A beautiful set of figures

by MICHEAL STEVEN

THE Collingwood Football Club recorded an operating profit of $1.56 million in 2002. And a review of the financial accounts for that year shows the club has consolidated its financially-secure position.

Cash receipts during the year totalled $24.66million while cash payments totalled $22.46million. Collingwood increased its total cash assets from $420,000 (2001) to $2.7 million (2002) enabling it to increase its total asset value from $6 million to $6.5 million. This was achieved despite writing off $1.66 million due to a re-assessment of the recoverable amount of property, plant and equipment.

When considering a move to Olympic Park one of the biggest obstacles for the Board was that building assets at Victoria Park were valued at approximately $5million despite the fact that the buildings are on Council-owned land in a poor commercial position. When Collingwood moves its headquarters to Olympic Park the buildings at Victoria Park will no longer be worth $5 million. They are also in a deteriorating condition and realistically require significant expenditure if they are to be maintained at an acceptable level. Since taking over as CEO, Greg Swan has overseen the write down of property, plant and equipment to less than $900,000. The biggest obstacle to moving from Victoria Park has been removed.

On the income side merchandise sales increased from $825,000 to $1.55million, marketing and sponsorship income grew from $8.4million to $9.7million and membership went up by $600,000 to $5.1million. Collingwood also received the first $300,000 instalment from the AFL as part of the $2 million to be distributed to the club over seven years following the sale of Waverley Park.

The business case for the move to Olympic Park will probably be discussed at the club's AGM later this year. The club is committed to fit out costs of up to $2million and has provided a bank guarantee of $200,000 as part of the Olympic Park lease agreement. Plans are also underway to develop a strong and permanent presence in the new northern stand of the MCG, all of which will provide new opportunities for income generation - albeit with the risk (and excitement) of the uncertainty of the unknown.

The young players at Collingwood Football Club are said to be thrilled to be part of the energetic vibrancy permeating all areas of its operation. From this position the football department led by Neil Balme, Michael Malthouse, Noel Judkins and a plethora of quality support staff can look to the future with real optimism.

GO PIES

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