Wednesday, July 11, 2012
BBAO: Hmm, what to do with $42.7 million?
By Kevin Seifert
We're Black and Blue All Over:
Reactions to the Green Bay Packers' record-setting operating profit of $42.7 million, announced Tuesday, have been interesting.
Off the top, it's worth noting that the profit was calculated separately from the $64 million raised through a stock sale this winter. That money is required to be used for renovations currently underway at Lambeau Field. As we discussed at the time, the stock sale essentially took the place of public fees revenues that NFL teams normally seek in such situations.
Then, of course, there is the football side of the equation. As ESPN business analyst Andrew Brandt noted, those unprecedented revenues and profits will be a bargaining chip for agents of players seeking contract extensions. While the salary cap will always limit the Packers' ability to spend money, there is still a difference between what a high-revenue team might spend on its roster in pure cash terms and what a low-revenue team could spend.
Good luck to general manager Ted Thompson and his contract negotiator, Russ Ball.
Continuing around the NFC North: