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Hawthorn announces 2013 financial result

Andrew Newbold on SEN Morning Glory Andrew Newbold chats to the guys from Morning Glory on SEN on Tuesday morning.
Hawthorn Football Club has recorded a net operating profit of just over $3 million ($3,118,672) for the financial year ending 31 October 2013.

Up slightly over $1m on the 2012 figure (2012: $2,023,720), President Andrew Newbold has attributed the result to the committed efforts of all involved at the Hawks.

“All at the Club strive to deliver exceptional performance and this positive result has been achieved through the outstanding support of our loyal members and supporters, our corporate partners and a committed Board and administration,” Newbold said.   

“We are pleased with the progress made in 2013 on delivering our strategic goals contained within all for one, including a top four finish which put the team in a position to deliver the Club its 11th premiership,” he said.  

“With cash and investments totalling $12m, we are well-placed to meet the challenge of ensuring Hawthorn Football Club is in the best position to achieve sustained success.

“Our Club faces a major financial challenge over the next few years as we implement our goal to make the Ricoh Centre a world's best practice training and administration centre for our players, coaches and staff.

“Such a commitment can only be achieved with extensive financial resources and profitable business operations. We are optimistic that with the continued hard work of our Board and administration, coupled with the support from members and corporate partners, we are in a strong position to realise our goals,” Newbold said.  

The Club's affiliated entities enjoyed improved financial performance during 2013. The Box Hill Hawks posted a net profit in their premiership year, whilst the West Waters Hotel Joint Venture at Caroline Springs promises to be an outstanding long-term investment for the Club.

An independent valuation of the Hotel was undertaken during the year and the investment was written down, but it is important to note that this write down reflects a partial reversal of the large profit the Club was required to record in 2010. Both the write down and original profit are non-cash in nature and have no other impact on the Club’s financial position.

Key points of the report:
• Club net operating profit of $3,118,672 for year ending 31 October 2013;
• Achieved a record membership tally for the sixth consecutive season. 2013: 63,353
(2012: 60,841), which includes 8,567 Tasmanian members;
• Merchandise sales grew by 19% in 2013;
• Football department expenditure increased to $21.8 million (2012: $19.3 million);
• Crowd attendances averaged 52,809 at Melbourne home games in 2013 (2012: 44,629), with the highlights being the season opener against Geelong (76,300) and the Round 21 fixture against Collingwood (71,533);
• Foundation: The Hawthorn Football Club Foundation holds a cash balance of $3,189,422 as at 31 October 2013. The Club is delighted to announce a further contribution of $500,000 to the Foundation, which will be paid in November 2013;
• Assets: The Club’s net assets exceed $26.5 million;
• Total revenue: $64,772,874 (consolidated) and $50,939,062 (Club).

The 111th Annual General Meeting of Hawthorn Football Club Limited will be held at the MCC Dining Room, East Melbourne (enter via Gate 2, MCG) on Monday 16 December 2013. The meeting will commence at 7pm.