Essendon Football Club has reported an underlying trading loss of $3.2 million, inclusive of one off ASADA legal costs and associated AFL fines.
The Club reported an overall profit of $2.148 million for the financial year ending 31 October 2013, which included $5.3 million of funds received for the new training facility.
Essendon chief executive officer Ray Gunston said the club was in a stable financial position after a difficult year.
“It has been a difficult year both on and off the field for the club with a number of unbudgeted costs contributing to our financial result,” Gunston said.
“The overall profit of $2.148 million is slightly misleading as the result includes funds received this year for the development of the new training facility at Melbourne Airport.”
“However, a number of positive factors also contributed to this result including the strengthening of commercial partnerships, membership growth and improved return on investments from the Windy Hill Venue and Melton Country Club, along with tight cost control across the club, especially within the football department.”
“With the investment of $20.5 million in the new training and administration facility this year, the Club has exhausted its cash reserves and has therefore drawn down $5 million of its $7 million debt facilities.”
“Although the club had planned for this, it is important that the club works hard to reduce this debt over the coming years.”
“Importantly, from a financial perspective, the Club remains in a sound position to pay down this debt quickly, aiming to be debt free by 2015/2016.”
Key points of the report
Assets: The Club’s net assets exceed $37.7m;
Total revenue: $ 63.7m
Club net operating profit of $2,148,492 for year ending 31 October 2013
Record membership tally 56,407
Crowd attendances averaged 49,152 at Melbourne home games in 2013
