SPT 620 5-1 Milestone Two

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Financial Health Executive Summary: Financial Health Antonio M. Taul Southern New Hampshire University SPT 620 Finance & Economics of Sport Dr. Gentile June 16, 2024

Financial Health Upon investigation of the finances of the Green Bay Packers organization, it is determined that the organization is in good health financially. Revenues increased at a rate of 5.4% to see returns of $6 million from the previous year. (Gbpreport, 2023). Also, with an operating profit of $68 million, the opportunity to reinvest in the stadium is one the organization can not pass up. The purpose of the investment is to renovate the stadium. Adding a few more suites as well as expanding the seating. The organization would also like to upgrade the restrooms as well. There will be many costs that will be associated with a project of this magnitude. The average cost of renovating a stadium as seen with eight NFL franchises, is around $266 million. We estimate that the cost of this renovation could run between $150-250 million. Leaning toward the cheaper side of things. In 2022, the Packers organization raised an additional $65.8 million to be used for future renovation costs. “Earlier this year, the Packers raised $65.8 million through the sale of about 198,000 shares in the team's sixth stock sale.” (Ryman, 2022). This would cover bathroom upgrades, construction costs for additional seating, as well as construction costs of the new suites that will be built. This new project can generate new sources of revenue for the organization. Adding more suites will increase the amount of revenue generated from suites each season and off season for other events such as concerts. The average price for a suite rental at Lambeau Field currently is between $10,000-$25,000. This is according to the event taking place in the stadium. The average cost for suites during the season is around $17, 500. With the addition of 10 new suites, this could potentially add up to an additional $250,000 of revenue. Expanding the seats will also lead to profit opportunities for the organization. More seats equal more fans attending which generates more ticket revenues.

The Packers are publicly owned with the majority of the stakeholders being citizens within the community of Green Bay. The shops that are run at the stadium are filled with stakeholders who believe in the organization so much that they are also willing to work in the stadium. Pouring that sweat equity into making sure that the project is a success. Some of these shops would have to close or be relocated until the project ends. Some coach's offices might also have to be moved or relocated to account for the new seating expansion and added suites. The construction companies tasked with performing these upgrades also affect the local community. This allows local workers to bid on contracts for the new projects. Economically this improves the local economy and raises the overall value of the area in and surrounding the stadium. The stadium is in great shape and looks to continue to be one of the preeminent stadium destinations in the world, with a long standing history of excellence.

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References GBP-annual-report_2023.pdf. (n.d.). https://shareholder.broadridge.com/pdf/gbp/gbp-annual- report_2023.pdf Ryman, R. (2022, June 22). There are many renovation projects taking place at Lambeau Field this offseason . Gazette. https://www.greenbaypressgazette.com/story/sports/nfl/packers/fans/2022/06/22/packers- renovation-projects-make-lambeau-field-busy-during-offseason/7622286001/

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