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MOPT Annual Report 2019–20

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Annual2019–20 Report 2 ACKNOWLEDGEMENTS We acknowledge the Traditional Owners of Country throughout Victoria, and their ongoing connection to this land and rich culture. We pay our respects to their Elders past, present and future. About this report The Melbourne & Olympic Parks Trust Annual Report 2019–20 provides information about the Trust’s governance, objectives, functions, performance and achievements. It highlights the organisation’s work throughout the year and includes information about financial operations, infrastructure and planning, management, operations, sector leadership, stakeholder engagement and workforce. The Trust is providing this annual report for the financial year ended 30 June 2020, in line with its statutory obligations under the Financial Management Act 1994. It complies with financial reporting directions and meets the requirements outlined in the Model Report of Operations. This annual report was tabled in the Victorian Parliament before it was released. Front cover image The front cover shows the Melbourne & Olympic Parks precinct and Melbourne city skyline. It was captured from above Gosch’s Paddock. The image shows AAMI Park in the foreground, with Olympic Park on the left and Melbourne Park on the right. ANNUAL REPORT 2019–20 MELBOURNE & OLYMPIC PARKS TRUST TABLE OF CONTENTS 3 Table of contents 04 34 CHAIR’S FOREWORD GOVERNANCE 06 40 2020 HIGHLIGHTS OTHER DISCLOSURES 08 44 PURPOSE, VISION FINANCIAL STATEMENTS AND VALUES 49 10 NOTES TO THE YEAR IN REVIEW FINANCIAL STATEMENTS 16 92 REPORT OF DECLARATION IN THE OPERATIONS FINANCIAL STATEMENTS 26 93 OUR PARTNERS INDEPENDENT AUDITOR'S REPORT 32 FIVE-YEAR 95 FINANCIAL SUMMARY DISCLOSURE INDEX 4 CHAIR’S FOREWORD Chair’s foreword For more than 100 years, the Melbourne & Olympic Parks precinct has been at the heart of Victoria’s sporting and entertainment culture. A place where shared experiences and a lifetime of memories are created. I am pleased to present the annual report of Melbourne & Immediate strategies to manage M&OP’s business operations Olympic Parks (M&OP) operations and the audited financial and reduce expenditure were implemented in response to the ANNUAL REPORT 2019–20 statements for the Melbourne & Olympic Parks Trust (the pandemic. Working closely with our key partners, including Trust) for the year ending 30 June 2020, in accordance with Sport and Recreation Victoria, Tennis Australia and the the Financial Management Act 1994. precinct’s professional sporting tenant clubs and hirers has been integral to the precinct’s success and will be The role of M&OP on behalf of the Victorian Government is crucial as we emerge from the pandemic. to balance the diverse needs of the precinct and leverage its assets for the benefit of all Victorians. That means creating This year we’ve continued to build our partnerships, and the best possible experience for every person, every event, prioritised support to tenants, clubs, and partners, as we every time. prepare to reopen the precinct and plan for events and guests to return. Together, we have a vital role to play to reconnect In March 2020, a State of Emergency was declared for Victoria the people of Victoria and reinvigorate our city through sport due to the coronavirus (COVID-19) pandemic. As a result, and entertainment. several regulations were put in place that impacted the way M&OP operates. These regulations included restrictions on Throughout the year we supported our partners on many fronts public and social gatherings, sport and exercise, entertainment including Tennis Australia’s fundraising events for bushfire and cultural activities. relief, helping our sporting clubs through this difficult time by providing 12-months rent relief, supporting our event partners with refunds and ticketing fees and providing our casual staff MELBOURNE & OLYMPIC PARKS TRUST financial assistance. CHAIR’S FOREWORD 5 DELIVERING FOR ALL VICTORIANS INVESTING IN THE PRECINCT’S FUTURE M&OP experienced strong patronage and revenue across the Continuing to invest in the precinct so it can evolve and grow precinct in the first nine months of the year, contributing to the for future generations remains a key priority. The Victorian Victorian visitor economy. Government’s $972 million commitment to the Melbourne Park Redevelopment (which includes an $80 million contribution from Welcoming 202 events and attracting 2 million visitors the Trust), plus the Trust’s $49 million additional contribution, during this period, the precinct demonstrated why it remains represents a major investment by Victorian taxpayers. integral to Melbourne’s major events and tourism, sport and entertainment industries. Important milestones were met this year, with infrastructure improvements elevating the experience for visitors and The biggest event on Victoria’s events calendar, the Australian hirers. Completion of the major upgrade of Rod Laver Arena Open, attracted a record-breaking 812,174 patrons over the in August 2019 marked the end of Stage 2 of the ongoing two-week tournament. Melbourne Park Redevelopment. In addition to the big sporting events Australians all love, the Stage 3 is well underway. It includes a new events centre and precinct delivered a diverse array of music and entertainment, conference space; CENTREPIECE at Melbourne Park, which showcasing the world’s biggest superstars and sold-out will provide flexibility to host both large-scale and intimate concert tours. events; a new multi-purpose show court arena; new tennis courts; and a central logistics hub, including a kitchen and AAMI Park celebrated its 10th anniversary this year, with loading dock. fans helping to drive the birthday festivities, taking to social media channels to share their favourite moments of the In partnership with the Victorian Government, the Trust has past decade. AAMI Park’s home clubs, Melbourne Storm, focused on establishing Victoria as the basketball capital Melbourne Rebels, Melbourne City and Melbourne Victory, of Australia. Melbourne Arena is home to two National supported the celebrations and actively encouraged fan Basketball League (NBL) sides, Melbourne United, and participation, helping the online campaign achieve over 2.7 South East Melbourne Phoenix, who we welcomed this year, million impressions and 86,000 engagements. reinforcing Melbourne Arena’s reputation as the premier basketball venue in Victoria. The Victorian Government has To encourage local sport development, as well as community committed $13 million to the venue and the first stage of engagement, the Trust worked with various community groups upgrades included internal and external visual improvements and charities to support important causes. These included the and lighting, elevating the patron experience and tenants’ Upstream Foundation Fun Run, the Cancer Council’s ‘Walking commercial opportunities. Stars’, and Football Victoria’s ‘This Girl Can’ Gala Day with VicHealth. A UNITED TEAM STRONG FINANCIAL STEWARDSHIP I would like to thank the Premier of Victoria, The Honourable Daniel Andrews, and the Minister for Tourism, Sport and By the third quarter, M&OP was on track to meet its financial Major Events, The Honourable Martin Pakula for their forecast for year. As a result of the State of Emergency continued support. M&OP has enjoyed ongoing support from declared for Victoria due to the coronavirus (COVID-19) successive Victorian Governments and for our many users pandemic, border closures and restrictions led to the and stakeholders this ensures we have and will remain the cancellation of all revenue-generating events and functions. pre-eminent sports and entertainment precinct in Australia. M&OP’s successful first nine months of operations and strong I would also like to acknowledge the support and efforts of cash reserves as a result of long-term financial management our partners, sporting clubs, tenants, users and promoters. saw it well positioned to adapt its operations and respond to Achieving successful results in such a challenging year has the global pandemic. This included introducing a series of only been possible because of the strength of the team. I thank austerity measures and switching priorities and resources everyone who has made our guests feel welcome and those to sustain business operations and be in a strong position to who drove attendance and made sure more people from welcome events and guests back to the precinct, when it is our state, from across Australia and from around the world safe to do so. came to enjoy the unique experience we have to offer at our Total income for the year was $99.0 million, which is down much-loved and world-class precinct. $23.6 million from the previous year. This decline was largely In conclusion, I would like to say a big thank you for the hard due to cancellations reducing the number of events to 202, work of the Melbourne & Olympic Parks team, as well as compared with 283 the previous year. my fellow Trustees who act in an honorary capacity, for their Total operating expenditure of $109.9 million was $7.6 million contribution and support in managing the precinct on behalf lower than last year. This included a $39.1 million depreciation of all Victorians. charge. The increase in depreciation was due to the additional assets built in Stage 2 of the Melbourne Park Redevelopment. Russell Caplan Chair Melbourne & Olympic Parks Trust 6 2020 HIGHLIGHTS 2020 highlights INTERNATIONALLY RENOWNED ACTS PUT AUSTRALIA ON THE WORLD STAGE WITH SHOWS BY: QUEEN + ADAM LAMBERT ELTON JOHN HUGH JACKMAN FLEETWOOD MAC MICHAEL
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