must be a 10- to 12-slide PowerPoint Presentation with at least three sources cited in APA format. with pictures topic is Your sport organization wants to build a new stadium downtown, but some constituents would prefer a renovation. The current stadium is not downtown (NFL team Greenbay Packers) IHAVE INCLUDED TWO EXAMPLES TO LOOK AT
the following critical elements must be addressed:
II. Presentation: Sport Organization Overview: In this section, you will introduce your sport organization and briefly describe your proposed project and its financial impact.
A. Introduce the sport organization that you selected and its position in the industry by citing details, including:
1. Category: Is the organization professional or intercollegiate?
2. Area Demographics: What is the geographic location and area population? Be sure to support your response with data.
3. Industry Standing: How well-recognized is the sport organization, and how is it positioned financially within the industry? (Consider the
size of the fanbase, ticket sales, merchandise sales, etc.)
III. Presentation: Forecasting Costs and Revenue: In this section, you will show the forecasted impacts of the change you are recommending using
examples from the spreadsheet that you created based on the organization’s most recent financial statement. Attach the spreadsheet that you created
when you submit the assignment, and use that information to support your claims.
A. Create a table that shows the estimate of total revenue for the upcoming year and uses data from your proposed income statement
spreadsheet. (Hint: Break it down by month or quarter.)
IV. Presentation: Rationale: In this section, you will use the information from your spreadsheet and economic theory to explain how your proposed project
will impact the organization financially.
A. Explain the economic impact that this proposed change will have on the organization’s revenue, and provide rationale.
B. Explain the economic theories or models you used and how they apply to your proposed project.
Green Bay Packers New Stadium Development
JACOB M. HETRICK SOUTHERN NEW HAMPSHIRE UNIVERSITY
SPT-620 FINANCE AND ECONOMICS OF SPORT DR. HUNTER
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Sports Organization Overview
Category: Profession team in the National Football League Area Demographics and Location:
Small Market Team, 2020 Population: 107,395 (United States Census Bureau, 2020)
Located on Fox River outlet into Green Bay, an inlet of Michigan Lake (Brittanica, 2022)
Humid continental climate highlighted by harsh, cold winters “Precipitation during the winter months is generally limited by the
presence of cold, dry air, though significant lake effect snowfall events are not uncommon.” (GLISA, 2016)
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Industry Standing
Team valued at $4.25 billion, number 15 on the Forbes valuation list
Average ticket price in 2021: $128 (Forbes, 2022)
Average of 7.59 million a year of the past 5 years, 3rd in the NFL (Sullivan, 2022)
Highest fan attendance in the league (Sullivan, 2022)
Third highest merchandise purchases (Sullivan, 2022)
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Forecasting Costs and Revenue
Category 2021 (Actual)
Expecte d Change
2023 Q3 (Projected)
2023 Q4 (Projected)
2024 Q1 (Projected)
2024 Q2 (Projected)
First Year Total
Percentage of Seasonal Revenue 100% 20% 65% 13% 2% Revenue $579,011,000 4.6% $121,130,194 $393,673,131 $78,734,626 $12,113,019 $605,650,970 Direct Costs ($67,863,000) 2% ($13,844,052) ($44,993,169) ($8,998,634) ($1,384,405) ($69,220,260) Gross Profit $511,148,000 4.9% $107,286,142 $348,679,962 $69,735,992 $10,728,614 $536,430,710 Game Expenses (schedule 1) ($27,111,000) 2% ($5,530,644) ($17,974,593) ($3,594,919) ($553,064) ($27,653,220) Team Expenses (schedule 2) ($55,353,000) 2% ($11,292,012) ($36,699,039) ($7,339,808) ($1,129,201) ($56,460,060) Administrative Expenses (Schedule 3)
($350,958,000 ) 2% ($71,595,432)
($232,685,154 ) ($46,537,031) ($7,159,543)
($357,977,160 )
Debt Service (Schedule 4) $5,111,000 5% $1,073,310 $3,488,258 $697,652 $107,331 $5,366,550
Total Expenses: ($428,311,000
) ($87,344,778) ($283,870,529
) ($56,774,106) ($8,734,478) ($436,723,890
) Operating Income: $82,837,000 $19,941,364 $64,809,433 $12,961,887 $1,994,136 $99,706,820
Expected First Year Changes over
Inflation (2%)
• Local Revenue: 4% • Local Revenue: 5%
• National Revenue: 1% • Investor Return: 3%
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Costs and Revenue (Breakdown)
Category 2021 (Actual) Expected Change 2023 Q3 (Projected) 2023 Q4 (Projected) 2024 Q1 (Projected) 2024 Q2 (Projected) First Year Total
Percentage of Seasonal Revenue 100% 20% 65% 13% 2%
Sources of Revenue: $0
National $347,270,000 3% $71,537,620 $232,497,265 $46,499,453 $7,153,762 $357,688,100
Local $231,741,000 7% $49,592,574 $161,175,866 $32,235,173 $4,959,257 $247,962,870
$0 $0 $0 $0 $0
Direct Costs: $0 $0 $0 $0 $0
Sales, Marketing, Fan Management ($67,863,000) 2% ($13,844,052) ($44,993,169) ($8,998,634) ($1,384,405) ($69,220,260)
$0
Schedule 1: Game Expenses: $0
Facilities, net ($27,111,000) 2% ($5,530,644) ($17,974,593) ($3,594,919) ($553,064) ($27,653,220)
Total Game Expenses: ($27,111,000) ($5,530,644) ($17,974,593) ($3,594,919) ($553,064) ($27,653,220)
$0
Schedule 2: Team Expenses: $0
Team Costs ($55,353,000) 2% ($11,292,012) ($36,699,039) ($7,339,808) ($1,129,201) ($56,460,060)
Total Team Expenses: ($55,353,000) ($11,292,012) ($36,699,039) ($7,339,808) ($1,129,201) ($56,460,060)
$0
Schedule 3: Administrative Expenses: $0
Payroll ($280,874,000) 2% ($57,298,296) ($186,219,462) ($37,243,892) ($5,729,830) ($286,491,480)
General ($70,084,000) 2% ($14,297,136) ($46,465,692) ($9,293,138) ($1,429,714) ($71,485,680)
Total Admin. Expenses: ($350,958,000) ($71,595,432) ($232,685,154) ($46,537,031) ($7,159,543) ($357,977,160)
$0
Schedule 4: Debt Service: $0
Investment Fund Gain $5,111,000 5% $1,073,310 $3,488,258 $697,652 $107,331 $5,366,550
Total Debt Service: $5,111,000 $1,073,310 $3,488,258 $697,652 $107,331 $5,366,550
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Economic Impact Economic Impact
Revenue: Increase from $579m (2021) to $605m (2023-24 season)
Increase in local revenue of $16.2 million, 2.5 times expected inflation growth
Additional 7,000 seats to open 3,500 season ticket slots and 3,500 single game attendees
Downtown location to increase out-of-market fans’ accessibility
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Economic Theories or Models
“New stadium will bring in construction and improve the cities modern infrastructure which might be why a new stadium has caused GDP growth in Metropolitan Statistical Area’s who have chosen to invest in these projects.” (Nicholson, 2021)
“New stadium will bring in construction and improve the cities modern infrastructure which might be why a new stadium has caused GDP growth in Metropolitan Statistical Area’s who have chosen to invest in these projects.” (Nicholson, 2021)
The multiplier effect is the “idea that locals and traveling fans spending money related to the stadium and the team will boost the economy significantly.” (Nicholson, 2021)
The multiplier effect is the “idea that locals and traveling fans spending money related to the stadium and the team will boost the economy significantly.” (Nicholson, 2021)
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References Britannica. (2022, August 4). Green Bay, Wisconsin, United States.
https://www.britannica.com/place/Green-Bay-Wisconsin
Forbes. (2022) Sports money: 2022 valuations. https://www.forbes.com/teams/green-bay-packers/?
sh=1dd5481e6a0b
GLISA. (2016, March 11) Historical climatology: Green Bay, Wisconsin.
https://glisa.umich.edu/media/files/GreenBayWI_Climatology.pdf
Nicholson, A. (2021, April 26). Romanticizing the NFL stadium. Clark University.
https://commons.clarku.edu/cgi/viewcontent.cgi?article=2781&context=asdf
Sullivan, K. (2022, August 1). The five metrics to compare NFL fan bases. Samford University.
https://www.samford.edu/sports-analytics/fans/2022/Die-Hard-or-Fair-Weather-Fans-Ranking-All-
32-NFL-Fan-Bases
United States Census Bureau. (2020, April 1). Green Bay city, Wisconsin.
https://www.census.gov/quickfacts/fact/table/greenbaycitywisconsin/POP010220#POP010220
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Image Reference Britannica. (2022). Lambeau Field. https://cdn.britannica.com/80/229180-050-E17293B9/Lambeau-
Field-Green-Bay-Packers-Wisconson.jpg
Fucillo. (2022, January 2). Green Bay Packers fan.
https://dknation.draftkings.com/2022/1/2/22855849/green-bay-packers-playoff-picture-rooting-
interest-week-17-cowboys-vs-cardinals-number-one-seed-bucs
Stoss. (n.d.) Green Bay downtown district. https://images.squarespace-
cdn.com/content/v1/5ae4926236099b34d8f79912/1554330234412-
9KXWPX4R4DA922JS1EOS/2005+Green+Bay+CityDeck+2013.JPG?format=1000w
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,
Green Bay Packers: New Stadium Needed
Liz Valade
Southern New Hampshire University
SPT-620
Dr. Dina Gentile
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Green Bay Packers
•Professional Football team in the National Football League (NFL) •Plays in the National Football Conference – Northern Division (NFC North) division
•Located in Green Bay, Wisconsin •Population 104,000 (2010 census) •3rd largest city in Wisconsin •Green Bay is in the northeastern part of Wisconsin at the mouth of the Fox River. Today, Interstate 43 meets Interstate 41 (also U.S. Route 41) in Green Bay, about 90 miles (140 km) north of Milwaukee. •According to the United States Census Bureau, the city has a total area of 55.96 square miles (144.94 km2), of which, 45.47 square miles (117.77 km2) is land and 10.49 square miles (27.17 km2) is water.
•Climate •Green Bay has a humid continental climate with some moderation due to the city's proximity to Lake Michigan. •Green Bay experiences warm, humid, frequently hot summers and long, cold and snowy winters.
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Industry Standing • Members of the NFL since 1920
• Green Bay Packers are proud to have played 100 seasons of football and established a rich legacy. Encompassing 13 championships, 26 Pro Football Hall of Famers, an iconic stadium and a unique bond with our passionate fans (and community)
• Forbes Valuation • Team Value $3.05B (Calculated September 2020) • Smallest market for a professional team but 14th most valuable according to Forbes • $485M in revenue • $88M in Operating income
• Lambeau Field is the oldest operating stadium in the NFL.
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Cost vs. Revenue Category Annual Thousands ($)
Revenue 477,943 (Sum of Total Revenue) Direct Costs 477,219 (Sum of Total Costs) Gross Profit 724 Game Expenses (schedule 1) Team Expenses (schedule 2) Administrative Expenses (Schedule 3) Debt Service (Schedule 4) Total Expenses:
Operating Income: 724 (Gross Profit minus Total Expenses)
Sources of Revenue: National Revenue 274,293 Local Revenue 203,650
Direct Costs: Player Costs 243,082 Team 63,595 Sales, Marketing and Fan Engagement 66,927 Facilities 30,466 General and Administrative 73,149
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Balance Sheet • According to construction cost rankings for NFL
stadiums. (n.d.) new football stadiums cost between $15 million to 1.6 billion depending on the new stadium design.
• The current cost of Lambeau Field is $295 million.
• The Packers have $663 million of equity, consisting of $87 million from our five stock offerings, and the rest from retained annual earnings.
• Because the plan would be to relocate to downtown and make this a destination the cost of the new stadium should range in the $500 million to $1 billion range.
Balance Sheet 2018 2019
Assets In Thousands
Cash & Investments $424,302 $444,170
Unamortized signing bonuses, net $99,489 $152,222
Property & equipment net $378,025 $370,581
Other $82,857 $96,838
Total Assets $984,673 $1,063,811
Liabilities In Thousands
Debt $114,876 $147,408
Compensation liabilities $60,142 $83,711
Other liabilities $151,701 $169,230
Equity $657,954 $663,462
Total Liabilities and Equity $984,673 $1,063,811
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New Stadium Pitch • A new stadium is better than some renovations is that, with a new stadium you can pick any
location in the area and build. • Renovations cannot change the need for more leg room, bigger aisles, and larger seats, while
maintaining structural integrity
• Building a new stadium would allow the Green Bay Packers to relocate to the downtown area, allowing easier access for people traveling to Green Bay to watch their beloved Packers
• This would also address other issues such as parking, because it would make mass transit available, and a dome or retractable roof to combat the cold Wisconsin weather
• Currently our stadium (Lambeau field) is 62 years old. • Very outdated by standards across the league, our stadium is the oldest stadium in the whole league
and can use more than minor upgrades • Our capacity of 81,000 may be nice for sellouts but fan experience may be lacking • Structurally renovations can only upgrade so much. • The barebones of a stadium has a shelf life and that is something that needs to be considered
• The balance sheet shows that we can sustain a full rebuild of a brand-new state of the art stadium. Our balance sheet shoes almost $663 million dollars in equity
• $500 million to $1 billion range for a new state of the art stadium
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Impact
• Building a new stadium creates construction jobs, generates new spending in the community by people who attend games or work for the team and the venue attracts tourists and companies to the host city.
• The new stadium can partner will local businesses for sponsorship and discounts. This project will make Green Bay a destination to visit which will increase income to the surrounding businesses.
• Taxes would increase over the beginning of the project but would be recovered when the state- of-the-art stadium is completed, and visitors begin attending events at the location.
• There should be no ethical considerations for this project as Green Bay Packers are owned by the shareholders in the local area. All ethical issues would be addressed in community meetings prior to the construction beginning.
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References • Durr, J. (2016, June 28). [Photograph]. SB Nation.
https://www.sbnation.com/2016/6/28/12051818/college-football-bowl-games-lambeau-field-sure-that-seems-fine • Graef. (n.d.). Lambeau Filed Renovations [Photograph]. Graef. https://graef-usa.com/lambeau-field-renovations/ • Green Bay Packers. (n.d.). 2019 Annual Report. Shareholder. https://shareholder.broadridge.com/pdf/gbp/annual-report-2019.pdf • NFL Team Valuations. (2020, September). Forbes. https://www.forbes.com/teams/green-bay-packers/?sh=3afcb5e6a0bd • Pintrest. (n.d.). Packers Championship Banner [Banner]. Pintrest. https://www.pinterest.com/pin/440930619753978688/
Picture discovered on someone's Pintrest page • Pro Football Hall of Fame. (n.d.). Packers Enshrinee Banner [Banner]. Pro Football HOF.
https://www.profootballhof.com/packers-enshrinee-banner/ • Procter & Gamble. (n.d.). Map of Green Bay, WI [Map]. P & G. https://green-bay.pglocations.com/ • Statista. (n.d.). [Graph]. Statista. https://www.statista.com/statistics/194467/franchise-value-of-the-green-bay-packers-since-2006/ • Wikipedia. (2003, April 27). Green Bay, Wisconsin. Wikipedia, the free encyclopedia. Retrieved November 12, 2020, from
https://en.wikipedia.org/wiki/Green_Bay,_Wisconsin • Wilde, J. (2020, July 4). [Photograph]. Wisconsin State Journal.
https://madison.com/wsj/sports/football/professional/packers-prepare-season-ticketholders-for-no-fans-or-significantly-reduced-fans-this-se ason/article_9963c2ac-2c22-5f29-a032-7c74742359c2.html
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