SPT 620: Financial Analysis of Green Bay Packers Expansion Project

This report provides a comprehensive analysis of the Green Bay Packers' expansion project, focusing on its financial implications. It begins with an executive summary outlining the project's objectives and expected outcomes, followed by a detailed discussion of the renovation plan for Lambeau Field's south end zone, including the phased approach and the benefits of the expansion, such as increased seating capacity and enhanced fan experiences. The report then delves into the club's revenue sources, including ticket sales, merchandise, and sponsorships, and identifies key expenses like stadium maintenance and player salaries. Finally, it assesses the financial health of the club by analyzing the balance sheet, highlighting improvements in assets, debt reduction, and cash position. The analysis concludes that the expansion policy is financially beneficial, fostering future growth and revenue generation for the Green Bay Packers.

Running head: PROJECT ANALYSIS
Project Analysis
Name of the Student
Name of the University
Author note

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Project analysis
Executive summary
The aim of the report is to evaluate the expansion project taken by the green bay packers
football club. The details of the project has been explained in this report along with the
outcomes that are expected from the project is also mentioned in this report. In addition to
that the revenue earning sources and the probable areas on which the club spend fund are also
briefly discussed. The report ends with the assessment of the financial health of the club by
analysing the recent balance sheet.

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Project analysis
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Conclusion..................................................................................................................................5
Reference....................................................................................................................................6
Appendix....................................................................................................................................7

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Project analysis
Introduction
The expansion policy is very important for every club so that it can bring more
revenue generating sources and make it possible for the club to earn more profit and sustain
for long term. Green bay which is one of the popular clubs in USA have decided to expand
the seating capacity of its stadium in order to make it more profitable and to attract more
supporters to make the club more popular athletic club in the country. Some of the
management of the club suggested to built a new stadium but it will be better for the
organisation to renovate the stadium as of now.
Discussion
Preference for renovation and not to build a new stadium downtown.
The construction of new stadium will cost more than the renovation so it will be
better for the club to go for the renovation the benefits of renovation are explained in details.
The proposed project undertaken by green bay is the expansion and renovation of the south
end zone of Lambeau field stadium. Under this new expansion project, the stadium will be
classified in to two phases these are phase 1 and phase 2 the expansion policy will increase
the capacity of the stadium by 7200 seats and include four new club and lounge spaces. This
expansion will make the looks of the stadium more attractive and it will give more comfort to
the spectators (Lewis & Reiley 2015).
The phase 1 is made with the objective to give new experiences for the fans, the
expansion creates new wall of fans and three dedicated bar and concession concourses. The
top floor of this part is allocated for the former players of the club they can bring their family
and enjoy watching games from there, the staffs of the club are also allowed to bring their
family in this particular section (Kase et al 2017).

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Project analysis
The phase 2 is created with the intention of new uses which includes the packers’ pro
shop, packer’s hall of fame year-round restaurant facilities and expanded training facilities.
The new expansion project will help the club to earn more revenue from the sources
like restaurants bars and lounges. The project will ensure that the supporters gets all type of
comfort while watching the games. The supporters are the life line of the club and for that
reason the club wants to ensure that the supporters get more interest about the club and
creates a huge fan base and give more encouragement to the team. The entire expansion plan
will help the club to generate revenue and attract new supporters to cheer for the club (Scott
2015). As the renovation will be able to generate healthy profit so the proposal for the new
stadium will not be beneficial for the club in the current scenario. The club may raise some
more fund and later start to construct a new stadium.
Significant source of revenue generation
The main source from which the club generate revenue is from selling of tickets to the
spectators, membership from the regular members of the clubs, selling club merchandises, the
food stuffs that are sold from the restaurant club or bar that are operated in the name of the
club, and the most important source comes from the sponsors who used to invest in the club
for the advertisement of their company in the jerseys of the club and in all the other
merchandise (Todorović et al 2015).
The main expenses that the club must incur are
The expenses related to maintenance of the ground.
The club has to incur expenses for the maintenance of the ground to ensure that the
players can play with out any problems and deliver their best to give positive results.

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Project analysis
Maintenance of the stadium
A huge amount of the annual budget has been allocated for the maintenance of the stadium.
Beside these two expenses the other two regular expenses of the club are:
 Salary paid to ground staffs.
 Wages paid to the players and coaches.
Analysis of the financial strength of the club
From the balance sheet of the company it can been observed that the club has made
significant improvement in the financial condition over the last one year. The club has been
able to increase the assets and at the same time it also repaid the debt burden in the financial
year 2017. The current year cash position of the club has increased from $357697 thousands
in 2016 to $397166 thousands in 2017. The company has also become successful to increase
its fixed assets from $327303 to $340695. The total assets of the company have increased
from $812513 to $915937.
The liability of the company has decreased from 111063 to 103803 which indicates
that the club very efficiently repaid the loan amount and no new loan has been taken during
this period. The equity comprises of $87 million formed by the stock of the club and the rest
of the club’s equity is framed by the retained earnings.
Conclusion
In conclusion it can be stated that the club ‘s expansion policy is very effective from
the financial perspective. This expansion plan will foster the growth of the club in future and
will enable to generate more revenue in order to improve the financial strength and the
support base of the green bay packers.

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Project analysis
Reference
Kase, W., Kraynak, R., Morton, M., Pavlik, S., & Vayyasi, K. (2017). Green Bay Packers'
Titletown Development Sustainability Recommendations.
Lewis, R. A., & Reiley, D. H. (2015, June). Down-to-the-minute effects of super bowl
advertising on online search behavior. In Proceedings of the fourteenth ACM
conference on Electronic commerce (pp. 639-656). ACM.
Scott, N. R. (2015). Take Us Back To The Ball Game: The Laws And Policy Of Professional
Sports Ticket Prices. U. Mich. JL Reform, 39, 37.
Todorović, M. L., Petrović, D. Č., Mihić, M. M., Obradović, V. L., & Bushuyev, S. D.
(2015). Project success analysis framework: A knowledge-based approach in project
management. International Journal of Project Management, 33(4), 772-783.

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Appendix
Balance sheet 2017 2016
Assets (All amount in $ thousand) (All amount in $ thousand)
Cash and investment 397166 357697
Unamortised signing
bonuses Net
95070 88489
Property and equipment net 340695 327303
Others 83006 54024
Total assets 915937 812513
Liabilities and equity
Debt 103803 111063
Compensation liabilities 47382 46575
Other liabilities 150598 136849
Equity 614154 533026

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Total Liabilities 614154 533026

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