SANFL 2006 Annual Report

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S A N F L A N N U A L R E P O R T 2 0 0 6FINANCIAL REPORTIn 2006, the League generated a record profit of $16.84million. A significant contributing factor in achieving thisresult was the receipt of $12.1 million in capital grants fromthe State Government. Notwithstanding these grants, ourbudgeted surplus was achieved through prudentmanagement and budgeting. Catering income continues tobe a critical component of our business and the on fieldsuccess of the Adelaide Football Club in particularguaranteed large crowds necessary to achieve a strongfinancial result.The grant monies will provide a strong foundation for theproposed future $70 million upgrade of AAMI Stadium.$5.5 million has been earmarked for a major securityupgrade of the stadium, and a new superscreen. Thebalance of the grant monies ($6.624 million) was a lumpsum settlement of a long term commitment by the StateGovernment to assist in the funding of the NorthernGrandstand. This amount has been used to restructure theLeague’s debt profile and will provide a solid base forcapital projects currently in progress, or commencing in thenear future.A significant part of restructuring the League’s debt profilewas the pay out of $4.179 million of loans in 2006, whichreduced total debt by 22%, from $19.308 million in 2005 to$15.226 million in 2006.The League makes a number of grants each year to itsmember clubs. Club Football Development Grants paid to allclubs increased from $400,000 per club in 2005 to $412,000per club in 2006. This equates to a 3% increase, and anoverall total of $3.708 million over the nine clubs. In additionto these, other grants, including prize money, AdministrationGrants and sponsors monies paid via the League totalled afurther $1,000,695 overall.As a consolidated entity, total turnover was $85.4 million in2006 compared with $69.5 million in 2005. This representsan increase of $15.9 million, or a 23% increase. Net assetsof the group have increased from $44.9 million in 2005 to$59.8 million in 2006, an overall increase of $14.9 million or33%. The value of Land and Buildings is currently recordedat historical cost. Recent valuations indicate that the value ofLand and Buildings at the West Lakes site alone is in excessof $100 million.The League’s cash reserves are $11.0 million at 31st October2006, up from $3.8 million in 2005. This increase is due tothe receipt of the grant monies, which were unspent at theend of the financial year. This cash surplus will be utilised asthe Planned Development Program continues.In summary, the League is in a very solid financial position,and is well placed to fund its planned future developments atAAMI Stadium.REVENUE 2006 ACTUALEXPENDETURE 2006 ACTUAL1%CAPITAL REPAYMENTS11%LEAGUE ADMINISTRATION1%INTEREST ON LOANS55%CATERING &CROWS TAVERN17%PARK PAVILIONS &UNITS & BOXES11%MEMBERSHIP41%CATERING &CROWS TAVERN19%TOTAL CLUBFOOTBALLDEVELOPMENTGRANTS6%STADIUM OPERATING4%DEPRECIATION1%HIRE OF STADIUM &GROUND MANAGERS FEES3%AFL LICENCE FEES4%OTHER INCOME4%T&D SPONSORSHIP/GOVT. GRANTS5%ARENA ADVERTISING (NET)1%FOOTBALL SERVICES6%TECHNICAL & DEVELOPMENT2%STADIUM ADMINISTRATION3%MARKETING3%UMPIRES/TRAINING COSTS2%OTHER EXPENDITUREThe above graphs show the League’s main sources of income, and how that income is spent. Catering income continues to bethe dominant income source, while costs of generating that income is the most prominent expense, along with the grants madeto our member clubs.26
S A N F L A N N U A L R E P O R T 2 0 0 6REVENUE & GRANT SUMMARYFOR YEAR ENDED 31ST OCTOBER 2006The South Australian National Football League Incorporated 2006 2005$ $Sale of goods revenue 11,195,332 11,170,160Rendering of services revenue 16,198,353 14,148,871SA Government grandstand grant 6,624,000 828,000SA Government video screen & security grant 5,500,000AFL grandstand grant 100,000 100,000Other revenue 3,396,034 3,900,636Total revenue 43,013,729 30,147,667Profit before Club Football Development Grant 16,839,888 4,697,089Club Football Development Grants 3,708,000 3,600,000The financial information on the following pages has been extracted from the Statutory Financial Reports of the South Australian National FootballLeague and its controlled entities.The Statutory Financial reports were audited by KPMG Chartered Accountants who issued an unqualified Audit Report in relation to the accounts.STATEMENTS OF FINANCIAL PERFORMANCEFOR YEAR ENDED 31ST OCTOBER 2006Consolidated EntitySANFL Inc2006 2005 2006 2005$ $ $ $Revenue 85,484,135 69,502,489 43,013,729 30,147,667Other income (14,147) (46,022) 7,373 (49,509)Expenses from football operations and administration (45,961,266) (44,360,523) (14,708,173) (14,781,951)Catering and licensed club expenses (10,789,197) (8,981,854) (6,948,442) (5,863,223)Cost of sales (9,251,898) (8,762,279) (3,395,787) (3,179,109)Results from operating activities 19,467,627 7,351,811 17,968,700 6,273,875Financial income 797,081 531,803 286,036 105,740Financial expenses (1,664,054) (1,890,987) (1,414,848) (1,682,526)Net financing costs (866,973) (1,359,184) (1,128,812) (1,576,786)Profit for the period 18,600,654 5,992,627 16,839,888 4,697,089Attributable to:Members 18,574,471 6,028,190 16,839,888 4,697,089Minority interest 26,183 (35,563) - -Profit for the period 18,600,654 5,992,627 16,839,888 4,697,089Principles of consolidationThe consolidated financial report of the consolidated entity comprises the financial reports of the SANFL and its subsidiaries. Subsidiaries areentities controlled by the SANFL. Control exits when the SANFL has the power, directly or indirectly, to govern the financial and operating policiesof an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that presently are exercisable or convertible aretaken into account. The financial statements of subsidiaries are included in the consolidated financial statements from the date that controlcommences until the date that control ceases.The financial reports of the subsidiaries are prepared for the same reporting period as the SANFL. The effects of all transactions between entitieswithin the consolidated entity have been eliminated.Minority interests in the equity and results of the entities that are controlled by the SANFL are shown as a separate item in the consolidatedfinancial statements.27
Page 2 and 3: FRONT COVER: Victorious State TeamC
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Page 8: SECTION 1FOOTBALLOPERATIONSA growin
Page 18 and 19: 2006 has been a successful year for
Page 22: SECTION 3COMMERCIALOPERATIONSPositi
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Page 38 and 39: THE PREMIERSAfter 13 years and five
Page 40 and 41: 2006 MAGAREY MEDALCongratulations t
Page 50 and 51: Executive CommissionerLeigh Whicker

SANFL 2006 Annual Report

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