The Green Bay Packers posted record revenue in the last fiscal year, but saw their profits decrease largely due to a handful of major player contracts, according to Mike Spofford of the team's official website in an article published on Thursday.
Revenue totaled $324.1 million, an increase of 5.2 percent over the previous year. However, because of large signing bonuses and salaries paid to quarterback Aaron Rodgers ($35 million bonus), Clay Matthews ($20.5 million bonus) and to a lesser extent Morgan Burnett ($8.25 million bonus) and others, profits and income declined.
"As a result, the Packers’ profit from operations dropped from $54.3 million a year ago to $25.6 million this year," writes Spofford. "Net income dropped from $43.1 million to $25.3 million."
The Packers saw local revenue increase thanks to the addition of 7,000 new seats as part of the Lambeau Field south end zone expansion.
Revenue should continue to increase in upcoming years both locally and nationally.
Currently, the Packers are in the midst of an expansion inside the stadium's atrium that is making their Pro Shop bigger, the Hall of Fame more accessible and adding a new restaurant.
New national television contracts are also expected to increase revenue on a national level, although player salaries should continue to increase correspondingly as a result of higher salary caps.
“Our performance remains very strong,” Murphy said, referring to the team on the field as well as off the field. “We’re positioned really well for the future.”
The financial report was released to the media ahead of the July 24 shareholders meeting.
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