Following the first uninterrupted season in more than two years, Hawthorn has posted a strong financial result, achieving both football club and consolidated surpluses.
Hawthorn’s consolidated net operating surplus of $35.1 million includes the one-time extraordinary gain on sale of $32.0 million relating to the club's exit from gaming and hospitality venues.
Previously, gaming and hospitality contributed significantly to the profitability and financial stability of the club. The consistent income and surpluses generated helped position the club to be able to withstand unexpected financial events such as COVID-19.
While the exit from gaming will have an impact on the club’s recurrent income, the strong result from the sales enable the club to look at other investment opportunities via a club based Future Fund. A significant portion of gaming sale proceeds will also be used to support the construction of the Kennedy Community Centre.
However, this year’s financial result continues to show the club’s operations, excluding investments, are anticipated to run at a consistent surplus into the future.
This is highlighted in the football operations net surplus of $752,006 for the financial year ending October 31 2022. The football operations are the key indicators of the club’s financial position, and does not include the club’s investments, foundations and consolidated revenue.
Hawthorn’s auditors Ernst & Young signed off on the club’s annual financial report yesterday.
Hawthorn Acting President Peter Nankivell expressed the club’s gratitude to its members and partners in helping the Hawks maintain their financial independence.
“We are in the strongest financial position the club has been in in its history. These financial results showcase the commercial strength of the club as well as the unwavering support of loyal members and commercial and community partners,” Mr Nankivell said.
“We are delighted to have set a new membership record, with 81,494 members. This committed membership base is integral to the club’s success, and we want to thank every single one of our loyal members.
“The club is also extremely appreciative of all our commercial partners for their continued support. In addition, we welcome aboard our newest partners, who we are proud join forces with. Being able to generate these new commercial partnerships is a direct reflection of the club’s strength as an organisation.
“On behalf of the board, I would also like to thank the Hawthorn staff and playing group for their ongoing efforts to ensure this club continues to thrive in the ruthless environment of elite sport.”
Hawthorn CEO Justin Reeves shared Nankivell’s sentiment of appreciation for the club’s loyal members.
“The Kennedy Community Centre will see our club embark upon one of the most significant chapters in our club’s history, and to have the continued support of our members, community and philanthropic donors, sponsors and corporate partners is incredibly important.
“We pride ourselves on being an independent club which balances a strong members and community first mindset with sound, forward-thinking commercial decisions. To show, once again, that our club can operate so strongly off-the-field is something we should all be immensely proud of.
“Following a few tough years of instability as a result of COVID-19, we are seeing ongoing growth in all areas across our organisation. This is a testament to the hard-working administration staff, players, coaches, football department, and our selfless volunteers. Our club is in great shape, completely aligned through the football and administration departments and well equipped to continue our push towards our first and next premierships in AFL men’s and women’s.”
Key points of the 2022 financial report include:
- Football club operations net surplus of $752,006 for the 2022 financial year
- Consolidated net surplus of $35.1m for the year ending October 31 2022, including gain on sale of $32.0m relating to the club's venues
- The club posted an all-time record membership year, with 81,494 loyal members committing to the brown and gold in 2022
- The club’s consolidated cash position increased to $69.1m (2021: $30.9m) at 31 October 2022, albeit a significant proportion reflects funds specifically quarantined towards the construction of KCC.
- HFC Foundation received donations of $973,130 towards the Kennedy Community Centre
