Troy G
4th February 2003, 06:24 PM
At last Thursday's Board meeting, the Board of the Sydney Swans approved the Club's 2002 annual financial report. The report disclosed that, whilst total revenue for 2002 increased marginally to $22.5 million, the Club made a loss of $1.08 million before depreciation and asset write offs of $627,000, with a total loss after these non-cash items of $1.709 million.
This result follows a five-year period of profitability and reflects the impact of factors unique to the Sydney market, and the cost pressures being experienced by AFL clubs generally.
Included in the result was the effect of costs of $752,000 attributable to the co-ordination and promotion of the initial AFL matches at Telstra Stadium.
Whilst the Club is delighted with the success of Telstra Stadium as a venue for football and its long term value to both the Club and the AFL, the initial costs, whilst non-recurring, were significant. Expenditure in this regard in 2003 will be significantly reduced.
The Club also wrote-off $285,000 in fixtures and fittings which were unable to be relocated to the Club's new Football Facility developed in conjunction with the SCG Trust. These outstanding facilities will be the permanent base of the Club and the benefits will be experienced for many years.
The Board considers the result particularly disappointing and has taken steps to address the situation in 2003 including significant changes in the Club's management and cost structure. All costs have been rigorously reviewed and appropriate action taken.
Given the difficult environment the Board considers that 2003 financial period will remain challenging. Competition in the Sydney sporting market is intense. The support of our members and sponsors to date has been encouraging. Success in each of membership and sponsorship over the next two months will be important in shaping this year's result.
This result follows a five-year period of profitability and reflects the impact of factors unique to the Sydney market, and the cost pressures being experienced by AFL clubs generally.
Included in the result was the effect of costs of $752,000 attributable to the co-ordination and promotion of the initial AFL matches at Telstra Stadium.
Whilst the Club is delighted with the success of Telstra Stadium as a venue for football and its long term value to both the Club and the AFL, the initial costs, whilst non-recurring, were significant. Expenditure in this regard in 2003 will be significantly reduced.
The Club also wrote-off $285,000 in fixtures and fittings which were unable to be relocated to the Club's new Football Facility developed in conjunction with the SCG Trust. These outstanding facilities will be the permanent base of the Club and the benefits will be experienced for many years.
The Board considers the result particularly disappointing and has taken steps to address the situation in 2003 including significant changes in the Club's management and cost structure. All costs have been rigorously reviewed and appropriate action taken.
Given the difficult environment the Board considers that 2003 financial period will remain challenging. Competition in the Sydney sporting market is intense. The support of our members and sponsors to date has been encouraging. Success in each of membership and sponsorship over the next two months will be important in shaping this year's result.