The Geelong Football Club has announced a statutory net loss of $2.6m for the 2020 financial year. The club’s operating profit before discontinued items, depreciation, amortisation and asset gains was $1.5 million, compared to the $2.6 million in the prior comparative year.
The COVID-19 pandemic and related government health measures significantly impacted the AFL Industry and the club’s operating model, most notably resulting in only three AFL men’s games at GMHBA Stadium, all without crowds.
The AFL men’s team reaching the 2020 Grand Final appearance coupled with management’s response in reducing the cost base materially during the financial year assisted the club in producing an exceptional financial result given the circumstances.
Most pleasing was the commitment of the club’s loyal members, commercial partners and Our Ambition donors who remained Geelong Strong during season 2020.
The club announced its intent to exit from all forms of gambling revenues. Post the financial year end, the club completed the sale of The Brook to Melbourne Racing Club on the 23rd of November 2020. These sale proceeds will be reflected in the 2021 financial year results. As a result, the club proudly now has no direct revenues from all forms of gambling.
The club is focused on identifying new opportunities to substitute gaming revenues to ensure a sustainable operating model into the future. In January 2020, the club announced its expansion into the health and fitness industry, purchasing the Geelong’s Gym. The club is looking forward to expanding its investment in the health and fitness and hospitality industries through its award-winning Higher Mark business.
The club would like to acknowledge the continued support of the state government with its recent funding commitment to complete stage five at GMHBA Stadium and the club’s ongoing partnership with the Kardinia Park Stadium Trust providing rental relief during the financial year.
The results are built on a strong football performance, support from members and sound management of expenditure.
Key items contributing to the financial outcome include:
- Operating revenue down by 36.3% to $38.3 million. Attributable to the results were as following:
- 60,066 Geelong members, a 10% decrease on the prior year;
- Sponsorship, advertising and fundraising of $10.1m compared to the $12.8m in the prior year. We acknowledge the ongoing support of our major partner Ford and other principal partners GMHBA, Cotton On, Deakin University and Morris Finance;
- No crowds at AFL men’s home games at GMHBA Stadium and MCG;
- A pause in growth for our award-winning hospitality business Higher Mark due to government health measures through the COVID-19 crisis;
- A pause in operation of our newly acquired health and fitness centre Geelong’s Gym;
- Depreciation and amortisation expense of $3.35 million
“There are many factors that have contributed to the better than anticipated result. This year we faced an unprecedented challenge, and our response was one that we should reflect on positively,” Geelong Cats CEO Brian Cook said.
“We saw all elements of the club display great flexibility and agility in making significant changes to the way we operate. This was done with short notice, and our club was able to continue to perform at a high level on and off the field.
“Having another strong season on-field, member loyalty and great support from our corporate partners were key to this result. In April we anticipated a potential loss of $10m. To finish the year where we have is an incredible achievement.
“We again had exceptional support from our members, with over 60,000 staying the course. The loyalty of our members was the key to the club being able to navigate this year financially, and we are proud of our members and thankful for their ongoing support. We asked our members to remain Geelong Strong this year and they have.
“Whilst a challenging year financially, we remain committed to making a significant and meaningful difference in our community and will again focus on our community impact in 2021 and beyond.
“The club continued to work towards an exit from gaming, and we achieved this in 2020. This has been a long-term goal of the club and we are pleased to have completed the sale.
“On-field our teams performed well. Our men’s team reached the AFL grand final and adapted to hub life very well. Our women’s team became one of the highest scoring teams in the AFLW. We believe we will continue to challenge again in 2021.
“We would like to thank our members for their continued support. There is an emotional and financial investment in being a member and we do not take it for granted. We will continue to strive to achieve our goals in 2021, both on and off the field.”
Click here to view the 2020 Financial Statement
