Essendon Football Club is delighted to announce a net operating profit of $2,321,871 for the 2018 financial year.
The club’s cash profit was $5.7 million, before amortisation and depreciation. This includes donations and other one-off items of $1.7million.
At 31 October 2018, the net assets of the club were $36.1 million, compared with $32.5 million in 2017. The Bombers also increased their overall record membership figure to 79,318, almost 12,000 greater than the previous year.
Additionally, the club took another step forward reducing its borrowings from $6.9 million to $3.9 million.
Chief Executive Xavier Campbell said the club was pleased to have recorded strong consecutive profits in as many years.
“We have a very clear and strategic plan in place. It’s a significant outcome and our cash profit of nearly $5.7million puts us in a strong position,” Campbell said.
“Our members and supporters continue to be at the forefront of our organisation. Our membership grew by just under 12,000 year-on-year, which reflects the incredible support we have from our loyal fan-base. This also contributed to a significant uplift in terms of net revenue which remains important for our football club’s growth.
“We have taken important steps to reduce our debt. While there will be some further borrowings associated with our facility expansion over the next two years, the position we have got to and our strong cash flows mean that we will be able to keep it at a manageable level.
“Strategic investment across all areas of our business remain a priority through areas such as our men’s and women’s football programs, as well as next generation academies and our strategy investments division. They remain vitally important pillars for our long-term growth as an organisation.
“The upcoming season provides an exciting opportunity for our football club to continue its pursuit of on-field success, and the first step of our 2019 campaign will commence next week with our full playing list returning for pre-season.”
Key points of the Club’s 2018 financial result:
- Net operating profit of $2.3 million and cash surplus of $5.7 million.
- Membership revenue increased by $1.6 million as a result of the membership tally increasing from 67,768 to 79,318.
- The Club reduced its borrowings from $6.9 million to $3.9 million year-on-year.
- Net assets of the Club were $36.1 million, compared with $32.5 million in 2017.
- Net increase of $0.8 million in marketing revenues, including sponsorships and match-day revenues.
- Significant additional investment into the club’s AFL football program and inaugural VFLW team.
- Additional investment into the club’s football Next Generation Academies.