The Unique Ownership Structure of the Green Bay Packers

The Unique Ownership Structure of the Green Bay Packers

The Green Bay Packers stand out from the rest of the National Football League teams due to their unique ownership structure. Unlike other teams that are privately owned by wealthy individuals or families, the Packers are owned by stockholders, many of whom are die-hard fans of the team. This ownership structure was established over 100 years ago and has remained intact ever since. The franchise has had six stock offerings, starting from 1923 up to the most recent one in 2021, resulting in over 5.2 million outstanding shares owned by more than 538,000 people.

Shareholders of the Green Bay Packers do not receive any dividends, and the shares are nontransferable outside of passing them on to a child or relative. The shares also do not have any intrinsic market value, meaning that shareholders cannot sell them for a profit on the open market. The only way a shareholder can recoup their investment is by selling their stake back to the team, and even then, they only receive a percentage of the original share price. Shareholders do get the opportunity to attend the team’s annual meeting and vote for a board of directors, but the team emphasizes that owners do not make any financial gains from their ownership.

Despite the unique ownership structure, the Green Bay Packers are a profitable organization. In 2023, the team reported revenues of $638 million, with earnings before interest, taxes, depreciation, and amortization totaling $128 million. The team operates as a nonprofit, with annual revenue being used to pay players, maintain their iconic stadium Lambeau Field, and cover marketing expenses, among other costs. The share offerings over the years have allowed the team to navigate through financial challenges and undertake major renovations of Lambeau Field.

Challenges and Limitations

The ownership structure of the Green Bay Packers presents challenges for potential investors, including private equity firms. With a 200,000 share per person ownership cap, owning a significant stake in the team is limited, making it less attractive for deep-pocketed investors. The infrequency of stock offerings also poses a barrier to fans who wish to own a piece of the team, as timing plays a crucial role in securing shares. Even though the share prices have increased over the years, they still represent a fraction of the average valuation of an NFL team today.

The Green Bay Packers’ ownership structure is just one of the many ways in which the team stands out in the NFL landscape. As the smallest television market among the 32 teams, Green Bay does not have the same level of tourism or commercial opportunities as other cities with NFL franchises. Additionally, the team’s long-term stability at the quarterback position has also drawn attention, with seamless transitions from legends like Brett Favre to Aaron Rodgers to the latest quarterback, Jordan Love.

The Green Bay Packers’ unique ownership structure sets them apart from the rest of the NFL, reflecting the team’s deep connection to its fans and community. While facing challenges in attracting external investment, the Packers continue to thrive and remain a symbol of stability and tradition in the ever-evolving world of professional sports.

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