiscal year 2010 to $12 million, a $2.2. million increase. The organization — and here’s more lockout rhetoric — cited rising player costs, just as they did when they released last year’s annual report, as the culprit.
Part of the issue was the costs associated with the Packers four postseason road games.
The Packers claim the thin operating profit would have been even thinner if it weren’t for the lockout.
The $2.2 million increase in operating profit – from $9.8 million last year to $12 million this year – was almost entirely due to a $2 million drop in player costs. That drop was mostly a function of the work stoppage, which prevented the team from signing any players to contracts during March, the final month of the fiscal year when the normal free-agent signing period opens.
Had there not been a work stoppage, it’s reasonable to assume the Packers would have signed another player or two in March and the operating profit would have remained stagnant, or even fallen below last year’s, despite a Super Bowl title.
Of course, that’s looking at only one part of the equation. Have the Packers factored in how much the lockout crushed the goodwill of their Super Bowl run and alienated casual fans with disposable income?
I doubt it.
Here are some other highlights of the report.
- Gross revenue rose 9.5 percent to $282.6 million, an all-time high.
- Expenses rose 9 percent to $270.6 million.
- Player costs and team expenses accounted for 72 percent of total expenses.
- National revenue, including the league’s television contract, rose 3.6 percent.
- Local or stadium revenue rose 18 percent. A significant portion of this came from an increase in Pro Shop business and an increase in ticket prices.