The 42 Million dollar hit
Brady Moeller
Going into the season, the Packers were one of the top teams in the NFL and projected by most to host a few playoff games and ultimately win the Superbowl. Unfortunately, Packers star quarterback Aaron Rodgers suffered a broken collarbone in week 6 loss to the Minnesota Vikings. Losing Rodgers wasn’t only bad for the Packers, but also really bad for the economy of Green Bay. So what does this mean for the economy?
For the past 8 seasons, the Packers have made the playoffs under Aaron Rodgers. This year the Packers are sitting at 5-6, hosting a playoff game at Lambeau field at this point is quite faint. Local businesses such as hotels, convenience stores, restaurants, and homeowners letting people park on their lawns for $20 will lose a lot of potential revenue and then the Having a playoff game is free advertising for the city even though you may not even realize it. Having a national audience tuned into a game for three hours generates so much publicity for the city of Green Bay. They show shots of the city, documentaries, and many more ways that generate publicity for the city. Stores like Cabelas, located three blocks away from Lambeau field, won't be seeing an increased number of customers coming this January to buy essentials like hats, gloves, and hand warmers that would normally be in high demand for a bitter cold playoff game. Hotels would also be greatly affected by not having a playoff game. Hotels in Green Bay are able to charge on average $324 per night with a two night minimum on weekends with a game. The loss of revenue for not having one playoff game is roughly 14 million. If the Packers were to get the number one seed and make it to the NFC Championship game, that would’ve been roughly 42 million in revenue for the economy. On years were the Packers the playoffs but don’t host a playoff game still generates a lot of money for the city. People are more likely to fill up restaurants and bars to watch the game. It’s hard to believe that an injury to one player could cost a city that much money. The demand for pretty much everything in Green Bay will go down greatly and will likely cost Green Bay a lot this January, bearing a miracle. 
Works Cited
Egan, Dan. “Green Bay prepares for playoff game at Lambeau.” Milwaukee Journal Sentinel, Milwaukee Journal Sentinel, 2 Jan. 2017, www.jsonline.com/story/news/2017/01/02/green-bay-scrambles-prepare-playoff-game-lambeau/96089546/.
Press, Pioneer. “Green Bay Packers: City scores with economic impact of playoffs.” Twin Cities, Twin Cities, 28 Oct. 2015, www.twincities.com/2015/01/04/green-bay-packers-city-scores-with-economic-impact-of-playoffs/.
“Favre, Thanksgiving set up unique atmosphere for Chicago Bears' trip to Lambeau.” Pro Football Weekly, 25 Nov. 2015, www.profootballweekly.com/2015/11/25/favre-thanksgiving-set-up-unique-atmosphere-for-chicago-bears-trip-to-lambeau/a9atkig
It is quite interesting to think that the affect can be so great from one player injury. Aaron's injury would probably would have affected sales even if the packers still went to the playoffs as most fans would think it unlikely for them to make it very far or even loose interest that season.
ReplyDeleteThis injury for Green bay has not only negatively impacted Green bay as a football team, but also as stated, Green bays economy could drop down hill quickly since the last time the Packers didn't make the playoffs was a little under a decade ago. With out all the revenue projected during playoffs from fans and others who travel down to green bay will leave green bay in an economic drought due to the lack of revenue green bay is used to.
ReplyDeleteDoes the profit made from the Lambeau field and business around it all go to the city of Green Bay? This is most likely not the case as much of the money from these businesses and the stadium go to the federal government. In the case of the Brewers, the revenue from that stadium goes partly to the surrounding 5 counties and this is probably similar in some form with Lambeau. The city should still remain at its usual economic level as most of the year they have far less revenue coming from the stadium and businesses around it so this should technically only impair the opportunity to become stronger economically and keep them at the level.
ReplyDeleteAlthough the loss of Aaron Rodgers has proven to be very significant for both the the football team and the city, there is still hope among the organization. Although the Packers are below 0.500, Rodgers's backup, Bret Hundley has been getting better and better with every week. If he can continue to improve and lead the Packers to victories, the Packers could see their selves sneaking into the playoffs. This would make the loss of Rodgers less significant for both the city and they team.
ReplyDeleteI agree with the theory that the Packers took a huge lose with Rodgers injury. Yet I don't think its the end of the season yet. It looks like with the improvement of Hundley the Packers could win the majority of their final games meaning they could have a chance in making the playoffs. This would be great because hopefully Rodgers will be able to make a reappearance and help out the team once again. The only down side is I think Rodgers will have a mislink wit his receivers and not be as on point with missing the past weeks. Also it puts a target over his head for the defense knowing he is vulnerable to a injury.
ReplyDeleteIt's pretty interesting to think about how this injury to this one player can cost the city of Green bay so much. Although it may not seem likely the packers still have a chance to make the playoffs maybe not playing at home but if they are still in the game that can cause a lot publicity that you said in the writing. It is just mind blowing how much money the Packers bring to a city and how them not playing games affects everyone.
ReplyDeleteI agree with your statement on how there will be a loss in revenue when the packers don’t make it to the playoffs because this is when everything is higher priced like the tickets and the lawns that are occupied by peoples cars that won’t get used this year, sadly. Although, this is a big hole in the situation, I still think they won’t lose as much money because of the amount of people that still visit Lambeau Field on the daily that sometimes costs money or go to the packer pro shop to purchase clothing that costs a fortune is where they will gain a fair amount of revenue.
ReplyDeleteI feel that Wisconsin has a lot of cities that relay on sports an publicity. If you think about Milwaukee they relay on the Bradley center as there main attraction. Seeing as it is being rebuilt at this current point in time. I believe that it is true green bay will experience some lost. The bars, restaurants, and many other things will not have major sells. Because they use publicity as a key point or advantage. The demand to see the game is high and business strategies can be used to lure people to spend
ReplyDeleteI think the economy will improve if the Packers "Run the Table" for the rest of the year, which is very doable. Packers were in this very same position when they last won the Super Bowl, an iffy spot into the playoffs and ended up a wild card team, and still won the Super Bowl. The Packers' season is definitely not over, and the same goes with the economy of Green Bay. If the Packers pull off to go deep in the playoffs, merchandise prices will go up and lots of Packer events will be help at Green Bay. This will improve revenue for the surrounding hotels, restaurants, historic events, etc. With Rodgers coming back in less than three weeks, Packer fans shouldn't be worried.
ReplyDeleteMany of the businesses and hotels rely on the football season for the majority of incomes. So this happening could end up making it hard for some businesses to stay open. Green Bay is a very popular and busy city, people from all over Wisconsin come to see this beautiful town so I believe that the business and people of Green Bay will be just fine. There is still a chance that Aaron Rodgers will be back to play in week 15. If the Packers were to have anymore homes games, everyone would want to go to see Aaron Rodgers play.
ReplyDeleteI completely agree on this statement that now the Packers are going to see a loss in revenue when they do not make the playoffs this year. On top of that I also think it will be extremely interesting to see the economic loss around the Green Bay area such as restaurant, hotels and etc. The Packers have consistently made the playoffs which has had a positive economic effect on the surrounding businesses and now that they are not going to make the playoffs they are also going to see this economic loss.
ReplyDeleteI strongly agree with your statement that the Packers will lose a lot of money just because they will most likely be in the playoffs. Another factor to remember is all the merchandise they sell at the packer games that isn't being bought. This also will effect the other stores that sell Packers merchandise like Dick's Sporting Goods. Lastly it will also effect the producers of the merchandise because the demand is lower so they will most likely decrease how much they are making this year.
ReplyDeleteI agree that due to Rodgers injury the city of green bay will loose large sums of money. Due to the loss of positive advertisement their will be slightly lower numbers of fans attending games and the season will most likely be cut short as a result of the loss of the packers star quarterback Aaron Rodgers.
ReplyDeleteThis reminds me of Lebron James returning to Cleveland as the move had a tremendous impact on Cleveland's economy as it is estimated that James is worth 500 million to Cleveland. While I don't believe Rodgers has that effect on Green Bay's economy, I do agree that Green Bay will lose significant sums of money due to his injury. However it is interesting that of one person carries so much weight in an economy.
ReplyDeleteDrew Retherford
DeleteGreat job Brady! After conducting some research myself, I discovered that the Green Bay Packers have lost four of the five games started by Brett Hundley. Aaron Rodgers remains on injured reserve for the Packers, though he could return to practice this Saturday. If the Packers can beat the Buccaneers on Sunday and the Browns next week to stay in the playoff chase, Rodgers could return to face Carolina on December 17. For that to happen, the Packers will need the type of performance Hundley delivered against Pittsburgh (three touchdowns, no turnovers) rather than against Baltimore (no touchdowns, four turnovers in a shutout loss). Duplicating that success would put the Packers in position to keep their season alive for another week, filling nearby hotels, forcing restaurants to have waiting lines, and allowing millions of dollars to flow into Green Bay's regional economy. Also, it’s estimated that the economic impact of the Packers’ franchise is now $13.5 million a game, yet another reason to hope the Packers win their upcoming games.
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ReplyDeleteThis is a really interesting topic because a lot of my family are packers fan and a lot of them wont even watch the packers play because it's not that entertaining when Arron Rodgers isn't on the field.I never thought a player could make this much of difference in a organizations revenue.
ReplyDeleteAlthough I am not very into watching the packer games, I have heard a lot about how the team isn’t doing very well because of Aaron Rodgers getting hurt. It makes sense that the games aren’t as much of an attraction because most if not all people want to attend a game where they know the team is playing well and has a good chance of winning. You made a good point that this is not only affecting the Lambeau Field incomes, but also they whole surrounding city. Businesses make a lot of money when the Packers are playing, and now that revenue is decreasing. It will be interesting to see how this might change once Aaron comes back to play if not this season, then the following.
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