The Sydney Swans announced a loss of $797,520 for the year ended 31 October 2008. The loss includes a provision of $500,000 for CLUB SWANS, a related entity. The operating cash loss for Sydney Swans was $220,000.

“The result was, in part, a reflection of the difficult economic environment in Sydney for sporting organisations across the board but also, as was highlighted in last year’s trading results, a function of some of the costs that are peculiar to operating an AFL team in Sydney,” Sydney Swans Chairman Richard Colless said.

Notwithstanding six consecutive years of finals appearances by the Sydney Swans, many of the Club’s key metrics including sponsorship, membership, match day attendees and merchandising had declined year on year.

While crowds at ANZ Stadium were down, averaging 46,000 last season, the Stadium remained critical to the Swans’ long-term financial wellbeing through being able to attract supporters from the Western Suburbs, Hills District and many regional centres.

”We continue to review our business model. The major issues continue to be that too large an amount of revenue is linked to on-field performance, and too high a percentage of our costs are fixed.  While we have consistently looked at a range of variations to the business model, including an investment into gaming and hospitality, the Board has no simple solution other than to contain costs,” Colless added.

“The business plan for 2009 incorporates cost reductions across the business.  Major cutting of costs in our football department would be an absolute last resort.  Over the past six years we have developed world class expertise in areas such as player development, training, medical and rehabilitation.  We believe this has provided us with significant benefits and we will do everything to ensure these programs are maintained.

”The fact that the Football Club carried no interest bearing debt gave it an enhanced capacity to handle the anticipated further softening of economic conditions.

“It is also worth noting that after adjusting for costs in our football department to take account of those costs specific to the Sydney market, our expenditure in football is very much in line with that of other AFL clubs.”