THE Port Adelaide Football Club recorded an operating loss of $2,117,071 in 2012.

Chief Executive Officer Keith Thomas said the after-grants result - including a previously announced $2 million payment from the SANFL - was heavily impacted on by the club’s on-field performances in recent years.

“This result is a long way from where we want to be,” Mr Thomas said.

“This year started positively, but early losses - albeit against some very good teams - quickly again impacted on our corporate, membership and game day returns.

“Coming off a very poor 2011, we feared further underperformance would have an adverse effect on the key revenue streams of sponsorship and membership, and unfortunately that’s how it turned out.”


Key points for 2012:

• Consolidated operating loss after grants of $2,117,071
• Grants from SANFL $2m
• Consolidated operating loss before SANFL grants of $4.12m ($3.16m loss in 2011)
• Turnover $36.6m ($37m in 2011)
• Football Department (AFL) expenditure $16.3m ($14.7m in 2011 - Net increase of approx. $900,000 after increase in player payments)


Port Adelaide has embarked on a major investment strategy to turn around its on and off-field performance and deliver sustained future success.

Mr Thomas said the club - under a reinvigorated board led by recently-appointed chairman David Koch - was committed to securing an independent financial future, underpinned by investment in football performance.

The 2012 result includes a net $900,000 increase in the club’s AFL football expenditure and a modest but strategic investment in administration to prepare the club for the transition to Adelaide Oval where its games will be played from 2014.

“We have to invest in football to be competitive on the field and that is what we are continuing to do,” Mr Thomas said.

“We also need to put ourselves in a position off the field to be ready for Adelaide Oval.

“Our strategy is clear and it is fully accepted by the AFL and the SANFL whose assistance we are very grateful for.

“Everyone understands there is a lag between the investment we are making and turning things around financially.

“But we expect significant improvement and given the additional investment we have made ahead of 2013, we are confident of playing good footy next year and hopefully really good footy when we get to Adelaide Oval the following year.”

While corporate return fell approximately $600,000 in 2012, Mr Thomas said Port Adelaide had developed innovative sponsorship arrangements including its ground-breaking Power To End Hunger partnership with food relief agency Foodbank SA.

“We managed to profile a very important cause while at the same time helping both Foodbank and the Port Adelaide Football Club to raise revenue to support the partnership,” Mr Thomas said.

“Port Adelaide is also grateful for the support V.I.P. Home Services provided the club as its principal joint major partner.”

Port Adelaide’s 2012 membership fell less than three per cent, but income declined approximately $250,000 on 2011 because of the number of members with lower revenue-yielding packages.

On a positive note, the club posted an $800,000 turnaround in the financial performance in its non-football areas including Power Community Ltd, its licensed venues (The Port Club and the Prince of Wales Hotel) and the Power Future Fund.

Mr Thomas stressed Port Adelaide’s financial problems were revenue based, with costs under very tight control.

“We certainly cannot be accused of overspending off the field because we have kept our costs very heavily restrained.

“Even our on-field investment is really quite modest in that we were ranked in the bottom couple of teams in the AFL for football spending in 2012.”

“It is very clear you cannot compete in the AFL without investing in footy and doing everything you can to stay in touch with the bigger clubs.

“We have put in place what we believe is an outstanding football structure for next year and beyond, led by our senior coach Ken Hinkley.

“We have added further resources in fitness and medical, list management and recruiting, and I am sure that will deliver an early return.

“The investment we have made is about one thing - producing better results on the field. From that, we are confident of securing our financial independence.

“Not much works when you’re not playing good football, so our strategy is very clearly to get that right and to make our brand image one of stability and strength to get to Adelaide Oval in shape to take full advantage of the financial benefits that we are confident of achieving there.

“Together, all of that makes for a whole different ball game for Port Adelaide from where we have been.”