The Green Bay Packers, a National Football League team, stand out from the rest due to their ownership structure that resembles a publicly traded company. Unlike other NFL franchises, the Green Bay Packers are completely owned by stockholders, many of whom are die-hard Packers fans. This unique structure was established over 100 years ago and has allowed the team to maintain its independence and connection to the community.
The Packers have had six stock offerings since 1923, with the most recent one taking place in 2021. These offerings have resulted in over 5.2 million outstanding shares owned by more than 538,000 individuals. Shareholders do not receive any dividends, and the shares have no intrinsic market value. However, shareholders do have the opportunity to attend the team’s annual meeting and vote for a board of directors, providing them with a sense of involvement in the team’s operations.
While owning a share of the Packers may not bring any financial gains, the team has been able to generate impressive revenue over the years. In 2023, the team brought in $638 million in revenue, with earnings before interest, taxes, depreciation, and amortization reaching $128 million. This revenue is used to pay players, maintain Lambeau Field, and cover other operational expenses.
One of the most notable aspects of the Packers’ ownership structure is the 200,000 share per person ownership cap. This limits individual ownership to less than 4% of the team’s outstanding shares, making it challenging for deep-pocketed investors to acquire a significant stake in the team. While current rules allow private equity firms to own up to 10% of a franchise, the Packers’ unique structure makes it less appealing to potential investors.
Despite the affordable share prices, the infrequency of stock offerings poses a significant barrier to Packers fans looking to own a piece of the team. The timing of the offerings, rather than the cost, is the main challenge for fans interested in becoming shareholders. The first stock offering in 1923 had shares priced at $5, while the most recent offering in 2021 had shares priced at $300. However, even at the higher price point, owning a share of the team remains a fraction of the average valuation of an NFL team today.
The Green Bay Packers’ unique ownership structure is just one of the ways in which the team stands out in the NFL. Being located in the smallest television market among the 32 teams and lacking the high level of tourism seen in other cities with NFL teams, the Packers have managed to maintain stability and success. Additionally, the team has faced criticism from other fans and organizations for its sustained success at the quarterback position, transitioning from Brett Favre to Aaron Rodgers to Jordan Love seamlessly.
The Green Bay Packers’ ownership structure sets them apart from other NFL teams, allowing them to maintain a strong connection to their fanbase and community. While the team may not generate financial returns for its shareholders, the sense of ownership and involvement in the team’s operations is invaluable to many Packers fans. Despite the challenges and limitations of the ownership structure, the Packers continue to thrive both on and off the field, showcasing the enduring legacy of this historic franchise.