The Geelong Football Club has announced a net loss of $3,318,274 for the 2015 financial year. The result is largely due to the demolition of the Brownlow and Jennings stands as part of the stage 4 redevelopment at Simonds Stadium, as well as depreciation and amortisation. The write off of the two grandstands amounted to $1,899,011 and depreciation and amortisation totalled a further $2,015,124.
Other major factors in the financial outcome include:
- The club's continued investment in the football department, with total outlay rising by $491k to $22.2 million
- A reduction in profit from the club's commercial operations, with profit dropping by $1.2 million to $19.6 million. This is largely due to reduced returns from the club's venues, match returns, events and fundraising
- A drop in average home attendance (including home games at the MCG and Etihad Stadium) from 33,915 in 2014 to 29,127
- Membership grew to 46,113 from 43,803, a 5.2% increase
- Growth in corporate profit, which rose by $544,000 in 2016
- The AFL's new equalisation policy saw the club contribute $300,000 to the fund that was distributed to rival clubs
"While the asset write offs and depreciation and amortisation totalled nearly $4 million, we anticipated a better overall result than we have returned," Geelong CEO Brian Cook said.
“There are a number of factors that have contributed to this result. The tighter economic climate around Geelong has impacted on our revenue sources, and our crowds dropped late in the season when it became clear we would miss the finals.
"We are down in our profits from commercial operations, mainly in the areas of match returns and venues. While other areas of commercial have risen, they were short of our expectations, particularly events, fundraising and membership revenue. We saw good growth in our corporate business, which increased by $544,000.
"Our corporate returns will continue to rise in 2016, with Ford recently agreeing to an extension of the partnership with the club and negotiations with other key sponsors well underway.
“While we saw an increase in our membership to a record level, we continue to take steps to grow this area significantly, and we are targeting 50,000 members in 2016. We have reached 40,000 members for 2016 before Christmas and we are confident of reaching our target.
“The AFL’s new equalisation policy saw us contribute $300,000 to the pool that was distributed to our competitors. Our club has long supported equalisation, however we feel the current methodology around the amounts each club is required to contribute is flawed and requires review.
“Over the past decade the club has invested all of our profits - over $13 million - back into Simonds Stadium for stages 1-3 of the stadium’s redevelopment, and our debt for stages 2-3 is currently $3.72 million. This has also resulted in a high level of depreciation that impacts on our overall profitability. No other club has the same issues around stadium costs, and in addition to this investment we continue to pay the City of Greater Geelong for leasing the venue and office space at the ground.
"We will continue to invest into Simonds Stadium and we are thrilled that stage four of the redevelopment has commenced. This will place further pressure on our finances in the immediate future but will set the club up for long-term success.
“We are also committed to make a significant and meaningful difference in our community. The club invested significantly into its community programs in 2015 and will again focus on our community impact in 2016."
