Have to admit, it was a bit of a jolt coming off a lengthy vacation where I felt like a full-time Yooper, taking the wife and riding bikes around Mackinac Island, indulging in fudge of course, playing plenty of golf and pouring through a handful of books I’ve been putting off, only to get back on the job today just in time for the first item on the 2023 Green Bay Packers season. The draft, free agency, a rather significant trade and the off-season programs are in the rear view mirror, it’s time to begin another fantastic voyage with a team I’ve followed since 1979.
I joined a handful of reporters in a second floor conference room inside the Lambeau Field Atrium to visit with President and CEO Mark Murphy, Executive Committee Treasurer Mike Simmer and the soon to be retiring Vice President of Finance and Administration Paul Baniel to go over the fiscal year 2023 financial numbers in advance of next Monday’s annual Shareholders Meeting inside the stadium.
Before the green and gold check in, rookies and quarterbacks are due to report on Friday, veterans next week and the first practice of training camp one week hence, we learned about the “green” with the NFL’s only publicly owned franchise.
Before Murphy gave his rundown on the numbers, he paid tribute to Baniel who spent 14 years with the franchise, playing a pivotal role in the organization’s economic health and development of the hugely successful Titletown District.
As for the ledger, there were big swings from a record breaking 2022 fiscal year where the team finished with a net income of 61.6 million dollars.
National Revenue soared by more than 27 million dollars, to 374.4 for the year, up 7.8 percent from 2022. Local revenue rose by a more modest 1.8%, going from 231.7 to 235.9 millon. Total revenue has now climbed to 610.3 million, up 5.4% from a year ago.
Expenses also rose significantly, up 40.3 million (8.0%), from 501.3 to 541.6 million last year. It resulted in an 11.7% drop in profit from operations, going from to 77.7 to 68.6 million.
The most significant change was with the team’s investment fund. Thank the 2022 Bear market on Wall Street that eroded quite of few retirement accounts across the country. The fund declined by over 25 million, a 500% drop. Even after the rough year, the team’s reserve fund still stands at around 475 million dollars.
The bottom line, net income for the 2023 fiscal year, the Packers net income went from a franchise record 61.6 million in 2022 to 35.6 million through the fiscal year’s end March 31.
In the formal presentation to reporters, Murphy explained the variety of factors that led to the bottom lines, the only financial figures you’ll ever see from an NFL franchise.
In a brief question and answer session, Murphy said the new football operations expansion, now housing coaching and personnel offices, new meeting rooms and underground parking for the players, along with the new high tech and huge scoreboards going up, accounted for a big portion of the 8% hike in expenses. The team also swallowed the London trip price tag, something the league had covered until they changed the rule last year that will require every team to make the trip once each 8 years. Murphy said stadium upgrades are still important, several years of concourse improvements lay ahead, which ensures a top notch experience for fans.
During a second interview round with a handful of beat writers and reporters, I asked Murphy about another big chuck of expenses, player salaries. Getting Aaron Rodgers off the books will soften the practice of pushing a lot of other veteran contract extension money into future years. The team says they still have plenty of working room to meet league salary cap limits and Murphy remains confident General Manager Brian Gutekunst and Vice President of Football Operations Russ Ball will continue to field the most competitive team possible.
The team is extremely excited about hosting the 2025 NFL draft and planning with the league is well underway. Because that could draw as many as 250,000 visitors with an economic impact six times more than a regular season home game, plans for a non-football event at Lambeau Field may go on hold. The Packers hosted the international soccer friendly last summer to rave reviews. The stadium will host the Wisconsin-Notre Dame football game in 2026, so another stand alone event in 2024 isn’t likely.
All of today’s information will presented to stockholders next week, along with a football report from Gutekunst and other Board of Director committee reports.
The Lambeau Field 5K fun run is set for this weekend as workers were laying down a small patch of field turf with a big “G” logo just outside the southeast gates.
Before you know it, football will return.
There was even a couple of roster moves announced. Second round draft choice Luke Musgrave, the tight end from Oregon State, has finally reached agreement on his rookie contract. And a fourth quarterback will be on the field next Wednesday. Joining Jordan Love, Danny Etling and Sean Clifford will be Alex McGough, a first year player who won the USFL’s Most Valuable Player award this past spring with the Birmingham Stallions. The 6-3, 214 signal caller was a 7th round draft choice of the Seattle Seahawks in 2018 but spent all of his time on Seattle’s practice squad. He later joined the Houston Texans and outside of 6 games on the active roster but being a game day inactive, he was on Houston’s practice squad in 2019 and 2020.
2023 is here, looking forward to the journey.
