Essendon Football Club is pleased to be able to report it has posted a profit of $721,517 for the 2014 season.
In the wake of another challenging year, CEO Xavier Campbell said the positive financial result was testament to the incredible support of the club’s members, commercial partners and other key stakeholders.
“Taking into account the legal costs associated with the ASADA investigation, the club is extremely pleased to record a profit of close to three quarters of a million dollars,” Campbell said.
Additionally, the net trading cash generated from operations, after removing non cash depreciation and amortisation, was $4 million.
“A number of positive factors have contributed to this year’s profit. The club was aware it required a stable and fiscally responsible strategy to ensure costs were controlled across the football department and administration.”
“Strong relationships with existing commercial partners and new co-major in Fujitsu, the ongoing support of key stakeholders and a significant growth in our loyal membership base have played significant roles in ensuring the club remains in a strong financial position moving forward.”
“With this support, the club was able to invest a further $1.7m in completing the first stage of the True Value Solar Centre without the need to increase its borrowings.”
“In 2015 we will continue to strike the balance between cutting unnecessary costs and appropriate investment in our football department. This, coupled with the ongoing support of our members, commercial partners and key stakeholders will ensure we maintain a strong financial position to achieve on field success.”
Click here to view the 2014 Financial Report.
Key Points of the 2014 Annual Report
Assets: The Club’s net assets exceed $38.4m
Total Revenue: $61.3m
Club net operating profit: $721,517 (for year ending 31 October 2014)
Earnings before depreciation, amortisation and Interest: $4,115,944
Membership: Record tally of 60,716
*The article by Michael Warner that appeared in the Herald Sun today contained a number of inaccuracies which we clarify below:
· The club reported a profit of $2.1 million in the previous year, not a $3.2m loss as reported. Excluding donation and grant income related to development of the True Value Solar Centre and the ASADA/AFL investigation related costs, the underlying profit result last year was $745,000 profit
· The reported payout figure to Dean Robinson is subject to confidentiality but the figure of $1m reported in the media is incorrect.
· Neither the Robinson payment or the Federal Court costs were covered by insurance.
· The club’s borrowings remain at $5m, the same level as 2013. The net borrowing position is $3.2m.