The Green Bay Packers released their annual financial report on Thursday and despite setting another record for revenue, the franchise’s profits dropped substantially over the last fiscal year.
The Packers brought in a record $324.1 million in revenue, a 5.2 percent increase over the previous fiscal year and the increase was split fairly evenly between national and local sources.
But operational profit was down from $54.3 million to $25.6 million and the franchise’s net profit was down more than 41 percent, from $43.1 million to $25.3 million.
“I think you have to look at the last two years together to get a sense of more normalized numbers,” said Mark McMullen, treasurer of the franchise’s board of directors. “Over the course of the (collective bargaining agreement), things will even out.”
New contracts for Clay Matthews and Aaron Rodgers hit the books last season, which made a difference in the expenses shown on the ledger, as player costs increased from $136 million to $171 million, including benefits.
The bottom line was also hit by depreciation on stadium improvements.
But it was still a profitable year in Titletown and CEO Mark Murphy is optimistic looking ahead.
“People have good hopes we can do well,” Murphy said.
The CEO also said that getting general manager Ted Thompson’s contract extended past the 2016 NFL Draft is a big priority.
“I think Ted has been instrumental, obviously … the run we’ve had. So that is a real priority.”
The CBA has been a factor. The deal between the league and its players union is now in the third year of a 10-year agreement.
“Stability helps us,” Murphy said. “The financing that is now available for renovations such as ours have been helpful.”
This season, the Packers will open a new, larger Pro Shop and expand Harlan Plaza and the east gate entrance. In 2015, the Packer Hall of Fame will be re-opened in a new, larger form.