Dear Members,
This year’s financial results have been finalised.
The report will detail the financial year results for the Brisbane Lions AFC, with the Club announcing a net operating loss of $1,855,926 for the year ending 31 October, 2011.
Before depreciation and interest costs, which predominantly relate to the Club’s major long-term investment, LIONS@springwood, the Lions generated a trading profit of $498,185.
It is important for the Board to communicate to our members and key stakeholders the factors that contributed to this loss.
While the loss was in line with expectations, it is certainly not what this Club wants, nor should accept as we build a sustainable business model engineered to achieve long-term success.
Importantly, the Board has overseen significant internal restructure and regeneration of the business over the past 12 months.
This has led to the development of a long-term vision that will be unveiled before the end of 2011. It has also put the Club on a path that will see it deliver long-term sustainable earnings and on-field success.
The key points of the 2011 Financial Report are:
- Total Club turnover of $42.3 million
- Social Club turnover of $12.6 million
- Football department expenditure of $16 million
- Trading Profit of $498,185 before depreciation and interest costs
From a football perspective, 2011 was a disappointing year, with crowd attendances and membership numbers reflective of that. Our fixture in 2011 also played a part in this reduction.
This ultimately had a direct impact on the Club’s bottom line.
Throughout 2011, the Club consulted members and supporters, with the feedback allowing us to shape new-look membership packages for 2012 as the big games return to the Gabba next year.
The outcome of that work is that memberships are now far easier to understand and purchase than ever before through our new membership mini-site www.membership.lions.com.au.
They also provide greater value for money than ever before with packages experiencing either a price freeze or reduction in cost.
Over 1,000 members have already renewed for 2012 since packages were made available late last week.
The more members that ANSWER TO THE CALL in 2012 the more we can invest into making the Club’s football operations and facilities the best in Australia.
The Club emerged in March 2011 from a significant transitional period of management when new CEO Malcolm Holmes was appointed.
That transitional period, the result of simultaneous reviews of the football and administration departments, also coincided with the devastating floods that struck south-east Queensland in January - a tragic event that affected a number of our members, sponsors and corporate partners.
Pleasingly, our social club, LIONS@springwood, has proven to be a financial success story for the business, as well as a tremendous community asset for the Logan region and its economy.
Importantly, with over 75,000 members already, LIONS@springwood will deliver an additional source of income for the Club that is not dependant on team performance.
We anticipate debt relating to LIONS@springwood will be repaid by 2015 as a result of an aggressive repayment schedule.
This will ensure continued growth for the Club’s major long-term investment.
Some of the other key strategies designed to grow the Brisbane Lions into the future include:
- A re-design of our hospitality offerings to provide our partners with a greater corporate experience
- A continued focus on match-day entertainment and placing our members at the centre of the experience
- A continued focus on community engagement activities (almost 800 community visits in 2011 compared to just over 400 in 2010) in Queensland, Victoria and other major centres
- The launch of our search for a new training and administration centre
- A continued investment in football operations to fast-track the development of an emerging list.
Last year’s review into our football operations and subsequent investment, which saw Dean Warren installed as General Manager - Football Operations, and Mark Harvey, Murray Davis and Jamie Charman recently added to Michael Voss’ coaching staff, played a major role in helping the Club retain a number of key young players.
I would like to take this opportunity, on behalf of the Board, to thank our members, sponsors and corporate partners for their ongoing commitment and support.
I would also like to thank the AFL for the role they played in assisting the Club to implement business turnaround measures aimed at delivering sustainable earnings.
The entire Club is under no illusion about the hard work that is still required but we are all absolutely committed to the plan.
I look forward to meeting with you soon at the AGM and trust you ANSWER TO THE CALL for 2012.
Go Lions.
Angus Johnson
Chairman - Brisbane Lions
