Key factors in the result include:
- Injury payments exceeding budget by $192,000
- $199,000 membership shortfall
- Increase in Football Department expenditure from $11.9 million in 2007 to $15.3 million in 2011
Chief Executive Officer Eugene Arocca said the results highlight the need for the club to increase membership numbers and initiate a debt reduction campaign.
“Member numbers need to improve and we strongly believe with the teams we currently have in place on and off the field, those figures will steadily rise. A poor start to the season and unfavourable commercial fixture had a significant negative impact on our 2011 budget in this area.
“We have started talking to members about contributing to a debt reduction program which will start next month and so far, the response has been overwhelmingly positive. Reducing debt has become the main focus of the club’s Board and administration. To reinforce this, it’s worth pointing out we paid more than $310,000 in interest due to our current debt level. We must start to bring that figure down immediately.
“Unfortunately we were hit very hard with injuries which had a direct impact on our bottom line to the tune of almost $200,000. Most of which were unpreventable collision type injuries or injuries carried over from the previous season.”
Arocca also pointed out two home games in Hobart each year from 2012 will give the club a significant uplift.
“Hobart is another big focus for North Melbourne and presents us with the opportunity to grow our business significantly in all areas.”
2011 financial report
