The Sydney Swans today announced a profit of $114,956 for the 2011 financial year.
Sydney Swans chairman Richard Colless said the result was an encouraging one in the current difficult market conditions and came after several years of losses.
Mr Colless said the result was achieved after taking to account non-cash depreciation of $435,000, mainly in respect of the Club’s leasehold assets at the Sydney Cricket Ground.
“We continue to take the view that for an operation such as ours the cash profit is more important than the statutory one,’’ Mr Colless said.
The result also took into account the first full year’s operation of the QBE Sydney Swans Academy, where more than 400 NSW players aged from 9 to 18 are now involved in intensive training and development programs.
The improved financial result was largely due to an increase in revenue of approximately 10%, mainly fuelled by double digit growth in revenue from corporate partnerships.
“We were delighted with the number of significant organisations who became involved with the Club,’’ Mr Colless said.
“This was highlighted by the long term support of our major partners, QBE and Citi, and entering into a long term agreement with Volkswagen. These agreements constitute high quality earnings by any standards.
“We are optimistic that we can continue to attract major sponsors looking for national exposure, and are focussed on a continuation of this strong trend in 2012 and beyond,’’ he said.
On field, the Club played in its 13th finals campaign in sixteen years. “To make the finals series again was a highlight, coming in John Longmire’s first year as Senior Coach. We are cautiously optimistic about our on-field prospects in 2012,’’ Mr Colless said.
Membership numbers and membership revenue for 2011 were roughly in line with 2010 levels. “The churn rate of members leaving has been arrested which is very pleasing, but work remains to reduce this further,’’ Mr Colless said.
“The Club’s target over the next five years is to build our Membership to 40,000. Based on our experience this will be difficult to achieve and we will therefore need to be highly innovative. It remains however, our goal.’’
Match day attendances in Sydney were disappointing compared to Club forecasts. “They were significantly impacted by one of Sydney’s wettest recent winters,’’ Mr Colless said.
“But looking ahead we’re really excited by the quality of games at our two home grounds in 2012 and are aiming to fill the SCG on a number of occasions.’’
While pleased with the 2011 result, Mr Colless said challenges remained for the Club.
“We are aware that in a highly regulated marketplace such as the AFL our opposition is highly focussed on football operational areas that are not regulated. This includes facilities, conditioning and medical and coaching support. Our challenge remains to stay competitive in these areas without imperilling our financial position.’’
Mr Colless said that overall the club was looking forward to further improvement in all spheres. “We are cognisant of the environment in which we operate. These challenges include a fiercely competitive sporting market in Sydney, and general economic factors which are challenging household and business spending.
“Our aim is to grow our level of revenue across all fronts at a rate in excess of expenditure growth to enable us to invest in our football operations and fledgling QBE Sydney Swans Academy.
“Long term the most assured way of achieving these objectives will be by continuing to strengthen the Swans’ brand. The emphasis remains on increasing our relevance to a growing pool of die-hard supporters,’’ Mr Colless said.
The Swans’ Chairman acknowledged the contribution of all members of the staff, and the leadership of senior management under the guidance of CEO, Andrew Ireland.
