The Lions Board has adopted a highly conservative and prudent approach to the 'impairment' in value of the Club's shareholdings acting strictly in accordance with International Accounting Standards.
Accounting standards require that when there is a substantial reduction in the value of shareholdings that the change in value - or impairment - is recognised in the Club's profit and loss statement, even though this fall in value is a 'paper loss'.
This impairment of $2,006,911 together with actual net losses from the sale of other shareholdings of $208,055 forced the Lions' trading operating profit of $128,290 (before its annual AFLQ distribution) into a loss. The Board's approach to the Club's share portfolio is supported by the Club's auditors KPMG.
The Lions' independently managed equities portfolio was adversely affected by this extremely difficult season for investors compounded by the recent international economic crisis.
Pleasingly, the Lions' portfolio still provided increased dividends when compared to the dividends produced during the 2007 financial year.
The Lions Board and Chairman Tony Kelly remain very optimistic for Season 2009.
"Recording a financial loss is always disappointing, yet there would be few major organisations that have remained immune to the crunch in global markets and growing worldwide recession," Mr Kelly said.
"This result tells me that we run an operationally tight ship year-in and year-out and because we invest in the long-term, we hope that the value of our shares will return over the longer term."
Chairman Tony Kelly also added that there were still some positives to draw upon.
"Once again we are pleased to make a strong contribution of $113,354 to AFLQ to support their grassroots development of Queensland football. It was also pleasing to deliver an operating profit despite failing to reach the Finals and finishing tenth on the ladder for the second year running."
Poor crowd attendances at the Lions v Melbourne match held over the ANZAC long weekend and at the rain-affected Lions v North Melbourne match in the middle of three consecutive Gabba home games also played their part in the final result.
On the positive side, new memberships and membership renewals are tracking slightly up compared to this same time last year aided by an extraordinary take-up of September Member packages which guarantees members' access to AFL Grand Final tickets should the Lions participate.
This revenue should be well supported by sales of the Lions' new three-game membership packages for 2009 once all full season membership sales are exhausted.
"I think the Lions are the real 'x-factor' team for Season 2009 with new Senior Coach Michael Voss at the helm alongside sole Club Captain Jonathan Brown and his four new Vice Captains," Mr Kelly said.
"We finished tenth this year to underachieve and Vossy has certainly brought his 'game face' to his full revamp and re-energising of the entire Football Department."
"So I ask the public to get onboard - become a Lions member and join the rollercoaster ride for the hungry Lions of Season 2009. I can promise you we won't die wondering on the paddock so come along and see it for yourself live."
