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The Eden Park Trustannual Report

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The Eden Park Trustannual Report THE EDEN PARK TRUST2019 ANNUAL REPORT CONTENTS Report from the Chairman 07 Message from the CEO 27 Key Events 29 Functions and Exhibitions 30 Directory of Board Members 32 Board Member Biographies 33 Executive Leadership Team 36 Financial Statements 40 Independent Auditor’s Report 59 Our Partners 61 01 He aha te mea nui o te ao OUR VISION What is the most important thing in the world? To be recognised as He tangata, he tangata, he tangata New Zealand’s national It is the people, it is the people, it is the people stadium, providing world-class live events. OBJECTS OF TRUST The Objects for which the Trust is continued are: (a) To promote, operate and develop Eden Park as a high quality multi-purpose stadium for the use and benefit of rugby and cricket (including under the organisations of ARU and ACA respectively pursuant to their rights under this deed) as well as other sporting codes and other recreational, musical, and cultural events for the benefit of the public of the Region; and (b) To administer Eden Park and the Trust Assets on a prudent commercial basis so that Eden Park is a successful financially autonomous community asset. The above is an extract from clause 4.1 of the Trust Deed, which forms part of The Eden Park Trust Act WELCOME REPORT FROM THE CHAIRMAN Ten㘠koutou katoa, it is my Rugby matches and five Mitre 10 pleasure to present the Annual Cup matches. In addition, Eden Report of The Eden Park Trust Park hosted the family-friendly (EPT) for the year ended 31 Nitro Circus event for the first time, October 2019. The comparative in March. Eden Park’s credentials prior period is the 12 months to 31 as an exhibition centre were October 2018. also well demonstrated through hosting Mandela My Life: The The financial results for 2019 Official Exhibition. Other revenue- are particularly pleasing. The generating cultural events included prospects for the year were the annual Eid Day celebrations held impeded by the allocation of one by the Muslim community and the All Blacks test, not two, due to the celebration of Japan Day. reduced domestic test programme in a World Cup year, plus an Eden Park’s own golf tournament, allocation of only two international the ASB G9, was again a success Cricket matches. However, the in November 2018. Revenues from attraction of other content and a tours and functions also grew commitment to growth in non- significantly in the year. Idle space sporting revenue streams has has been converted and let to a generated the opportunity to number of tenants, for office space perform far better than expected. and storage. In particular, Watercare At the operating profit level the have let space in the South Stand result is $63k better than the prior for their Central Interceptor project “business as usual” year. management team. The event calendar included the The Trust has also broadened sold-out Bledisloe Cup rugby test; its Icon Partnership programme, international T20 cricket fixtures which included a new commercial featuring the BLACKCAPS against agreements with Qatar Airways in Sri Lanka and India; A-League particular. The Trust’s revenue base football between the Phoenix and will be further enhanced in FY2020 Melbourne Victory; the Pasifika when new activities will include a Challenge II international rugby rooftop tour and Zipline, operated double-header; seven Super from the South Stand roof. 06 07 In 2018 our financial statements and The Eden Park Trust to Income noted above consists of referred to the “material uncertainty” develop an Operational Partnering the revaluation of stadium land in which arose due to the impending Proposal by March 2020; to invite the prior year. Upon review there expiry on 30 September 2019 of the Trust to report to the Finance was no change to the valuation in the Trust’s $40m loan facility with and Performance Committee at 2019. the ASB Bank, with no extension or least six-monthly and to approach replacement in place at that time. Central Government to amend There were no unusual or This loan was established in 2010 the Trust Deed to align the Trust’s unexpected operating expenses. FINANCE in order to meet redevelopment Governance with funding. Once again the Trust has incurred costs for RWC 2011 and was subject significant costs, in excess of The Trust achieved a net operating profit before interest, depreciation and other comprehensive income of to Council’s guarantee. We are The Trust would like to acknowledge $100k, in order to secure resource $3.794m (2018: $3.731m). The net loss of $6.341m (2018: $7.326m) continues to reflect the challenge of managing a pleased to report that the matter and thank both Auckland Council consent to host a T20 cricket was resolved successfully. In March and the ASB Bank for their support match on the evening of Sunday significant depreciation charge, due to the underlying value of the stadium asset. 2019 Auckland Council’s Finance and in concluding this matter in a 26 January 2020, i.e. the Sunday Performance Committee passed a positive manner. The new funding of Auckland Anniversary weekend, The financial results attached are briefly summarised as follows: number of Resolutions in relation to agreement provides the Trust with between the BLACKCAPS and Eden Park, including a decision to certainty over the ongoing financial India. This match takes place seek an assignment of Eden Park’s support it requires and brings the on India’s national day and as $000 2019 2018 loan facilities from the ASB Bank. Trust closer to Council, so that such will draw a very significant That assignment took place on 30 both may provide better outcomes audience in India and around the Total operating income 15,831 17,021 September 2019. Accordingly all for the people of the region of world. The application received Total operating expenses (12,037) (13,290) facilities were transferred to Council, Auckland. overwhelming public support together with all securities held by and we thank members of the Net operating profit 3,794 3,731 the ASB Bank. The amended and The result for the year has exceeded local community and people Net interest (1,302) (1,474) restated facility includes a funding our expectations. In 2018 we from all over Auckland who made limit of $54.0m, for a period of ten signalled that the 2019 financial supporting submissions, especially Other comprehensive income - 400 years, on commercial terms which year would see a further dilution in those who appeared at the Profit before depreciation 2,492 2,657 are substantially similar terms to the Trust’s profitability due to the hearings and voiced their support. those already existing. This facility “unusual” event schedule which Depreciation (8,833) (9,983) encompasses all of the Trust’s pre- included just one All Blacks test in a The outlook for 2020 is for an Total comprehensive loss (6,341) (7,326) existing ASB facilities and pre- Rugby World Cup year, and just two improvement in profitability existing Council loans. international Cricket matches, both thanks to a more 'normal' event T20 events. However, the popularity schedule, which includes two All Further to the Resolution in relation of those events and the addition of Blacks tests, versus Wales and to the loan facilities, the Finance and well-supported content such as the South Africa, and five limited- Performance Committee resolved Phoenix and Nitro Circus exceeded overs Cricket internationals, versus to provide a grant to fund capital expectations. Additional revenues England, India and South Africa. expenditure of $9.8m over three were also earned from non-event It is worth noting that opposition years from 1 July 2019; to authorise sources such as rental income from teams for those fixtures featured the Chief Executives of Auckland space let to tenants, including as semi-finalists in their respective Council, Regional Facilities Auckland Watercare. Other Comprehensive World Cup events in 2019. 08 09 GOVERNANCE AND MANAGEMENT The Trust Board comprises five One new member has joined the Crown appointees and two Senior Management Team. Megan appointees each from Auckland King joined in April as Contracts Rugby Union (ARU) and Auckland and Infrastructure Manager, Cricket Association (ACA). There after a successful career at Sky were no changes to the appointed Television. Long-term Operations Trustees in the year. Manager Keith Parker also joined the Senior Management team I would like to thank the Trustees during the year. I would also like for their ongoing contributions to thank CEO Nick Sautner, his to the Trust. During the year Senior Managers and all staff for we faced the challenging their dedication to the task of environment of the Council’s managing our national stadium to scrutiny of our governance as we the highest levels of presentation presented the Trust’s case for a and event delivery, setting the closer working relationship with standard as New Zealand’s Council, including both the debt premier sports and entertainment funding and development funding venue. Nick’s energy and proposals. It was a relief to achieve creativity are a fine example to Council’s approval for both and an his staff and the hard work is endorsement of the governance in paying off in the results that are place to gain that support. being achieved. 10 11 EVENTS AND OPERATIONS It has been another memorable remained undefeated at their Unfortunately Auckland could not are committed to furthering against South Africa. A couple of year at New Zealand’s national home away from home. The win repeat their title-winning form of education and business acumen The New Year will begin with the new events will also arrive at the stadium, both on and off the field.
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