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Packers Revenue Is Record $610M as TV Money Drives Gains
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- Packers Revenue Is Record $610M as TV Money Drives Gains
The Green Bay Packers reported financial results on Thursday for the 2022 season that included revenue of $610 million, topping the previous year's record tally of $579 million.
The gains were almost entirely driven by the national revenue component, which is mainly derived from shared media rights, league sponsorships and merchandise. The Packers reported $374.4 million, up 7.8% compared to 2021. The figure implies the league divvied up $12 billion equally, largely driven by TV agreements. Last year was the first with Amazon's 11-year, $13.2 billion contract for Thursday Night Football . The rest of the NFL's new TV deals kick off this season with a combined value of more than $100 million over 11 years.
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Local revenue was less robust, up only 1.8% to $235.9 million. The Packers finished last season with an 8-9 record and were third in the division after three straight years on top with 13 wins each time. Packers president Mark Murphy said the main reason for the slow growth rate was one fewer home game, including preseason, as the team had a "home" game in London last year. "Other than that, we probably would have been kind of where we had been in the past," he said in a Zoom call.
The NFL used to "make up" the shortfall in local revenue when teams had to forgo a home game when playing overseas, but the policy changed last season. As part of the expansion to a 17-game schedule, the league determined that every team will play internationally at least once over the next eight years. So instead of making teams whole, the NFL just pays travel expenses under the rationale that every team will lose a home game during that time. The Packers were the NFL's 32nd team to play in London.
National revenue growing faster than local revenue has been a consistent trend for the Packers. Over the past eight years, national revenue is up 79% versus 40% for local. The team plays in the NFL's smallest market by far but continue to punch above their weight on local revenue and typically rank near the top of the second quartile among NFL teams.
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Packers' profit from operations fell 12% to $68.6 million, versus last year's $77.7 million record. Green Bay said a one-time legal expense contributed to the drop. In October, owners approved a resolution on who would pay the $790 million settlement with the city of St. Louis for when the Rams moved to Los Angeles. Rams' owner Stan Kroenke footed roughly 70% of the bill, with the other owners funding the rest of the settlement.
The Packers were not immune to a down stock market in 2022. They posted a $20.5 million investment loss after a $5.1 million gain the prior year. The S&P 500 fell 18% last year. The down year on Wall Street resulted in the Packers' total net income declining 42%, to $35.6 million.
The team's corporate reserves are $475 million, even after investing $200 million into Lambeau Field over the past two years for an expanded practice facility, new videoboards and concourse renovations. Overall, the team has invested $600 million into Lambeau since 2003.
The Packers will welcome thousands of shareholders to their annual meeting next week at Lambeau Field. The team is the NFL's only publicly owned franchise and currently has 539,000 stockholders.
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In May, Green Bay was selected to host the 2025 NFL Draft. "We think having Titletown was instrumental in securing the NFL Draft," Murphy said referring to the real estate development around Lambeau. The team expects 240,000 people to come to the draft, which is more than twice the population of the city.
Sportico valued the team at $4.19 billion last year, 14th in the NFL.
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