Advertiser Article - Financial Year profit

From the Advertiser
https://www.adelaidenow.com.au/messenger/sport/west-adelaide-posts-199000-profit-in-2018-annual-report-as-club-bounces-back-from-the-black/news-story/4944b02a51d135fdba0c389360e8d9f2

West Adelaide Football Club is continuing to stabilise from a precarious financial position, announcing a third consecutive profit.

The Bloods recorded a surplus of $199,000 in 2018 in its annual report, released last week.

West also posted profits in 2017 ($122,000) and 2016 ($47,000) on the back of significant losses the previous two years ($283,000 in 2015, $228,000 in 2014) when the club faced an uncertain future.

The Bloods’ debt has been slashed from $2 million three years ago to $1.3 million.

West chief executive Ben Hopkins said efforts from the board and staff to operate more efficiently and SANFL support were the major factors behind the club’s financial turnaround.

He said West was now in an improved position heading into 2019 but still faced challenges to bolster its revenue.

“Like all clubs, we face ongoing challenges to strengthen our revenue streams and the overall profitability of our trading model,” Hopkins said.

“The years ahead offer both opportunities and challenges with our debt reduction plan on track, the focus is on ensuring the business and the football club run as efficiently as possible.”

West’s latest profit included a $275,000 annual share from the sale of Football Park, which went straight towards debt reduction, and a $100,000 equalisation grant from the SANFL.

It also contained $192,664 in depreciation, leaving the club with $17,484 in trading cash earnings with grants accounted for.

The majority of the Bloods’ $1.3 million debt is owed to the Westies Wolfpack, a group of supporters established in 2015 to bail the club out and save it from bankruptcy.

West, which won the 2015 premiership, finished seventh last season in Gavin Colville’s first campaign as coach.

The club has restructured its board during the off-season after a member vote, appointing five new directors this month and installing Murray Forbes as president to replace Lee Harradine.


Bloods members will vote in another two at the club’s annual general meeting on February 25.

Previously, members had elected all seven board positions.

Bar earnings fell by more than $40,000 from 2017 to 2018, function room income decreased by more than $35,000 and fundraising, advertising and sponsorship revenue dropped by more than $11,000.

In the annual report Harradine, also the club’s finance director, said West’s efforts would turn even more towards this area of its operations.

“In 2017/18, our bar revenue was down substantially and gaming was static after a 10 per cent fall the previous year,” Harradine said.

“Sponsorship decreased and we start 2018/19 with a much reduced sponsorship portfolio and face challenges to restore it to previous levels.

Maybe some creative accounting and grants hide a bigger problem - bar, function and sponsorship all significantly down (over $85k)

There's no creative accounting.  It's all there in the audited figures and reports.

Our results, even allowing for grants, are vastly better than they were, even on reduced revenue, due to much better control of costs in the past two or three years.

Our greatest drop has been in sponsorship, but I am confident the new Board will redress this.

That's disappointing given that the previous CEO's background was sponsorship and marketing.

aldo russian wrote:That's disappointing given that the previous CEO's background was sponsorship and marketing.

Can anyone shed any light on why sponsorship was significantly down? Was it that sponsors are tightening their own belts? Was it that usual sponsors weren’t followed up with as much vigour as previously? Seems strange that given the more positive football outlook at the end of 2017, particularly with league team, that this revenue went backwards.