Packers Spending Spree

[Joemailman]

https://www.packers.com/news/packers...et-of-expenses

Free agent signings, Rodgers extension and overhaul of coaching staff were the big items. Packers profits were down 98% even though revenue was up 5%.

[mraynrand]

https://www.packers.com/news/packers...et-of-expenses

Free agent signings, Rodgers extension and overhaul of coaching staff were the big items. Packers profits were down 98% even though revenue was up 5%.

sounds like Oscorp is primed for a takeover bid

[pbmax]

How much money went into the rainy day fund?

[texaspackerbacker]

Profit down 98% means virtually no profit at all ....... and so many Packer owners are really in it for the dividend checks hahahahaha.

[pbmax]

Rainy day fund just under $400 million.

Investment performance allowed the Packers to report a net income of $8.4 million, but still a steep drop from $38.6 million the previous year.

[run pMc]

Yeah, a chunk of it went to pay a concussion settlement, plus all the Titletown stuff and concourse renovations. Oh, and the contracts for Rodgers, the Smiths and Amos. They made it sound like a lot of one-time things, or costs that will eventually pay for themselves (i.e., investments).

[mraynrand]

Yeah, a chunk of it went to pay a concussion settlement.

There's a lot of bananas being spent on this. Lowest estimate for the Packers I saw is for about 10 million (maybe as high as 30 million?? I guess it depends how they spread it out over years.). But they are saying claims are coming in higher than expected (this is typical when any settlement of this type is reached. If there's a pile of cash - in this case a pile of cash that can get bigger if there are more claims - you will get more claims).

http://advocacyforfairnessinsports.o...on-settlement/

[pbmax]

^ NFL and its actuaries whiffed hard on this. They greatly underestimated how much they were going to need. That not only means they have to cough up more cash now, but it means greater costs in the future.

Half of the expected cost of settlements was to be funded by earnings on investments in their fund. With less money in the fund, earnings will be lower and costs will be higher in future years. EDIT: Investment earnings should have covered 1/3 of the original expected costs.

This is pretty well traveled real estate. I am curious who zoomed whom here. I wonder if the NFL's data to its financial people was legit and thorough or if the accountants went rosy scenario on them.

EDITED TO ADD: I can't find exact numbers in the report, but it seems to suggest there are more younger, former players receiving settlements than anticipated. Given their age, that is driving up the average settlement cost. It would seem the NFL did not have a good handle on their demographic.

[pbmax]

They were supposed to fund $675 million though 2033. $150 million came from the League reserver fund in 2016, which helps teams in trouble. There are no numbers on how this fund has changed since, but its possible to calculate what was supposed to happen after that, we just don't know which channel was used.

2014-2018 fund $364, $150 from League reserve fund, leaves $214 million to come from teams during those years. That is $1.3375 million per team per year (whether directly from team or indirectly with further withdrawals from League reserve fund).

But for fiscal year 2019, they missed their target by a wide margin. Hard to put a rate on this as cases would have ramped up over time, there were several (ongoing) court actions and even under the best circumstances, it takes time for these to be determined. They paid out $316 million in FY 2019. In what is presented like a total To Date figure, by the end of FY2018 they had paid $140 million total. If the numbers are apples to apples and the dates are consistent, they had already used up the initial fund balance in the middle of FY 2019.

Might point to digging into the reserve fund in 2016 was acknowledgment that costs were higher than expected.

[Cheesehead Craig]

Its fascinating being able to see an NFL team's books like this. Another reason why the Packers are the best team in the NFL.

[pbmax]

I suspect one problem was the League's longtime desire to avoid discussion of concussions at all costs to help deny responsibility in lawsuits. This did not help them collect good data, especially the pushback team doctors and trainers were getting from the League's medical commission.

That rheumatologist who headed the brain science advisory committee doesn't seem to have had a good handle on the number of diagnoses.

[pbmax]

So they originally anticipated $950 mil in compensation claims for the lifetime of the settlement. They are at $466 now and expect the total number to grow to $1.4 billion (EDIT I can't get to the link and elsewhere I have read $1 billion total, so this number might not be hard and fast yet).

They are underfunded by $500 mil AND are losing out on investment income which is driving up the total cash cost. If they want to reinvigorate the settlement fund and collect investment revenue, they need a big infusion of cash soon.

Packers expenses went up $56 million. $10 million along could have been expected from the salary cap. But Murphy puts the figure at $30 mil. Other expense increases mentioned were the 100 year anniversary celebration events, Titletown investements, charter travel (2 planes now instead of 1) and coaching staff payouts (bought out old coaches deals).

So $26 million minus McCarthy's staff, new plane, real estate and development costs and increased PR costs = God only knows who much for settlements

[Fritz]

So they originally anticipated $950 mil in compensation claims for the lifetime of the settlement. They are at $466 now and expect the total number to grow to $1.4 billion (EDIT I can't get to the link and elsewhere I have read $1 billion total, so this number might not be hard and fast yet).

They are underfunded by $500 mil AND are losing out on investment income which is driving up the total cash cost. If they want to reinvigorate the settlement fund and collect investment revenue, they need a big infusion of cash soon.

Packers expenses went up $56 million. $10 million along could have been expected from the salary cap. But Murphy puts the figure at $30 mil. Other expense increases mentioned were the 100 year anniversary celebration events, Titletown investements, charter travel (2 planes now instead of 1) and coaching staff payouts (bought out old coaches deals).

So $26 million minus McCarthy's staff, new plane, real estate and development costs and increased PR costs = God only knows who much for settlements

That Acme meat packing company better pony up so the players can get those new-fangled "cleats" they wear these days. Plus I hear Halas is developing some kind of bar to put across those helmets to protect the players' faces (turning 'em into a buncha babies), so you got to keep up with that, too.

[mraynrand]

That rheumatologist who headed the brain science advisory committee doesn't seem to have had a good handle on the number of diagnoses.

But note that it's almost all for Alzheimers. I will have to research this, but I seem to recall that Alzheimers rate was not higher for even long term lifelong NFL football players.
I am prepared to be wrong about this, but my guess right now is that the availability of compensation funds has influenced the amount of reporting and will skew the actual data on what these guys are actually suffering.

[pbmax]

But note that it's almost all for Alzheimers. I will have to research this, but I seem to recall that Alzheimers rate was not higher for even long term lifelong NFL football players.
I am prepared to be wrong about this, but my guess right now is that the availability of compensation funds has influenced the amount of reporting and will skew the actual data on what these guys are actually suffering.

Also wonder if that diagnosis is in play for the younger claimants.