Professional Football Researchers Association Forum

Wow! Packers profits down 98% in one year. No single owner with deep pockets. Is the Green Bay ownership model sustainable?

https://www.weau.com/content/news/Packe ... 52521.html

RyanChristiansen wrote:Wow! Packers profits down 98% in one year. No single owner with deep pockets. Is the Green Bay ownership model sustainable?

https://www.weau.com/content/news/Packe ... 52521.html

From another article, this helps explain why we should hold off on any pity parties:

"Last year, the Packers spent more money on personnel than ever before, thanks to having to pay quarterback Aaron Rodgers $67 million in the first four months of his deal. That resulted in the team’s net income coming in 78 percent lower than last year.

"Also included in the Packers’ numbers are their investment in Titletown, the real estate development surrounding Lambeau Field, which Packers president Mark Murphy says is performing up to expectations, but isn’t yet profitable nearly two years after launch."

RyanChristiansen wrote:Wow! Packers profits down 98% in one year. No single owner with deep pockets. Is the Green Bay ownership model sustainable?

https://www.weau.com/content/news/Packe ... 52521.html

As a Packer fan, I've watched their financial reports for a long time. The profits fluctuate wildly and I suspect that's true of most, probably all, NFL teams.

The Green Bay ownership model has existed longer than most other NFL franchises have existed, so I'm not concerned

Regarding the Titletown investment, this update was from last month:

https://www.greenbaypressgazette.com/st ... 500879001/

One difference that there is now in my opinion is that salaries are now skyrocketing like never before and it does make you wonder if the Packers will be able to keep up with those salaries given that they don't have a billionaire owner.

lastcat3 wrote:One difference that there is now in my opinion is that salaries are now skyrocketing like never before and it does make you wonder if the Packers will be able to keep up with those salaries given that they don't have a billionaire owner.

How can salaries "skyrocket" when there's a salary cap? What difference does a billionaire owner make when revenue is shared? Do you think any of those owners actually pour their own money into a football team?

rhickok1109 wrote:What difference does a billionaire owner make when revenue is shared? Do you think any of those owners actually pour their own money into a football team?

Not all operational costs fall under the salary line item. Facilities and marketing would not be included in that figure, for example, and I don't think coaches' salaries are part of the cap, but I may be wrong on that.

The salary cap last year was $177.2 million and rises by $11 million for the 2019 season. That leaves plenty of money to fill in the coaching and front office salaries, etc.

RyanChristiansen wrote:

rhickok1109 wrote:What difference does a billionaire owner make when revenue is shared? Do you think any of those owners actually pour their own money into a football team?

Not all operational costs fall under the salary line item. Facilities and marketing would not be included in that figure, for example, and I don't think coaches' salaries are part of the cap, but I may be wrong on that.

There is no salary cap for coaches. The Raiders would definitely have gone over it when they have Jon Gruden a new deal.

RyanChristiansen wrote:

rhickok1109 wrote:What difference does a billionaire owner make when revenue is shared? Do you think any of those owners actually pour their own money into a football team?

Not all operational costs fall under the salary line item. Facilities and marketing would not be included in that figure, for example, and I don't think coaches' salaries are part of the cap, but I may be wrong on that.

No, you're correct, but the other stuff doesn't amount to much compared to player salaries. In 2017, players collected a total of just under $8 billion while owners collected a little more than $8 billion. The two pies are very similar in size but obviously the owners' revenue is cut into many fewer slices.

I ask again: Do you think any of those owners actually pour their own money into a football team?