The Green Bay Packers are the only National Football League team with an ownership structure that resembles a publicly traded company. This unique setup has been in place for over a century, making the Packers stand out among the four major North American professional sports leagues. With a valuation of $6.3 billion, the Packers are owned by stockholders, many of whom are die-hard fans of the team.
The Green Bay Packers have had a total of six stock offerings, starting as far back as 1923. Over the years, more than 5.2 million outstanding shares have been owned by over 538,000 individuals. Shareholders do not receive dividends, cannot transfer their shares, and do not benefit financially from ownership. The only way to make money as a shareholder is by selling the stake back to the team, but even then, it is only for a fraction of the original share price.
Financial Aspects
Despite the team’s revenue of $638 million in 2023 and an EBITDA of $128 million, shareholders do not see any financial gain. The Packers operate as a nonprofit organization, with revenue going towards player salaries, stadium maintenance, and marketing. The unique ownership structure has helped the team overcome financial difficulties in the past and fund major renovations at Lambeau Field.
The Packers’ ownership model makes them less attractive to private equity investors who seek financial returns on their investments. With a 200,000 share ownership cap per person, private equity firms are limited in their ability to own a significant stake in the team. Despite rules allowing for up to 10% ownership by private equity, the Packers’ structure makes it unlikely that such investors would be interested.
Historical Perspective
The initial share price in 1923 was $5, with subsequent offerings increasing in price over the years. However, even at a high of $300 per share in 2021, the cost remains a small fraction of the average $6.49 billion valuation of an NFL team today. The Packers’ ownership model is just one of the many ways in which the team stands out in the league.
The Green Bay Packers’ ownership structure sets them apart from the rest of the NFL. The team’s unique setup, with publicly owned shares and a lack of financial incentives for shareholders, makes it an outlier in the world of professional sports. Despite being a small-market team, the Packers have found success both on and off the field, showcasing the power of community ownership in sports.