In fiscal year 2024, the Green Bay Packers reported a historic high of $402.3 million in national revenue from the NFL. This record-setting figure is part of an overall impressive financial performance that underscores the increasing popularity and economic heft of the league. For the first time, each of the NFL's 32 teams received over $400 million in national revenue, contributing to a near $13 billion total revenue distribution, up from $12 billion in fiscal year 2023 and $10 billion the previous year.
"I think probably the main takeaway is that it's another strong year from a financial standpoint for the Packers, and I think it really speaks to the popularity overall of the NFL," noted Packers President and CEO Mark Murphy. This financial robustness is mirrored in the television ratings as well, with 93 of the 100 most-watched TV broadcasts in 2023 being NFL games.
Operational Profit and Local Revenue
Despite this surge in national revenue, the Packers' operational profit faced a decline, dropping to $60.1 million from $68.6 million the previous year. Nonetheless, the team saw a positive trend in local revenue, which rose from $235.9 million to $251.8 million, marking a 6.7 percent increase. However, as Murphy pointed out, "The increase in local revenue was not enough to offset the increasing costs of stadium depreciation and player salaries."
Murphy elaborated on the challenges ahead, stating, "We are in a good, strong financial position, but there will be challenges along the way." He highlighted the evolving dynamics within the league, including the wave of new ownership and private equity ventures, as factors that could impact the financial landscape. "The economics of the league are changing pretty dramatically," he remarked, adding that although revenue sharing remains stable for now, any future changes could pose significant issues.
Leadership Transition
Looking toward the future, the Packers are poised for a significant leadership transition. Mark Murphy is set to retire in July 2025 upon reaching the mandatory retirement age of 70, with Ed Policy expected to succeed him. This change in leadership comes at a pivotal time for the franchise, which made the playoffs in 2023 under the guidance of quarterback Jordan Love.
Adapting to Modern Viewership
As broadcast industries evolve, so too must the NFL. Murphy underscored the importance of adapting to where audiences are, acknowledging that while traditional television remains crucial, streaming is an area of growth. "One of the things the league has talked about is trying to meet people where they are," he said. "It's one of the few things that people watch live anymore."
The symbiotic relationship between the NFL and networks continues to be a major financial pillar for the league. "We're very fortunate that we're in that position and the networks are willing to pay, but we're also looking at where the future is going and, certainly, streaming is growing," Murphy observed.
Indeed, the strategic focus on adapting to new viewership trends while managing escalating operational costs and navigating changes in league economics will be critical for the Packers, and the NFL at large, moving forward. Yet, with record revenues and a strong strategic outlook, the Packers, guided by their commitment to financial health and competitive success, appear well-positioned to tackle these impending challenges.