Swans record small profit

[SWANSBEST]

A small profit is good news . A reasonable turnaround from 2002.





Swans announce modest profit
4:16:38 PM Thu 26 February, 2004
afl.com.au
The Sydney Swans have announced a trading profit (before depreciation and abnormals) of $65,311 for the year ending 31 October, 2003.

This compares with a trading loss of $1.081 million in 2002.



According to the club, below the bottom line adjustments ? which include non-cash items such as depreciation, one-off write offs and restructuring costs ? accounted for approximately $1.5 million, resulting in a net loss after ?abnormals? of $1.418 million compared to $1.709 million last year.

Sydney chief executive Myles Baron-Hay said the modest profit was encouraging.

?The result reflects last year?s much improved on-field performance and an effective restructuring of the business,? Baron-Hay told sydneyswans.com.au.

?The back end of the season was particularly strong - the Club benefiting from a 26% increase in home game attendances at the SCG and Telstra Stadium.

?Whilst the turnaround is pleasing, we still have much to do to restore our balance sheet and to ensure our financial performance remains both positive and stable.

?Our operating performance is still too dependent on how we?re performing on the field.?

Sydney Chairman, Richard Colless said the club is well positioned to capitalise on 2003.

http://afl.com.au/default.asp?pg=news&spg=display&articleid=135367

[SWANSBEST]

A little bit more detail in this story.

Nest eggs


February 27, 2004

THE Sydney Swans yesterday ruled out any need for a financial lifeline from the AFL after the club announced they were back from the brink.


The predictions in the middle of last season were for multi-million dollar losses but now they are in the black.

It's not exactly a genuine rags to riches story but the Swans' trading profit of $65,311 for 2003 compared to their $1,081 million trading loss posted for 2002 represents a dramatic turnaround.


"There's no plan to ask the AFL for financial assistance," said Swans chief executive Miles Baron-Hay. "We've now got plans in place and we've got the right people with a clear sense of direction to go forward."


Only eight months ago Swans chairman Richard Colless was warning the club was in a "genuinely life-threatening" situation and needed an urgent cash injection of $1.5 million.


Yesterday, the Swans released their 2003 financial result showing a $1.14 million dollar turnaround in the club's operating performance.


"It's pleasing, it's encouraging but we've still got a long way to go," said Baron-Hay. "We still have a lot to do in restoring the strength of our balance sheet and achieving financial stability.


"I think it's still a work in progress but the early signs are encouraging."


A major factor in fuelling this turnaround was a 26 per cent increase in attendances reflecting the teams amazing on-field success story under new coach Paul Roos which saw the Swans reach the preliminary final against Brisbane.


Sydney's uneasy alliance with Collingwood, whose outspoken president Eddie McGuire is a staunch critic of the Swans salary cap concessions, is a big reason for the financial turnaround.


The blockbuster game against Collingwood at Telstra Stadium in Round 21, which attracted a record crowd of 72,393, resulted in a $1.1 million gate take.


Sydney and Collingwood meet again tomorrow in a much more low key affair at the Jock McHale Stadium for their Wizard Region challenge game.


However, the Swans-Pies stand alone game at Telstra Stadium on June 26 is shaping up as an annual $1m-plus golden egg for the club.



The other major factor for the financial turnaround was the club's savage cost cutting program that included slicing $2 million off the football department and a further $2 million from operating costs.


Despite the small trading profit the Swans recorded a net loss after "abnormals" of $1.418 million which is a $291,000 improvement on the bottom line compared to the $1.709 million net loss for 2002.


Those abnormals included restructuring cost of about $220,000 which includes some staff redundancies, a write-off of non-current assets worth $595,000 and depreciation of fixed assets including the Swans multi-million dollar office and training facilities at the SCG. That figure was calculated at $670,000.


"We are essentially cleansing the balance sheet," said Baron-Hay.


"But what we really want to focus people on is the operating profit because that really is the best measure of how you are tracking."


With membership up 18-20 per cent on last year and sponsorship up 10 per cent, Baron-Hay is now aiming for the Swans to break even for 2004 thus wiping out last year's $1.418 million net loss. "The early signs are encouraging," added Baron Hay

http://dailytelegraph.news.com.au/story.jsp?sectionid=1264&storyid=956570

[jixygirl]

It was great to hear on the Today Show this morning that the Swans earned a profit. That's slways better than a loss. The stand-alone Swans and Collingwood game will be a huge help this year, it's going to be huge!

[EMJ]

GOES TO SHOW HOW MUCH COLLINGWOODS AND ESSENDONS MAKE WITH THEIR BIG EVENT GAMES.

About time it was shared a bit more.

[Bear]

Very good news that we have recovered from a significant trading loss to a small trading profit...

We have not made a real 'profit' though.

We have a NET loss of around $1.4 million (after depreciation and abnormals). Whilst the turnaround is good, we need to make NET profits, and substantial ones at that, to be a real AFL 'super' club.