In fiscal year 2024, the Green Bay Packers reported an unprecedented $402.3 million in national revenue from the NFL, marking a historic high for the storied franchise. This milestone is part of a larger narrative in which each of the NFL's 32 teams received over $400 million in national revenue for the first time, contributing to an almost $13 billion total revenue distribution for the league.
The NFL has seen a steady increase in revenue over recent years, breaching the $12 billion mark for the first time in fiscal year 2023. This growth trajectory continued from the previous year, when the league achieved $10 billion in revenue. The surging popularity of the NFL is further illustrated by the fact that 93 of the 100 most-watched TV broadcasts in 2023 were NFL games.
A Look at the Packers' Financials
Alongside their record national revenue, the Packers’ operational profit for the recent fiscal year stood at $60.1 million. However, this represents a decrease from the previous year's $68.6 million. The decline in profit can be attributed to rising costs associated with stadium depreciation and player salaries, despite a 6.7 percent increase in local revenue—from $235.9 million to $251.8 million.
Reflecting on the overall robust financial performance, Packers President Mark Murphy noted, "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." Murphy emphasized the balancing act the team must perform, adding, "The increase in local revenue was not enough to offset the increasing costs of stadium depreciation and player salaries."
Despite the challenges, Murphy assured fans and stakeholders of the team's sound financial health. "We are in a good, strong financial position, but there will be challenges along the way," he acknowledged.
Shifts in NFL Economics
The NFL's economic landscape is transforming, a fact not lost on Murphy. "Things are changing within the league with the new ownership, the private equity, new owners, billionaires," he said. These changes pose potential issues for the league's longstanding economic model, particularly revenue sharing. "The revenue sharing, I don't see that changing in the short term, but if that ever changes, that could be an issue," Murphy cautioned.
One aspect of the NFL's enduring appeal is its live broadcasts, which continue to draw massive audiences in an era where live viewing is increasingly rare. "It's one of the few things that people watch live anymore," Murphy pointed out. He also highlighted the shift toward streaming as traditional networks face pressure. "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."
The Packers' strong local revenue performance and playoff appearance in 2023, led by quarterback Jordan Love, provide reasons for optimism moving forward. However, With Mark Murphy set to retire in July 2025 upon reaching the mandatory retirement age of 70, the team’s leadership will soon be transitioning to Ed Policy. Murphy's reflections on the sustainability of the NFL’s business model underscore the economic dynamism and unpredictability that await his successor.
"The economics of the league are changing pretty dramatically," Murphy asserted, underscoring the need for strategic foresight as the Packers and the broader NFL adapt to an evolving financial environment. As the Packers enjoy another year of financial prosperity, the influx of new revenue and shifting ownership dynamics present both opportunities and challenges for the historic franchise. Mark Murphy's tenure has seen remarkable growth and adaptation, and as he prepares to pass the torch, Ed Policy will need to navigate these changing tides with prudence and vision.