GEELONG'S planned training facility in the new suburb of Armstrong Creek has been delayed indefinitely, knocking almost $2 million off the club's balance sheet.

There was much fanfare when Cats announced plans for an elite training facility back in November, 2011.

Construction was expected to begin in June 2012 and be completed by early 2013.

The club was to be a high-profile tenant in the Keystone Business Park, with the training facility's construction costs to be met by the park's developers as part of a unique sponsorship arrangement.

The Cats were to own the freehold title to the complex – valued at $1.93 million – once it was completed.

However, the developers have struggled to lure businesses out to Keystone, and now the agreement with Geelong has been cancelled.

As a result, the Cats have taken the value of the training facility off their balance sheet.

"We're still working with Keystone to try and find a solution," Geelong chief executive Brian Cook told AFL.com.au. "That's important for us.

"But because Keystone has not been able to transfer some land to us at a particular point in time in a contract, it's basically meant that our auditors have said, 'You really haven't got an agreement and you need to write that off until a certain time in the future.'

"It's about working through that – getting another arrangement and hopefully getting a transfer of land to us as soon as possible.

"Keystone has had delays in planning approvals, and I think they've had some issues with getting enough businesses out there, yes."

Right now, there is no timeline as to when Geelong and Keystone might be in a position to strike a new agreement.

"There isn't, but you would hope that you would do it sooner rather than later," Cook said.

"While this outcome is obviously disappointing, the impact on the team’s training and preparation in the short term is minimal.

"The club continues to use Simonds Stadium as its central training base."

Despite the dramas with the training facility, the Cats have still been able to declare an operating profit of $148,000, which is down on last year's figure of $331,000.

The club's turnover was $56.1 million.

The major factors in the club's financial outcome include:

• An increase in membership of 2,720 to 42,920, and total seasonal seat sales of 21,700 at Simonds Stadium.
• Increased attendances at Simonds Stadium games, with an average of 26,850.
• An increase in profit from the club's overall commercial area of $1.4 million to $21.9 million.
• High gate returns from home games in Melbourne against Hawthorn and Essendon.
• Football department spending increased by 11 per cent from $19.2 million in 2012 to $21.4 million this year.

Although there were many positives for Geelong in 2013, Cook admitted, "It's been a really tough year, no doubt."

And it would have been much tougher had the club not received an injection of $1.5 million from the Geelong Cats Sports Foundation.

Still, the club is pushing ahead with its plan to further redevelop Simonds Stadium.

"Over the past decade, the club has invested over $13 million back into Simonds Stadium for stages 1-3 of the stadium’s redevelopment so far, and our debt for stages 2-3 is currently $4.9 million," Cook said.

"Whilst no doubt this is a good investment, our consistent operating profits over many years are not seen in our current bank balance.

"We also continue to invest in feasibility studies for stage 4, having spent over $500,000 in that area already."