The state’s two AFL clubs are developing new headquarters and training facilities, focused on connecting with the broader community.
The state’s two AFL clubs are developing new headquarters and training facilities, focused on connecting with the broader community.
Football fans may well be eagerly anticipating the construction of the new sports stadium at Burswood, but the two clubs most likely to frequent the venue are very much focused on developing their own premises.
Annual reports from the Fremantle Dockers and Indian Pacific, the parent company of the West Coast Eagles, show that despite being among the richest and most profitable sporting teams in the nation, the tax-exempt entities are grappling with how to fund their respective new headquarters.
As one of his last acts as prime minister, Tony Abbott committed his government to supporting a West Coast proposal for a new community and club facilities at Lathlain, with the club also seeking other government assistance.
“We cannot finance this large project alone and the federal government has now pledged $10 million to assist with the project; the state government has also indicated that it will support the Town of Victoria Park in this initiative,” Eagles chairman Alan Cransberg said in his report included in the accounts for the year ending October 31 2015.
The redevelopment of Lathlain Oval, the home ground of West Australian Football League club Perth, is expected to cost around $60 million. The Eagles will reportedly contribute $22 million, while the AFL will chip in a further $4.5 million.
The club appears in a strong position to achieve this.
Its balance sheet shows $55.4 million in current assets, mostly cash and investments, and net assets of $45.5 million. Despite the challenges of a seasonal business, this is a financial position many businesses would envy.
It was the most profitable winter sporting team in the nation, achieving a $5.6 million net profit, boosted from $4.9 million the previous year on the back of a strong finals series. Operating revenue in 2015 jumped to $60 million from $57 million. Its net profit contained $725,000 of development funding, included as other revenue. In 2014, it received $650,000 in development funding.
Fremantle boosted its net profit to $1.8 million in the same period on the back of almost $1.1 million in development funding, which it noted was received as part of funding for a similar proposed facility at Cockburn. Its operating profit was $763,775 on revenue of $52.2 million, up from $215,729 the year before when revenue was $49.2 million.
At the end of the 2015 season it had current assets of $14.6 million and net assets of almost $12 million.
Fremantle has taken a slightly different approach to its fundraising effort, creating a Fremantle Dockers Foundation to assist its fundraising efforts for the new facility and other community work, recruiting former St Vincent de Paul Society executive Lucinda Ardagh as fundraising manager.
Both clubs have highlighted the community nature of their projects, following the lead of other sporting groups around the country, which have fused elite training facilities with broader usage from which to run community programs.
Fremantle said the focus of its new facility would include programs on health and wellbeing, education, multicultural and social inclusion.
Aside from the philanthropic benefits, these programs can often be a source of additional funding for the organisation’s assets and employment for its people.
The Eagles report highlighted its contribution to grassroots football, stating it had contributed $125 million since its inception. That is rent for Domain Stadium and royalty fees paid to the WA Football Commission, which was $6.7 million in 2015. Fremantle paid $5.4 million last season.
The scale of both of the businesses behind these sporting teams has increased dramatically in the past 10 years. In 2006, Business News reported the Eagles’ revenue was $30.6 million and membership at 43,000, while Fremantle had revenue at $25.5 million and 34,000 members.
