Annual Report 2011/12 - Melbourne Cricket Club
Annual Report 2011/12 - Melbourne Cricket Club
Annual Report 2011/12 - Melbourne Cricket Club
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
<strong>Annual</strong> <strong>Report</strong> <strong>2011</strong>/<strong>12</strong><br />
<strong>Melbourne</strong> <strong>Cricket</strong> <strong>Club</strong>
Our mission<br />
The <strong>Melbourne</strong> <strong>Cricket</strong> <strong>Club</strong> is a private club with public responsibilities.<br />
It has two primary roles:<br />
• Managing the MCG as the world’s best stadium for all people.<br />
• Providing the best services and facilities to its members while ensuring<br />
our unique sporting culture and heritage are enhanced and appreciated.<br />
STRATEGIC VISION<br />
The club’s strategic direction is underpinned by the following dimensions:<br />
• Improving the engagement we have with our members and waiting list candidates.<br />
• Destination MCG — giving people more reasons to visit, more often.<br />
• Environmental responsibility.<br />
• World-class MCG: The amenity upgrade continues.<br />
In achieving these initiatives, we recognise that we must continue to deliver excellence<br />
in all of our core operations.<br />
Our values<br />
Respect<br />
The club prides itself on the respect and esteem it has earnt over its long and prestigious<br />
history. As staff, we respect our work colleagues, their abilities and views. We work as<br />
a team towards a common goal.<br />
By pursuing excellence and using our people to constantly deliver on our promises, we<br />
will earn the respect of our colleagues, stakeholders, customers and the wider community.<br />
People<br />
People are the most important asset in our organisation. Our staff feel important through a<br />
variety of recognition programs and initiatives and are immensely proud of their involvement<br />
at such an iconic venue.<br />
Our staff enjoy their time at work and are recognised in a variety of ways for their<br />
performance. Integrity, honesty, loyalty and teamwork are the keys to providing a<br />
memorable customer service experience for our patrons and members.<br />
Heritage<br />
We will continue to develop the MCG into one of the world’s finest sporting stadiums<br />
and Australia’s greatest sporting icon, drawing on our history to reinforce its image as<br />
the People’s Ground.<br />
The club’s history, its rich and vast heritage collection and its culture will be observed,<br />
preserved and displayed for our members and visitors to savour.<br />
Excellence<br />
We are committed, collectively and as individuals, to strive for excellence at all times —<br />
using the best suited products and processes to deliver major events and consistently<br />
exceed expectations of service to our customers.<br />
We commit to improving the level of enjoyment for patrons, members and their guests<br />
while at the MCG.
President’s <strong>Report</strong><br />
PAUL SHEAHAN, PRESIDENT<br />
It’s my very great pleasure to present my second report as president of the club we love.<br />
In <strong>2011</strong> we enjoyed another extraordinarily<br />
successful season in the life of the club<br />
and, as a national and international venue<br />
for elite sport, there are few in the world that<br />
can match us. That will not lead to a sense<br />
of complacency of how good we are and how<br />
well we do things. Rather, it is recognition<br />
that we must continue to work hard to<br />
provide the benchmark by which others<br />
judge themselves.<br />
None of this happens without effort, of<br />
course, and the efforts of those who work at<br />
the club and at the ’G on a day-to-day basis<br />
astound me. Even though comparisons are<br />
odious, we can marvel at the architecture<br />
of the place and be immensely proud that<br />
we can match it with anything that may be<br />
thrown at us. In the end, though, it is my<br />
belief that it is the quality of the management<br />
and the interactions of people that are our<br />
greatest strengths.<br />
In that regard, I pay tribute to everyone<br />
who puts their mind to assessing their<br />
performance and continually trying to<br />
improve it. I pay tribute to the staff for the<br />
positive comments that come my way from<br />
members and visitors who are served with<br />
great care and attention to detail by those<br />
who work at the ground.<br />
At the risk of overlooking some, I pay<br />
special tribute to the ground staff under the<br />
direction of Cameron Hodgkins, who<br />
present the ground in impeccable condition<br />
day after day.<br />
After all, if we cannot produce a playing<br />
surface that players admire we are nothing.<br />
We can boast the latest in technology off the<br />
ground but it amounts to little if players<br />
grizzle about sub-standard playing conditions.<br />
In mastering the horticultural technology<br />
that allows cricket pitches to be lifted in and<br />
out of the surface and still produce some of<br />
the best wickets in the country, plus ensuring<br />
that the ground drains quickly and efficiently<br />
when it rains, the ground staff deserve our<br />
unalloyed praise… and I thank them sincerely<br />
for what they have achieved.<br />
Michael Happell ascended to the<br />
treasurership of the club somewhat earlier<br />
than he (or we!) might have expected with the<br />
rather sudden departure of his predecessor,<br />
Michael Andrew, to Hong Kong as global<br />
managing partner of KPMG.<br />
A measure of Michael’s intelligence and<br />
mastery of his “portfolio”, though, has<br />
been the way in which he has come to<br />
understand the club’s finances, seemingly with<br />
consummate ease. Charles Sitch and Mark<br />
Smith, two recent additions to the committee,<br />
have already shown that they are worthy of<br />
their positions, having made wise and astute<br />
observations and suggestions already.<br />
We shall need the expertise and intelligence<br />
of all three, in addition to the remainder of<br />
the committee, in making some important<br />
decisions about what lies ahead for the club.<br />
We are in the throes of trying to establish a<br />
base outside the ’G that members can say<br />
truly belongs to them and, while there are<br />
some options, it will require great skill and<br />
wise judgment to make the right decisions.<br />
On a different subject, the matter of grand<br />
final seating looms large for members. When<br />
we survey our membership, responses span<br />
the gamut from those who have suffered<br />
the vagaries of what the probability<br />
mathematicians call “random selection” and<br />
have missed out many times in a row, to those<br />
who might equally have missed out but say<br />
that the system is as fair as it can be.<br />
In the end, one needs the wisdom of<br />
Solomon to choose an answer that satisfies<br />
everyone. In fact it is not possible to satisfy<br />
everyone. Our aim is to make the system as<br />
fair and as accessible as possible. After much<br />
discussion, once again we have decided to<br />
Above: The MCG was again centre stage for<br />
the finale to the AFL season. A crowd of 99,537<br />
witnessed Geelong Cats defeat Collingwood<br />
in the <strong>2011</strong> grand final, registering its third<br />
premiership in five years.<br />
stick with the current system for 20<strong>12</strong>,<br />
but rest assured that the procedure is under<br />
review each year.<br />
One other matter should be raised.<br />
Recently there has been an unusually large<br />
number of instances of members lending<br />
cards. Without wishing to sound as though<br />
I’m issuing idle threats, I emphasise that I and<br />
your committee take a very dim view of this<br />
practice. I remind members of the<br />
responsibilities that attach to membership<br />
and that the Discipline Sub-committee will<br />
deal harshly with offenders.<br />
The football fixture is more than half<br />
completed and we have had a wonderful<br />
season. It has been a season of<br />
unpredictability and more than a handful of<br />
teams could take away the cup this year. Let’s<br />
hope what lies ahead is equally exciting!<br />
Paul Sheahan<br />
MCC <strong>Annual</strong> <strong>Report</strong> <strong>2011</strong>/<strong>12</strong><br />
1
MCC Committee <strong>2011</strong>/<strong>12</strong><br />
PAUL SHEAHAN<br />
PRESIDENT<br />
Joined the committee in 1987. Elected<br />
vice-president in 2003 and president in <strong>2011</strong>.<br />
Chairman of the Executive Sub-committee<br />
and ex-officio of all other sub-committees.<br />
A director of the MCC Foundation and<br />
National Sports Museum Ltd.<br />
DAVID CRAWFORD AO<br />
VICE-PRESIDENT<br />
Joined the committee in 1997. Elected treasurer<br />
in 2001 and vice-president in 2009. Chairman<br />
of the Ground Sub-committee. Joint Steering<br />
Committee chairman for Yarra Park and Great<br />
Southern Stand projects. A member of the<br />
Executive Sub-committee. A director of the<br />
MCC Foundation and National Sports<br />
Museum Ltd.<br />
PETER DAKIN<br />
Joined the committee in 2003. A member<br />
of the <strong>Club</strong>, <strong>Cricket</strong>, Ground and Finance &<br />
Audit sub-committees, a director of the MCC<br />
Foundation and a member of the National<br />
Sports Museum Advisory Board.<br />
WILL FOWLES<br />
Joined the committee in 2005. A member<br />
of the <strong>Club</strong>, Finance & Audit and MCC<br />
Foundation sub-committees and a<br />
director of the MCC Foundation.<br />
JANE NATHAN<br />
Joined the committee in 2004. A member<br />
of the Ground and MCC Foundation subcommittees<br />
and a director of the<br />
MCC Foundation.<br />
STEVEN SMITH<br />
VICE-PRESIDENT<br />
Joined the committee in 1998. Elected<br />
vice-president in <strong>2011</strong>. Chairman of the<br />
<strong>Club</strong> Sub-committee. Member of the<br />
Executive Sub-committee. A director of<br />
the MCC Foundation and National Sports<br />
Museum Ltd. A former <strong>Melbourne</strong> Football<br />
<strong>Club</strong> player.<br />
STEPHEN SPARGO<br />
VICE-PRESIDENT<br />
Joined the committee in 2000. Elected<br />
vice-president in <strong>2011</strong>. Chairman of the<br />
MCC Foundation Sub-committee and a<br />
member of the Executive Sub-committee.<br />
A director of the MCC Foundation and<br />
National Sports Museum Ltd.<br />
CHARLES SITCH<br />
Joined the committee in <strong>2011</strong>. A member<br />
of the MCC Foundation Sub-committee and<br />
a director of the MCC Foundation.<br />
MARK SMITH<br />
Joined the committee in <strong>2011</strong>. A member<br />
of the Finance & Audit Sub-committee and<br />
a director of the MCC Foundation.<br />
KAREN WOOD<br />
Joined the committee in 2009. A member<br />
of the <strong>Club</strong> Sub-committee and a director<br />
of the MCC Foundation.<br />
MICHAEL HAPPELL<br />
TREASURER<br />
Joined the committee in May <strong>2011</strong>. Appointed<br />
treasurer in August <strong>2011</strong>. Chairman of<br />
the Finance & Audit Sub-committee. A<br />
director of National Sports Museum Ltd.<br />
Member of the Executive and MCC<br />
Foundation sub-committees.<br />
TED YENCKEN<br />
Joined the committee in 2001. A member<br />
of the Ground Sub-committee and the Joint<br />
Steering Committee for Yarra Park and Great<br />
Southern Stand projects. A director of the<br />
MCC Foundation.<br />
DAVID CROW<br />
Joined the committee in 1993. Chairman of<br />
the <strong>Cricket</strong> Sub-committee and a member<br />
of the <strong>Club</strong>, Finance & Audit and MCC<br />
Foundation sub-committees. A director<br />
of the MCC Foundation.<br />
NOTES<br />
Michael Happell was appointed to the committee on May 10, <strong>2011</strong><br />
to fill the casual vacancy created by the retirement of David Meiklejohn.<br />
Peter Mitchell retired and vacated the committee on June 6, <strong>2011</strong>.<br />
Charles Sitch and Mark Smith were appointed to the committee in<br />
December, <strong>2011</strong> to fill casual vacancies created by the elevation of Michael<br />
Happell to treasurer and Stephen Spargo to vice-president.<br />
2 MCC <strong>Annual</strong> <strong>Report</strong> <strong>2011</strong>/<strong>12</strong>
MCC Senior Management<br />
STEPHEN GOUGH<br />
CHIEF EXECUTIVE OFFICER<br />
Overall responsibility for the delivery of the<br />
strategic plan, business plan and day-to-day<br />
operation of the club, MCG, National Sports<br />
Museum and Yarra Park via his senior<br />
management team. <strong>Report</strong>s to the<br />
MCC Committee and MCG Trust.<br />
SCOTT BUTLER<br />
GENERAL MANAGER,<br />
MEMBER AND CUSTOMER SERVICES<br />
Responsible for activities relating to MCC<br />
membership and club life, including functions,<br />
database management, customer service,<br />
event delivery and the club’s cricket, sporting<br />
sections and special interest groups. Oversees<br />
the organisation’s communications plan, main<br />
customer interface and delivery of the new<br />
membership system project. Manages activities<br />
associated with the MCC Foundation.<br />
TREVOR DOHNT<br />
GENERAL MANAGER,<br />
EVENT OPERATIONS<br />
Responsible for the planning and delivery of all<br />
major events staged at the MCG and to liaise and<br />
negotiate with existing and potential venue hirers.<br />
A member of the Great Southern Stand<br />
refurbishment project team and Yarra Park<br />
project team.<br />
CLIVE DRISCOLL<br />
GENERAL MANAGER,<br />
FINANCE AND INFORMATION SYSTEMS<br />
Administers the finances of the club’s entities,<br />
including reporting, financial performance<br />
management, investment, compliance and debt<br />
management. Delivers and maintains IT systems<br />
and network technology for the business.<br />
PETER FRENCH<br />
ASSISTANT TO CHIEF EXECUTIVE OFFICER<br />
Acts as an internal resource to the president,<br />
committee and chief executive officer on<br />
various projects and plans as required.<br />
GERARD GRIFFIN<br />
EXECUTIVE MANAGER,<br />
PROJECTS AND STRATEGY<br />
Responsible for the management of key projects,<br />
including the Great Southern Stand refurbishment<br />
and stadium theming and branding strategy.<br />
Co-ordinates the strategic planning process,<br />
including the club’s annual business plan and<br />
risk assessment system, as well as business<br />
improvement and analysis.<br />
REBECCA HARVEY<br />
EXECUTIVE MANAGER,<br />
HOSPITALITY<br />
Works with the club’s hospitality provider<br />
to review the food and beverage offerings<br />
throughout the MCG. Investigates opportunities<br />
to ensure the MCG provides innovative and quality<br />
products, as well as developing the venue’s<br />
function business.<br />
MARGARET BIRTLEY<br />
GENERAL MANAGER,<br />
HERITAGE AND TOURISM<br />
Oversees operation of the National Sports Museum<br />
and MCG Tours, key elements of the Destination<br />
MCG initiative, as well as the MCC Museum, MCC<br />
Library and MCC Archives. Responsible for the<br />
heritage collections owned by the club, National<br />
Sports Museum and MCG Trust.<br />
KATHRYN PILE<br />
GENERAL MANAGER,<br />
PEOPLE AND CULTURE<br />
Ensures that the MCC has a comprehensive<br />
and effective human resources system,<br />
including safety management, that supports<br />
the achievement of the club’s business<br />
plan objectives.<br />
LISA TRAINOR<br />
GENERAL MANAGER,<br />
COMMERCIAL OPERATIONS<br />
Responsible for the MCG’s marketing initiatives,<br />
including corporate sales, business development<br />
and commercial arrangements with sponsors,<br />
suppliers, advertising and merchandise. Leads<br />
Destination MCG strategic project group.<br />
TONY WARE<br />
EXECUTIVE MANAGER,<br />
ENVIRONMENT AND TURF DEVELOPMENT<br />
Responsible for the strategic initiative relating<br />
to environmental responsibility, including<br />
delivering the Yarra Park master plan, reducing<br />
the stadium’s carbon footprint and developing<br />
long-term solutions for the welfare of the MCG<br />
playing surface.<br />
PETER WEARNE<br />
GENERAL MANAGER,<br />
FACILITIES<br />
Responsible for the strategic and operational<br />
performance of the built assets at the MCG and<br />
other MCC-managed sites, including building<br />
services, security and turf management.<br />
A member of the Great Southern Stand<br />
refurbishment project team and Yarra Park<br />
project team.<br />
MCC <strong>Annual</strong> <strong>Report</strong> <strong>2011</strong>/<strong>12</strong><br />
3
Chief Executive’s <strong>Report</strong><br />
Stephen Gough, CEO<br />
Strong attendances, marquee events, a new cricket competition and two major<br />
construction projects were just some of the many features of <strong>2011</strong>/<strong>12</strong> for the<br />
<strong>Melbourne</strong> <strong>Cricket</strong> <strong>Club</strong>. It is my pleasure to outline here our key achievements.<br />
AFL<br />
The MCG was again pivotal to the success<br />
of the AFL in the <strong>2011</strong> season, with excellent<br />
attendances recorded at the home of football.<br />
The ground attracted 2,536,696 people to<br />
47 home and away matches at an average of<br />
53,572 per game, marginally ahead of the<br />
previous season.<br />
In addition, the MCG hosted the 25<br />
best-attended home and away matches,<br />
thanks to the strong form and large<br />
membership base of clubs such as<br />
Collingwood, Hawthorn, Geelong,<br />
Carlton, Richmond and Essendon.<br />
Seven of those matches exceeded<br />
80,000 fans — the most in a single<br />
season in VFL/AFL history.<br />
After six months’ jockeying for<br />
favouritism, the two standout teams,<br />
Geelong Cats and Collingwood, met at<br />
a wintry MCG on the first Saturday in<br />
October in the grand final.<br />
With 99,537 looking on, it was the Cats<br />
who triumphed by 38 points, kicking away<br />
with five goals to nil in the final term after<br />
three quarters of entertaining, high-pressure<br />
football befitting the occasion.<br />
Jimmy Bartel took out the Norm Smith<br />
Medal to sit alongside his club’s third<br />
premiership in five years. We congratulate<br />
Geelong Cats on a deserved victory.<br />
The MCG hosted seven finals (including<br />
the grand final), culminating in a total<br />
attendance for the season of 3,069,471.<br />
This figure almost mirrors the 2010 season,<br />
which contained an extra grand final.<br />
CRICKET<br />
The MCG hosted the Boxing Day Test,<br />
a Twenty20 international, two one-day<br />
internationals and four T20 Big Bash<br />
Australia celebrates the dismissal<br />
of India’s Virender Sehwag on Day 2<br />
of the <strong>2011</strong> Boxing Day Test.<br />
League (BBL) matches in the <strong>2011</strong>/<strong>12</strong><br />
cricket season, attracting 420,178 patrons.<br />
The ground also hosted Victorian<br />
Bushrangers’ matches in the Sheffield<br />
Shield and 50-over competitions.<br />
The new, eight-team BBL — played<br />
predominantly in December and January<br />
to capture school holiday audiences —<br />
Highest AFL home and away attendances at the MCG in <strong>2011</strong><br />
Attendance Match dAte<br />
89,626 Essendon v Collingwood April 25<br />
88,181 Collingwood v Carlton April 8<br />
85,936 Carlton v Collingwood July 16<br />
85,705 Collingwood v Geelong Cats September 2<br />
83,985 Collingwood v Hawthorn July 3<br />
83,563 Richmond v Essendon May 21<br />
81,691 Geelong Cats v Collingwood May 13<br />
78,579 Hawthorn v Geelong Cats April 26<br />
78,065 Carlton v Essendon April 16<br />
75,998 <strong>Melbourne</strong> v Collingwood June 13<br />
contained two teams in <strong>Melbourne</strong>. The<br />
Shane Warne-inspired <strong>Melbourne</strong> Stars<br />
called the MCG home, with <strong>Melbourne</strong><br />
Renegades based at Etihad Stadium.<br />
The return of champion leg-spinner<br />
Warne after a five-year hiatus was an<br />
understandable attraction to fans young<br />
and old. The 42-year-old didn’t disappoint<br />
either, and his commentary while bowling<br />
gave television viewers a fascinating insight<br />
into Warne’s reading of the game and<br />
confidence in his skills.<br />
Almost 110,000 people attended the<br />
Stars’ four MCG matches, including more<br />
than 40,000 for the “derby” between the<br />
two <strong>Melbourne</strong> teams that was<br />
unfortunately abandoned mid-match due<br />
to rain. We look forward to the second<br />
instalment of this competition next summer.<br />
The Boxing Day Test, though, remains the<br />
heartbeat of the MCG cricket season and so<br />
it was when a rebuilding Australia hosted a<br />
much-vaunted India team.<br />
The build-up contained plenty of hype, as<br />
India’s maestro Sachin Tendulkar attempted<br />
to become the first batsman to score 100<br />
4 MCC <strong>Annual</strong> <strong>Report</strong> <strong>2011</strong>/<strong>12</strong>
Geelong Cats players Corey Enright,<br />
Andrew Mackie, Tom Lonergan,<br />
Harry Taylor and Matthew Scarlett<br />
with the <strong>2011</strong> AFL premiership cup.<br />
international centuries. A large Indian<br />
media contingent, and a considerable<br />
portion of the 70,068 crowd on the first<br />
day, had come to witness cricket history.<br />
It was not to be, with Tendulkar scoring<br />
73 and 32 as Australia’s bowlers dominated<br />
India’s star bats to win by <strong>12</strong>2 runs. It<br />
would start a trend that would continue<br />
throughout the series, as the home side<br />
secured a 4-0 victory.<br />
Not to be forgotten is Ricky Ponting.<br />
The Tasmanian moved into second place<br />
(behind Bradman) on the MCG Test runs list<br />
during the Boxing Day Test with 1338 runs<br />
at 58.17.<br />
The match attendance of 189,347 was<br />
the highest for a Test between the two countries<br />
anywhere in Australia, reflecting the popularity<br />
of the game’s oldest form and the rivalry of the<br />
two teams. It was also the fifth-highest MCG<br />
Test crowd in the last 30 years.<br />
That play was possible at all on Boxing Day,<br />
let alone on time, was remarkable considering<br />
the massive thunderstorm on Christmas Day<br />
and subsequent 40mm of rain absorbed by the<br />
magical MCG outfield.<br />
We commend Cameron Hodgkins and his<br />
team for the quality of the arena and pitch<br />
presented for play, which was validated by<br />
feedback from players, match officials and<br />
<strong>Cricket</strong> Australia.<br />
Australia also played two 50-over contests<br />
at the MCG, against India and Sri Lanka, as<br />
well as a Twenty20 international clash with<br />
India which attracted 62,275 fans.<br />
OPERATING RESULTS<br />
The club recorded a net profit for the financial<br />
year ending March 31, 20<strong>12</strong> of $24.575<br />
million, which was strongly impacted by<br />
government grants of $14 million for the<br />
Great Southern Stand and Yarra Park<br />
landscape projects. We continue to meet our<br />
obligations with respect to the redevelopment<br />
debt, which stands at $280.383 million.<br />
YARRA PARK<br />
The MCC’s second year charged with the<br />
responsibility of day-to-day management<br />
of Yarra Park involved major developments<br />
that will underpin the long-term health<br />
of the parkland and improve its amenity.<br />
Chief among these was construction<br />
of Victoria’s largest underground Water<br />
Recycling Facility (WRF) in Yarra Park<br />
adjacent to the MCG. The facility, built by<br />
Tenix, will treat sewage to Class A recycled<br />
water standards. The $24 million project has<br />
MCC ($18 million) funding the WRF and State<br />
Government of Victoria providing $6 million<br />
for landscaping work in Yarra Park.<br />
This water will then be reused primarily<br />
as irrigation in Yarra Park, for cleaning<br />
and toilet flushing at the MCG, as well as<br />
nearby Punt Road Oval. The plant will be<br />
able to produce more than 600 kilolitres<br />
of recycled water per day.<br />
As one of the first of its type in Victoria, the<br />
recycling facility has been built underground,<br />
out of public view, without taking away from<br />
valuable surface land use or park amenity.<br />
Construction is scheduled for completion in<br />
late-July/early-August 20<strong>12</strong>.<br />
In line with the MCC’s master plan<br />
for Yarra Park, work during the year also<br />
commenced on the re-establishment of<br />
avenues of trees, selected tree planting<br />
and additional mulching, new garden<br />
MCC <strong>Annual</strong> <strong>Report</strong> <strong>2011</strong>/<strong>12</strong><br />
5
RIGHT: Construction of a below-ground water<br />
recycling facility in Yarra Park is a major<br />
component of the MCC’s plan to restore the<br />
health of the parkland adjacent to the MCG.<br />
beds and large-scale upgrades to the<br />
park’s irrigation system.<br />
GREAT SOUTHERN STAND<br />
Work on a $55 million upgrade of the<br />
MCG’s Great Southern Stand started<br />
shortly after the <strong>2011</strong> AFL Grand Final.<br />
Construction Engineering is the<br />
project builder.<br />
The upgrade, funded by a $30 million<br />
contribution from the Victorian<br />
Government and $25 million from MCC,<br />
will improve the patron experience across<br />
all four levels of the Great Southern Stand.<br />
Refurbishment of the stand involves<br />
improved entry points at gates 4, 5, 6 and<br />
7, with an emphasis on open, light spaces<br />
similar to the northern side of the stadium.<br />
There will also be kitchen upgrades,<br />
improved food and beverage outlets<br />
(including food courts), new toilet<br />
facilities and upgrades to infrastructure<br />
services, audio-visual systems and signage.<br />
The AFL Members Reserve is also being<br />
improved, with upgrades to several existing<br />
areas such as the Bunton, Wills and Legends<br />
rooms, as well as creation of a 500-seat<br />
function room on Level 2.<br />
The majority of the project is expected<br />
to be completed prior to September, 20<strong>12</strong>.<br />
AUSTRALIA POST AVENUE OF LEGENDS<br />
A significant off-field highlight was Shane<br />
Warne joining an illustrious group of<br />
sporting legends when he unveiled his<br />
statue outside the MCG on December<br />
22, <strong>2011</strong>.<br />
Warne was watched on by his family,<br />
former teammates and hundreds of adoring<br />
fans as he revealed the one-and-a-half-times<br />
life-size bronzed sculpture of himself in<br />
classic leg-spin pose.<br />
The Louis Laumen work was the first<br />
statue commissioned in the Australia Post<br />
Avenue of Legends project.<br />
The joint initiative will see a minimum of<br />
five statues placed in Yarra Park, extending<br />
from the MCC members’ entrance along an<br />
avenue towards Wellington Parade.<br />
A statue of legendary VFL player and<br />
coach Norm Smith, created by sculptor<br />
Lis Johnson, is due to be unveiled in<br />
late-September.<br />
We are delighted to partner Australia<br />
Post in this initiative to further preserve<br />
and celebrate our rich sporting heritage.<br />
MCC MEMBERSHIP<br />
Membership intake<br />
The election of Full members in July <strong>2011</strong><br />
comprised candidates on the waiting list<br />
nominated from January 1, 1989 to<br />
April 30, 1989.<br />
Waiting list candidates nominated<br />
from June 1, 1995 to August 31, 1995<br />
inclusive were offered Restricted or<br />
Restricted Junior membership.<br />
Members by category<br />
at August 31, <strong>2011</strong><br />
Full 61,500<br />
Restricted 41,000<br />
Total 102,500<br />
Waiting List 217,000<br />
CRM system<br />
In March 20<strong>12</strong> the MCC completed a<br />
transfer of our membership system to a<br />
customer relationship management (CRM)<br />
system. This will allow us to better<br />
understand how members interact with the<br />
club. As we develop the system it may also<br />
give members greater input into how the<br />
club communicates with them and enable<br />
the club to tailor offerings accordingly.<br />
The new system, developed by our<br />
contractors Avanade, will also bring a range<br />
of internal process and administrative<br />
benefits which, in turn, will help us deliver<br />
a more efficient and sophisticated level of<br />
service to our members.<br />
Functions<br />
The club again held a number of<br />
entertaining functions for members and<br />
guests. These included The Bradman<br />
Luncheon, Members’ Dinner, Football<br />
Season Launch Luncheon, Brownlow<br />
Dinner with the Coodabeens, Test match<br />
breakfasts, golf days, induction functions<br />
for new members and luncheons for our<br />
volunteers and 50-year members.<br />
The annual Members’ Dinner on<br />
December 9 was a stand-out. Former<br />
Marylebone secretary and current SACA<br />
CEO Keith Bradshaw proposed the toast<br />
to cricket and few could be better qualified<br />
to respond than Greg Chappell, former<br />
Australian captain, champion batsman<br />
and international coach.<br />
There were also several new functions on<br />
the calendar. The Norm Smith Oration was<br />
held on June 7, <strong>2011</strong> as former <strong>Melbourne</strong><br />
captain Garry Lyon and media legend Tony<br />
Charlton paid tribute to the game of<br />
football. The event is about football<br />
and what it means to Australians and is<br />
appropriately named in honour of one of<br />
the game’s legends.<br />
Meanwhile, in a successful new initiative,<br />
two Comedy @ the ’G events were well<br />
received by members and guests during the<br />
6 MCC <strong>Annual</strong> <strong>Report</strong> <strong>2011</strong>/<strong>12</strong>
<strong>2011</strong> season, with two full houses packing<br />
into the Hans Ebeling Room for a pre-game<br />
laugh. This format has been expanded in<br />
20<strong>12</strong> with a large-scale comedy event held<br />
in the Members Dining Room on April 20<br />
to rave reviews.<br />
MCC <strong>Cricket</strong><br />
While our First XI bowed out in the quarter<br />
finals, the club continued its strong record<br />
in the lower grades of <strong>Cricket</strong> Victoria’s<br />
Premier <strong>Cricket</strong> competition.<br />
The Second XI won its fifth flag in 10<br />
years, while the Third XI secured a treble<br />
of titles and its seventh premiership in <strong>12</strong><br />
years. The Fourth XI, meanwhile, had to<br />
be content with runners-up in their drawn<br />
match against the higher-ranked Northcote.<br />
The club also commenced along the path<br />
towards fielding a women’s cricket team for<br />
the first time, with plans to compete in the<br />
Victorian Women’s <strong>Cricket</strong> Association<br />
in 20<strong>12</strong>/13.<br />
Sporting Sections/Special<br />
Interest Groups<br />
A significant addition to the MCC<br />
representative sport stable was the introduction<br />
during the year of netball as a special interest<br />
group, containing teams wearing the club<br />
colours for the first time. Three MCC teams<br />
took to the court in the Parkville Netball<br />
Association, with our A1 side securing a<br />
premiership in its inaugural season.<br />
In time, it is hoped that netball will join<br />
the ranks of the club’s sporting sections —<br />
baseball, bowls, croquet, football, golf,<br />
hockey, lacrosse, real tennis, target<br />
shooting, squash and tennis. The club’s<br />
website and individual section websites<br />
record their performances in detail.<br />
The club’s other special interest groups<br />
— Bridge <strong>Club</strong>, Long Room Wine and Food<br />
Society, War Veterans Group, Women of<br />
MCC, XXIX <strong>Club</strong> and Young Members<br />
<strong>Club</strong> — continue to prosper. We encourage<br />
our members to become involved with the<br />
activities of these groups.<br />
TOP: A statue of cricketer<br />
Shane Warne was<br />
unveiled in Yarra Park<br />
on December 22, <strong>2011</strong><br />
as part of the Australia<br />
Post Avenue of Legends.<br />
BELOW: A new 500-seat<br />
dining room on Level<br />
2 of the AFL Members<br />
Reserve is a key feature<br />
of the $55 million<br />
refurbishment of the<br />
Great Southern Stand.<br />
Reciprocal club visits<br />
During the Boxing Day Test in late-December<br />
the MCC hosted <strong>Cricket</strong> <strong>Club</strong> of India (CCI)<br />
on its first Australian visit since 2003.<br />
The CCI played a 40-over match against<br />
the MCC XXIX <strong>Club</strong> at the Albert Ground<br />
on December 29, before taking on an MCC<br />
representative team on the MCG on<br />
December 31.<br />
The club also visited Hong Kong <strong>Cricket</strong><br />
<strong>Club</strong> in April, <strong>2011</strong>. Our cricketers and<br />
golfers competed as part of our reciprocal<br />
counterpart’s 160 th birthday celebrations.<br />
HERITAGE<br />
The National Sports Museum is home to<br />
Australia’s premier repository of sportsrelated<br />
collections, and is also manager<br />
of MCG Tours.<br />
The fourth year of operation saw the<br />
museum and MCG Tours receive visitation<br />
in excess of 135,000 people. A substantial<br />
MCC <strong>Annual</strong> <strong>Report</strong> <strong>2011</strong>/<strong>12</strong><br />
7
and “Football & Fun: caricatures, comics<br />
and children’s literature”. We also celebrated<br />
the 150th anniversary of International<br />
<strong>Cricket</strong> in Australia with Spiers & Pond’s<br />
sponsorship of the tour by H.H. Stephenson’s<br />
England XI for the 1861/62 season.<br />
A significant development during the year<br />
was finalisation of an MCC Archives Access<br />
Policy, which sets out the procedures<br />
relating to use of the archives by the public<br />
as a research tool. Access commenced in<br />
April, 20<strong>12</strong>.<br />
Our volunteer personnel continued to<br />
play a vital role in the ongoing delivery of<br />
the NSM, MCG Tours, MCC Library and<br />
MCC Archives. Their generosity of time<br />
and commitment is sincerely appreciated.<br />
PARTNERS/SUPPLIERS<br />
The club is very grateful for the support of<br />
the ground’s key commercial Icon partners<br />
Coca-Cola Amatil, Herald & Weekly Times<br />
and Foster’s Group. We also wish to<br />
recognise National Australia Bank, whose<br />
formal Icon partnership ended during<br />
the year.<br />
We maintained strong commercial<br />
relationships with a number of licensees,<br />
partners, contractors and suppliers. Among<br />
them are Spotless/Epicure, Ticketek, Stadia<br />
Media, The Promotions Factory, Patties<br />
Foods, Cadbury, Tabcorp Holdings,<br />
Treasury Wine Estates, Nestlé Peters Ice<br />
Cream, Simplot Australia, Mars Food<br />
Australia (Masterfoods), The Smith’s<br />
Snackfood Company, Douwe Egberts<br />
and Don KRC.<br />
We also welcomed McDonald’s as<br />
a new partner during the year.<br />
TOP: The National Sports Museum at the MCG continues to develop into a top-class tourist attraction for<br />
visitors of all ages. ABOVE: MCG Trust chairman John Wylie (left) and MCC president Paul Sheahan (centre)<br />
accept the Tour de France yellow victory bicycle from Cadel Evans in the Long Room on December 13, <strong>2011</strong>.<br />
increase in after-hours functions in the<br />
museum, and in tours by corporate groups,<br />
has contributed strongly to the business.<br />
We were delighted to receive a major<br />
loan from Australia’s first Tour de France<br />
champion, Cadel Evans, and his BMC<br />
Racing team. Evans presented the iconic<br />
yellow victory bicycle he used on the final<br />
day of his July <strong>2011</strong> win in Paris. The loan<br />
was arranged through MCG Trust chairman<br />
John Wylie to mark the 150th anniversary<br />
of the formation of the Trust.<br />
The museum’s program of temporary<br />
exhibitions and displays continued to<br />
provide additional attractions for visitors.<br />
In the ISS Exhibitions Gallery, the program<br />
featured two major new exhibitions:<br />
“Yilowa! Tiwi Footy” and “Hidden<br />
History of the MCG”.<br />
A range of themes was covered by focus<br />
case displays. Among them was a tribute<br />
to the career and life of boxing champion<br />
Lionel Rose, Australia’s achievements in the<br />
Tour de France, The Presidents Cup trophy,<br />
a celebration of the 20 th anniversary of the<br />
Wallabies’ first World Cup win and a tribute<br />
to the Sydney to Hobart Yacht Race.<br />
A new acquisition was also displayed —<br />
the shoes worn by Craig Alexander during<br />
his October <strong>2011</strong> World Championship win<br />
at the Hawaii Ironman.<br />
Ms Ponch Hawkes, a <strong>Melbourne</strong><br />
photographer, commenced her National<br />
Sports Museum Basil Sellers Creative Arts<br />
Fellowship for <strong>2011</strong>/<strong>12</strong>. The commitment<br />
of Mr Sellers to the fellowship program is<br />
much appreciated.<br />
With support from the Australian<br />
Communication Exchange, the museum<br />
became the first organisation to introduce<br />
Smart Auslan, an innovation that provides<br />
an Auslan translation of the Museum’s<br />
existing audio tour onto the screen of a<br />
mobile phone. This is a breakthrough that<br />
benefits deaf and hearing-impaired patrons.<br />
MCC Library exhibitions during the year<br />
featured the third phase of “The Crooked<br />
Staffe: Four Centuries of <strong>Cricket</strong> in Print”<br />
ACKNOWLEDGEMENTS<br />
I am grateful for the assistance and advice<br />
provided during the year by MCC president<br />
Paul Sheahan and members of the MCC<br />
Committee. I congratulate former treasurer<br />
Michael Andrew for his contribution to the<br />
club in his short time on the committee and<br />
wish him well in his new role as<br />
international chairman of KPMG.<br />
I also wish to acknowledge the MCG<br />
Trustees, led by chairman John Wylie, as<br />
well as the State Government of Victoria<br />
and our key sporting partners — AFL,<br />
<strong>Cricket</strong> Australia and <strong>Cricket</strong> Victoria.<br />
The MCC management team, staff and<br />
volunteers are to be commended for their<br />
efforts during the year. It is a pleasure to<br />
lead such a competent and passionate group<br />
of people.<br />
To our members, thank you for your<br />
ongoing commitment to the club. May<br />
you continue to enjoy all that our great<br />
club has to offer.<br />
Stephen Gough<br />
Chief Executive Officer<br />
8 MCC <strong>Annual</strong> <strong>Report</strong> <strong>2011</strong>/<strong>12</strong>
<strong>Melbourne</strong> <strong>Cricket</strong> <strong>Club</strong><br />
& Controlled Entities<br />
<strong>Annual</strong> Concise Financial <strong>Report</strong><br />
for the year ended 31 March 20<strong>12</strong><br />
Important Information for Members<br />
The Committee <strong>Report</strong>, Concise Financial <strong>Report</strong> and Auditor’s<br />
<strong>Report</strong> contained within this document represent a Concise <strong>Report</strong>.<br />
Members wishing to receive the full financial report and Auditor’s<br />
<strong>Report</strong> may arrange delivery by calling the <strong>Melbourne</strong> <strong>Cricket</strong> <strong>Club</strong><br />
office on (+61 3) 9657 8888.<br />
The Concise <strong>Report</strong> contained within this document has been<br />
derived from the full financial report of the <strong>Melbourne</strong> <strong>Cricket</strong> <strong>Club</strong><br />
& Controlled Entities for the financial year ended 31 March 20<strong>12</strong> and<br />
cannot be expected to provide as full an understanding of the financial<br />
performance, financial position and operating, financing and investing<br />
cash flows of the consolidated entity as the full financial report.<br />
MCC <strong>Annual</strong> <strong>Report</strong> <strong>2011</strong>/<strong>12</strong><br />
9
<strong>Melbourne</strong> <strong>Cricket</strong> <strong>Club</strong> & Controlled Entities<br />
Concise <strong>Report</strong><br />
Committee <strong>Report</strong><br />
Your Committee submit their report for the year ended 31 March 20<strong>12</strong>.<br />
Committee Members<br />
The names of the Committee Members of the <strong>Melbourne</strong> <strong>Cricket</strong> <strong>Club</strong><br />
(“the <strong>Club</strong>”) in office during the financial year and until the date of this<br />
report are as follows. Committee members were in office for the entire<br />
period unless otherwise stated.<br />
A. Paul Sheahan, David A. Crawford AO, Steven J. Smith, Stephen<br />
C. Spargo, David S. Crow, Peter A. Dakin, William D. Fowles, Jane<br />
L. Nathan, Karen J. Wood, Edward R. Yencken, Michael J. Andrew<br />
(resigned 1 December <strong>2011</strong>), Peter A. Mitchell (resigned 6 June <strong>2011</strong>),<br />
Michael J. Happell (appointed 17 May <strong>2011</strong>), Charles T. Sitch<br />
(appointed 13 December <strong>2011</strong>) and Mark G. Smith (appointed<br />
13 December <strong>2011</strong>).<br />
Nature of Operations and Principal Activities<br />
The principal activities of the <strong>Club</strong> during the year were the ground<br />
management of the <strong>Melbourne</strong> <strong>Cricket</strong> Ground (“MCG”) and the<br />
encouragement and promotion of sport. The <strong>Club</strong> also performs<br />
the role of the Reserve Manager of Yarra Park.<br />
There was no significant change in the nature of these activities<br />
during that period.<br />
Results and Review of Operations<br />
The consolidated net profit of the <strong>Club</strong> and its controlled entities<br />
amounted to $24.575 million compared with a net profit of the<br />
previous year of $11.529 million. This result has been enhanced<br />
by State Government grant income of $14.000 million (<strong>2011</strong>:<br />
$8.000 million) for the Great Southern Stand Improvement<br />
Project and Yarra Park Landscape Upgrade.<br />
MCG events were again very well patronised in <strong>2011</strong>/<strong>12</strong>. The<br />
introduction of the Big Bash League and a successfully conducted<br />
Boxing Day Test against India boosted cricket season attendances.<br />
Football was also very well supported with over 3.1 million patrons<br />
attending matches, including seven finals. Consequently, event-related<br />
income remains strong and members contributions to the gate are<br />
a significant expense.<br />
The <strong>Club</strong>’s management of Yarra Park resulted in a net surplus of<br />
$1.365 million (<strong>2011</strong>: $1.047 million). As required under legislation<br />
the surplus will be spent on the operation, maintenance and<br />
improvement of Yarra Park. These monies support the approved<br />
‘Master Plan’ for Yarra Park which includes major improvements<br />
to irrigation, grasses, soils, and landscaping works.<br />
A new membership database entitled “Affinity” has been developed<br />
and implemented to enhance our data collection, management and<br />
service to members. The <strong>Club</strong> will continue to develop value added<br />
enhancements to this system over coming years.<br />
Much progress was made on the Great Southern Stand Improvement<br />
Project during the year, and the standard of facilities and amenities has<br />
increased significantly. This project will be completed during 20<strong>12</strong>/13<br />
and the <strong>Club</strong>’s contribution after receipt and expenditure of<br />
Government grants is $25.000 million.<br />
Construction of the Water Recycling Facility in Yarra Park continued<br />
during the year. Funded from <strong>Club</strong> operations and costing $18.200<br />
million, this major project will deliver recycled water to Yarra Park,<br />
the MCG and Punt Road Oval when completed.<br />
The <strong>Club</strong> continued to generate positive cash flows from its activities<br />
and will continue to monitor the cash flows and the ability to further<br />
reduce the <strong>Club</strong>’s debt.<br />
The net operating result of the parent entity is materially in line<br />
with the results of the consolidated entity.<br />
10 MCC <strong>Annual</strong> <strong>Report</strong> <strong>2011</strong>/<strong>12</strong>
<strong>Melbourne</strong> <strong>Cricket</strong> <strong>Club</strong> & Controlled Entities<br />
Concise <strong>Report</strong><br />
Committee <strong>Report</strong> (continued)<br />
Significant Changes in the State of Affairs<br />
There have been no significant changes in the <strong>Club</strong>’s state<br />
of affairs during the financial year.<br />
Significant Events after the Balance Date<br />
There have been no significant events occurring after balance<br />
date, which may affect either the <strong>Club</strong>’s operations, or results<br />
of those operations, or the <strong>Club</strong>’s state of affairs.<br />
Likely Developments and Expected Results<br />
The Committee does not expect any significant changes to<br />
the operations of the <strong>Club</strong>.<br />
Environmental Regulation and Performance<br />
The <strong>Club</strong> has completed an Environmental Management Plan and<br />
system for the MCG to ISO 14001 guidelines. The plan establishes<br />
guidelines for energy, water and waste management and is constantly<br />
under review to account for legislative requirements and changing<br />
social expectations. Findings from the Greener Government Buildings<br />
Program will further inform the Environmental Management Plan.<br />
Major undertakings during <strong>2011</strong>/<strong>12</strong> include the creation of a sports<br />
lighting model for improved lighting assessment, the progression of<br />
the Water Recycling Facility (90% completed), the progress of the<br />
Greener Government Building Program to the Detailed Facilities<br />
Study Stage, the installation of a Class A water distribution system,<br />
updating the process of waste recycling and management and the<br />
introduction of annual venue environmental audits as part of<br />
reporting to the Department of Climate Change through the<br />
National Greenhouse and Energy <strong>Report</strong>ing System.<br />
Security<br />
Given the MCG’s status as an iconic event venue in Australia, the <strong>Club</strong><br />
has placed high importance upon the management and mitigation of<br />
security risk issues. Accordingly, several strategic security management<br />
initiatives are ongoing. These measures have enhanced the safety of<br />
ground users on event and non-event days. The Committee and <strong>Club</strong><br />
management will continue to develop and implement security risk<br />
reduction strategies.<br />
Safety<br />
The <strong>Club</strong> provides a strong focus on Occupational Health and Safety<br />
at the MCG. This is evidenced by the <strong>Club</strong> maintaining its Advanced<br />
SafetyMAP accreditation following the annual independent audit.<br />
SafetyMAP covers Committee, staff, contractors and MCG<br />
tenants and is always under review.<br />
The review of policies and procedures occurs regularly through<br />
reporting to the Committee and its Sub-Committees, management<br />
and staff and Health and Safety Committee.<br />
Indemnification and Insurance<br />
of Committee Members<br />
The <strong>Club</strong> provided and paid premiums for Directors and Officers<br />
Liability and Legal Expenses insurance contracts, covering members<br />
of the Committee, and the Directors, Executives and Statutory<br />
Officers of the <strong>Club</strong>.<br />
The insurance is in respect of legal liability for damages and legal<br />
costs arising from claims made by reason of any omission or acts (other<br />
than dishonesty) by them, whilst acting in their individual or collective<br />
capacity as members of the Committee or officers of the <strong>Club</strong>.<br />
The total amount of insurance contract premiums paid during<br />
the period was $46,500.<br />
Rounding<br />
The financial report is presented in Australian dollars and all values<br />
are rounded to the nearest thousand dollars ($’000) under the option<br />
available to the <strong>Club</strong> under ASIC Class Order 98/0100. The <strong>Club</strong> is<br />
an entity to which the Class Order applies.<br />
Signed in accordance with a resolution of the Committee.<br />
Paul Sheahan<br />
President<br />
Michael J. Happell<br />
Treasurer<br />
<strong>Melbourne</strong>, 6 July 20<strong>12</strong><br />
MCC <strong>Annual</strong> <strong>Report</strong> <strong>2011</strong>/<strong>12</strong><br />
11
<strong>Melbourne</strong> <strong>Cricket</strong> <strong>Club</strong> & Controlled Entities<br />
Concise <strong>Report</strong><br />
Consolidated Statement of Comprehensive Income<br />
Year Ended 31 March 20<strong>12</strong> notes Consolidated<br />
20<strong>12</strong> <strong>2011</strong><br />
$000 $000<br />
Revenue 3 <strong>12</strong>3,982 118,295<br />
Other income 23,985 18,794<br />
Total Income 3 147,967 137,089<br />
Arena expenses (5,619) (5,618)<br />
Facilities expenses (13,932) (<strong>12</strong>,431)<br />
Commercial Operations expenses (8,331) (8,551)<br />
Member contributions to the gate (13,950) (16,470)<br />
Membership and Customer Services expenses (5,787) (5,976)<br />
Events Administration expenses (16,088) (15,841)<br />
Administration expenses (10,241) (9,885)<br />
Depreciation expenses (25,118) (26,167)<br />
National Sports Museum Limited (“NSM”) expenses (3,016) (2,750)<br />
Yarra Park expenses (1,845) (1,806)<br />
Finance costs expense (19,465) (20,065)<br />
Total Expenses (<strong>12</strong>3,392) (<strong>12</strong>5,560)<br />
Net Profit for the period 24,575 11,529<br />
Other Comprehensive Income<br />
Changes in fair value of cash flow hedge 684 (499)<br />
Other comprehensive Income / (loss) for the period 684 (499)<br />
Total comprehensive income for the period 25,259 11,030<br />
<strong>12</strong> MCC <strong>Annual</strong> <strong>Report</strong> <strong>2011</strong>/<strong>12</strong>
<strong>Melbourne</strong> <strong>Cricket</strong> <strong>Club</strong> & Controlled Entities<br />
Concise <strong>Report</strong><br />
Discussion and Analysis<br />
– Consolidated Statement of Comprehensive Income<br />
TRENDS IN REVENUES AND EXPENDITURES<br />
Income<br />
Total consolidated income increased from $137.089 million in<br />
<strong>2011</strong> to $147.967 million in 20<strong>12</strong> (see note 3 for further details).<br />
The major items contributing to this increase were:<br />
• Government grant income was received from the State Government<br />
of Victoria, $<strong>12</strong>.000 million (<strong>2011</strong>: $8.000 million) for the Great<br />
Southern Stand Improvement Project and $2.000 million for the<br />
Yarra Park Landscape Upgrade (<strong>2011</strong>: nil).<br />
• Event related revenue (including catering receipts) increased by<br />
$3.818 million due to continued strong MCG event attendances.<br />
Expenses<br />
Total consolidated expenses decreased by $2.168 million to $<strong>12</strong>3.392<br />
million. The key movements in expense categories were:<br />
• Member contributions to the gate decreased by $2.520 million,<br />
mainly due to the replay of the 2010 AFL Grand Final and the<br />
well attended 2010 Ashes cricket Test match.<br />
• Facilities expenses increased as work commenced on the Yarra Park<br />
Landscape Upgrade.<br />
• Some plant and equipment assets became fully depreciated in the<br />
current year, resulting in a reduction to total depreciation expenses<br />
of $1.049 million.<br />
MCC <strong>Annual</strong> <strong>Report</strong> <strong>2011</strong>/<strong>12</strong><br />
13
<strong>Melbourne</strong> <strong>Cricket</strong> <strong>Club</strong> & Controlled Entities<br />
Concise <strong>Report</strong><br />
Consolidated Statement of Financial Position<br />
At 31 March 20<strong>12</strong><br />
Consolidated<br />
20<strong>12</strong> <strong>2011</strong><br />
$000 $000<br />
Current Assets<br />
Cash and cash equivalents 50,788 47,488<br />
Trade and other receivables 15,087 16,351<br />
Other assets 1,376 1,135<br />
Total Current Assets 67,251 64,974<br />
Non-Current Assets<br />
Property, plant and equipment<br />
MCG building improvements 463,907 484,811<br />
Plant and equipment 13,881 13,217<br />
Software assets 7,026 -<br />
Work in progress 32,005 6,963<br />
Yarra Park assets 954 1,079<br />
NSM Collection assets 457 457<br />
Other assets - 34<br />
Derivative financial instruments 782 98<br />
Total Non-Current Assets 519,0<strong>12</strong> 506,659<br />
Total Assets 586,263 571,633<br />
Current Liabilities<br />
Trade and other payables 48,233 43,<strong>12</strong>1<br />
Interest bearing loans and borrowings 13,955 <strong>12</strong>,374<br />
Provisions 2,875 2,661<br />
Total Current Liabilities 65,063 58,156<br />
Non-Current Liabilities<br />
Trade and other payables 3,163 6,6<strong>12</strong><br />
Interest bearing loans and borrowings 266,428 280,641<br />
Provisions 317 191<br />
Total Non-Current Liabilities 269,908 287,444<br />
Total liabilities 334,971 345,600<br />
Net Assets 251,292 226,033<br />
Equity<br />
Accumulated funds 248,495 225,285<br />
Reserves 2,797 748<br />
Total Equity 251,292 226,033<br />
14 MCC <strong>Annual</strong> <strong>Report</strong> <strong>2011</strong>/<strong>12</strong>
CHANGES IN THE COMPOSITION<br />
OF ASSETS AND LIABILITIES<br />
Consolidated Net Assets increased by $25.259 million to $251.292 million.<br />
<strong>Melbourne</strong> <strong>Cricket</strong> <strong>Club</strong> & Controlled Entities<br />
Concise <strong>Report</strong><br />
Discussion and Analysis<br />
– Consolidated Statement of Financial Position<br />
Changes in Assets<br />
The major changes were:<br />
Current Assets<br />
• An increase in Cash assets of $3.300 million. Refer to Discussion<br />
and Analysis — Consolidated Statement of Cash Flows.<br />
Non-Current Assets<br />
• A decrease in MCG building improvements of $20.904 million<br />
due to depreciation applied to a stable asset base.<br />
• An increase in capital work in progress of $25.042 million, due<br />
to ongoing works on major projects, including the Great Southern<br />
Stand Improvement Project and the construction of a Water<br />
Recycling Facility in Yarra Park.<br />
• The capitalisation of the Affinity Membership System as software assets.<br />
Changes in Liabilities<br />
The major changes were:<br />
Current Liabilities<br />
• An increase in current payables due to a rise in trade payables<br />
relating to capital projects and income received in advance.<br />
Non-Current Liabilities<br />
• A decrease in interest bearing liabilities due to principal repaid<br />
on term loans associated with the MCG Redevelopment.<br />
• A decrease in trade and other payables of $3.449 million,<br />
representing a reduction in revenue received in advance.<br />
MCC <strong>Annual</strong> <strong>Report</strong> <strong>2011</strong>/<strong>12</strong><br />
15
<strong>Melbourne</strong> <strong>Cricket</strong> <strong>Club</strong> & Controlled Entities<br />
Concise <strong>Report</strong><br />
Consolidated Statement of Changes in Equity<br />
YEAR ENDED 31 MARCH 20<strong>12</strong><br />
CONSOLIDATED<br />
Accumulated Asset Revaluation Yarra Park Cash Flow Hedge Total<br />
Funds Reserve Reserve Reserve Equity<br />
$’000 $’000 $’000 $’000 $’000<br />
Balance at 1 April 2010 214,803 10 (2) 192 215,003<br />
Profit for the year 11,529 - - - 11,529<br />
Transfer to Yarra Park reserve (1,047) - 1,047 - -<br />
Other Comprehensive Income for the year - - - (499) (499)<br />
Total Comprehensive Income for the period 10,482 - 1,047 (499) 11,030<br />
Balance at 31 March <strong>2011</strong> 225,285 10 1,045 (307) 226,033<br />
Profit for the year 24,575 - - - 24,575<br />
Transfer to Yarra Park reserve (1,365) - 1,365 - -<br />
Other Comprehensive Income for the year - - - 684 684<br />
Total Comprehensive Income for the period 23,210 - 1,365 684 25,259<br />
Balance at 31 March 20<strong>12</strong> 248,495 10 2,410 377 251,292<br />
16 MCC <strong>Annual</strong> <strong>Report</strong> <strong>2011</strong>/<strong>12</strong>
<strong>Melbourne</strong> <strong>Cricket</strong> <strong>Club</strong> & Controlled Entities<br />
Concise <strong>Report</strong><br />
Discussion and Analysis<br />
– Consolidated Statement of Changes in Equity<br />
CHANGES IN THE COMPOSITION<br />
OF TOTAL EQUITY<br />
Consolidated total equity in the current year increased<br />
by $25.259 million to $251.292 million.<br />
The major equity movements during the year were:<br />
• The reported net profit of $24.575 million, and movement<br />
in the cash flow hedge reserve of $0.684 million.<br />
• Included in the total result is the transfer of the net surplus from<br />
Yarra Park activities of $1.365 million to the Yarra Park Reserve.<br />
This amount must be spent on the operation, management,<br />
maintenance and improvement of Yarra Park. Refer to Note 2(b)<br />
for the Yarra Park accounting policy.<br />
MCC <strong>Annual</strong> <strong>Report</strong> <strong>2011</strong>/<strong>12</strong><br />
17
<strong>Melbourne</strong> <strong>Cricket</strong> <strong>Club</strong> & Controlled Entities<br />
Concise <strong>Report</strong><br />
Consolidated Statement of Cash Flows<br />
YEAR ENDED 31 MARCH 20<strong>12</strong><br />
CONSOLIDATED<br />
20<strong>12</strong> <strong>2011</strong><br />
$000 $000<br />
Cash Flows from Operating Activities<br />
Receipts from operating activities (inclusive of GST) <strong>12</strong>0,036 111,417<br />
Payments to suppliers and employees (inclusive of GST) (77,967) (79,600)<br />
Interest received 2,781 2,490<br />
Interest paid (19,483) (20,585)<br />
Net Cash Flows from Operating Activities 25,367 13,722<br />
Cash Flows from Investing Activities<br />
Purchase of property, plant and equipment (33,421) (9,682)<br />
Contributions relating to MCG Redevelopment 6,100 5,294<br />
Contributions relating to Great Southern Stand Improvement Project <strong>12</strong>,000 8,000<br />
Contributions relating to the National Sports Museum - 1,750<br />
Contributions relating to Yarra Park Landscape Upgrade 2,000 -<br />
Net Cash Flows (used in) / FROM Investing Activities (13,321) 5,362<br />
Cash Flows from Financing Activities<br />
Contributions from related party 3,885 3,750<br />
Repayments of borrowings (<strong>12</strong>,631) (14,714)<br />
Net Cash Flows (used in) Financing Activities (8,746) (10,964)<br />
Net Increase in Cash and Cash Equivalents 3,300 8,<strong>12</strong>0<br />
Cash and cash equivalents at beginning of the year 47,488 39,368<br />
Cash and Cash Equivalents at End of the Year 50,788 47,488<br />
Discussion and Analysis<br />
– Consolidated Statement of Cash Flows<br />
CHANGES IN CASH FLOWS<br />
There was a net increase in consolidated cash holdings during<br />
the year totalling $3.300 million.<br />
The major changes in cash movements during the year included<br />
the following:<br />
• Grant funding received from the State of Victoria for major projects,<br />
namely $<strong>12</strong>.000 million for the Great Southern Stand Improvement<br />
Project and $2.000 million for the Yarra Park Landscape Upgrade.<br />
• Expenditure on property, plant and equipment increased in<br />
accordance with project work including the Great Southern<br />
Stand Improvement Project, the Water Recycling Facility<br />
in Yarra Park and the Affinity Membership System.<br />
• Receipts from operating activities increased in consequence of higher<br />
event and membership related revenues and net of working capital<br />
movements. Refer to Discussion and Analysis — Consolidated<br />
Statement of Comprehensive Income.<br />
18 MCC <strong>Annual</strong> <strong>Report</strong> <strong>2011</strong>/<strong>12</strong>
Notes to the Concise Financial Statements<br />
31 MARCH 20<strong>12</strong><br />
<strong>Melbourne</strong> <strong>Cricket</strong> <strong>Club</strong> & Controlled Entities<br />
Concise <strong>Report</strong><br />
1. Basis of Preparation of Accounts of the Concise<br />
Financial <strong>Report</strong><br />
The consolidated concise financial report has been prepared in<br />
accordance with the requirements of Accounting Standard AASB<br />
1039 Concise Financial <strong>Report</strong>s. The financial report is presented<br />
in Australian dollars.<br />
2. Summary of significant accounting policies<br />
(a) Basis of consolidation<br />
The consolidated financial statements are those of the consolidated<br />
entity, comprising the <strong>Club</strong>, MCC Nominees Pty Ltd (a subsidiary)<br />
and NSM (a controlled entity). The ultimate parent is the <strong>Club</strong>. The<br />
<strong>Club</strong> recognises the operations of NSM within its financial statements,<br />
but the Australian Gallery of Sport and Olympic Museum (“AGOS-<br />
OM”) Sporting Collection is an asset recorded in the financial<br />
statements of the <strong>Melbourne</strong> <strong>Cricket</strong> Ground Trust (“MCG Trust”).<br />
Amounts relating to the construction and fit out of NSM are<br />
recorded in the <strong>Club</strong>’s financial report as they are considered part<br />
of the MCG. There are no equity investments included in the parent<br />
entity relating to NSM.<br />
The financial statements of the subsidiary and the controlled entity<br />
are prepared for the same reporting period as the parent company,<br />
using consistent accounting policies.<br />
In preparing the consolidated financial statements, all intergroup<br />
balances and transactions, income and expenses and profit and losses<br />
resulting from intra-group transactions have been eliminated in full.<br />
The subsidiary and controlled entity are fully consolidated from<br />
the date on which control is transferred to the Group and cease to<br />
be consolidated from the date on which control is transferred out<br />
of the Group.<br />
The <strong>Melbourne</strong> <strong>Cricket</strong> <strong>Club</strong> Foundation Limited (“Foundation”),<br />
a company limited by guarantee, is categorised as a director related<br />
party and is not consolidated into the <strong>Club</strong>’s accounts. Established as<br />
a vehicle to encourage and promote the playing of sports and preserve<br />
and manage the Foundation’s Museum and Library, it has a distinctly<br />
separate purpose to the <strong>Club</strong>, which acts as the manager of the MCG<br />
under a management agreement with the MCG Trust and the State<br />
Government of Victoria.<br />
These agreements appoint and allow the <strong>Club</strong> to fulfil all of<br />
the responsibilities assigned to the MCG Trust under the Yarra<br />
Park Amendment Act as the Reserve Manager of Yarra Park.<br />
The <strong>Club</strong> has agreed a separate accounting policy with the<br />
MCG Trust that details those revenue and expense items that are<br />
received or incurred by the <strong>Club</strong> in the performance of their role<br />
as the Reserve Manager of Yarra Park. These amounts are included<br />
in the totals in the Statement of Comprehensive Income of the <strong>Club</strong>.<br />
The net surplus / (deficit) of these identified items is then transferred<br />
to a separate reserve as a sub-component of equity so that these<br />
amounts can be identified and spent on the operation, management,<br />
maintenance and improvement of Yarra Park.<br />
The <strong>Club</strong> has also recorded a number of Yarra Park plant and<br />
equipment assets that have been contributed by the MCG Trust<br />
for nil consideration.<br />
(b) Yarra Park<br />
Effective from 15 March 2010, the <strong>Melbourne</strong> <strong>Cricket</strong> Ground<br />
and Yarra Park Amendment Act 2009 (“Yarra Park Amendment Act”)<br />
appointed the MCG Trust as the Committee of Management for Yarra<br />
Park, thereby expanding the functions of the MCG Trust and specifying<br />
the management arrangements and the implementation of an<br />
improvements plan for Yarra Park.<br />
Under the Yarra Park Amendment Act, the MCG Trust also assumes<br />
responsibility for car parking arrangements, receiving advice from the<br />
Yarra Park Advisory Committee on the operation and management of<br />
Yarra Park, and the management of licences and contracts. Further, any<br />
money received by or on behalf of the MCG Trust in relation to Yarra<br />
Park may only be spent on the operation, management, maintenance<br />
and improvement of Yarra Park, and such monies received and spent<br />
must be separately accounted for in the financial report.<br />
The Yarra Park Amendment Act also allows the MCG Trust to<br />
delegate its functions and responsibilities for Yarra Park to the <strong>Club</strong><br />
and it has done so via the execution by the MCG Trust, the <strong>Club</strong> and<br />
the relevant Ministers of the State Government of Victoria through<br />
a formal Instrument of Delegation and Second Deed of Amendment<br />
to the MCG Management and Indemnity Deed.<br />
MCC <strong>Annual</strong> <strong>Report</strong> <strong>2011</strong>/<strong>12</strong><br />
19
<strong>Melbourne</strong> <strong>Cricket</strong> <strong>Club</strong> & Controlled Entities<br />
Concise <strong>Report</strong><br />
Notes to the Concise Financial Statements (continued)<br />
31 MARCH 20<strong>12</strong> CONSOLIDATED<br />
20<strong>12</strong> <strong>2011</strong><br />
$000 $000<br />
3. Income<br />
a) Revenue<br />
Revenue from sales 607 568<br />
Membership and Customer Services related revenue 45,059 43,442<br />
Event related revenue 33,452 29,634<br />
Commercial Operations revenue 25,749 26,280<br />
NSM revenues 3,517 3,348<br />
Yarra Park revenues 3,210 2,853<br />
AFL revenues 8,3<strong>12</strong> 8,195<br />
Interest income 2,781 2,490<br />
Other revenues 1,295 1,485<br />
<strong>12</strong>3,982 118,295<br />
b) Other income<br />
Distribution from the MCG Trust for repayment of debt 3,885 3,750<br />
MCG Redevelopment contributions 6,100 5,294<br />
NSM contributions - 1,750<br />
State Government of Victoria contribution – Great Southern Stand Improvement Project <strong>12</strong>,000 8,000<br />
State Government of Victoria contribution – Yarra Park Landscape Upgrade 2,000 -<br />
23,985 18,794<br />
Total income 147,967 137,089<br />
20 MCC <strong>Annual</strong> <strong>Report</strong> <strong>2011</strong>/<strong>12</strong>
<strong>Melbourne</strong> <strong>Cricket</strong> <strong>Club</strong> & Controlled Entities<br />
Concise <strong>Report</strong><br />
Notes to the Concise Financial Statements (continued)<br />
4. SUBSEQUENT EVENTS<br />
There have been no significant events occurring after balance date,<br />
which may affect either the <strong>Club</strong>’s operations, or results of those<br />
operations, or the <strong>Club</strong>’s state of affairs.<br />
5. Related Party Disclosures<br />
(a) The Committee Members of the <strong>Melbourne</strong> <strong>Cricket</strong> <strong>Club</strong><br />
and Controlled Entities during the financial year were:<br />
A. Paul Sheahan (President)<br />
David A. Crawford AO (Vice-President)<br />
Steven J. Smith (Vice-President)<br />
Stephen C. Spargo (Vice-President)<br />
Michael J. Happell (appointed 17 May <strong>2011</strong>,<br />
appointed Treasurer 16 August <strong>2011</strong>)<br />
David S. Crow<br />
Peter A. Dakin<br />
William D. Fowles<br />
Jane L. Nathan<br />
Karen J. Wood<br />
Edward R. Yencken<br />
Michael J. Andrew (resigned 1 December <strong>2011</strong>)<br />
Peter A. Mitchell (resigned 6 June <strong>2011</strong>)<br />
Charles T. Sitch (appointed 13 December <strong>2011</strong>)<br />
Mark G. Smith (appointed 13 December <strong>2011</strong>)<br />
No remuneration was paid to the Committee Members during the year.<br />
(b) The following related party transactions occurred during<br />
the financial year:<br />
(i) Transactions with other related parties<br />
a) MCG Trust<br />
The <strong>Club</strong> is party to a “Deed of Variation of Lease” with the MCG<br />
Trust pursuant to which, the <strong>Club</strong>’s existing tenancy of the MCG was<br />
extended until 31 March 2042 with an option to extend its lease over<br />
the members’ reserve for a further 25 years.<br />
Under a separate management agreement with the MCG Trust and<br />
the State of Victoria, the <strong>Club</strong>’s role as ground manager of the MCG<br />
has also been extended until 31 March 2042.<br />
During the year, the <strong>Club</strong> paid the MCG Trust $4.036 million<br />
(<strong>2011</strong>: $3.899 million) in respect of its lease rental of the MCG.<br />
The MCG Trust distributed $3.885 million to the <strong>Club</strong> for the<br />
repayment of term loans and amortising inflation indexed bonds<br />
(<strong>2011</strong>: $3.750 million).<br />
From time to time, the <strong>Club</strong> undertakes transactions on behalf<br />
of the MCG Trust. As at year-end, amounts receivable by the <strong>Club</strong><br />
from the MCG Trust were $0.003 million (<strong>2011</strong>: $0.0<strong>12</strong> million).<br />
Amounts owing to the <strong>Club</strong> are settled on 30 day terms and are<br />
non interest bearing.<br />
The MCG Trust has delegated its functions and responsibilities<br />
for the management of Yarra Park to the <strong>Club</strong>. It has done so via<br />
the execution by the MCG Trust, the <strong>Club</strong> and the relevant State<br />
Government of Victoria Ministers through a formal Instrument of<br />
Delegation and Second Deed of Amendment to the MCG Management<br />
and Indemnity Deed. These agreements appoint and allow the <strong>Club</strong><br />
to fulfil all of the responsibilities assigned to the MCG Trust under the<br />
Yarra Park Amendment Act as the Reserve Manager of Yarra Park.<br />
b) National Sports Museum<br />
From time to time, the <strong>Club</strong> undertakes transactions on behalf of<br />
NSM. As at year-end, amounts receivable by the <strong>Club</strong> from NSM<br />
were $0.198 million (<strong>2011</strong>: amounts payable by the <strong>Club</strong> $0.487<br />
million). Amounts owing to the <strong>Club</strong> and NSM are settled on<br />
30 day terms and are non interest bearing. These amounts are<br />
eliminated in the consolidated financial report.<br />
c) Other<br />
Key management personnel are determined to be the Chief Executive<br />
Officer, General Managers and Executive Managers of the <strong>Club</strong>.<br />
During the year, a total annual remuneration of $2,364,036 (<strong>2011</strong>:<br />
$2,344,622) was paid to these personnel for the services provided<br />
to the <strong>Club</strong>.<br />
(ii) Transactions with director-related entities<br />
The Foundation is a director related entity of the <strong>Club</strong> as there<br />
are common directorships.<br />
During the year, the <strong>Club</strong> remitted to the Foundation $4.021<br />
million (<strong>2011</strong>: $3.897 million) in line with the provisions of the<br />
amended Indemnity Deed between the MCG Trust and the <strong>Club</strong>.<br />
From time to time, the <strong>Club</strong> undertakes transactions on behalf of<br />
the Foundation. As at year-end, amounts receivable by the <strong>Club</strong> from<br />
the Foundation were $0.147 million (<strong>2011</strong>: $0.273 million). Amounts<br />
payable by the <strong>Club</strong> to the Foundation were nil (<strong>2011</strong>: $0.173 million).<br />
Amounts receivable by NSM from the Foundation at year end were nil<br />
(<strong>2011</strong>: $0.013 million).<br />
A number of the <strong>Club</strong>’s Committee members held directorships<br />
with other entities during the current year. Those entities entering<br />
into business transactions with the <strong>Club</strong> on normal commercial<br />
terms and conditions during the year were:<br />
Mr David A. Crawford AO<br />
- Chairman of Foster’s Group Limited<br />
- Director of BHP Billiton Limited<br />
Mr Michael J. Happell<br />
- Partner of PricewaterhouseCoopers partnership<br />
Mr Mark G. Smith<br />
- Director of Toll Holdings Limited<br />
These Committee members did not participate in the decisions to enter<br />
into business transactions with the <strong>Club</strong>.<br />
MCC <strong>Annual</strong> <strong>Report</strong> <strong>2011</strong>/<strong>12</strong><br />
21
In accordance with a resolution of the Committee of the <strong>Melbourne</strong><br />
<strong>Cricket</strong> <strong>Club</strong>, we state that:<br />
In the opinion of the Committee members:<br />
(a) the concise financial report of the consolidated entity for the year<br />
ended 31 March 20<strong>12</strong> is in accordance with Accounting Standard<br />
AASB 1039 Concise Financial <strong>Report</strong>s; and<br />
(b) the financial statements and specific disclosures included in this<br />
concise report have been derived from the full financial report<br />
for the year ended 31 March 20<strong>12</strong>.<br />
<strong>Melbourne</strong> <strong>Cricket</strong> <strong>Club</strong> & Controlled Entities<br />
Concise <strong>Report</strong><br />
Statement by the Committee<br />
On behalf of the Committee<br />
Paul Sheahan<br />
President<br />
Michael J. Happell<br />
Treasurer<br />
<strong>Melbourne</strong>, 6 July 20<strong>12</strong><br />
22 MCC <strong>Annual</strong> <strong>Report</strong> <strong>2011</strong>/<strong>12</strong>
Independent auditor’s report to the members of the<br />
<strong>Melbourne</strong> <strong>Cricket</strong> <strong>Club</strong><br />
<strong>Report</strong> on the Concise Financial <strong>Report</strong><br />
We have audited the accompanying concise financial report of<br />
<strong>Melbourne</strong> <strong>Cricket</strong> <strong>Club</strong> which comprises the consolidated statement<br />
of financial position as at 31 March 20<strong>12</strong>, the consolidated statement<br />
of comprehensive income, consolidated statement of changes in equity<br />
and consolidated statement of cash flows for the year then ended and<br />
related notes, derived from the audited financial report of the <strong>Melbourne</strong><br />
<strong>Cricket</strong> <strong>Club</strong> for the year ended 31 March 20<strong>12</strong>. The concise financial<br />
report also includes discussion and analysis and the statement by the<br />
Committee. The concise financial report does not contain all the<br />
disclosures required by the Australian Accounting Standards.<br />
Committee’s Responsibility for the Concise<br />
Financial <strong>Report</strong><br />
The Committee are responsible for the preparation of the concise<br />
financial report in accordance with Accounting Standard AASB<br />
1039 Concise Financial <strong>Report</strong>s and for such internal controls as<br />
the Committee determine are necessary to enable the preparation<br />
of the concise financial report.<br />
Auditor’s Responsibility<br />
Our responsibility is to express an opinion on the concise financial<br />
report based on our audit procedures which were conducted in<br />
accordance with ASA 810 Engagements to <strong>Report</strong> on Summary<br />
Financial Statements. We have conducted an independent audit,<br />
in accordance with Australian Auditing Standards, of the financial<br />
report of the <strong>Melbourne</strong> <strong>Cricket</strong> <strong>Club</strong> for the year ended 31 March<br />
20<strong>12</strong>. We expressed an unmodified audit opinion on the financial<br />
report in our report dated 6 July 20<strong>12</strong>. The Australian Auditing<br />
Standards require that we comply with relevant ethical requirements<br />
relating to audit engagements and plan and perform the audit to<br />
obtain reasonable assurance whether the financial report for the<br />
year is free from material misstatement.<br />
An audit involves performing procedures to obtain audit evidence<br />
about the amounts and disclosures in the concise financial report.<br />
The procedures selected depend on the auditor’s judgment, including<br />
the assessment of the risks of material misstatement of the concise<br />
financial report, whether due to fraud or error. In making those risk<br />
assessments, the auditor considers internal controls relevant to the<br />
entity’s preparation of the concise financial report in order to design<br />
audit procedures that are appropriate in the circumstances, but not for<br />
the purpose of expressing an opinion on the effectiveness of the entity’s<br />
internal controls. Our procedures included testing that the information<br />
in the concise financial report is derived from, and is consistent with,<br />
the financial report for the year, and examination on a test basis, of<br />
audit evidence supporting the amounts, discussion and analysis, and<br />
other disclosures which were not directly derived from the financial<br />
report for the year.<br />
These procedures have been undertaken to form an opinion whether,<br />
in all material respects, the concise financial report complies with<br />
AASB 1039 Concise Financial <strong>Report</strong>s and whether the discussion<br />
and analysis complies with the requirements laid down in AASB<br />
1039 Concise Financial <strong>Report</strong>s.<br />
We believe that the audit evidence we have obtained is sufficient<br />
and appropriate to provide a basis for our audit opinion.<br />
Independence<br />
In conducting our audit, we have complied with the independence<br />
requirements of Australian professional accounting bodies.<br />
Auditor’s Opinion<br />
In our opinion, the concise financial report, including the discussion<br />
and analysis and the statement by the Committee of the <strong>Melbourne</strong><br />
<strong>Cricket</strong> <strong>Club</strong> for the year ended 31 March 20<strong>12</strong> complies with<br />
Accounting Standard AASB 1039 Concise Financial <strong>Report</strong>s.<br />
Ernst & Young<br />
Tim Wallace<br />
Partner<br />
<strong>Melbourne</strong><br />
6 July 20<strong>12</strong><br />
MCC <strong>Annual</strong> <strong>Report</strong> <strong>2011</strong>/<strong>12</strong><br />
23
Governance statement<br />
The <strong>Melbourne</strong> <strong>Cricket</strong> <strong>Club</strong> (“the <strong>Club</strong>”) is a<br />
body corporate incorporated under the <strong>Melbourne</strong><br />
<strong>Cricket</strong> <strong>Club</strong> Act 1974 consisting of persons who<br />
under, and in accordance with, the provisions of<br />
the <strong>Club</strong>’s rules are members of the <strong>Club</strong>.<br />
The business and affairs of the <strong>Club</strong> are overseen<br />
and controlled by a Committee (“the Committee”).<br />
The Committee comprises members of the <strong>Club</strong><br />
elected to the following honorary office bearer<br />
positions, namely, a president, three vice-presidents<br />
and a treasurer, and up to nine other <strong>Club</strong> members<br />
elected to the Committee.<br />
The <strong>Club</strong> will be governed with integrity<br />
and in a responsible and accountable manner.<br />
The Committee and management are dedicated<br />
in their approach to work continuously to improve<br />
strategies and structures in pursuit of excellence.<br />
This will be achieved by critically assessing<br />
performances while respecting the boundaries<br />
between the committee and management.<br />
The Committee meets at least 10 times a<br />
year for the purposes of overseeing all aspects<br />
of the <strong>Club</strong>’s business plan and objectives. It<br />
also deliberates on its responsibilities as ground<br />
manager of the <strong>Melbourne</strong> <strong>Cricket</strong> Ground<br />
(“MCG”) and Yarra Park for the <strong>Melbourne</strong><br />
<strong>Cricket</strong> Ground Trust (“MCG Trust”), under<br />
the <strong>Melbourne</strong> <strong>Cricket</strong> Ground and Yarra Park<br />
Amendment Act 2009.<br />
Additionally, the Committee reviews the<br />
performance of the <strong>Club</strong>’s management team<br />
in consultation with the <strong>Club</strong>’s chief executive<br />
officer, measuring results against the business<br />
plan objectives, ensuring compliance with legal<br />
requirements and monitoring the strategic risk<br />
management plan.<br />
Nine meetings of the committee were held<br />
during the period April 1, <strong>2011</strong> to March 31,<br />
20<strong>12</strong> and the record of attendance of members<br />
of the Committee during the period is as follows:<br />
A.P. Sheahan 8/9 P.A. Dakin 9/9<br />
D.A. Crawford 7/9 W.D. Fowles 9/9<br />
S. Smith 8/9 J.L. Nathan 9/9<br />
S.C. Spargo 8/9 C.T. Sitch 2/2<br />
M.J. Andrew 2/5 M.G. Smith 2/2<br />
M.J. Happell 8/8 K.J. Wood 9/9<br />
D.S. Crow 6/9 E.R. Yencken 7/9<br />
P.A. Mitchell 2/2*<br />
* P.A. Mitchell vacated the committee<br />
in June, <strong>2011</strong><br />
Because of inevitable Committee absences, the club<br />
rules have been amended to provide for attendance<br />
by technology. A brief description of the club’s<br />
approach to governance is outlined below.<br />
MEMBERS’ ROLE<br />
The <strong>Club</strong>’s rules require that a meeting of Full<br />
members of the <strong>Club</strong> be held annually (“the<br />
<strong>Annual</strong> General Meeting”). The purpose of<br />
the <strong>Annual</strong> General Meeting is to:<br />
• Receive reports and audited financial<br />
statements from the Committee in respect<br />
of the immediately preceding financial year.<br />
• Elect office bearers and other members<br />
of the Committee.<br />
• Consider any other business for which notice<br />
has been given in accordance with the rules<br />
set out in the <strong>Club</strong>’s constitution.<br />
All Full (voting) members of the <strong>Club</strong> are<br />
advised in the notice of the <strong>Annual</strong> General<br />
Meeting about Committee retirements and<br />
nominations for election or re-election. Full<br />
members are encouraged to attend the<br />
<strong>Annual</strong> General Meeting.<br />
COMMITTEE COMPOSITION<br />
(as at March 31, 20<strong>12</strong>)<br />
The names and details of the members of<br />
Committee in office at the date of this statement<br />
are set out elsewhere in this annual report.<br />
The composition of the Committee reflects the<br />
broad range of experience, skills and knowledge<br />
required to oversee the management and control<br />
of the <strong>Club</strong>’s business and affairs.<br />
SUB-COMMITTEES<br />
To assist in the execution of its responsibilities,<br />
the Committee has established a number of<br />
sub-committees to which the president<br />
appoints committee members.<br />
Sub-committees operate principally in a review<br />
or advisory capacity (except where powers are<br />
expressly conferred on or delegated to a subcommittee<br />
by the Committee).<br />
Sub-committees meet as required either<br />
monthly or, in some cases, bi-monthly. The<br />
current composition and functions of the<br />
sub-committees are summarised below:<br />
Executive<br />
Deals with specific Committee referrals, succession<br />
and urgent matters between Committee meetings.<br />
A.P. Sheahan (Chairman, 8/9 meetings attended),<br />
D.A. Crawford (9/9), S.C. Spargo (8/9), S. Smith<br />
(8/9), M.J. Happell (3/4), M.J Andrew (1/5).<br />
<strong>Club</strong><br />
Monitors the <strong>Club</strong>’s membership policies and<br />
arrangements including nomination and admission<br />
procedures and membership benefits and services.<br />
It also oversees compliance with the rules set<br />
out in the <strong>Club</strong>’s constitution.<br />
S. Smith (Chairman, 6/6), D.S. Crow (4/6),<br />
W. D. Fowles (4/6), P.A. Dakin (3/3), S.C.<br />
Spargo (4/4), K.J. Wood (5/6), P.A. Mitchell<br />
(1/2), A.P. Sheahan (ex-officio 4/6).<br />
<strong>Cricket</strong><br />
Oversees all matters in relation to the cricket<br />
activities of the <strong>Club</strong> and its relationship<br />
with cricket authorities.<br />
D.S. Crow (Chairman, 6/6), P.A. Dakin (6/6),<br />
A.P. Sheahan (ex-officio 2/6),<br />
Finance and Audit<br />
Oversees the <strong>Club</strong>’s accounting and reporting<br />
practices including effectiveness of accounting<br />
and internal control systems, management<br />
reporting and compliance with policy,<br />
regulatory and legal requirements.<br />
Also reviews risk and evaluates procedures,<br />
the scope and quality of audit practices and<br />
oversees and monitors IT performance.<br />
M.J. Happell (Chairman, 6/6), D.A. Crawford<br />
(5/7), D.S. Crow (6/7), P.A. Dakin (6/7), W.D.<br />
Fowles (6/7), S.C. Spargo (1/1), M.G. Smith<br />
(0/1), M.J. Andrew (2/3), A.P. Sheahan<br />
(ex-officio 2/7).<br />
Ground<br />
Reviews and monitors the <strong>Club</strong>’s ground<br />
management operations including management<br />
of the MCG and outside grounds, commercial<br />
relationships, buildings, facilities, events,<br />
human resources and occupational health<br />
and safety matters.<br />
D.A. Crawford (Chairman, 4/5), P.A. Dakin<br />
(5/5), J.L. Nathan (5/5), E.R. Yencken (3/5),<br />
P.A. Mitchell (1/1), A.P. Sheahan (ex-officio 2/5).<br />
OTHER COMMITTEE RESPONSIBILITIES<br />
In addition to the formal sub-committees<br />
established by the Committee, members of<br />
Committee are involved in the following<br />
additional sub-committees and related funds or<br />
corporate bodies which meet on an as needs basis:<br />
MCC Sporting Sections, Legal, AFL, <strong>Melbourne</strong><br />
<strong>Cricket</strong> <strong>Club</strong> Foundation, <strong>Melbourne</strong> Football<br />
<strong>Club</strong> and and National Sports Museum Limited.<br />
Members of the Committee who are appointed<br />
to cricket and the <strong>Club</strong>’s various Sporting Sections<br />
as Committee representatives are set out below:<br />
<strong>Cricket</strong>:<br />
Baseball:<br />
Bowls:<br />
Croquet:<br />
Football:<br />
Golf:<br />
Hockey:<br />
Lacrosse:<br />
Real Tennis:<br />
Target Shooting:<br />
Squash:<br />
Tennis:<br />
D.S. Crow<br />
K.J. Wood<br />
D.A. Crawford<br />
S. Smith<br />
S.C. Spargo<br />
P.A. Dakin<br />
J.L. Nathan<br />
C.T. Sitch<br />
M.J. Happell<br />
W.D. Fowles<br />
S.C. Spargo<br />
M.G. Smith<br />
COMMUNICATION TO MEMBERS<br />
The Committee aims to ensure that members are<br />
informed of all major developments affecting the<br />
<strong>Club</strong>. Information is communicated as follows:<br />
• An annual report is made available to all<br />
members, either via post or electronically.<br />
It includes relevant information about the<br />
operations of the <strong>Club</strong> during the year, changes<br />
in the state of affairs of the <strong>Club</strong> and details<br />
of future developments, in addition to other<br />
disclosures required by the <strong>Club</strong>’s rules<br />
and policies or by law.<br />
• The MCC News magazine is made available<br />
to members three times yearly.<br />
• Regular emails are broadcast to those<br />
members who have submitted their email<br />
address to the <strong>Club</strong>.<br />
• The MCC, MCG and NSM websites also<br />
are regularly updated.<br />
• <strong>Club</strong> member information is published every<br />
Thursday in the sporting sections of the Herald<br />
Sun and The Age newspapers.<br />
• The club also used social networking sites<br />
as a forum to engage with members.<br />
24 MCC <strong>Annual</strong> <strong>Report</strong> <strong>2011</strong>/<strong>12</strong>
MCC Health and Safety Policy<br />
OUR COMMITMENT<br />
To provide a safe environment for employees, contractors,<br />
promoters, tenants and patrons at all our sites.<br />
We believe:<br />
• Safety of everyone who visits or works at an MCC-managed<br />
site is a priority.<br />
• Safety is everyone’s responsibility.<br />
• Working safely is a condition of employment for all staff<br />
and contractors.<br />
• Everyone’s involvement in health and safety is essential.<br />
• Training and leadership are critical in creating a safety culture.<br />
• Creating a safety conscious workplace is a management priority.<br />
We will create a safe environment by:<br />
• Providing safe work conditions and safe systems of work.<br />
• Providing the necessary training to staff and contractors.<br />
• Ensuring legislative compliance through implementation<br />
of a rigorous health and safety system.<br />
• Monitoring our performance through internal and external<br />
auditing of our safety systems against SafetyMAP criteria.<br />
• Having an active and encompassing Health and<br />
Safety committee.<br />
• Identifying risks and implementing controls to reduce<br />
the risk to as low as reasonably practicable.
<strong>Melbourne</strong> <strong>Cricket</strong> Ground<br />
PO Box 175 East <strong>Melbourne</strong> Victoria 8002 Australia<br />
T 61 3 9657 8888 F 61 3 9650 5682 www.mcc.org.au ABN 92 871 871 964