FOR the second successive year, since its major overhaul, the Melbourne Football Club has reported an operating profit of $562k for the financial year ended 31 October 2015, which is also a substantial improvement on the operating profit of $160k in 2014.
The total revenue of the Club grew by $2.4m to $44.5m, and enabled the Club to strategically reinvest in the business, particularly within the football department.
This investment in the football department grew by $1.7m, and was divided equally between increased Total Player Payments (TPP) and our strategic goal of increasing our investment into the player development area of the Club. The increased funding from the AFL of $1.2 million was directed entirely to this increased spending in football, with the club adding to this amount with its own additional investment.
This additional investment in football and our overall profit result in 2015 was achieved through the improved commercial activities of the Club, the performance of our gaming venues and tight cost control measures.
The improved financial result also allowed the Club to reduce bank debt by $800k and gaming machine entitlements debt by $561k.
Melbourne Football Club CEO Peter Jackson said: "To generate a profit for the second consecutive year is a pleasing result for the Melbourne Football Club and reinforces that we are on the right path as a Club."
"Supporting our on-field operations with off-field financial stability, as well as stability in our board and our senior management team is very important to achieving ultimate on-field success. We are confident that we are well positioned with our playing talent and list management, but we believe it is important to continue our investment in the football department, particularly in player development.
"The increase in AFL distribution funding and equalisation of $1.2m was reinvested entirely back into the Football Department, which goes to the heart of what the new equalisation measures were created for.
"A key factor in our financial positon is due to the support of our members. 35,951 signed up for the 2015 season, while over 250,000 people saw our team play home games at the MCG this year. We thank members for their generosity and ongoing support, in particular Foundation Heroes, First XVIII and Coterie members, who contributed significantly during the year.
"While we are very grateful for this support, if we are to maintain our competitive position with other AFL clubs, we do need many more members and people attending our games. And while I acknowledge we need to continue to improve on-field – to encourage additional members and bigger crowds – the performance of the club over the last month or so has been pleasing. This has included the AFL trade period, the launch of the new logo and the ongoing stability of senior personnel, which have all combined with the improved 2015 financial result. I hope this will encourage all supporters to get behind the club now going into 2016."
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