Tweet
Statement from Richard Colless
Richard Colless
sydneyswans.com.au
5:34:48 PM Tue 3 June, 2003
Everyone in the AFL system is well aware of the financial challenges the we currently face. Despite these challenges the Board remains confident of the Clubs off-field prospects in the long term.
Virtually every AFL club starts the season with a lot of cash as sponsorships and memberships come in. That cash then runs down over the course of the year as operating costs of the organisation are drawn down.
There are only a handful of AFL clubs who have a strong balance sheet and guaranteed future income streams. Most clubs to a greater or lesser degree face the same problem that we are confronting at the moment. Our position has been greatly impacted by the significant and unexpected result from last year, which effectively absorbed any reserves the Club had built up in the previous 5 years.
The Board has been actively addressing the situation. There is a range of things that we can do, and will do to ensure that we have sufficient cash to operate in an orderly fashion, including the Club's cost base for 2003 having been significantly reduced.
For the record, contrary to what was suggested in The Australian and other media outlets, we have not asked the AFL for a specific amount of money, although we have been talking to them regularly about our operating results. Please understand we talk to the AFL regularly on a range of matters.
In order to break the cycle of relying on on-field performances to generate profits, the Club needs to be adequately capitalised. That is, we need an injection of capital to ensure that we are impregnable in the lean times, which can occur for every football club from time to time.
The profits we have generated in recent years have been invested in the infrastructure such as player facilities, open-air boxes etc and the investment in securing the Olympic stadium as an AFL venue. These costs have been necessary in order to be able to compete long term with the leading clubs in the AFL. This combined with the extent of the unexpected loss last year has put pressure on our short-term liquidity.
We also believe that the work that we have done in lifting the profile of the game in NSW has had a major impact on the money that the various television organisations were prepared to pay for the media rights a few years ago.
Against this is the uniqueness of our market. We are competing against the strongest rugby league competition in the world, the home of Australian Soccer, but most importantly in the short term we are confronted with World Rugby Cup which apart from being the third biggest sporting event in the world competes almost head to head with us for sponsors, purchases of corporate hospitality etc.
I cannot say it any plainer than this. Our club has operated for 130 unbroken seasons and against the backdrop of the history of the club, what we are going through at the moment is difficult but manageable.
The future of the Club is not in doubt. Not only will we survive, but I have never felt more confident about the club's future.
Richard Colless
sydneyswans.com.au
5:34:48 PM Tue 3 June, 2003
Everyone in the AFL system is well aware of the financial challenges the we currently face. Despite these challenges the Board remains confident of the Clubs off-field prospects in the long term.
Virtually every AFL club starts the season with a lot of cash as sponsorships and memberships come in. That cash then runs down over the course of the year as operating costs of the organisation are drawn down.
There are only a handful of AFL clubs who have a strong balance sheet and guaranteed future income streams. Most clubs to a greater or lesser degree face the same problem that we are confronting at the moment. Our position has been greatly impacted by the significant and unexpected result from last year, which effectively absorbed any reserves the Club had built up in the previous 5 years.
The Board has been actively addressing the situation. There is a range of things that we can do, and will do to ensure that we have sufficient cash to operate in an orderly fashion, including the Club's cost base for 2003 having been significantly reduced.
For the record, contrary to what was suggested in The Australian and other media outlets, we have not asked the AFL for a specific amount of money, although we have been talking to them regularly about our operating results. Please understand we talk to the AFL regularly on a range of matters.
In order to break the cycle of relying on on-field performances to generate profits, the Club needs to be adequately capitalised. That is, we need an injection of capital to ensure that we are impregnable in the lean times, which can occur for every football club from time to time.
The profits we have generated in recent years have been invested in the infrastructure such as player facilities, open-air boxes etc and the investment in securing the Olympic stadium as an AFL venue. These costs have been necessary in order to be able to compete long term with the leading clubs in the AFL. This combined with the extent of the unexpected loss last year has put pressure on our short-term liquidity.
We also believe that the work that we have done in lifting the profile of the game in NSW has had a major impact on the money that the various television organisations were prepared to pay for the media rights a few years ago.
Against this is the uniqueness of our market. We are competing against the strongest rugby league competition in the world, the home of Australian Soccer, but most importantly in the short term we are confronted with World Rugby Cup which apart from being the third biggest sporting event in the world competes almost head to head with us for sponsors, purchases of corporate hospitality etc.
I cannot say it any plainer than this. Our club has operated for 130 unbroken seasons and against the backdrop of the history of the club, what we are going through at the moment is difficult but manageable.
The future of the Club is not in doubt. Not only will we survive, but I have never felt more confident about the club's future.
Comment