The Green Bay Packers have become a nice little center for investment.
NFL team just released Annual Report shows that in March, it has an investment fund worth $533 million, up 8.6% from the previous year. The Packers fund their investments with operating profits, which were $77 million last year.
Since 2013, the size of the portfolio has almost doubled (see table below). In 1998, the team’s investment fund was only $61 million, which means it has increased almost nine times over the past 24 years.
Such a cushion provides the team with a huge safety net. For example, during the 2020 season, when the pandemic prevented fans from attending games, many NFL owners were borrowing money or injecting capital into their teams. But the Packers’ investment fund recorded a gain of $120 million, turning an operating loss of $39 million into a net profit of $61 million. During the 2020 Covid season, the Packers’ debt only increased by $12 million, to $156 million.
“No other NFL team has an investment fund like this,” said Marc Ganis, president of consulting firm Sportscorp, who has worked with numerous NFL teams and owners. This is partly because the team has no owner. Instead, the Packers are owned by the community of more than 537,000 shareholders.
“Other owners invest but do it alone or through their vehicles,” adds Ganis. “For example, Jerry Jones is the largest owner of Comstock Energy. Dave Tepper has [hedge fund] Appaloosa. The Kraft family is a major investor in many different industries. »
Green Bay may be the smallest market in the NFL, but the Packers’ half-billion-dollar investment fund is the biggest in the league, Ganis says. It’s one of the reasons the Packers are worth $4.25 billion, 15th among the league’s 32 teams.