Essendon post $9.8 million loss
The Heraldsun reports that Essendon is going to report a 9.8 million dollar loss in 2016.
The loss includes $4.4 million in legal expenses and agreed compensation, $3.1 million from fallen revenues and $1.5 million for top-up players used in the 2016 season as cover for suspended players. There was some reduction in commercial revenues and match receipts.
Essendon chief executive Xavier Campbell said on Tuesday night: “There are three key areas which significantly impacted our loss, and all are direct results of the CAS decision.
“These included the player compensation claims, the associated costs of the short-term contracted player program, and the reduction in commercial revenues and match receipts.
“We have obviously experienced a unique set of challenges related to the CAS decision, but we ultimately have a sound business underpinned by a loyal and passionate supporter and corporate base, as a well as strong investments and broader cash flows.
“Clearly $9.8 million is a significant debt position, but we have confidence in our business model and key strategies moving forward to pay down the debt sooner rather than later.
“These financial statements include an adequate allowance for settlement of all expected claims made by current and former players.”
Key points of 2016 Financial Result:
- Net assets – $27,453,599
- Total Revenue – $53,499,545
- Membership Tally – 57,494
- Total debt position – $9,006,603
- Cash at bank – $2,904,392
