Essendon Football Club - 2019 Financial Result

For the first time since 2011, Essendon Football Club is debt-free, having reduced its borrowings by $3.9 million in 2019, and at the same time increased cash reserves to $6.4 million.

Reporting an overall profit of $3.534 million, inclusive of The Hangar development fundraising income of $3.474 million, the club utilised the surplus of its profit to fully pay down outstanding debt.

At October 31, 2019, excluding the increased level of fundraising associated with The Hangar redevelopment, the club recorded a net operating profit of $60,000 and operating cash surplus of $3.4 million.

The net assets of the club increased to $39.6 million, compared to $36.1 million in 2018.

In 2019, the club achieved record membership of 84,567 - an increase of more than 5,000 over the previous year.

Chief executive officer Xavier Campbell said the clearance of debt was an important step forward for the Bombers.

“It’s a significant outcome for the club to record a profit for a third consecutive year, and importantly, clear all borrowings which has been in line with our projected timeframes to manage the remaining debt the club has held in recent years. It also positions us for the next phase of facility investment over the coming 12 to 18 months,” Campbell said.

“We will incur new debt as we progress the redevelopment, but the basis we now have, combined with our strong cash flows, will position us well to service that debt and repay it within a reasonable timeframe.

“This year, we deliberately increased spend in key strategic areas of the club, most importantly in our core business – football - as well as preparing for the next phase of our facility expansion and strategic growth which is vital for the long-term position of the organisation.

“A significant portion of the cash flow in 2019 has come in the form of grants and donations to assist in the funding of the second phase of The Hangar’s development, which will have a direct impact on strengthening our men’s and women’s football programs as well as our Next Generation Academies for the long-term. It will also play a part in ensuring the club continues to play a significant role in the communities in which it operates.

“Our loyal members and supporters remain at the forefront of our organisation, with our membership surpassing 80,000 for the first time in our club’s history. I wish to again recognise the tremendous loyalty of our membership base in 2019, and we look forward to your continued support for the upcoming season next year.

“Overall, the club is in a strong financial position and we continue to be well placed to support our players as we strive for the ultimate on-field success and with a strong base from which to launch our expansion project for The Hangar.”

Key points of the club’s 2019 financial result:

  • Net operating profit, excluding additional fundraising for The Hangar redevelopment, of $60,000 and operating cash surplus of $3.4 million.
  • Membership revenue increased by $500,000 as a result of the membership tally increasing from 79,318 to 84,567.
  • The club reduced its borrowings by $3.9 million to be debt-free at the end of the year, with cash reserves of $6 million.
  • Net assets of the club were $39.6 million, compared with $36.1 million in 2018.
  • An increase of $673,000 in match receipts/stadium revenue.
  • Increased investment of $500,000 in non-player-related football investment.

The 2019 annual report is available here . The Annual General Meeting (AGM) will be held on Thursday, December 5 at Marvel Stadium, commencing at 6:30pm.

Directors Andrew Muir and Simon Madden will be declared re-elected at the AGM as the pair were the only candidates to nominate for election to the Club’s Board by the closing date of October 31, 2019.

For the first time since 2011, Essendon Football Club is debt-free, having reduced its borrowings by $3.9 million in 2019, and at the same time increased cash reserves to $6.4 million.

Reporting an overall profit of $3.534 million, inclusive of The Hangar development fundraising income of $3.474 million, the club utilised the surplus of its profit to fully pay down outstanding debt.

At October 31, 2019, excluding the increased level of fundraising associated with The Hangar redevelopment, the club recorded a net operating profit of $60,000 and operating cash surplus of $3.4 million.

The net assets of the club increased to $39.6 million, compared to $36.1 million in 2018.

In 2019, the club achieved record membership of 84,567 - an increase of more than 5,000 over the previous year.

Chief executive officer Xavier Campbell said the clearance of debt was an important step forward for the Bombers.

“It’s a significant outcome for the club to record a profit for a third consecutive year, and importantly, clear all borrowings which has been in line with our projected timeframes to manage the remaining debt the club has held in recent years. It also positions us for the next phase of facility investment over the coming 12 to 18 months,” Campbell said.

“We will incur new debt as we progress the redevelopment, but the basis we now have, combined with our strong cash flows, will position us well to service that debt and repay it within a reasonable timeframe.

“This year, we deliberately increased spend in key strategic areas of the club, most importantly in our core business – football - as well as preparing for the next phase of our facility expansion and strategic growth which is vital for the long-term position of the organisation.

“A significant portion of the cash flow in 2019 has come in the form of grants and donations to assist in the funding of the second phase of The Hangar’s development, which will have a direct impact on strengthening our men’s and women’s football programs as well as our Next Generation Academies for the long-term. It will also play a part in ensuring the club continues to play a significant role in the communities in which it operates.

“Our loyal members and supporters remain at the forefront of our organisation, with our membership surpassing 80,000 for the first time in our club’s history. I wish to again recognise the tremendous loyalty of our membership base in 2019, and we look forward to your continued support for the upcoming season next year.

“Overall, the club is in a strong financial position and we continue to be well placed to support our players as we strive for the ultimate on-field success and with a strong base from which to launch our expansion project for The Hangar.”

Key points of the club’s 2019 financial result:

  • Net operating profit, excluding additional fundraising for The Hangar redevelopment, of $60,000 and operating cash surplus of $3.4 million.
  • Membership revenue increased by $500,000 as a result of the membership tally increasing from 79,318 to 84,567.
  • The club reduced its borrowings by $3.9 million to be debt-free at the end of the year, with cash reserves of $6 million.
  • Net assets of the club were $39.6 million, compared with $36.1 million in 2018.
  • An increase of $673,000 in match receipts/stadium revenue.
  • Increased investment of $500,000 in non-player-related football investment.

The 2019 annual report is available here . The Annual General Meeting (AGM) will be held on Thursday, December 5 at Marvel Stadium, commencing at 6:30pm.

Directors Andrew Muir and Simon Madden will be declared re-elected at the AGM as the pair were the only candidates to nominate for election to the Club’s Board by the closing date of October 31, 2019.

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Fantastic achievement!!

Something something dysfunctional :thinking:

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I’d be interested to see Richmond’s financial results for the same period.

And by that I mean: I don’t give a toss.

Where’s the damn premierships?

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Unbelievable that they can email a document that has the information duplicated Who’s checking?

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Don’t care

Win a final. Win a flag.

12 Likes

I’m glad we’re doing something right, because we suck at football…

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This is also an important bit.

I am pleased the club is financially strong… and endeavoring to do something with that strength to improve our onfield malaise.

Well done.

Win a farking flag.

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■■■■ we’re good

At least our accountants are good at making our financial position look good. No expense spared in that area of the club I suspect

So in short we got 3.54 million in grants and offset them against debt making us debt free in the short term.

In reality we made 60k profit?

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Always suspected Xav was guilty of double speak.**

** KM take note.

It’s time to invest these record profits into the Football Department.

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Back in black

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INNOVATION!

Some people in here need to learn to take good news when they can get it instead of chirping the same crap over and over.

The clubs debt free. This means the club invest more time and money into the football department.

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You’re assuming that we now stop seeking external funding, and that we weren’t paying interest on that last four million bucks.

Yes

We are tin rattlers.

Totally agree. How do you have a 2 positions open up that no one wants to have a crack at?

1 Like

We are now debt free. Surely that’s a good thing? We had more members in 2019 than in 2018. That’s good, too.
Some people are never happy.

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