Despite a difficult year impacted by the coronavirus pandemic, the Essendon Football Club can report a profit of $1,223,157. 

The headline number does however include the previously committed income of $3.2 million received specifically for the NEC Hangar development as well as additional fundraising unique to 2020. After excluding the NEC Hangar related donations, the club’s operating cash loss was $664,000.

The net assets of the club increased to $40.8 million, compared to $39.6 million in 2019.

Chief executive officer Xavier Campbell said the loyalty and support of Essendon members and supporters ensured the club could remain financially independent in 2020. 

“Make no mistake, 2020 presented an incredibly challenging financial landscape for the club to navigate through. This resulted in a reduction in revenue of $20 million forcing the club to reduce expenses by $17.7 million,” Campbell said. 

“In the face of the biggest financial obstacle our industry has seen due to the coronavirus pandemic, Essendon owes a great deal of gratitude to our members, supporters, coteries, sponsors and key stakeholders who played a vital role in ensuring we could remain financially independent. 

“Our loyal members and supporters remain at the forefront of our organisation. I wish to again recognise the tremendous loyalty of our 67,057 members in 2020. Despite many not being able to attend a game this season, our members stood by us. Their support has been simply unwavering.

“On behalf of the Board, I’d also like to extend my gratitude to the club’s executive and administration staff for their management and contribution throughout a very trying year. Importantly, I wish to acknowledge and pay tribute to the staff who departed the club this year as a result of our administrative changes due to the forced restructure. 

“The second phase of The Hangar’s development, which will have a direct impact on strengthening our men’s and women’s football programs, is nearly three quarters complete and has meant that the club accessed $7.8million in debt at the end of the financial year. 

“With the recently announced contribution of $6.28 million from the State Government, we will now be able to complete the project without the need to extend out debt requirements and begin the process to pay down this debt over the coming years.

“Overall, the club is in a sound financial position and we continue to be well placed to support our players as we strive for the ultimate on-field success and as we build to recover and rebound quickly from the vast financial challenges of this year.” 

Key points of the club’s 2020 financial result

• Overall profit of $1.2 million, and net operating loss, excluding additional fundraising for The Hangar redevelopment, of $3.7 million and operating cash loss of $664,000.
• The club maintained a membership base of 67,057 – a decrease of 17,500 from the club’s record-year in 2019 with net membership revenue decreasing by $1.2 million.
• The club accessed $7.8 million in borrowings to fund $14.2 million of the development works at the Hangar.
• Net assets of the club were $40.8 million, compared to $39.6 million in 2019.
• A reduction of $5.3 million in match receipts/stadium revenue due to the ‘hub’ based season.
• $2.8million net reduction in income from our non-football related revenue streams including our gaming venues and fitness centre business closures for seven months.

The 2020 annual report is available here. The Annual General Meeting (AGM) will be held on Tuesday, December 15 virtually commencing at 6:30pm. Notice of meeting is available here.