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5-1 Final Project Milestone Two: Budget Proposal Spreadsheet
The Green Bay Packers Stadium Project
Southern New Hampshire University
SPT 620: Finance and Economics of Sport
June 13, 2021
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Budget Proposal Spreadsheet
Financial Health
In determining the Green Bay Packers organization’s financial health based on the
discoveries of the most recent balance sheet, it is concluded that the Green Bay Packers
organization is in good financial health. This health of the organization can be used to invest in a
new state of the art downtown stadium. It is seen in the equity of the Packers with a total of
$699 million. (Green Bay Packers. 2020). As the only publicly owned NFL franchise, the
Packers can also take advantage of the tax breaks as well as find more funding for the stadium
easier than many of the other NFL franchises. The Green Bay Packers organization also have an
existing corporate reserve fund that has an estimated value of over $400 million dollars. (Forbes
Magazine. 2020).
Balance Sheet 2020 2019
Assets
Cash & Investments $422,026 $444,170
Unamortized signing bonuses, net $136,030 $152,222
Property & equipment net $383,621 $370,581
Other $101,410 $98,038
Total Assets $1,043,087 $1,065,011
Liabilities & Equity
Debt $144,427 $147,407
Compensation liabilities $69,451 $83,711
Other liabilities $130,036 $170,431
Equity $699,173 $663,462
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Total Liabilities & Equity $1,043,087 $1,065,011
Costs
In estimating the costs that the Green Bay Packers organization will need to cover
because of the proposed new state of the art downtown stadium project, there are many areas that
need to be viewed. Just a few years ago, stadium costs were expensive, but not as expansive as
they are in 2021. The new Sofi Stadium built in Los Angeles, which is home to the Los Angeles
Rams and Los Angeles Chargers is one of the newest state-of-the-art football stadiums in the
National football League. The cost of this stadium was $5.5 billion dollars. This is the most
expensive stadium ever built. (Palmeri. 2020). The other newest stadium in the NFL is home to
the Las Vegas Raiders, known as the Death Star, has an estimated cost of over $2 billion. (Davis.
2020). Although building costs are not as expensive in Green Bay, Wisconsin, as they are in Los
Angeles and Las Vegas, nor are property costs as having to purchase the land for the stadium.
The estimate of the costs of the new downtown stadium to have a state-of-the-art stadium, with a
retractable roof will be estimated between $2 billion and $3 billion dollars. This figure was
reached as looking at the other new comparable stadiums built recently in the National Football
League. The new stadium will help define the Green Bay Packers organization as the class of
the NFL and will have the state-of-the-art stadium with amenities that patrons and fans across the
United States will flock to see.
Potential Sources of Revenue
In identifying potential sources of revenue that the new stadium project will bring to the
Green Bay Packers organization to fund the project there are many areas the revenue will come
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from. Revenue will come from ticket sales, Green Bay Packers merchandise, sponsorship, and
television rights. As the only publicly owned corporation in the NFL, the Green Bay Packers can
also use their fans as potential sources of revenue. Shares of the packers could also be sold off
the help offset costs of the new state of the art downtown stadium project. The Green Bay
Packers fans have supported the organization financially through five different stock sales in
1923, 1935, 1950, 1997, and 2011. (Green Bay Packers. 2020). The potential revenue from these
stock sales could be a big gain in revenue for the stadium project. As with many stadiums in in
the NFL, the Green Bay Packers organization could also sell the rights to naming the stadium
such as Sofi Stadium in Los Angeles, Gillette Stadium in New England, and Hard Rock Stadium
in Miami, Florida. This would be a large sum of money to help cover costs. Ultimately the
Green Bay Packers organization could ask Green Bay, Wisconsin residents to help pay for the
stadium through measures and taxes as many other cities that have new stadiums have done.
Economic Impacts
Building a new state of the art downtown stadium would have massive economic impacts
across the board. The economic impacts across departments for the additional costs that will be
incurred because of the new state of the art downtown stadium project will have the net of the
property and equipment line be impacted the most because the Green Bay Packers organization
will have to pay for and budget for the two stadiums until the new stadium is finished and the
organization can move into the new building. The marketing department would also see an
impact as they would have to be able to maintain fans in the old stadium, while promoting the
new stadium and gaining fans for that. They would have to strategically market both stadiums at
the same time. The marketing department could also take a hit if the sponsorships for the old and
new stadium are not maintained properly and deals for the new stadium are not finalized in time.
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The new stadium in downtown Green Bay, Wisconsin would not only be a destination for NFL
football fans, but fans of art, music and any type of event that could be held in a stadium. Also,
with a retractable roof, there are many different activities in the wintertime that could be held
there. It would be a destination attraction, not just a football stadium. Outside of the Packers
organization, the job market, housing market, restaurants, hotels and other businesses in the
Green Bay, Wisconsin area would be affected positively. Proponents of new stadiums claim that
sports facilities improve the local economy in four ways, which include, new jobs in the form of
construction, people who attend the games will generate new spending in the community, new
tourists attracted to the host city, and an increase in income to the local community with new
spending causing a “multiplier effect” which causes more new spending and new job creations.
(Zimbalist & Noll. 2016).
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References
Davis, S. (2020, September 21). The Raiders will play in their new, $2 billion Las Vegas Stadium
nicknamed the 'Death Star' on Monday – here's what it looks like. Business Insider.
https://www.businessinsider.com/raiders-las-vegas-stadium-2017-3.
Forbes Magazine. (2020). Green Bay Packers on the Forbes NFL Team Valuations List. Forbes.
https://www.forbes.com/teams/green-bay-packers/?sh=76e34f266a0b.
Green Bay Packers. (2020). Green Bay Packers Annual Report 2019/2020. Green Bay Packers
Shareholders Report. https://shareholder.broadridge.com/pdf/gbp/green-bay-packers-
2020-annual-report.pdf.
Palmeri, C. (2020, September 10). Bloomberg.com.
https://www.bloomberg.com/news/articles/2020-09-10/rams-owner-stan-kroenke-debuts-
his-5-5-billion-dream-stadium.
Zimbalist, A., & Noll, R. G. (2016, July 28). Sports, Jobs, & Taxes: Are New Stadiums Worth the
Cost? Brookings. https://www.brookings.edu/articles/sports-jobs-taxes-are-new-stadiums-
worth-the-cost/.
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