Power achieves ‘solid’ profit

blackdiamond

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Thread starter #1
courtesy of www.portadelaidefc.com.au

Power achieves ‘solid’ profit



The Port Adelaide Football Club today distributed its Annual Report to club members, revealing a consolidated profit of $331,288 before SANFL Sub-Licence Distribution.

This result follows a consolidated profit last year of $201,804 and again ensures the club remains on solid financial footing.

Port Adelaide Football Club President Greg Boulton said 2003 was a solid year financially for the club.

“Our profit of $331,288 (before SANFL Sub-Licence Distribution) in 2003 has kept us on a solid financial footing and at the same time provided us with the ability to invest more into our football activities.

“On the revenue front we exceeded our budgets in season tickets, and had record results in club memberships and merchandise (outside of the first year), which was very pleasing.

“Additional expenditure in our football department – almost entirely due to injury payments – has eroded the gains in revenue mentioned, but our cost controls in all other areas of our business have been sound.

“One of the big successes of the year has been the performance of The Port Club, which achieved a $351,027 profit this year, compared to a loss of $80,048 in 2002. The turnaround in performance has allowed us to begin a $1 million upgrade of The Port Club which will be completed by the end of February.”

Boulton stressed that as the newest club to enter the AFL, it was important to factor in the club’s additional costs when making comparisons with other AFL clubs.

“On a profit comparison we would expect that in 2003 our club would be midpoint in the AFL competition, however when making this comparison you need to consider that we have $576,000 abnormal costs which includes our AFL Licence Fee and establishment costs, both of which will be extinguished by the end of 2006,” Boulton said.

“If you add that value back, then this club would have reported over a $900,000 profit for this financial year.”

The club continues to make a significant dent in its debt. This year it reduced its consolidated borrowings from $3.347 million to $2.508 million.

“It has been our Board’s objective over recent years to reduce our borrowings, and we are pleased to report that we have reduced consolidated borrowings by $839,000 this financial year, after a reduction of $1.4 million last year,” Boulton said.

Boulton also said that the reported net assets of $5.8 million were a good indicator of the club’s financial standing, and kept the Power in the top echelon of AFL clubs in that area.

Last year the club entered into a new sub-licence agreement with the SANFL, which will see the club pay $1,060,000 over four years. This year the club will pay $225,000 of that figure, which will add to the $1.7 million it has already contributed over the past six years.

“Last year we reached an agreement to pay fixed fees back to the SANFL, and we are pleased that in doing so we can provide guaranteed levels of support to grassroots football in South Australia,” Boulton said.

In closing, Boulton said he believed that the club’s challenge was to increase its supporter base.

“We have achieved the reported results with a current supporter base of around 300,000 compared to clubs like Essendon and Collingwood who have more than 700,000,” he said.

“Our challenge is clearly to grow our supporter base, and accordingly the club’s youth programs will become more of a focus over the coming years.

“I would like to take this opportunity to congratulate our chief executive Brian Cunningham, his senior management team and staff on achieving fantastic results in 2003, and I thank them for their commitment to the Port Adelaide Football Club.”

The consolidated result includes the performance of Port Adelaide Football Club Ltd, Port Adelaide Football and Community Club Inc (The Port Club) and PAFC Foundation Limited.

The club will be holding its Annual General Meeting on Monday, December 15.
 

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sog35

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#4
I flat out deny the fact I had my 21st at the club had anything to do with the near half a million dollar turn around this financial year for the Port Club. Honest. ;) :D
 
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