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GREEN BAY – The 2020 pandemic season saw the Packers’ first financially exploitative loss since before Lambeau Field was renovated almost two decades ago, but the organization’s overall economic situation remains strong with many bright spots on the horizon.
As the Packers released their annual financials on Friday, the team reported an operating loss of $ 38.8 million due to an expected and significant drop in revenue. This is in stark contrast to last year’s operating profit of $ 70.3 million.
But this year’s overall net profit was still in the dark, at $ 60.7 million, thanks to $ 120 million in mostly unrealized investment gains as of March 31, the end of last fiscal year. Net income is actually an increase from $ 34.9 million the year before, when investment losses were reported early in the pandemic.
“Obviously, this has been a unique year with the pandemic, and it has had a significant effect on our finances,” said Chief Executive Officer Mark Murphy. “Overall, the Packers remain in a strong financial position and are still very confident that we have the resources to be successful on and off the pitch.”
Looking at the revenue picture, the team had no ticket sales for their eight regular season games (and the preseason had been canceled), so the corresponding revenue from parking, concessions and sales of goods did not exist either. Revenue from sponsorships and Lambeau Field Atrium businesses, which have been closed for a while and have experienced otherwise limited foot traffic, have also been declining.
In total, local revenues fell $ 149 million in the fiscal year ending March 31, 2021, from $ 210.9 million to $ 61.8 million, or 70.7% lower than previous exercise.
The losses were, however, mitigated by a $ 13.2 million increase in national income (a 4.5% increase, from $ 296 million to $ 309.2 million) and a $ 26.7 million decrease in national income. expenses (6.1% decrease, from $ 436.6 million to $ 409.8 million).
The entire NFL season was broadcast on television as usual, so national income increased to its usual amount. Spending declined primarily due to the collectively negotiated benefits that the players’ union agreed to forgo during the pandemic (in exchange for salary cap reductions delayed until this year and spread over several seasons to come), and due to the understaffing on match days, security and other costs associated with hosting fans for the games.
The Packers were able to weather the economic downturn without dipping into its corporate reserve fund by using a combination of a line of credit and cash on hand – in part thanks to some of the season pass holders leaving their money in their account to be applied to the 2021 season.
The corporate reserve fund, which stood at just under $ 500 million at the end of the last fiscal year, provided the necessary line of credit to manage the unique financial situation. The fact that it remained intact helped to maximize the investment gains from the market rebound, leading to a positive bottom line.
Going forward, investments in the Lambeau field and the development of Titletown will continue this year and beyond.
Renovation of the stadium hall was halted last year but resumed in preparation for further crowds in 2021, with the current project adding more take-out concession stands as well as televisions and other video monitors.
“It will be great to reunite with all of our fans, and we are delighted that they see and experience the changes,” said Murphy.
Soon Lambeau’s video cards will need to be replaced and an expansion of a football facility is under discussion, with the recent relocation of the stadium’s underground power tank being a necessary first step.
Along with Titletown, several townhouses have been sold and a handful of owners have moved into them, and occupancy of the new office and apartment buildings will begin later this fall. Partnerships with Microsoft in TitletownTech and the Equity League are also off to a good start.
TitletownTech has contributed or invested in more than 20 start-ups, while the Equity League – which also involves the Bucks and Brewers – will direct investments to minority-owned companies and aided efforts to remove barriers for minority business owners.
“We view Titletown as a community asset,” said Murphy. “It’s an investment made in the community, and we are still developing it.
“A number of different professional sports teams are developing pitches and areas around their stadium, which can have a very positive impact. For us, this is even more important given the relatively small size of our market.
The team’s charitable impact over the past year has risen to over $ 9 million, with a significant portion going to support for COVID-19 and social justice initiatives.
With Lambeau Field returning to full capacity for 2021, last year’s financial report is expected to be an anomaly. Local income is expected to return to pre-pandemic levels.
Additionally, the NFL’s new contracts with its broadcast partners are expected to come into effect in the coming years, also boosting domestic revenues by the mid-decade and beyond.
“Looking ahead, I have great confidence for two main reasons – the long-term collective agreement with the players and the long-term broadcast agreements,” said Murphy. “This will bode well for the future.”
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