Essendon chief executive Peter Jackson said the club’s financial result was encouraging given it had been achieved in a difficult trading environment.
“The reduction in profit is unsatisfactory but there were reasons for it,” Jackson said. “The re-development of the MCG significantly reduced the revenue generated from games played at that venue. And the AFL – at the insistence of broadcasters – continues to fixture Essendon games at night and that had serious implications in terms of our membership and gate receipts.
“Our slow start to the season didn’t help either as it only served to reinforce the media view that this was a team in decline. Membership was down about 3000 and reserved seat income also declined – the combined effect on profit was in excess of $300,000. The corporate hospitality market was again tough and our merchandise sales were also down.”
“To finish with a profit of more than $400,000 despite a $2 million (9%) downturn in revenue was encouraging. The result was achieved due to strong cost control across all areas of our business.”
Jackson said the club’s result should highlight to members the importance of their support. He said it again reinforced the delicate nature of football club finances – something that the AFL should not overlook when addressing the issues of equalisation and the distribution of TV rights revenue.
Essendon's full financial report will be available on-line from tomorrow morning.
