Dear members,

It has been just over a week since we last communicated with you. We hope you and your loved ones are continuing to take care under the circumstances and navigating these challenging times.

On behalf of the Board of Directors, we wanted to take this opportunity to provide our members with an important update on the following topics including:

• The AFL industry
• Club’s financial position
• Membership
• The second phase of the NEC Hangar expansion

Clearly, this COVID-19 pandemic continues to move quickly and there is a large degree of uncertainty that remains. Put simply, no one knows how long it will take until our lives return to ‘normal’. What we do know is that it is our collective responsibility to help slow the spread of this virus so we can return to playing football again as soon as safely practical.

From a football perspective and throughout our daily discussions with the presidents and chief executives across the industry, what remains consistent is the steadfast determination to ensure a 17-round competition by year’s end.

The financial impact on our club and AFL industry is significant, just as it is across many other industries and businesses. Recently, the AFL secured a line of credit with both the NAB and ANZ banks which will allow it to support the industry through the immediate and longer-term implications of this crisis.

This is a positive outcome and provides the opportunity for clubs who may require funding to ensure their clubs remain viable in the short to medium-term. 

As a means of securing this, the industry has worked hard to dramatically reduce its costs. At Essendon we have done the same, as Xavier alluded to in his most recent update.

The football department expenditure has been reduced in line with a clear direction from the AFL to minimal staff. This has meant around 80 per cent of football staff have been stood down. Those remaining are on heavily reduced hours. This is also reflected in administration where a similar number of staff have also been stood down. For those remaining they are also on reduced hours, and, in the case of Xavier and his executive team, all have taken a significant pay reduction for at least the remainder of the year.

While stark, there is no hiding from the fact that we are in a fight for our ongoing survival as a football club.

As part of the AFL funding position moving forward, clubs are required to determine whether they will require additional funding from the AFL and as such become positioned as an ‘assisted club’. Assisted clubs will be required to work closely with the AFL around in-depth club reporting and will also have to stringently work within AFL approved parameters with respect to expense management.

And although the financial backing of the assisted club is guaranteed by the AFL, it is not lost on us that a significant portion of the club’s independence would be compromised.

As such, we are determined to maintain our financial independence from the AFL for as long as possible, and therefore we will be classified what the AFL deems as an ‘unassisted club’ for the time being. But to be able to maintain this position will require strong leadership from Xavier and his management team as well as support from our loyal members.  

Considering the above, the position with respect to our facility expansion is made complex. Unlike any other club we are in the unique position whereby we are partway through the final stage of our expansion. This began in October last year and was scheduled to be completed late this year. We are in the process of exploring our options with respect to the scope of the project more broadly and the existing financial contributions we have in place to support the project.

It is incumbent upon this Board and executive to ensure we fervently manage our business model appropriately across the short, medium and long-term. And, as is always the case, we will continue to put the interests of the Essendon Football Club at the centre of every decision we make.

This is the second time in five years we’ve faced a giant challenge. This time the challenge is perhaps even bigger, but we face it with all other AFL clubs, and as in 2016, with your continued support, we will get through it.

We have been heartened by many of our members reaching out to us personally to advise us they were purchasing membership packages in support of this football club. A proud football club which means so much to so many.

We urge our lapsed members, or for any supporter who hasn’t yet signed as a member, to stick by us and, if you can, sign up. For those in a position to retain their current memberships, please do so. Your support at this time is most sincerely appreciated and required.

But we also know these are very difficult times and some members may be experiencing personal financial hardships. To these members, you can contact the club to ensure we work closely with you and provide the support necessary to you during this period.

We are working hard to ensure we maintain a strong connection with our members during this period, and we hope you have been enjoying the bespoke and unique digital content that we have been providing through our various online platforms while we remain without football.

These are unique and uncertain times and we thank you for your continued patience and understanding.

Please continue to listen to relevant medical authorities and expert government advice on safety precautions and social distancing measures.

We hope you were able to enjoy the Easter period with the family, and we take this opportunity to wish you and your loved ones well. The next few months will look very different this year for us all, but it is an opportune time to reconnect (virtually) with family and friends.

Thank you once again for your continued support.

Until our next correspondence, go Bombers.

Regards,
Lindsay Tanner
President