Revenue and expenses increase for Green Bay Packers
GREEN BAY (WLUK) -- The Green Bay Packers continue to make a profit.
The Green Bay Packers' net income for the 2017 fiscal year reached $72.8 million.
That's almost a 50 percent increase over last year and it's all thanks to the relocation of the Chargers, Rams, and Raiders.
Each of the above teams have to pay a relocation fee which. According to ESPN sports business reporter Darren Rovell, the Rams and the Chargers will each pay $645 million.
His article goes on to say the Raiders' relocation fee is $378 million over 10 years.
Rovell also says 29 NFL teams will each make $55 million thanks to the relocation fees.
Packers President and CEO Mark Murphy says the fees are paid over a 10 year period which starts about 2.5 years from now.
The Packers say the fees have to be included in the 2017 fiscal year. And, the Packers estimate after taxes and net present value, it will receive $27.1 million from those fees.
"We've got about 370,000 shareholders and I think they all want to know that we're being good stewards of the organization," said Mark Murphy, Packers President and CEO.
The 2017 fiscal year showed an increase in total revenue and expenses.
In 2017 total revenue sits at $441.4 million. In 2016 revenue added up to $408.7.
"The eight straight years in the playoffs and the type of fan support we have is crucial to our financial success and then, I think, the continued popularity of the league nationally helped us have another strong revenue performance," Murphy said.
In 2017, it's $65.4 million and in 2016 it was $75 million.
The organization's expenses have also increased with 2017's total expenses at $376.1 million. 2016's numbers showed $333.7 in expenses.
"Our expenses grew at a higher rate than revenue due to the kind of cyclical nature of some of our player salaries, Plus, other big expenses was depreciation cost for our hall of fame and 1919 restaurant that had a full year of depreciation costs," he said.
The Packers report net income at $72.8 million for 2017. However, if you don't include the fees, net income would be $45.7 million. In 2016 net income was $48.9 million.
Murphy also mentioned the importance community investments like the Billy Joel concert and the college football game at Lambeau Field last year.
"Also, we view Titletown as an investment in the community as well," Murphy said.
He hopes the $65 million dollars invested in the Titletown District will attract more people and businesses to the area.
The district's park and playground is expected to open throughout the month of September.
The Johnsonville Tailgate Village is also expected to attract Packers fans.
The permanent facility will be available for wedding rentals and events.