Wisconsin pro sports franchises benefit from public arena funding in valuations
(The Center Square) – The Green Bay Packers rank 10th, the Milwaukee Brewers rank 19th and the Milwaukee Bucks rank 20th in franchise value, according to Forbes.
Wisconsin’s professional sports franchises have received plenty of public funds to build and renovate their homes since 2000 and the values have continued to rise.
The Packers, for example, are the only publicly owned franchise in the National Football League, though shareholders do not receive dividends. The franchise was valued at $5.6 billion recently, a 22% increase from a year before.
Because of the team’s ownership status, taxpayers are able to receive a clearer picture of the team’s finances, which include a $400 million payment of national revenue received by all NFL franchises.
The Packers saw $654 million in total revenue and $60.1 million in profit last fiscal year.
The team’s most recent large-scale renovation in 2001 cost $295.2 million with nearly $175 million in bonds from the surrounding stadium district, a $2,000 fee to season ticket holders, $9.1 million from Wisconsin’s transportation fund, $20.6 million from stock sales and a $13 million NFL loan.
The stadium district continues to fund stadium upgrades and maintenance, with the Packers recently requesting $3 million of the $5 million cost to build a third locker room at the stadium for special events from the fund, according to the Green Bay Press-Gazette.
The stadium district was funded by a district sales and use tax from Nov. 1, 2000 to Oct. 1, 2015 – when it was retired – but continues to receive from the sale of engraved tiles and bricks, team license plates and a district ticket tax. The district received $8.3 million from the ticket tax in 2021 along with $423,000 from license plates and $90,200 from bricks, according to a 2023 legislative report.
The Brewers were valued at $1.6 billion by Forbes with $320 million in estimated annual revenue and $36 million in annual profit. But a renovation plan including $500 million in public funding at American Family Field should increase the value of the franchise, on the brink of clinching the National League Central again and home field advantage in the Wild Card playoffs.
Gov. Tony Evers signed a public funding package in December to send $366 million from state taxpayers and $135 million from taxpayers in Milwaukee and Milwaukee County toward the renovations over the next 27 years.
The Bucks, meanwhile, are valued at $3.2 billion with $329 million in annual revenue and an estimated loss of $36 million from the 2022-23 season. Jimmy and Dee Haslam purchased 25% of the franchise at the $3.2 billion valuation in April 2023.
An arena district paid for $203 million of the $524.1 million cost to build Fiserv Forum – opened on Sept. 4, 2018. While the Bucks pay for ongoing maintenance and improvements at the arena, the arena bonds continue to be paid through three stadium district taxes – 3% basic room tax, a 0.5% food and beverage tax and a 3% car rental tax – along with a 7% city of Milwaukee room tax.
