The Green Bay Packers, with a valuation of $6.3 billion, stand out as the only publicly owned team in the National Football League (NFL) and the four major North American professional sports leagues. Established over 100 years ago, the Packers are fully owned by stockholders, many of whom are Packers fans. The team has had six stock offerings since 1923, resulting in over 5.2 million outstanding shares held by more than 538,000 individuals.
Despite being publicly owned, owning shares in the Packers does not bring any financial gains. The shares do not pay dividends, cannot be transferred outside of immediate family, and lack intrinsic market value. Shareholders do, however, have the opportunity to attend the team’s annual meeting and vote for a board of directors. The Packers’ revenue in 2023 amounted to $638 million, with earnings before interest, taxes, depreciation, and amortization (EBITDA) reaching $128 million. As a nonprofit organization, only the president of the team’s executive committee receives compensation.
The revenue generated by the Packers is primarily allocated to player salaries, the maintenance of Lambeau Field, marketing, and other operational expenses. Additionally, the proceeds from the stock offerings have been instrumental in rescuing the team from financial hardships and funding major renovations of Lambeau Field.
The ownership structure of the Packers makes them unattractive to private equity investors, as they cannot generate a return on their investment. Private equity firms are permitted to own up to 10% of a franchise, but the Packers have a 200,000 share per person ownership cap, limiting individual ownership to less than 4% of outstanding shares. Even if the Packers were to seek a firm to own a significant portion of the team, private equity investors would likely be uninterested due to the infrequency of stock offerings.
While the cost of purchasing shares in the Packers has increased over the years, it remains a fraction of the average valuation of an NFL team today. In the first offering in 1923, shares were priced at $5, and the most recent offering in 2021 saw shares reach $300. However, this is significantly lower than the average valuation of an NFL team, which stands at $6.49 billion.
The Packers’ unique ownership structure is just one aspect that sets them apart in the NFL. Green Bay represents the smallest television market among the 32 teams and does not benefit from the high levels of tourism seen in cities like Las Vegas, Miami, New York, and Los Angeles, which have NFL teams. Additionally, the team has enjoyed long-term stability at the quarterback position, transitioning from Brett Favre to Aaron Rodgers and now to Jordan Love.
As the Packers kick off their season against the Philadelphia Eagles, led by quarterback Jordan Love, who recently signed a four-year, $220 million extension, their unconventional ownership structure continues to be a point of interest and curiosity for fans and other organizations alike.
In conclusion, the Green Bay Packers’ status as the only publicly owned team in the NFL and the four major North American professional sports leagues sets them apart from their counterparts. While the ownership structure does not offer financial gains to shareholders, it has allowed the team to maintain stability and undergo significant renovations. Despite the potential interest from private equity investors, the Packers’ ownership cap and infrequent stock offerings make them a less appealing investment. Nonetheless, the team’s unique qualities, including their small market size and consistent quarterback success, contribute to their distinctiveness within the league.
