Financial Analysis: Green Bay Packers Stadium Expansion Project Report

This report provides a comprehensive financial analysis of the Green Bay Packers' stadium expansion project. It begins with an overview of the project, detailing the expansion of Lambeau Field, including increased seating capacity, new facilities, and the phased approach to construction. The report then delves into the financial health of the organization, highlighting increased assets, decreased liabilities, and a strong cash position. It identifies both direct and indirect costs associated with the project, along with potential revenue sources such as ticket sales, merchandise, and sponsorships. The economic impact of the expansion is discussed, emphasizing job creation, increased tax revenue, and tourism. The report also includes a cost and revenue forecast and concludes by emphasizing the positive outcomes of the expansion, including increased revenue generation and customer base. The reference list provides citations for the financial data used in the analysis.

FINANCE AND
ECONOMICS

SPORT ORGANIZATION OVERVIEW
• Aims to adopt the expansion policy to increase is
revenues
• Long term sustainability of the club
• Decision to increase the capacities of seating for
its stadium to increase the profits
• Attracting more supporters for making the club
more famous

PROPOSED PROJECT
• Green Bay aims to expand and renovate the
southern end zone of Lambeau Field Stadium
(DeSchriver, Rascher & Shapiro, 2016)
• For this purpose the project has been divided into
two phases
• The expansion is forecasted to increase its
number of seats by 7200 sets, lounge spaces,
bowl circulation and introduction of four new
clubs
• The comfort of its spectators will be taken care

PHASE 1
• Designed with the aim of giving new experience to
its fans
• Creation of new wall of fans, three dedicated bars
and concession concourses
• Top floor has been allocated for the staff and former
players
• Provision given to them for taking their families for
watching the games
• Enjoyment of the features and luxuries provided by
the suites (Humphreys & Zhou, 2015)

PHASE 2
• Intention to make use of new Packer’s Pro Shop,
along with Packer’s Hall of Fame restaurant and
training facilities
• Source of revenues are restaurant lounges and
bars
• Ensuring the comfort of its supporters as they
enjoy the match
• Supporters serve as line lines, therefore there
excitement is required for the renovation of club,
creation of fan base and encouragement of
teams
• Attract new supporters for cheering the club
teams

ECONOMIC IMPACT
• Contributes for the growth
• Provides benefits to the communities and
individuals
• Increase in economic prosperity by providing
job opportunities and increasing skill levels
• Fostering local economic development
(Somberg, Hulse & Dickens, 2016)
• Increase in collection of income will lead to
increase in tax collection
• Increase in the number of tourists visiting the
country

SOURCE OF REVENUE GENERATION
• Sales of tickets to its spectators
• Membership fees from the general members
• Sales of club merchandises
• Food stuffs sold during the matches from the
restaurants
• Sponsors who invest for their advertisement in the
form of jerseys and other merchandise
• Media rights

EXPENSES OF THE CLUB
• Maintenance for the ground
• Wages for the players
• Salary to the ground staff
• Club expenses
• Maintenance for the stadium

FORECASTING COSTS AND
REVENUES
The costs and revenues have been forecasted for the proposed
project

DETAILS OF THE SCHEDULE OF
EXPENSES

FINANCIAL STRENGTH
• The assets have increased and liabilities have
decreased
• Cash position has increased from 2016 to 2017 at
$397166 thousand (Celik et al. 2016)
• Fixed assets increased from $327303 to $340695
• Total assets increased to $915937
• Liabilities decreased to $103803
• Loans have been repaid and no new loan has been
taken
• Equity composition of $87 million

CONCLUSION
• Effective expansion policies adopted by
the club
• Expansion will foster growth for the future
• Generation of revenues from its various
sources
• Increase in the customer base and
capacity of seats