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Green Bay Packers lose money during playoff run, but up national exposure
Team spends more than reimbursed during playoffs
By Richard Ryman
Gannet Wisconsin Media
January 16, 2011
GREEN BAY — Making the playoffs are good for the Green Bay Packers football operations, but not a money-making proposition, especially when all the games are on the road.
"We spend more than we are reimbursed, and we are happy to pay it because it means we are in the playoffs," said Jason Wied, vice president of administration and general counsel. "I would say it's a fine price to pay for that."
Playoff ticket revenue goes to the National Football League, so unless a team hosts a playoff game and can make money from such areas as concessions, parking and merchandise sales, its only game-day income is from NFL reimbursements.
Division winning teams get $650,000 from the league to offset expenses for the first round of playoff games. Wild-card teams, which the Packers are this year, get $590,000.
In the second round, each team gets $650,000, and in the conference championship round each receives $1.01 million. The Super Bowl winner will receive $4.108 million and the runner-up will get $2.878 million.
If a wild-card team wins the Super Bowl, it will receive $6.4 million in total.
Wied said costs escalate as a team moves deeper into the playoffs.
"In '96 and '97, it was an eye-opening experience for the (Packers) organization to understand the costs," Wied said of the team's most recent Super Bowl appearances. "Those expenses ratchet up the further you go. There are a lot of additional demands."
For the first two rounds of the playoffs, the Packers were able to follow the same schedule as during the regular season, showing up a day before the game.
The NFL requires teams to show up a day earlier for conference championships, and Super Bowl teams are in the host city for a week in advance.
The Packers' normal traveling party, which includes players, coaches, doctors, sports staff, public relations staff and a few club executives, totals about 100 people. They travel by chartered airplane.
Team equipment is sent by truck to each stadium.
Because playoff games cannot be scheduled well in advance, airplane charters and hotel costs are higher, Wied said.
"Travel costs vary with prices of gas, variability of hotel rooms, distance. There isn't a typical cost," he said.
There are long-term benefits to being in the playoffs, home or away. The additional national exposure strengthens a team's brand, and the Packers already have a recognized national brand.
As evidence, the Packers-Philadelphia Eagles playoff game last week drew a record 39.3 million viewers, the NFL said Tuesday.
The league said it was the most-watched wild card game ever and the most-watched show of the current TV season.
"That's good for the NFL and it's good for Green Bay," Wied said.
Green Bay Packers lose money during playoff run, but up national exposure
Team spends more than reimbursed during playoffs
By Richard Ryman
Gannet Wisconsin Media
January 16, 2011
GREEN BAY — Making the playoffs are good for the Green Bay Packers football operations, but not a money-making proposition, especially when all the games are on the road.
"We spend more than we are reimbursed, and we are happy to pay it because it means we are in the playoffs," said Jason Wied, vice president of administration and general counsel. "I would say it's a fine price to pay for that."
Playoff ticket revenue goes to the National Football League, so unless a team hosts a playoff game and can make money from such areas as concessions, parking and merchandise sales, its only game-day income is from NFL reimbursements.
Division winning teams get $650,000 from the league to offset expenses for the first round of playoff games. Wild-card teams, which the Packers are this year, get $590,000.
In the second round, each team gets $650,000, and in the conference championship round each receives $1.01 million. The Super Bowl winner will receive $4.108 million and the runner-up will get $2.878 million.
If a wild-card team wins the Super Bowl, it will receive $6.4 million in total.
Wied said costs escalate as a team moves deeper into the playoffs.
"In '96 and '97, it was an eye-opening experience for the (Packers) organization to understand the costs," Wied said of the team's most recent Super Bowl appearances. "Those expenses ratchet up the further you go. There are a lot of additional demands."
For the first two rounds of the playoffs, the Packers were able to follow the same schedule as during the regular season, showing up a day before the game.
The NFL requires teams to show up a day earlier for conference championships, and Super Bowl teams are in the host city for a week in advance.
The Packers' normal traveling party, which includes players, coaches, doctors, sports staff, public relations staff and a few club executives, totals about 100 people. They travel by chartered airplane.
Team equipment is sent by truck to each stadium.
Because playoff games cannot be scheduled well in advance, airplane charters and hotel costs are higher, Wied said.
"Travel costs vary with prices of gas, variability of hotel rooms, distance. There isn't a typical cost," he said.
There are long-term benefits to being in the playoffs, home or away. The additional national exposure strengthens a team's brand, and the Packers already have a recognized national brand.
As evidence, the Packers-Philadelphia Eagles playoff game last week drew a record 39.3 million viewers, the NFL said Tuesday.
The league said it was the most-watched wild card game ever and the most-watched show of the current TV season.
"That's good for the NFL and it's good for Green Bay," Wied said.
