In a landmark fiscal year 2024, the Green Bay Packers reported a historic $402.3 million in national revenue from the NFL—a figure reflective of not just the team's success but the extraordinary growth of the league. "I think probably the main takeaway is that it's another strong year from a financial standpoint for the Packers, and I think really speaks to the popularity overall of the NFL," said Mark Murphy, the team's President and CEO.
For the first time in history, each of the NFL's 32 teams received over $400 million in national revenue, pushing the league's total revenue distribution to an almost unfathomable $13 billion. Just a year prior, the NFL broke the $12 billion barrier for the first time, after briefly touching $10 billion the year before. These figures highlight a league that continues to dominate not only on the field but also across multiple financial markets.
TV ratings also painted a picture of robust engagement. In 2023, an astonishing 93 of the 100 most-watched TV broadcasts were NFL games. This level of viewership ensures that the networks remain willing to invest heavily in broadcast rights, a point Murphy elaborated on: "It's one of the few things that people watch live anymore. 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."
Despite these impressive revenue numbers, the Packers' operational profit was down, standing at $60.1 million, compared to $68.6 million the previous year. One crucial factor in this was the increase in local revenue, which climbed from $235.9 million to $251.8 million—a 6.7 percent rise. However, this growth wasn't sufficient to balance out the rising costs of stadium depreciation and player salaries. "The increase in local revenue was not enough to offset the increasing costs of stadium depreciation and player salaries," Murphy acknowledged.
The Future Leadership
As the Packers navigate this landscape, future leadership changes are impending. Mark Murphy is slated to retire in July 2025, reaching the mandatory retirement age of 70. Ed Policy is anticipated to take over, inheriting not only the mantle of leadership but also the accompanying financial and operational challenges. Murphy, however, remains optimistic about the team’s position and prospects. "We are in a good, strong financial position, but there will be challenges along the way," he stated.
Competing in a Changing Landscape
Murphy also touched upon the evolving dynamics within the league. "Things are changing within the league with the new ownership, the private equity, new owners, billionaires," he noted. These factors will inevitably impact revenue sharing and overall league economics. "The revenue sharing, I don't see that changing in the short term, but if that ever changes, that could be an issue," Murphy added.
Underpinning these financial metrics is the performance on the gridiron. The Packers made the playoffs in 2023, driven by the prowess of quarterback Jordan Love. Success on the field often translates into financial stability and growth, and this season was no exception. Nevertheless, the underpinning success of the whole league plays a massive role in individual franchises thriving. As Murphy pointed out, "The economics of the league are changing pretty dramatically," forcing teams to adapt continually.
Moving forward, the Packers and the NFL at large continue to eye new horizons, particularly in the digital space. "One of the things the league has talked about is trying to meet people where they are," Murphy said, emphasizing the league’s strategic focus on maintaining relevance in a rapidly changing media landscape.
As streaming platforms gain ground, the NFL’s adaptability will be a crucial factor in sustaining its unprecedented growth. Just as teams need strategy and skills to thrive on the field, financial and operational prowess off the field will determine the long-term success in this billion-dollar sports industry. With robust financial health and a keen eye on future trends, the Green Bay Packers and the NFL are well-positioned to navigate the complexities of modern sports entertainment.