/ ANNUAL2017 REPORT18

Financial Year (1 March 2017 – 28 February 2018) CONTENTS Sydney Cricket & Sports Ground Trust 2 LETTER OF SUBMISSION 26 MEMBERSHIP AND MARKETING 3 MINISTER’S FOREWORD 32 MEDIA AND COMMUNICATIONS General Enquiries: (02) 9360 6601

4 CHAIRMAN’S REPORT 34 CORPORATE SERVICES Email: [email protected] 8 VISION AND GOALS 44 HUMAN RESOURCES Trust Office: Administration Office, Level 2, Sheridan Building 10 KEY OBJECTIVES 48 TRUSTEE AND MANAGEMENT PROFILES Moore Park Road, Moore Park NSW 2021

12 MANAGING OUR EVENTS 60 TRUST CHARTER AND CONSTITUTION Postal Address: GPO Box 150, Sydney NSW 2001 18 MANAGING THE ASSETS 62 FINANCIAL INDICATORS sydneycricketground.com.au 22 STRATEGY AND PROJECTS 64 AUDITED FINANCIAL STATEMENTS 24 COMMERCIAL 110 CONSUMER RESPONSE

1 MINISTER’S FOREWORD

Sport and entertainment events of all kinds were on show at the SCG and Allianz Stadium during the reporting period with the Trust continuing to provide an innovative

game day experience.

Sell out crowds for the Ashes Series in the ground’s history. A June 2018 Series, Anzac Day Cup and total of $1.4m was raised for the

A-League Grand Final were the McGrath Foundation as well.

features of the schedule, while The Hon Stuart Ayres MP the College Football Sydney Cup, Australia’s One-Day and T20 Minister for Sport AFLX and Sydney Sevens events Internationals against England GPO Box 5431 and New Zealand were equally SYDNEY 2001 offered something different for competitive, while the extended sports fans, who travelled far and Big Bash competition attracted wide to the sporting precinct. Dear Minister fans in droves to Sixers games. Sydney FC completed the best The Sydney Swans showed Letter of Submission season in Australian football incredible courage after a tough 2017/18 ANNUAL REPORT history, winning the Premiers Plate start to the season. They became SYDNEY CRICKET & SPORTS GROUND TRUST and then the A-League Grand Final in front of a bumper crowd the first team in AFL history to The Trust is pleased to submit the Annual Report of the Sydney Cricket and Sports Ground Trust of 41,546. Their thrilling penalty make the finals after losing five or for the year ended 28 February 2018 for presentation to Parliament. shootout win over Melbourne more games to start the season. The Hon Stuart Ayres MP Victory will go down as one of the They continued to dominate The Annual Report has been prepared in accordance with requirements of the Annual Reports club’s greatest ever moments. club land in NSW, bringing their (Statutory Bodies) Act 1984, Annual Reports (Statutory Bodies) Regulation 2010 and the Public membership tally to 60,000. Finance and Audit Act 1983. The W-League side also competed and the demolition of the stadium at Allianz Stadium last summer, The NRL Season at Allianz will be underway properly, with the alongside the Sydney Sixers WBBL Stadium was one of the most new Sydney Football Stadium to Yours sincerely team who played three matches exciting yet. The Sydney Roosters be built in its place, celebrating the at the SCG and would go on to won nine of their 10 matches at legacy of its predecessor but also win their first Big Bash title. the venue in the regular season providing the modern experience including a 13-12 golden point that our rectangular codes have All five women’s sporting codes triumph to win the Anzac Day gone without for too long. The Cup in front of 40,864 fans. have now been played in the SFS has served Sydney well and, JAMIE BARKLEY precinct and a key part of the when it opens in 2022, the new It was a difficult season for Chief Executive Officer Allianz Stadium redevelopment one will be immeasurably better. Australian Super Rugby sides but will be to ensure the venue serves Better for the many thousands of the Waratahs unearthed some new our best female athletes and fans who will visit each year, better stars throughout the Test period. fans well into the 21st century. for the teams, athletes and codes The Wallabies played matches and better for the residential and More than 30,000 fans also came against Scotland and the Barbarians business communities that border to see an all-female line-up for in front of healthy crowds. the SCG precinct. I can’t wait. Sia’s unique live performance in The international rugby fanfare December as the precinct adds I’d also like to congratulate staff continued for the Sevens World to its long list of international at the Sydney Cricket and Sports Series event on the Australia singers to play at Moore Park. Ground Trust for their commitment Day Weekend. Our Olympic gold to serving the history of sport The annual New Year’s Test at the medal winning women’s side and for their ongoing vision for SCG was an amazing spectacle, blitzed their competition to win the the future of live entertainment. with the event the biggest on the tournament alongside the men, NSW sporting calendar, creating without dropping a single point. thousands of jobs and bringing By the time the Trust’s annual report Level 2, Sheridan Building GPO Box 150 T 02 9360 6601 cricket fans from all over the Moore Park Road Sydney NSW 2001 F 02 9360 1319 globe to the harbour city. is submitted to Parliament, Allianz Moore Park NSW 2021 www.scgt.nsw.gov.au Stadium will be preparing to host Australia’s 123-run triumph over its final events. The NRL Finals THE HON STUART AYRES MP England to win the series 4-0 Series beckons, as well as what NSW Minister for Western was a drama-filled spectacle for will be a show-stopping closing Sydney, West Connex and Sport the 182,349 fans who attended concert in October when Michael the Test – the largest five-day Bublé visits Sydney for his only crowd aggregate for an Ashes Australian show. Come summer

2 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 3 The SFS took its name after intense In the current structure, there can The SFS is anything but a private CHAIRMAN’S REPORT lobbying by then Trustee and never be enough seats for club for the wealthy. Australian Soccer Federation life wheelchair users, female bathrooms, At 1.45pm on Saturday, October 3, 1903 the State Minister for Works Edward member Jim Bayutti – a move that emergency exit doors and countless It is the most public of facilities, foreshadowed the round ball game’s other things to make it compliant open to anyone who can get their O’Sullivan and then NSW Governor Harry Rawson officially opened Sydney’s newest future long before the old soccer/ with modern standards and hands on a ticket and it has been sporting venue. new football transformation led by expectations. To retrofit and keep maintained and operated for more Frank Lowy. operating the venue is more than three decades without a single expensive than to rebuild and dollar of contribution by the NSW The Sydney Sports Ground boasted The final line of The Sunday Times’ As good as the new SFS was back in without major capital investment, is Government – even though it is the the “finest bicycle track in the world” preview of the opening event has 1988, some flaws were easy to see irresponsible in the extreme. property of the people of our state. as well as seating for 6000 resonance today with the writer from day one, with Rugby League spectators and room for 20,000 advising readers: “Tramway Week’s report of the first league The SFS has a conditional certificate We face a little over three years of more on the hill surrounding the authorities are running special trams match observing: “The driving rain of occupancy that expires in 2019 and disruption while the new stadium is playing field. to the ground every few minutes”. saturated almost half of all the mandates how it can be operated built. Most matches will be moved to seating, even though the stadium’s safely. We intend to do that right up the SCG and interim member From that first day, the Sydney One of Sydney’s early newspapers, architects insisted 75 per cent of until the final event later this year. facilities will be provided. The Newsletter, gushed about the Sports Ground became an spectators would be covered. new venue. immediate sporting focal point of The future holds better outcomes for When the new stadium opens in the city, providing the stage for Add in today’s concerns of all users of the stadium, better 2022, there will be new state of the “Some two years ago, the ground champions from all sports. compliance to modern building and facilities for the sports including the art member facilities in the precinct was a fetid refuse tip that grated safety standards and it is easy to see growing elite women’s teams, more as well – improving markedly on the Nowhere else in the world could a upon one’s olfactory nerves if you why we are about to demolish the and better facilities and seats for the current offering. single venue claim to have seen the approached within a mile of it,” the current SFS and deliver a world general public and members. likes of Betty Cuthbert, Arthur The light rail will be up and running paper’s anonymous correspondent class stadium for NSW. Beetson, Pele and Jack Brabham Anthony Shepherd AO It must be remembered, and it is a and the SCG precinct will be wrote. display their individual skills on the As Trustees with responsibility to our point I labour with all I meet, that the realising its potential as a sporting, same patch of ground. Chairman members, patrons and the people of foundation gold members of the educational and entertainment “The ground now contains the best NSW, we had no option but to support Trust funded the construction of the precinct amid a parkland setting. bicycle track in the world … nearly The 1988 opening of the Sydney Australian bands Air Supply, the and encourage the Government in its SFS for the people of NSW. Our 300,000 loads of earth have been Football Stadium with an Australia Day Eurogliders and Dragon. plan to rebuild the SFS. members continue to be the As positive as the future is, we do put in the ground to form the football gala concert was altogether different. backbone of the SCG Trust. ask for patience during the and cricket oval, the lawn and hill. This time, it was then premier Barrie Even though the Trust has spent well construction. Change is rarely easy, A crowd of 20,000 turned up drawn Unsworth who declared the $62m over $80m maintaining and Not one dollar from any Government but it’s something we will all have to “Great credit is due to the trustees by an opening lineup that included venue ‘open’ and a new era in live upgrading the SFS since it opened, has gone into the SFS, the venue deal with until the work is complete. for the work in converting the ground legendary US performer John sport began - fully funded by the there are some problems that are has been funded year after year by We have had great cooperation from into such a valuable state asset.” Denver, alongside superstar SCG Trust. simply impossible to fix. the SCG Trust. our faithful clubs and codes and will

4 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 5 transfer whatever games we can to manager in the history of the Trust. system – another significant sevens rugby circuit that provides a hope that one day an SCG XI will of York to visit the SCG after his the SCG . Particular thanks goes to investment in doing all we can to wonderful stage for our elite female play at the Rwanda Cricket Stadium grandfather, George VI who toured the Sydney Swans and the AFL who Justin Groves comes from the most ensure the safety of our patrons. In footballers. in Kigali. Cricket has been a Australia in 1926 in the months are the most affected. cricketing of families - his grandfather the modern age safety and security is wonderful healing agent in Rwanda. after his daughter Elizabeth was famed ACB chairman Phil the prime consideration of the Trust The grounds also hosted all manner was born. The past year has also marked one of events over the past year, The past year saw several high- Ridings. He has spent the past 15 and a core consideration in the of considerable change at the SCG years at the Adelaide Oval. Justin is including US College Football, the profile charity events involving the Lastly, and most importantly, I am rebuilding of the SFS. itself, with the departure of curator joined by Adam Lewis, former curator new AFLX, as well as the regular SCG as well, including a chilly pleased to report that the Trust Tom Parker – just the eighth man to at the much-awarded Hurstville Oval, During the football seasons, the SCG offerings of the summer and winter winter’s night when some of operated at a surplus – as it has fill that role in the ground’s history. who becomes the ninth curator in the hosted its largest AFL crowd ever of seasons. Australia’s highest profile CEOs done every year for three decades SCG’s history. 46,323 when the Sydney Swans and senior executives slept rough and counting and every cent is We also farewelled Michael Finch, As always throughout the year, the defeated Essendon in an elimination at the SCG and raised money as ploughed back into facilities and who had been charged with looking It was the biggest of first Trust has supported charities and part of the Vinnies CEO Sleepout. sport. after the SFS field of play for just as challenges for both men, with the final during the 2017 season. worthy activities far and wide – often long as Tom. eyes of the cricketing world on the with the help of our sports partners. Jane McGrath Day, of course, Thank you to the Trustees, CEO Allianz Stadium hosted its fourth SCG for the fifth Ashes Test – the remains one of the largest charity Jamie Barkley, the Trust’s senior A-League grand final, one of the most Both men had been in their respective single largest sporting event in They are small and large and spread events on the national calendar, executive and their staff for their enthralling in the history of the top jobs since 1997, meaning they’d NSW every four years. all over the world, and the Trust’s with a new record amount of $1.4m efforts throughout the year. Thanks seen cricket Tests to rugby league competition. Sydney FC beat arch- involvement varies from tickets to raised during the 2018 Ashes New also to the nearly two million patrons grand finals, Bledisloe Cups, Sydney The New Year’s Test was a roaring rivals Melbourne Victory on penalties suites, tables at charity lunches and Year’s Test. who visit the venues, without whose Swans blockbusters, concerts and success, with a record five-day Ashes after extra time in front of more than donated memorabilia items. support the Trust would not exist. everything in between. We say farewell attendance, outstanding cricket and a 41,546 people. We were also lucky enough to host and thank you to both great men. wonderful atmosphere at Sydney’s In this financial year I’m proud to a major function for St Vincent’s No.1 sporting event. The men’s and women’s rugby sevens report that we played a small part in Hospital’s Curran Foundation, With the departure of both curators teams also both won the home helping Rwanda establish its first which drew His Royal Highness came the opportunity to revisit the The summer also marked the first full tournament when the Sydney Sevens international cricket ground, a venue The Duke of York. structure of the grounds team, meaning use of the Trust’s new SCG security shifted to the Australia Day long that doubles as a public health ANTHONY SHEPHERD AO the Trust appointed the first grounds control room and upgraded CCTV weekend – a first for the globetrotting facility for the local community. I Prince Andrew is the second Duke Chairman

6 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 7 THE SCG TRUST VISION We celebrate sport, create history, enhance entertainment and constantly innovate to provide an engaging and connected experience for our customers.

WHO WE ARE

The Sydney Cricket and Sports Ground Trust is responsible for managing two of Australia’s most celebrated sports venues – the Sydney Cricket Ground and Allianz Stadium. SCG TRUST VALUES

The SCG precinct is in the heart of AFL and cricket, with several major Customer service Innovation Relationships Australia’s most densely populated sporting codes and clubs, including a suburbs and on the doorstep of growing number of professional We will provide superior We are at the forefront We work in partnership Sydney’s Central Business District. eSports teams and Australia’s first It is surrounded by Centennial Park, eSports High Performance Centre. customer service of digital transformation with all customers, the retail facilities of EQ and the There is also a university campus, thriving restaurant and hotel strips of sports museum and fitness centre. stakeholders and Oxford Street, and Surry Hills. Leadership Integrity and The venues host nearly 100 events neighbours Together, the SCG and Allianz Stadium each year, attracting more than 1.8 We are leaders in accountability provide a home for touring concerts, million visitors from Sydney, NSW rugby union, rugby league, football, and beyond. our industry We always act with respect

8 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 9 Our customers We will put the customer at the centre of our business. KEY ACHIEVEMENTS

»» Commenced a new research program to measure game day customer satisfaction

»» Introduced new tailored products and services for all membership categories

»» Implemented an annual program of member activities and engagement

»» Created a Members Advisory Group to develop ideas, provide input and feedback

»» Collaborated with sporting partners to promote and engage customers

»» Launched a new merchandise range tailored to our customers and history

»» Staff training for proactive customer service at gates and concierge desks

Our precinct

We will strengthen relationships with our neighbours and sporting and KEY OBJECTIVES commercial partners to maximise the SCG precinct’s unique sporting, cultural, parkland and entertainment offering. We will strategically invest in our grounds and facilities to »» Customer journey maps matched »» Unveiled bronze sculptures of conserve, refurbish and renew. Our culture with event customer satisfaction Betty Cuthbert and Marlene surveys Mathews Our culture is focused on customer KEY ACHIEVEMENTS experience. It will enable the Trust to »» Customer feedback centralised to »» Secured a number of new items »» Progressed plans to rebuild deliver its vision, inspiring and support improvement to products, for the SCG Museum, including a Allianz Stadium into a new 40 to »» Oversaw the Trust Advisory Group driving our people to commit to and services and facilities loan of the shirt Argentinian fotball 45,000-seat venue , which helps on the future Our digital collaborate on our customer service superstar Diego Maradon wore direction of the precinct » goals. against the Socceroos during a » Renovated 21 corporate suites in transformation the O’Reilly Stand » Our heritage FIFA World Cup qualifying match » Continued to work with our neighbours to celebrate heritage Two world-class venues – one KEY ACHIEVEMENTS at the SFS in 1993. » The SCG precinct is the foundation » Appointed Premier Fire as the and host major events powerful, state of the art connected Trust’s new fire services provider precinct »» Recruitment of a Customer stone of Australian sport. We will »» Assisted with the upgrade and »» Opened the Rugby Australia Experience Manager continue to publicly honour the repainting of facilities in the » » Upgraded the precinct’s PA and Building and UTS education, KEY ACHIEVEMENTS sporting, cultural and social history Members and Ladies pavilions. CCTV system » research and high-performance » Commitment to customer service that has taken place on Trust lands to »» Procured a new tender for app » centre reinforced through interactive conserve, respect and showcase for »» Restored the Trust’s Wisden » Resurfaced the entire SCG field of and digital services presentations for staff the benefit of generations to come. collection play »» Worked with Avanade and Steve » »» Department goals designed to »» Continued the task of digitising »» Celebrated several significant » Installed a synthetic roadway Waugh to deliver an AR activation drive customer-centric culture the Trust’s historical archives anniversaries around the perimeter of the SCG at the Test match

10 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 11 showcasing a number of innovative rules. Brisbane put on a classy performance to win the Sydney leg, outrunning the Swans in the final, in front of 9892 fans. Rugby League SYDNEY ROOSTERS

The Sydney Roosters turned Allianz Stadium into a fortress in 2017, winning 10 of their 12 matches at the venue in the regular season. Seven of those victories – as well as their qualifying final win over the Broncos – were by six points or less. A highlight included their thrilling 13- 12 golden point triumph in the Anzac Day Cup fixture, which was attended by 40,864 fans. Injuries took their toll and only Luke Keary and Jared Waerea-Hargreaves completed an entire season. A total of 171,145 fans attended home games at Allianz Stadium for an average fans turning out to watch the women’s team managed to defeat crowd of 14,262 fans per fixture. Roosters lose to the Cowboys. More their competition without dropping than 80,000 fans attended the 2017 a single point, finishing with an SOUTH SYDNEY RABBITOHS NRL Finals Series at Allianz Stadium. incredible points differential of 213-0. A total of 47,218 fans attended the The South Sydney Rabbitohs weekend, which culminated in the played one home game at Allianz Rugby Union men’s 29-0 win over South Africa. Stadium during the reporting NSW WARATAHS MANAGING OUR EVENTS period against rivals the Manly WALLABIES Sea Eagles. A total of 10,594 fans The NSW Waratahs played seven watched a flawless performance The Wallabies hosted Scotland in home games at Allianz Stadium by the Northern Beaches team June as part of a three Test series Close to two million fans visited the SCG and Allianz Stadium during the past financial last year with 100,622 fans turning who beat Souths 46-8. which featured matches against year across AFL, rugby league, rugby union, cricket, football, concerts and many out for an average home crowd Fiji and Italy. Australia lost 24-19 ST GEORGE ILLAWARRA of 14,375. It proved to be a tough in a close contest among 30,721 other special events. DRAGONS season for the men in blue under fans at Allianz Stadium. The side coach Daryl Gibson with the young returned in October to take on the The St George Illawarra Dragons side finishing 16th on the overall Alan Jones-coached Barbarians also played a fixture in the precinct, Super Rugby ladder. The team outfit, who went down to the AFL Swans beat Essendon by 65 points going down 24-26 to South Sydney did however manage to unearth a Wallabies 31-28 in an entertaining in front of a record turnout of 46,323 at the SCG. A crowd of 12,312 came number of young stars including contest in front of a crowd of Ned Hannigan, Jack Dempsey SYDNEY SWANS fans at the SCG, which surpassed to watch the Saints play at their 17,021. Rugby remained a popular the crowd that watched the Tony spiritual home as they continued a and halfback Jake Gordon before choice for fans in the 2017/18 farewelling long-time clubman The Sydney Swans were the talking Lockett and Gary Ablett Sr shootout longstanding tradition at the ground. financial year, complemented by in 1997. A total of 421,839 fans Dean Mumm at season’s end. the opening of the game’s new point of the AFL for the 2017 NRL FINALS season finishing with 14 wins and came to the club’s 12 home games headquarters in the precinct. at the SCG, an improvement on the SYDNEY SEVENS eight losses overall, after beginning 2015/16 result which gives them Allianz Stadium hosted four NRL the year with six straight losses. The Sydney Sevens returned for an average attendance of 35,153. Finals across weeks one and three. Football They realised their worst start to Brisbane were bundled out by the its third year at Allianz Stadium a campaign in 24 years, Sydney Roosters 24-22 in front of 21,212 and the event was another great SYDNEY FC became the first team in history to AFLX fans to progress to the preliminary success. Australia’s men’s and make the finals after losing five or final. The opening week of finals women’s teams defeated the rest of Sydney FC played 19 games during more games to start the season. An The game’s newest showpiece, also saw the Manly Sea Eagles the World Series competitors to be the reporting period including 17 incredible run in to the top eight, and AFLX, had its first instalment at lose to the Penrith Panthers and crowned Cup champions together A-League matches, two grand finals a finals berth, saw them win 14 of Allianz Stadium in February, with the Cronulla Sharks fall to eventual for the first time. Both tournaments featuring their men’s and women’s their last 16 matches only to lose to six teams competing in a round- grand finalists the North Queensland were integrated fully at the venue, teams, and one Asian Champions Geelong in a semi-final in Melbourne robin format. A new and exciting Cowboys. Elimination football creating three days of action- League fixture. The club were and finish fifth on the ladder. The concept thrilled fans in attendance, returned in week three with 28,108 packed rugby and fanfare. The unstoppable in 2017 and would go

12 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 13 on to win the Premiers Plate and 15,000 overseas and interstate delivered standout performances as services to members and those the A-League Grand Final in front of visitors, who traded in sausage part of a stellar all-female line up. attending the Stadium Club on a bumper crowd of 41,546 fans at rolls for hot dogs and meat pies event and non-event days. Allianz Stadium. Sydney’s thrilling for doughnuts as part of the Operations penalty shootout win over Melbourne unique game day experience. TICKETING: Ticketing services Victory will go down as one of the The game was broadcast around CATERING: for both venues and the Trust’s club’s greatest ever moments during the world by ESPN and Fox Delaware North a season that heralded 66 points, 55 Sports. Stanford were too strong are completing the third year of a sports partners are provided by goals and just one loss. The 2018 in the end, beating Rice 62-7. five-year contract extension and Ticketek, who signed a five-year deal season was much the same, winning continue to provide quality service to continue providing a distribution every single game they played at SIA and offerings at the SCG and network to the public. Fortress have Allianz Stadium. A number of new home until a 2-1 defeat against secured the rights for the Trust’s Close to 30,000 fans enjoyed a initiatives have been introduced Newcastle in March. A total of corporate and member offerings. 301,323 fans turned out for Sydney unique live performance by Sia including a Doyles Seafood outlet FC’s season, which included a crowd at Allianz Stadium in December, in the Victor Trumper Stand as MERCHANDISING: Playbill Pty of 6025 for the club’s inaugural despite rain falling across Sydney on well as competitive deals for fans Ltd hold the merchandising rights W-League Grand Final. The Sky the night. The Australian songwriter and members attending events. Blues’ average A-League crowd was delivered a vocal masterclass at the SCG and Allianz Stadium 16,997 during the past financial year. alongside an interpretative dance SCG EVENTS: SCG Events has until 2021. Playbill operate the experience which lived up to the become a well-recognised event Stadium Store and event outlets at expectations of her local following. business associated with the Trust. the grounds and work closely with Cricket Sia’s big hits ‘Cheap Thrills’, ‘Elastic Stadia facilities are offered for sports partners to maximise sales. Heart’, ‘Titanium’ and ‘Chandelier’ private and corporate functions on NEW YEAR’S TEST were fan favourites, while popular non-event days and their financials DISABILITY PLAN: The Trust young dancer Maddie Ziegler have continued to grow under Australia completed their Ashes brought the show to life with her Delaware North management. continues to develop its Disability triumph at the SCG in January, undeniable talent. Her support Action Plan to ensure people with defeating England by an innings acts – Amy Shark, MØ and Charli AZURE CATERING: Azure disabilities can participate equally and 123 runs to secure a 4-0 XCX – were equally impressive and catering continue to offer catering in activities at our grounds. series result before the tea break on day five. A total of 182,349 fans attended the New Year’s Test, including 17,174 on the final day as supporters made the most of the gold coin entry to support the McGrath Foundation. This was the highest crowd aggregate for a five-day Ashes Test in the ground’s history. The SCG Trust also donated one dollar for every fan through the gates to help raise more than $1.4m for the placement of breast care nurses around Australia. ONE-DAY & T20 SYDNEY SIXERS 18 seasons. Their final match to INTERNATIONALS conclude the summer of cricket The Sydney Sixers hosted five last year was an eight-wicket win Australia played England in a men’s and three women’s fixtures over South Australia. Earlier this One-Day International before a at the SCG as part of an expanded year, they played out a close draw crowd of 35,195 in January at the Big Bash competition in 2017/18. with Tasmania and finished with a SCG. The tourists continued their A total of 124,399 fans cheered on 36-run loss to Queensland, who turnaround in the shorter format of their heroes throughout the season would go on to win the title. the game to take a 3-0 lead in the with the Sixers WBBL side winning series. Australia also played a T20 their second consecutive title over International against New Zealand the Perth Scorchers after two wins Special Events in front of 25,621 fans at the SCG from three matches at the SCG. to close out the summer of cricket. COLLEGE FOOTBALL The men got off to a slow start but finished strong with wins against SHEFFIELD SHIELD College Football made its debut the Thunder, Heat and Stars. A at Allianz Stadium with Rice and crowd of 36,458 fans turned out for The NSW Blues played three Stanford making the trip to Australia their cross-town derby in January, Sheffield Shield matches at the to put on a show for the 33,181 bringing the Sixers’ average crowd SCG during the reporting period spectators in attendance. The for the SCG summer to 24,878. as part of the 2016-17 and 2017- Sydney Cup injected more than

14 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 15 EVENT ATTENDANCE NUMBERS BY CODE

Event Attendees SYDNEY SWANS V ESSENDON NEW CLUB CROWD RECORD CRICKET 46,323 One-Day International - Australia v England 35,195 Test Match - Australia v England 182,349 BBL AND WBBL T20 International - Australia v New Zealand 25,621 TOTAL ATTENDANCE AT THE SCG 124,399 BBL/WBBL - Sydney Sixers 124,399 Sheffield Shield - NSW Blues 3906 ANZAC DAY CUP ROOSTERS V DRAGONS ATTENDANCE RUGBY International Rugby - Wallabies v Scotland 30,721 40,864 International Rugby - 17,021 Wallabies v Barbarians TEST, ODI, T20, BBL, WBBL, SHIELD Sevens World Series - Sydney Sevens 47,218 TOTAL CRICKET ATTENDANCE AT THE SCG 371,470 Super Rugby - NSW Waratahs 100,622 WALLABIES, SEVENS, SUPER RUGBY FOOTBALL A-League - Sydney FC (2017-18) 247,403 TOTAL RUGBY ATTENDANCE AT ALLIANZ STADIUM 195,582 A-League Grand Final (2017) 41,546 W-League - Sydney FC (2017) 6025 A-LEAGUE, W-LEAGUE, ACL Asian Champions League (2017) 6349 TOTAL FOOTBALL ATTENDANCE AT ALLIANZ STADIUM 301,323 NRL Sydney Roosters 143,037 ROOSTERS, SOUTHS, DRAGONS AND FINALS South Sydney Rabbitohs 10,594 TOTAL NRL ATTENDANCE AT ALLIANZ STADIUM 246,786 St George Illawarra Dragons 12,312 NRL Finals Series 80,843 SWANS REGULAR SEASON AND FINALS AFL Sydney Swans 365,623 TOTAL AFL ATTENDANCE AT THE SCG 421,838 AFL X 9892 Finals Series 46,323 NUMBERS BY CLUB CONCERTS SIA 28,562 AMERICAN COLLEGE SYDNEY SWANS AVERAGE SYDNEY SIXERS AVERAGE SYDNEY ROOSTERS AVERAGE FOOOTBALL Rice v Stanford 33,181 HOME GAME ATTENDANCE HOME GAME ATTENDANCE HOME GAME ATTENDANCE OTHER VISITATION SCG Tour Experience 14,123 Stadium Stomp 2000 35,153 24,878 15,387 Stadium Club Visits 312,081 LARGEST OF ANY SPORTING SECOND LARGEST OF ANY LARGEST OF ANY SYDNEY- TEAM IN SYDNEY SPORTING TEAM IN SYDNEY BASED NRL TEAM

SCG AND ALLIANZ STADIUM TOTAL 1,598,743 PRECINCT TOTAL 1,926,947 SYDNEY FC LARGEST HOME KEY STATS OF 2018 NEW YEAR’S TEST AT THE GAME ATTENDANCE INTERNATIONAL SYDNEY SEVENS SYDNEY CRICKET GROUND 79 GAMES 41,546 451 TRIES 182,349 SOLD OUT A-LEAGUE AUSTRALIA WON THE MEN’S LARGEST ATTENDANCE FOR 16 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 GRAND FINAL AND WOMEN’S TOURNAMENTS A FIVE-DAY TEST AT THE SCG Capital Works Playing Field Environment and

FACILITIES Maintenance Sustainability

»» Renovated 21 corporate suites in The Trust and its consultants The Trust continued its commitment the O’Reilly Stand implemented a new turf to a greener future and worked management plan for the fields of closely with Quayclean, the »» Renovated bathrooms on level play at both the SCG and Allianz precinct’s cleaning and waste Stadium. During this period, head five of the O’Reilly Stand management service provider, to curators Tom Parker (SCG) and further improve environment and »» Appointed Premier Fire as new Michael Finch (Allianz Stadium), sustainability practices. stepped down after 20 years in their fire services contract provider respective roles. The Trust The total waste processed in the precinct from event and day-to-day »» Upgraded Venue Services and restructured the department to employ Justin Groves as the first business activity was 1045 tonnes, an Security offices Grounds Manager to oversee both improvement on the 2016/17 reporting season. The Trust is HERITAGE venues and appointed Adam Lewis as the ninth curator in history. The working towards its resource recovery SCG underwent its first full re-turf in rate of 75 per cent, with 612 tonnes »» Upgraded Members Pavilion nearly 20 years in October last year, recovered in the past year. home and away change rooms preparing the ground for a busy summer of cricket which included A number of new initiatives were »» Upgraded Ladies Pavilion the five-day Ashes New Year’s Test, introduced including the bathroom facilities BBL, ODI and T20 fixtures. procurement of Method bins, which have helped to colour code waste »» Repainted the interior of the streams in line with new Australian Members and Ladies pavilions standards. In addition, the Trust has

MANAGING THE ASSETS Operations The Facilities Department managed more than 4200 unscheduled maintenance jobs and over 1500 event-related maintenance works during the reporting period, under a budget of $9 million. Services included painting, electrical, plumbing, carpentry, vertical transport and mechanical orders ensuring the SCG Trust precinct facilities remain in a suitable condition.

18 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 19 implemented improved back of house sorting initiatives in corporate Security and Health and Safety and selected concourse areas at the Precint Access SCG, with a goal to implement this Initiatives across the entire precinct. In the current security climate the Across the reporting period, work threat of terrorism continues to be the The Trust has also removed single continued with the Contractor largest influence on stadium use seat stickers and replaced them Management Platform to improve operations. The Trust works closely with reusable seat covers. The the Trust’s compliance and onsite with NSW Police, intelligence Rugby Australia Building included agencies and hiring partners to induction requirements. Wardens solar panels on the rooftop, which determine appropriate levels of received refresher training and generate energy for water heating security during major events and daily practical drills to ensure that the units throughout the building. The operations. Investment in physical precinct’s emergency arrangements unique building exterior also includes and electronic security infrastructure remain robust whilst a coordinated suns shades to minimise including the recent completion of the Emergency Management Training temperature increases and achieve precinct’s CCTV systems has been a plan has been introduced. The internal air conditioning. Water priority. A key achievement in the past Trust’s ‘Lost Time Frequency Rate’ consumption has been a key focus, year has the been the opening of the with subterranean reserves below SCG’s state-of-the-art Venue has shown a slight increase per the precinct’s floor used for irrigation Operations Centre which has greatly quarter due to long-term manual of the playing surfaces at the SCG improved event surveillance and handling injuries, which required and Allianz Stadium. reaction times. surgical repair.

Loss Time Injury Frequency Rate (LTIFR)

As can be seen in Figure 1. the Trust’s Lost Time Injury Frequency Rate remained at zero for the majority of the reporting period. There was a spike at the beginning of the 2017 year due to two lost time injuries occurring, which coincided with a busy summer of events at the SCG and Allianz Stadium.

25.00

20.00

15.00

10.00 Relative Frequency

5.00

0.00 1 2 3 4 5 6 7 8 9 10 11 12

LTIFR Reportable Periods

20 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 21 STRATEGY AND PROJECTS

The role of the Strategy and Projects division is to think about the opportunities for the future of sport and recreation, and what is achievable on the lands managed by the Trust.

Given how many parties come The project will build on the legacy of plans that deliver a revitalized together to create a great sporting the Sydney Sports Ground and the precinct and a world-class stadium experience, the Trust is thinking original SFS, opened as a Bicentennial for the NSW public to enjoy. Work is about the venues it manages in the Project in 1988. expected to commence in late 2018 context of its sporting partners, and be completed by 2022. Allianz Stadium is now the oldest Government stakeholders, the local top-tier rectangular stadium in The stadium will be built entirely on residential and business Australia, with significant safety, SCG Trust lands and will communities and the fans. compliance and patron safety issues, complement the CBD and South Over the past 12 months the Trust together with insufficient female East Light Rail investment. The has continued on its journey to toilets and inadequate provision for project will include new member disability access. facilities funded by the Trust. understand more about its neighbours, the future vision of its To address this, the NSW Government During the reporting period, the sporting partners and how the will rebuild Allianz Stadium into a Australian Rugby Development business can positively influence the world class rectangular stadium with Centre was opened, providing a local community. substantially improved sightlines, a new home for the country’s top roof that covers all patrons, and men’s and women’s rugby players The Trust supports the NSW significantly improved amenity, and as well as University of Technology, Government’s stadia strategy and food and beverage options. Sydney’s sport science and plans to redevelop Allianz Stadium management programs. into a world class 40 to 45,000- The Trust is committed to working seat stadium. with all its stakeholders to develop

22 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 23 of the year. News Corp also on its expertise and commitment to Trust focused on offering unique signed a new contract for the the delivery of a commercially robust, opportunities for current members next three years. The Trust’s high quality hospitality program. to upgrade their membership status major partner Allianz continues or introduce friend and colleagues to hold the naming rights In November 2017 the Trust extended to the benefits of the precinct. sponsorship of Allianz Stadium. its partnership with MatchPoint until 2024 to include all casual, seasonal Building relationships with and annual facilities. strategic commercial partners Hospitality to provide quality incentives and rewards for new, referring In December 2016, the Trust Gold and Platinum and upgrading members was appointed MatchPoint as its critical to these campaigns. exclusive hospitality partner, trading Membership as SCG Hospitality for all hospitality products. MatchPoint’s agreement Commercial sales for Gold and will provide the Trust with a Platinum reached $5.011 million at comprehensive return, capitalising the end of the reporting period. The

COMMERCIAL

A strong performance in Gold and Platinum membership sales and the wi-fi, IPTV advertising and a sponsorship rights program has seen Trust commercial revenue remain steady at $20 million.

Our commercial rights partner sponsorship partnerships with News Sponsorship, QMS, provide the Trust with Corp, Tabcorp, Qantas, Ticketek, a strong financial return. The IOOF, Telstra, Harvey Norman, Supply and Trust has capitalised on their Ingram Micro, Heinz and UTS as well expertise, commercial insight as our supply and product rights Advertising Rights and their understanding of partners, CUB, CCA, Diageo, Jim digital assets available as a Beam, Tyrrell’s, Samuel Smith and The Trust’s advertising and result of the investment in wi-fi Sons and Treasury Wine Estates. sponsorship program continues and IPTV technology at Allianz to make a significant contribution. Stadium and the SCG. In the 2017-18 period we extended Revenues of $14.3 million were our agreement with UTS, which generated via sales as well as Accordingly, the Trust has continued will see the university sponsor the supply and product rights. to enjoy success in advertising and Stadium Club for the remainder

24 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 25 merchandise sales and general »» Steve Waugh AR experience (all enquiries. New membership cards days) Member Events were issued to all financial members in » June 2017. A new membership CRM » Members Breakfast, Noble Dining and Engagement (Phoenix) was completed in June 2017 (days 1-2) with further enhancements to the Program »» Breakfast with the Curator, Field CRM currently in the functional and of Play (day 2) Events offered this year: detailed design phase which is progressing within the scheduled »» Sculpture Tours (days 2-3) »» New SCG member induction timelines and budget. »» Jane McGrath High Tea, East side »» Wine tasting evenings with SCG MEMBERSHIP Dining Allianz Stadium (day 3) sponsors ELECTION AND WAITLIST »» Jane McGrath Picnic, Allianz Field »» New dining room offerings In January 2018, the Trust offered of Play (day 3) »» New products including ‘Footy SCG membership to 1141 applicants » Club’ for Swans matches who joined the membership waitlist » Stumps Sessions with Stephanie Brantz, ICC (days 1-4) in 2005. The offer was accepted by »» Club XV at the Wallabies v 397 new members (229 opting for »» Kids Cricket Clinics, Allianz Scotland Test double membership, 78 single and Stadium (days 1-4) 90 junior) representing a 35 per cent »» Tailored sports tours with partner take up and $420,000 in revenue. At Keith Prowse Travel the end of February 2018, there were Reserved seating was offered to 24,577 applicants on the SCG members ($25) for the first four days »» Village Green, Sydney Live Plaza, Waitlist dating back to January 2006. of the Ashes Test and the One-Day Club House and Terrace Bar International and T20 fixtures against during Ashes Test SUBSCRIPTION RENEWALS England and New Zealand. Seating is AND NUMBERS provided free to members for 50 years or more. Member numbers have remained stable at 18,842. The membership breakdown rests at 9 per cent Platinum, 33 per cent Gold and 58 per cent SCG, which is consistent with previous reporting periods. The MEMBERSHIP AND MARKETING Trust received 95 resignations this year which is up slightly (68 in 2016/17). Communication with these The Membership and Marketing division manage Membership Services, the Stadium members suggests reasons for non-renewal include old age, ill Club, the ICT team and the marketing of Allianz Stadium, the SCG and the Trust. health, value for money, financial difficulties and not using membership due to travel. Membership INTERNATIONAL CRICKET Members were offered a program of Services special off-field events during the New Year’s Test match including: MEMBERSHIP SUPPORT »» Country Member Reception, The Membership Support division Noble Terrace (Test match eve) includes a member and customer »» The Panel with Tim Gilbert, ICC service team. The offering features a (all days) membership call centre and email support, card replacements, waitlist »» State of Play with Rodney Hogg applications, sale of day passes for and Wayne Phillips, ICC (all days) nominated events, seat reservations and managing reciprocity with »» Baker Boys Live Music, Sydney interstate and overseas venues. Plaza (all days)

The division staff the Venue Services »» Lunch by Justin North, Noble Office which is the focal point of the Dining Room (all days) Stadium Club and also assist with

26 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 27 MEMBERS ADVISORY MEMBERSHIP PRICING AND Stadium Club for the remainder of »» ICT policy review GROUP PRODUCT REVIEW this year as part of a long-term » commitment to the precinct. The » Cyber security review A Members Advisory Group was A membership product and pricing Trust is currently discussing »» Telecommunications review for formed in June consisting of 11 review was completed by Turnkey transition plans for interim facilities long-term mobile device strategy members across all three categories consultants. The review provided the while Allianz Stadium is rebuilt. with the purpose to: Trust with insight into its customer »» 1650 helpdesk requests logged base and short term future and completed in the last 12 » » Allow members input and development for its products and ICT Division months feedback on current and future services. Trust decisions that directly or ICT CAPITAL WORKS »» Data strategy and dashboard indirectly impact member Stadium Club PROGRAM reporting experience and satisfaction » The ICT capital works program for » Customer service: developing SLA INCOME AND EXPENDITURE guidelines for help desk operations »» To develop ideas for creating 2017/18 ($2.14M) included the advocacy for government The Stadium Club achieved a 7 per Server Virtualisation Project, website SCG PHASE THREE investment into the overall Moore and further enhancements to the cent increase on income when EXPANSION Park precinct compared to the budget for internal CRM, network convergence and revenue programs. The total income digital payment solutions (cashless). »» To work collaboratively for The Trust progressed the business was $439,948, more than $26,745 broader precinct outcomes whilst case for the expansion of the Wi-Fi over budget and was due to high CORPORATE ICT and IPTV for the remainder of the recognising that decisions made performing areas including the kids SCG. can only impact actual Trust lands holiday program, internal personal The Trust completed the following updates: DIGITAL TRANSFORMATION RESEARCH PROGRAM training revenue, group fitness classes and new tennis programs. »» Corporate headquarters wi-fi STRATEGY Azure cafe performed well with a Focus groups were held in May for all roll-out total income of $272,749, Over the last 12 months, the Trust has: membership categories to discuss the approximately $24,795 over budget » membership experience and in July to » Meeting room technology upgrades » revenue. » Maintained a focus on specifically focus on the Stadium Club »» Windows 10 and Office 365 understanding the customer and experience. An online survey was enhancing their experience, UTS STADIUM CLUB installed conducted in January to measure the through analysis of available data Customer Experience Score for University of Technology Sydney »» Desktop and laptop refresh streams members and the public from day four (UTS) have partnered with the Trust » of the Ashes Test at the SCG. to sponsor the naming rights for the »» Printer refresh » Is in the process of completing the SCG connection solution to become a fully connected multi-venue precinct

»» Engaged with key precinct stakeholders to outline future vision and the Trust’s path forward for their digital transformation

Innovation STEVE WAUGH’S AR EXPERIENCE

In a first for Australian sport, the Trust partnered with former Australian captain Steve Waugh and Avanade, to create an augmented reality experience to celebrate 15 years since ‘Steve Waugh’s Perfect Day’ famous last-ball century at the SCG.

The HoloLens experience was available for fans to enjoy during the Sydney Test and was deployed in a custom-fitted shipping container.

28 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 29 MOBILE APP Digital Information Security identified risks to the digital Annual Attestation for the information and digital information A review of the Stadium App 2017/18 Financial Year for the systems of the Trust which will be identified key aspects that should be Sydney Cricket and Sports adequate for the foreseeable future. enhanced in line with the Trust’s Ground Trust digital strategy, forming the basis of Risks to the digital information and the Stadium Application and wi-fi I, Bernie Lamerton am of the opinion digital information systems of the captive portal tender. that the Sydney Cricket and Sports Trust will be assessed in accordance Ground Trust (the Trust) is presently with the NSW Government Digital CONNECTED STADIUM reviewing its Information Security Information Security Policy. PERFORMANCE STATISTICS Management System (ISMS) and will take steps to address any non- »» 158,000 wi-fi gateway users conformance, as may be relevant, to develop the ISMS to be consistent » » Over 33,000 app installs with the Core Requirements set out »» 58 per cent increase in app in the Digital Information Security registrations (downloading and Policy for the NSW Public Sector. then creating an account) I, Bernie Lamerton am of the opinion »» Over 660,000 fan records (33% that the Trust will put in place increase) necessary controls to mitigate

The AR-Kit app utilised the multiple broadcasters were running and wait times at bathrooms and smartphone camera to position the story including Channel 7, concession stands. Steve Waugh within the user’s Channel 9 and ESPN. The activation environment enabling fans to see was nominated as part of the 2018 GOOGLE STREETVIEW and hear the ‘perfect day’ from a Stadium Business Awards. new perspective and proved an The Google Streetview project was effective way to engage fans with the WAITTIME completed successfully with the venue and the Trust brand. launch of the footage to be advised. The Trust engaged WaitTime to The project is part of the broader The iPhone experience was ranked develop a solution which will improvement of the Trust’s digital number one in Australia in the App enhance the experience of fans at properties, which includes a Store within hours of its release and the SCG regarding foot traffic flows redesigned website.

30 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 31 HERITAGE In addition to weekly public tours, MEDIA the museum was open on SCG event The SCG museum continues to be a days and attracted over 4000 patrons SCG Trust staff continued to provide key component of the SCG Tour. during the 2018 Test match. media relations and support for event Heritage staff identified new ways to and non-event day activities, showcase the Trust’s archive PUBLIC RELATIONS including: collection by taking the ‘museum » beyond borders’. These included: Several Trust initiatives and functions » NRL Women’s Competition launch in 2017/18 provided an opportunity » »» Fox Sports NRL Finals Campaign » Digitalisation of a selection of the for the Trust to promote its heritage, museum collection for online and relevance to the history of sport »» The Australian Golf Digest Player display as part of a future Google in NSW, including: of the Year Awards Cultural Institute project » » Unveiling of the Betty Cuthbert »» The Australian Cricket Media »» Installation of new museum- and Marlene Mathews bronzed Association annual dinner grade display cabinets in the sculptures SCG Trust Suite and creation of »» The Bradman Foundation Gala » an exhibition for the 2018 New » A 50-year reunion of the Australian Dinner Year’s Test match soccer team’s first overseas tournament win in 1967 in Vietnam GOVERNMENT RELATIONS »» Framing and installation of » significant scoreboard calicos » A plaque to commemorate 35 The Trust continued to support the and scorecards of milestone years since the Sydney Swans’ first Office of Sport and Infrastructure cricket Tests, thereby improving game as a home team at the SCG NSW with communications relating to the experience for players and the redevelopment of Allianz Stadium. »» A celebration of the 80th tour guests Several tours from visiting dignitaries anniversary since the 1938 British were also held including groups from »» Restoration and preservatio of Empire Games the Government of Odisha, the the Trust’s Wisden collection »» A visit by the 2018 Queen’s Baton Australian Defence Force and the »» In addition, the heritage staff for the Commonwealth Games West Australian Government’s conducted regular checks of standing committee on community hazards within the museum, »» PR campaigns were also prepared development and justice. storeroom and archives, and for Trust initiatives including the ensured collection standards introduction of Clear Bags at the AWARDS were maintained. SCG, and Steve Waugh AR MEDIA AND COMMUNICATIONS project. The Trust was shortlisted for the Fan SCG TOURS Experience award (Ashes 2018 Test The SCG Trust continued to actively match) and Venue Technology award The Trust Communications Division is responsible for communications, government Popularity of the SCG Tour product support selected community (Venue Operations Centre, website relations, public relations, stakeholder and community engagement, media services continues to grow. Tour visitations organisations including St Vincent’s and social media monitoring), at the recorded for the 2017/18 financial Hospital, Children’s Hospital, the 2018 Stadium Business Awards. This and heritage and tours. year increased by 42 per cent from Vinnies CEO Sleepout and is excellent recognition and the previous year. This increase can Haemophilia Foundation Australia. strengthens the Trust’s reputation as be attributed to the investment in a a leader in the venue industry on a »» Weekly e-newsletters experiences. Free wi-fi at Allianz MEMBER COMMUNICATIONS product review during the 2016/17 global scale. Stadium and in the Noble Bradman The Trust places a high importance »» Regular stadium redevelopment period and implementation of key Messenger stands of the SCG has marketing strategies targeted on communication with its members. updates allowed fans to share photos and towards more appropriate Over the past year, the division has comments immediately while at » demographics. produced the following material in » News and information updates via events, which also contributed to a collaboration with the membership the Trust website growth in engagement. The Trust collaborated with the and marketing team: Destination NSW (DNSW) product »» A members booklet for the Social media numbers continued to team to increase the SCG Tour »» Two editions of the Around the Wallabies Test increase off the back of a number of presence within the NSW Tourism Grounds magazine campaigns and communications market. This resulted in the SCG SOCIAL MEDIA support for major events. »» Free interactive iPad and Android Tour being officially recognised as tablet editions of the magazine Engagement and followers of the ‘export ready’ with three-tiered HERITAGE AND TOURS international tourism pricing. Trust’s social media channels continue »» Members guide to the summer of to grow. Significant increases were The Heritage and Tours programs The domestic market business cricket recorded around events such as the were reassigned to the development included increased »» A Test match statistics booklet New Year’s Test, Sydney Sevens and Communications Division to improve focus on school excursion and Big Bash League. A number of awareness of the Trust’s commitment tertiary event management tours, »» Daily Innings news sheets during competitions were also run to offer to honour its sporting, cultural and seniors’ tours, and a conference the Test match fans game day packages and sporting social history. leisure component.

32 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 33 Operating Income and Expenditure

The results for the reporting period show an increase in operating revenue to $99.4m compared to $91.5m in 2016/17; with an increase to operating expenditure of $97.5m compared to $90.4m the previous year.

The Trust’s financial performance for the past year reflected the following aspects of operation:

»» Annual event attendance of 1.5m patrons (1.5m in the previous year)

»» An event schedule featuring a broad range of sport and entertainment including the Ashes Test match, international cricket, all four major football codes, World Series Sevens and one outdoor concert

»» Higher catering revenue than the previous year to events and facilities at the Highlight events staged during »» Continued strong membership SCG and Allianz Stadium. the year included the Australia v retention levels resulting England Test Match, a T20 and Membership subscription rates in increased annual One-Day International, Sydney were increased during 2017/18. subscription revenue Sixers home games, Sydney Continued strong membership Swans fixtures, the Anzac Day »» Lower sales of new Gold retention levels reflect the Cup, NRL semi-finals, World and Platinum memberships ongoing enhancement of the Rugby Sevens, Asian Champions and comparable sales of event calendar at the SCG and League, the A-League Grand Final SCG memberships Allianz Stadium as well as other and one outdoor concert (SIA). CORPORATE SERVICES services available to members. »» Higher demand for premium Long-term contractual arrangements In 2017/18, membership annual seating and corporate box rental with major sporting bodies provide subscriptions revenue was a broad-based program of sporting » $22m compared to $20.7m Financial Report » Lower sale of advertising and events at Trust grounds. Major recorded in the previous year. sponsorship revenue contracts hirers’ contracts are current at the The Trust is a NSW Government Trading Enterprise constituted under the provisions SCG (Cricket NSW, Sydney Sixers »» Higher event operating costs and Entrance fees recorded for and the Sydney Swans) and at of the Sydney Cricket and Sports Ground Act, 1978. The Trust is a not for profit employee related expenses new members at the SCG (predominantly sales to the 12- Allianz Stadium (Australian Rugby entity (profit is not its principle objective). The reporting entity is consolidated as part »» Higher ground operation year wait list) during 2017/18 Union, NSW Rugby, National Rugby and maintenance costs was $669,000 compared to League, Sydney Roosters, St of the NSW Total State Sector Accounts. $649,000 in the previous year. George Illawarra Dragons, South »» Lower debt interest costs Sydney Rabbitohs and Sydney FC). Entrance fees received from the The Trust’s operations for the March 2017. The Trust recorded a of all but one year’s useful life of the » » Comparable depreciation charges sale of new Gold and Platinum CATERING financial year ended 28 February positive net result for the year of asset value of the current Allianz memberships generated sales 2018 and resulted in an operating $22.144m after inclusion of a gain on »» Debt restructure to reduce Stadium ($208m). revenue of $5.011m, compared The Trust’s net share of catering on-going loan interest cost surplus (before premium on debt disposal of land of $23.785m, to $5.1m in the previous year. sales (including amortised restructure) of $1.959m compared to reflecting the long-term lease of land During the past year the Trust contract premiums) at the »» Capital works program the budget which projected an for the construction of the VENUE/EVENT HIRE FEES SCG and Allianz Stadium was undertook a capital works program undertaken – $23.4m operating surplus of $1.7m. ARDC building. valued at $23.4m for renewal and $5.7m (food) and $7.7m (liquor), During the past year the total compared to $5.2m and $6.2m improvements to Trust assets. The P & L Statement for 2017/18 The overall net comprehensive MEMBERSHIP attendance of patrons at events respectively in the previous year. provides an operating deficiency of deficiency for the financial year was staged at the SCG and Allianz $1.666m for the year, after recording $64.020m, after inclusion of an Capital debt was increased from The Trust offers three major forms Stadium was 1.5m. Revenue from Under the terms of the current a non-cash premium ($3.625m) on increment on revaluation of buildings $77m to $78m at the close of of membership – SCG, Gold and hire fees was $13.1m, higher than contract, a premium amount was the debt restructure conducted in ($123m), together with the write off the year. Platinum – providing entitlements the previous year’s $10.9m. initially paid by the caterer to the

34 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 35 Trust representing catering fees to $17.6m in the previous year) in paid in advance. Further, an staging all sporting and other events additional sum was paid by the at the SCG and Allianz Stadium. caterer and applied to various catering outlet refurbishments and GROUND OPERATION purchase of associated equipment. AND MAINTENANCE

The total premium amount initially Ground operation and maintenance paid under the current contract expenditure of $15m was incurred is being amortised annually during the past year on grounds, over the term of the contract. buildings and plant, compared to $12.8m in the previous year. ADVERTISING AND SPONSORSHIP The Trust employs a permanent trades workforce, service contractors Stadium advertising signage and and subcontractors to undertake sponsorship revenue includes the annual program of maintenance product rights at each venue. of grandstands, buildings, plant, grounds and playing arenas at Revenue generated for 2017/18 the SCG and Allianz Stadium. was $15.1m (including newly contracted arrangements) CORPORATE SEATING compared to $15.7m in the EXPENSES previous year. The Trust contracts PREMISES RENTAL INCOME the sale of advertising in the of seasonal and casual corporate Premium seat packages sold to freight ($297,000 compared together with recent additional form of LED, fence, grandstand box and dining room packages. to $151,000), insurance costs capital works projects, has resulted The Trust holds long-term corporate customers for major facades, IPTV/ wi-fi and events incur costs in marketing and ($453,000 compared to $498,000) in an increase to the annual The Trust market the sale of tenancy arrangements for office video scoreboard signage. servicing these products including and accounting and legal fees depreciation charge for 2017/18 corporate hospitality for events administration and players’ facilities direct charges for tickets, catering, ($377,000 compared to $555,000). which was $13.7m, compared at the SCG and Allianz Stadium located within its precinct. Costs incurred in servicing and merchandising and other costs. to the previous years $13.3m. commission for advertising signage within Trust allocated areas for EMPLOYEE SALARY The Trust tenancies currently Premium seat costs of $1.9m were and sponsorship arrangements cricket, Sydney Swans, Sydney FINANCE COSTS comprise headquarters for Cricket incurred during 2017/18, in line with AND WAGES were $1.9m compared to FC, rugby union, rugby league NSW, Sydney Sixers, Sydney Swans, $1.8m in costs for the previous year. $2.8m in the previous year. and concert events. Revenue Trust borrowings were increased NSW AFL, University of Technology, Employee salaries and wages from rental of private suites and from $77m to $78m as at 28 Rugby Australia, National Rugby MARKETING EXPENSES incurred during the past year CORPORATE corporate boxes during the year February 2018 due to a debt League, Sydney Roosters, Sydney were $15m compared to was $2.6m, compared to $3.5m Marketing funds were allocated restructure. Actual interest paid on SEATING SALES FC, Delaware North Catering and $14.8m in 2016/17. These costs received in the previous year. in 2017/18 by the Trust to capital debt during 2017/18 was the Stadium Sports Medicine Clinic. include direct costs incurred in The Trust corporate packages Sub contracted sale revenue for promote and market the cricket servicing event contracts. lower at $2.8m, as compared to available include annual private allocated premium public seating Tenancy rental income received and football seasons, the major $3.9m recorded in the previous suites, corporate boxes and for major events generated revenue in 2017/18 was $4.9m compared events, available Platinum, Gold DEPRECIATION year. The Trust incurred a one off Premier Club membership, as of $1.8m compared to $250,000 to $4.3m in the previous year. and SCG membership places, sale non-cash premium of $3.625m well as a comprehensive range received in the previous year. of private suites and corporate The completion and opening of in 2017 which saw an increase INVESTMENT MANAGEMENT boxes, premium seating for the new Noble/Bradman Stand, in the duration and quantum of PERFORMANCE major events, guided tours and corporate function room facilities. Interest received on investments Marketing expenditure during totalled $100,000 as compared 2017/18, including advertising, to interest of $168,000 received promotion and publications, in the previous year. was $3.7m, comparable During the reporting period available to the previous year. surplus funds were invested with the NSW Treasury Corporation in both ADMINISTRATION AND the Hourglass facility and on term RELATED EXPENSES deposits. The return on the Trust’s invested funds from these facilities Administrative and related expenses represents the rate of 2.16 per cent incurred during the past year for the year ended 28 February 2018. included consulting fees ($1m compared to $1.1m in the previous EVENT OPERATING COSTS year), communication expenses ($394,000 compared to $345,000), The Trust incurred direct event costs printing and stationery ($1.169m of $21.2m during the year (compared compared to $965,000), postage/

36 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 37 book debt, offset by lower interest to reduce future premiums. managed an extensive capital »» SCG Churchill Brewongle MAJOR ASSETS – if recorded value is not materially commitments in the forward years. works program totalling $23.36m Stage 3 planning PROPERTY, PLANT different from fair value - with no The Trust has in place an internal audit (compared to $13.7m in the change made to the recorded value. » & EQUIPMENT CONSULTANTS and risk management framework previous year). The major projects » SCG Security Room project overseen by the establishment of During 2017/18 the Trust received undertaken in 2017/18 included: » The Trust’s major assets, other than » SCG upgrade to precinct’s an independent valuation by WT Consultants were appointed for the Trust Audit and Risk Committee land holdings, consist of buildings PA and CCTV system Partnership, registered quantity a range of projects in 2017/18, in accord with the Government’s »» Progressed concept plans and improvements at the SCG and with payments totalling $1.021m. Internal Audit and Risk Management surveyors, of the replacement cost for new Allianz Stadium »» Fire hydrant upgrades Allianz Stadium and its surrounds. The major consultancies (above Policy for the NSW Pubic Sector, of buildings and improvements at $50,000) were provided by: issued by NSW Treasury in 2015. »» Renovated 21 corporate suites »» Catering facility upgrades The Trust revalues each class of the SCG and Allianz Stadium. in the SCG O’Reilly Stand property, plant and equipment » The valuation at replacement » PMY Consulting: Smart Stadium The committee has prepared an »» IT Network Convergence Program at least every three years or with cost was converted to written Solution/IPTV & Wifi Solution and Audit and Risk Committee Charter »» Installed a synthetic roadway sufficient regularity to ensure that » down replacement cost by the Content/Strategy - $201,000 consistent with the content of around the perimeter of the SCG » IT Virtualisation Project the carrying amount of each asset in the policy’s model charter and determination of the remaining » the class does not differ materially » Populous: Stadium Concept developed a high-level enterprise »» Works associated with Rugby SUMMARY OF LAND useful life of each building. Plan Design - $145,000 from its fair value at the reporting risk management framework. Australia House/University VESTED IN THE TRUST date. Interim formal revaluations The valuation increment of »» Ernst & Young: Financial of Technology building are carried out in the years between The Trust’s internal auditor, The Trust was constituted under $122.8m recorded since the Accounting/Audit the comprehensive revaluation. Ernst & Young, conducts annual »» Lighting – Compliance upgrade the Sydney Cricket and Sports previous valuation of buildings and Services - $118,000 audits as part of the Trust’s Ground Act of 1978. It is charged During 2015/16, the Trust received improvements was transferred to »» Sydney FC office upgrade »» Intactile: Security services & three-year internal audit plan. with the care, control and an independent valuation by Knight the Asset Revaluation Reserve management of the lands described Frank Valuations of its vested lands, as at 28 February 2018. evacuation drills - $54,000 »» SCG Members Pavilion home and DEBT MANAGEMENT in Schedule 2 of the Act, those lands based on an ‘as zoned and used away dressing rooms renovation The balance of consultancy fees dedicated for public recreation. basis’, providing a valuation of As a result of the revaluations, incurred was paid by the Trust for The Trust’s debt portfolio is managed $61.5m as at 29 February 2016. an Asset Revaluation Reserve »» SCG Members and Ladies minor consultancies for services by NSW Treasury Corporation (TCorp). remains established. The balance Pavilions interior repaint provided. These included: IT The RBA kept the cash rate on hold Interim valuations of land were of this Reserve as at 28 February at 1.50% over the year and the 10- conducted as at 28 February 2017 2018 stood at $274.5m (28 services, masterplan design and »» SCG Ladies Pavilion ground year Commonwealth Government and 28 February 2018 to determine February 2017: $360.8m). planning, CRM planning, Trust level female toilet renovation website and app, accounting Bond yield increased marginally by 0.09% to 2.81% by year end. Over services, ratings review, engineering »» SCG field of play synthetic turf services, turf inspection, acoustics, the year, the face value of the Trust’s catering service, planning advice, borrowings increased from $74.5m »» SCG entire field of play resurfaced claims management, surveys, to $75m, after debt restructure, with WHS, employment matters, the weighted average borrowing rate »» MP1 car park access system building and other services. reducing from 4.11% to 2.89%. »» Hirers, Trustee and The number of minor consultancies CAPITAL WORKS corporate suite upgrades was 41 and the total was $405,000. During 2017/18 the Trust »» SCG air conditioning upgrades RISK MANAGEMENT, INSURANCE AND AUDIT/ RISK COMMITTEE

The Trust’s major insurance risks are covered through membership of the Treasury Managed Fund. Insurance premium costs in 2017/18 were $453,000.

The Trust insurance placement and coverage is reviewed annually by insurance Brokers, Arthur J Gallagher.

The Trust monitors insurance claims experience on an ongoing basis with a focus on workplace health and safety performance.

Risk management policies and procedures are regularly updated to enhance the Trust’s risk management profile in an effort

38 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 39 Time for Payment of Accounts Listed below is a schedule of accounts payable performance as at 28 February 2018, 30 November 2017, 31 August 2017 and 31 May 2017.

AGED ANALYSIS AT THE END OF EACH QUARTER

CURRENT LESS THAN 30 30-60 60-90 90+ TOTAL QUARTER $ $ $ $ $ $

May 4,464,090 11,803 - - - 4,475,893 99.74% 0.26% 0.00% 0.00% 0.00% 100%

August 3,269,526 4,485 - - - 3,274,011 99.86% 0.14% 0.00% 0.00% 0.00% 100%

November 1,532,728 81,269.15 - - - 1,613,997 94.96% 5.04% 0.00% 0.00% 0.00% 100%

February 4.995,379 1,733,660 28,717 - 880 6,758,637 73.91% 1.91% 0.42% 0.00% 0.01% 100%

ACCOUNTS PAID ON TIME WITHIN EACH QUARTER

TOTAL ACCOUNTS TOTAL ACCOUNTS QUARTER TARGET % ACTUAL % PAID ON TIME PAID

May 90% 96.55% $32,529,434 $33,412,182 August 90% 96.08% $22,353,941 $23,264,884 November 90% 92.26% $23,372,954 $24,282,283 February 90% 95.63% $39,073,260 $40,856,676

The Trust’s target is to pay 90 INTERNAL AND EXTERNAL The key driver of the rating is the per cent of accounts on time. PERFORMANCE REVIEWS Trust’s proven ability to attract Unavoidable delays in processing quality sporting events to its accounts occasionally arise due Ratings agency Moody’s conducted facilities and thus ensure that to delays in obtaining goods an annual review of the Trust’s cash flows from memberships and in proper order and condition, financial operations and position catering sales provide a degree or queries on invoices. as at 28 February 2017. of revenue certainty. This ensures a key rating support, enabling The report by Moody’s recommended The Trust continues to encourage the Trust to generate stable assignment of a financial rating suppliers to accept electronic earnings and free cash flow. of Ba2 (unchanged from the funds transfer as the preferred previous year) which was utilised The Trust’s business model ensures method of payment. No interest by NSW Treasury in determining that its fixed operating costs are has been paid on payments on any the amount of ratings-based generally covered by revenue accounts where delay in payment guarantee fees normally payable. that is relatively predictable from has occurred during the year. year-to-year. This protects overall Moody’s acknowledged the assigned profitability, while allowing the A minimal number of complaints were rating outlook is stable and primarily Trust to cover interest payments, received during the year concerning reflects the stability of revenue and capital expenditures and debt late payment of invoices, with each cash flow generated by the Trust, reduction from match-day earnings. matter being resolved satisfactorily. with limited direct competition. The Trust’s rating is supported Moody’s anticipate that major projects by its strong liquidity profile. could negatively impact the credit

40 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 41 profile during development. The Trust has a pipeline of several potential major initiatives to redevelop and

improve its facilities, which can cause

temporary spikes in leverage or

delays in deleveraging. Ultimately, the impacts on the credit profile depend on the size of the project, disruptions Sydney Cricket & Sports Ground Trust to existing operations, expected Internal Audit and Risk Management Statement for 2017/18 returns and the final funding structure.

A key major project is the demolition I, Jamie Barkley, CEO, am of the opinion that the Sydney Cricket and Sports Ground Trust has internal and rebuilding of the current Sydney audit and risk management processes in operation that are, in all material respects, compliant with the eight core requirements set out in the Internal Audit and Risk Management Policy for the NSW Public Football Stadium (Allianz Stadium). Sector, specifically: The goal is to rebuild a new stadium

with a seating capacity of between 40,000 and 45,000 at a cost of more Core Requirements than $700m. The project is anticipated The Trust also submits financial of Business Intent performance to begin in late 2018, with an expected reports to the Treasury Commercial targets established annually. Risk Management Framework completion of March 2022. Sector Division for review of operating 1.1 The agency head is ultimately responsible and accountable for Compliant performance and financial position CREDIT CARD USE risk management in the agency Moody’s expect the project will as compared to agreed Statement 1.2 A risk management framework that is appropriate to the agency Compliant reduce the Trust’s earnings relative to of Business Intent performance The use of credit cards issued to has been established and maintained and the framework is our current expectations during the targets established annually. Trust executive staff is in accordance consistent with AS/NZS ISO 31000:2009 development period. This reflects the with Premier’s Memoranda potential for some matches currently Moody’s acknowledged that these and Treasurer’s Directions. Internal Audit Function played at Allianz Stadium to relocated strengths are tempered by the Trust’s 1.1 An internal audit function has been established and maintained Compliant elsewhere, a reduction and/or loss need and willingness to partially debt- SYDNEY CRICKET CLUB 1.2 The operation of the internal audit function is consistent with the Compliant of naming rights revenue and other fund major capital projects. Leverage International Standards for the Professional Practice of Internal dislocation costs for venue hirers has increased over the last couple In 2007, the Trust joined with Auditing and lessees of adjacent buildings. of years to support major capital the administration of the former 1.3 The agency has an Internal Audit Charter that is consistent with Compliant works. This has caused leverage, as UTS-Balmain District Cricket the content of the ‘model charter’ While this may have negative measured by Debt-to-EBITDA to rise Club in establishing the entity impact on the Trust’s credit profile Audit and Risk Management Committee to a level that is more appropriately of the Sydney Cricket Club. during the development stage, positioned at the Ba2 rating level. 1.1 An independent Audit and Risk Management Committee with Compliant appropriate expertise has been established Moody’s expect that longer term The Sydney Cricket Club is an the development would improve the 1.2 The Audit and Risk Management Committee is an advisory Compliant The Trust’s four main committees incorporated association under Trust’s already strong competitive committee providing assistance to the agency head on the (Business, Finance, Development the Associations Incorporation position and ability to attract major and Audit & Risk Management) agency’s governance processes, risk management and control Act 1984. The Trust and the club events, as well as lead to increased are responsible for continuous frameworks, and its external accountability obligations agreed to enter an association earnings following completion. internal performance review of Trust 1.3 The Audit and Risk Management Committee has a Charter that is Compliant which would involve the provision consistent with the content of the ‘model charter’ activities. Monthly management by the Trust of administrative The Trust’s four main committees reports are submitted to these

(Business, Finance, Stadium committees for assessment of and other services to the club. Development and Audit & Risk The Chair and Members of the Audit and Risk Management Committee are: operational performance. Management) are responsible for The Trust is represented on the club’s board of directors in accord § Maurice Newman AC – Chair, Non-Independent (Term of appointment: 1 January 2015 to 13 July 2019) continuous internal performance The Trust’s internal auditor, Ernst & § with the club constitution. Nihal Gupta – Non-Independent (Term of appointment: 22 December 2017 to 4 October 2020) review of Trust activities. Monthly Young, conducts an annual audit § Phil Waugh – Non-Independent (Term of appointment: 14 July 2018 to 13 July 2022) management reports are submitted program affirmed by the Audit & Recoverable operational expenses to these committees for assessment Risk Management Committee. In These processes provide a level of assurance that enables the senior management of the Sydney incurred by the Trust during the of operational performance. conducting the assigned audits, Cricket and Sports Ground Trust to understand, manage and satisfactorily control risk exposures. Ernst & Young seek to identify past year were recouped from The Trust’s internal auditor, Ernst & opportunities to further enhance the the Sydney Cricket Club through As required by the policy, I have submitted an Attestation Statement outlining compliance with the policy Young, conducts an annual audit business and commercial efficiency the club’s operational account. to Treasury on behalf of the Treasurer. program affirmed by the Audit & and cost effectiveness of the Risk Management Committee. In Trust’s system of internal control. COST OF PRINTING REPORTS conducting the assigned audits, Ernst & Young seek to identify The Trust also submits financial The Trust has prepared two opportunities to further enhance the reports to the Treasury Commercial annual reports for 2017/18 in hard business and commercial efficiency Sector Division for review of operating copy as required for tabling in and cost effectiveness of the performance and financial position parliament, which were printed JAMIE BARKLEY Trust’s system of internal control. as compared to agreed Statement in-house with no external cost. Chief Executive Officer

42 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 43 senior management team during During November last year, all Over the past twelve months, the 2016-17 reporting period. staff were given the opportunity to Human Resources has re-evaluated participate in the Alignment and opportunities into entry level roles for The review was completed with 21 Engagement Survey facilitated by either trainee’s or recent graduates. participants in November 2017. The Insync. The participation rate for the This led to the Trust’s first Trainee results indicated that managers and Trust was 77 per cent (99/129) for Grounds Person in 2017 who worked executives displayed a great level Trust staff excluding casual event day alongside four existing apprentices. of self-awareness with individual staff and 38 per cent (235/619) when In 2018, three roles identified as leadership behaviours. Executive event day staff are included. The Trust either Traineeships or graduate/ ratings indicated they are reliable in scored an overall engagement of 64 entry roles. The Trust will continue to the six key traits and only reported per cent, an increase of five per cent support work experience programs being inconsistent on occasion. on the previous year’s results in 2016. and opportunities for the next generation to enter the workforce. RECRUITMENT Employees showed strong improvements in employee TEAM BUILDING The following roles were recruited perception, communication goals and during the reporting period: engagement with external customers. The Trust carried out a number of » team building exercises to enhance » General Manager – Events TRAINING the employee experience and »» Manager – Technical Services (ICT) foster a positive working culture. The executive team identified »» Manager – Customer Experience emerging leaders and self-leaders EVENT DAY STAFF within the business who then »» Manager – Grounds attended a number of programs The Trust welcomed more than 140 to help continue their professional » new customer service staff in the past » SCG Curator development. Permanent employees financial year as part of a recruitment were enrolled to complete online »» Manager – Work Health and Safety drive, which focused on exploring workplace bullying and sexual new advertising platforms. All casual harassment modules available on EMPLOYEE ENGAGEMENT event day staff participated in targeted the Trust’s e-learning platform. The training ahead of the 2018 Ashes programs helped to model behaviours The Trust participated in the People Test, with a key focus on customer and identify employee patterns. Matter Survey in 2017 and scored service and emergency management. HUMAN RESOURCES an overall engagement index of 72 A major training exercise with NSW percent (75 per cent in 2016 and The Trust is committed to providing Police in November saw actors, 76 per cent in 2014) compared the next generation with a chance to staff and law enforcement personnel to the Department of Industry develop themselves and see what The Human Resources department focused on providing a strong employee and take part in live response scenarios. cluster score of 65 per cent and opportunities are available in the The Trust has also taken steps to customer experience at the SCG and Allianz Stadium during the past reporting period. a sector score of 64 percent. workforce once they complete school. A work experience program has been adjust shift lengths and allocation, Overall, more than 60 per cent in place since 2008 and has seen reducing the number of casuals paid Building on the Trust’s customer constantly improving the experience at patrons of the Ashes Test of employees were satisfied with students from a range of schools in overtime. In the reporting period, experience strategy, the focus throughout the SCGT precinct. match, which received an their job, 55 per cent were happy local and rural areas participate in the Industrial Relations Commission has been to strengthen culture encouraging response rate with the opportunities available the program. Students are exposed presented a new award for the and provide employees with The Trust employed a Customer for career development and 67 to different areas of business within next three years, which included » the skills and resources they Experience Manager, who is » Continuation of Customer per cent were satisfied with the the Media, Facilities, Events, Finance, a 2.5 percent increase per annum need to deliver solutions. responsible for collaboration Journey Mapping training initiatives provided. IT and Marketing departments. in pay rates and allowances. with senior management to To help achieve key objectives implement initiatives in advancing 360 DEGREE REVIEWS the Trust implemented 360 an organisational culture centred FOR MANAGEMENT degree reviews of management, around our customers. recruitment in key roles, team The 360 Degree assessments are building, customer experience The following objectives have been designed to increase individual training and event staff initiatives. met to improve the ‘overall customer behavioural awareness and experience’ across events at both performance. Participants obtained CUSTOMER EXPERIENCE the SCG and Allianz Stadium: feedback from multiple sources, STRATEGY including managers, peers, »» Completion of the Voice of direct reports and customers. A customer experience strategy, in the Customer Program which Applicants also rated themselves. line with the Trust’s new corporate included discussions with plan, has been introduced. This stakeholders, executives and A 360 Degree review proves a strategy identifies our customers, staff to identify a solid foundation valuable development tool to help outlines what the Trust does, what and baseline for the action plan identify a person’s strengths and success will look like and how the weaknesses in the workplace. Trust can continue to ensure a »» Launch of the online Customer A policy framework was strong customer service ethos whilst Experience Survey targeted implemented at the Trust for the

44 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 45 WORKFORCE PROFILE REPORT Breakdown of employees by department

2015 Feb 2017 Feb 2018 Feb The Trust values social and cultural diversity and is committed to the principles of multiculturalism and disability action planning in all aspects of our work. The following is a breakdown of workplace diversity groups, FTE Emps FTE Emps FTE Emps employees and executive remuneration. Executive Staff 7.00 7 8.00 8.00 8.90 9.00

Trends in the Representation of Workforce Diversity Groups Administration 3.38 4 3.35 4.00 3.43 4.00

Benchmark/ Workforce Diversity Group 2015 2016 2017 Event & Operations 20.70 21 20.03 22.00 8.35 12.00 Target Business Development 0.00 0 0.00 0.00 0.00 0.00 Women 50% 35.5% 36.8% 36%

Aboriginal People and Membership & Marketing 27.07 50.2 34.89 59.00 34.20 55.00 3.3% 0.9% 1.9% 1.8% Torres Strait Islanders Commercial 7.00 7 2.00 2.00 2.00 2.00 People whose First Language Spoken 23.2% 8.5% 9.7% 10% as a Child was not English Corporate Services 13.95 15.8 12.89 14.00 10.65 11.00 People with a Disability N/A 0.9% 1.9% 1.8% Strategy & Projects 3.00 3 0.00 0.00 0.00 0.00 People with a Disability Requiring N/A 0.9% 1.9% 1.8% Work-Related Adjustment Properties / Facilties 27.00 27 26.00 26.00 41.93 47.00

Media & Communications 1.00 1 2.00 2.00 2.00 2.00 Trends in the Distribution of Workforce Diversity Groups Sydney Cricket Club 0.00 0 0.00 0.00 0.00 0.00 Benchmark/ Workforce Diversity Group 2015 2016 2017 Target Human Resources 3.00 3.00 4.04 5.00 Women 100 95 98 98 110.10 136 112.16 140.00 115.50 147.00 Aboriginal People and 100 N/A N/A N/A Torres Strait Islanders People whose First Language Spoken 100 N/A N/A N/A Breakdown of employees as a Child was not English 2015 2017 2018 People with a Disability 100 N/A N/A N/A

People with a Disability Requiring FULL TIME = 88 90 87.00 100 N/A N/A N/A Work-Related Adjustment PART TIME = 22.8 23 24.00

CASUALS = 25.2 27 36.00 Executive Remuneration

Band 2018 2017 2016 TOTAL EMPS = 136 140 147 Female Male Female Male Female Male FTE = 110.10 FTE = 112.16 FTE = 115.50 Band 4 (Secretary) 0 1 0 1 0 1 Band 3 (Deputy Secretary) 1 0 1 0 0 0 Band 2 (Executive Director) 0 2 0 2 0 2 Band 1 (Director) 2 3 2 2 2 3 Totals 3 6 3 5 2 6 9 8 8

46 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 47 TRUSTEE PROFILES John Hartigan – Chairman, Business Committee COMMITTEES: BUSINESS & STADIUM DEVELOPMENT Anthony Shepherd AO – Chairman Journalist Chairman: Prime Media Group COMMITTEES: BUSINESS, STADIUM DEVELOPMENT & FINANCE Director: Australian Paralympic Committee Bachelor of Commerce Life Member: Bradman Foundation Chairman: Macquarie Specialised Asset Management Ltd Former Chairman: Destination NSW Chairman: Greater Western Sydney GIANTS AFL Club Former Trustee: Anindilyakwa Mining Trust Director: Racing NSW Former Chairman: News Limited Director: Virgin Australia International Holdings Former CEO: News Limited Director: Menzies Research Centre Former Board Member: NSW Export and Investment Advisory Board External Advisor: ASIC External Advisory Former Chairman and Director: Australian News Channel Advisor: Lend Lease Former Director: Foxtel Advisor: Bank of Tokyo-Mitsubishi UFJ Former Director & Advisory Board Member: American Australian Association Former President: Business Council of Australia Appointed Trustee to 13 July 2019 Former Chairman: Transfield Services Limited Former Chairman: National Commission of Audit Former Chairman: WestConnex Alan Jones AO Former Chairman: Sydney Motorway Corporation Pty Ltd COMMITTEE: STADIUM DEVELOPMENT Appointed Trustee to 4 October 2020 Graduate of Queensland and Oxford universities Former speech writer and senior advisor to Prime Minister Malcolm Fraser Rod McGeoch AO LLB – Deputy Chairman; Queen’s Birthday Honour: Officer of the Order of Australia for the services to the media and sports administration Chairman, Stadium Development Former Australian rugby union coach Committee Former coach of the Balmain and South Sydney rugby league clubs Elected to the Confederation of Australian Sports Hall of Fame - 1985 COMMITTEES: BUSINESS, STADIUM DEVELOPMENT & FINANCE Broadcaster: Radio 2GB, Channel 7 Sunrise Program, Sky Channel Lawyer Jones & Co. Program providing editorial comment and formerly with the Channel 9 Today Show presenting editorial comment daily for 20 years Chairman: Vantage Private Equity Growth Limited Awarded Australian Radio Talk Personality of the Year 1990, Chairman: BGP Holdings Plc 1991, 1992, 1993, 1995, 1997, 1998, 1999, 2000, Chairman: BGP Investments S.a.r.l. 2001, 2002, 2003, 2004, and 2005 Chairman: Advisory Board – American Infrastructure Holdings LLC Awarded Australian Radio Best Current Affairs Commentator: Corporacion America Airports S.A. 1991, 1992, 1993, 1995, 1996, 1997, 1998, 2000, Director: Vantage Asset Management Pty Ltd 2001, 2002, 2003, 2004, and 2005 Director: Ramsay Health Care Ltd Advance Australia Award – Services to the Community 1993 Director: Maxwood Pty Ltd Awarded the Inaugural Sir Roden Cutler Medal for Services to the Community - 2003 Director: McGeoch Holdings Pty Ltd Deputy Chairman: NSW Institute of Sport Director: Destination NSW Former Deputy Chairman: Australian Sports Commission (1998-2008) Honorary Consul General of Luxembourg in Australia

Former Director: Sky City Entertainment Group Limited Appointed Trustee to 4 October 2020 Former Chairman: Mediaworks Investments Ltd Appointed Trustee to 13 July 2019

48 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 49 Stuart MacGill Maurice Newman, AC – Chairman, COMMITTEE: BUSINESS Finance Committee; Chairman, Consultant Audit & Risk Management Specialist spin bowling NSW, NZ, ECB COMMITTEE: FINANCE AND AUDIT & RISK MANAGEMENT Former Australian Test cricket player Chairman: M Value Capital Advisory Board Wine, sport and media commentator Chairman: Prime Minister’s Business Advisory Council Appointed Trustee to 13 July 2019 Chairman: Melon Pastoral Pty Ltd Chairman: NSW Chamber of Australia-India Trade & Investment Chairman: Bradman Foundation Chairman: Taronga Foundation Chairman: Australia Father’s Day Council Nihal Gupta Senior Corporate Advisor: MMC Group of Companies Patron: Committee for Economic Development of Australia (CEDA) COMMITTEES: AUDIT AND RISK MANAGEMENT, Director: O’Connell Street Associates Pty Ltd BUSINESS AND FINANCE Honorary Chair: Macquarie University Foundation CEO & Managing Director: Principal Electronics Group Pty Ltd Honorary Professor: Public Diplomacy, SPARC, Macquarie University (Soft Power Advocacy & Research Centre- SPARC) Chairman: Naisda Foundation Limited (Indigenous performing dance and arts) Former Chairman: Deutsche Bank Australia & New Zealand Member: Asia Society Advisory Board of Australia Former Chairman: Deutsche Bank Asia Pacific Advisory Board Former Chairman: Special Broadcasting Service (SBS) Former Chairman: Australian Securities Exchange (ASX Limited) Former Chairman: NSW Multicultural Business Advisory Panel Former Chairman: Sydney Convention & Visitors Bureau Former Member: Judicial Commission of New South Wales Former Chairman: Tourism New South Wales Former Member: NSW Export and Investment Advisory Panel Former Chairman: Australian Broadcasting Corporation Former Director: Sydney Sixers T20 Big Bash Cricket Former Chairman: Sydney Sixers Former Director: Parramasala Limited (International Former Chairman: Loan RQ South Asian arts and cultural festival) Former Chancellor: Macquarie University Appointed Trustee to 4 October 2020 Former Director: Queensland Investment Corporation (QIC) Former Director: Tiger Airways Australia Limited Former Member: MARQ Services Advisory Board Katie Page Appointed Trustee to 13 July 2019 COMMITTEE: BUSINESS Chief Executive Officer: Harvey Norman Holdings Limited David Gilbert Executive Director: Harvey Norman Holdings Limited COMMITTEES: BUSINESS, TRUST ADVISORY Director: Pertama Holdings Ltd (Singapore) AND MEMBERS ADVISORY GROUPS Director: Space Furniture Pte Ltd (Singapore) Director: The Bradman Foundation President: Western Suburbs District Cricket Club Member: NSW Domestic and Family Violence Corporate Leadership Group Patron: NSW Schools Cricket Association Member: UWS Foundation Council Life Member and Former CEO: Cricket NSW Former Member: NSW Council for Women’s Economic Opportunity Vice President and Former CEO: Sussex County Cricket Club Former Member: Retail Council Former Australian Cricketer Former Member: NSW Public Service Commission Advisory Board Former Director: Bradman Foundation Former Director: Museum of Contemporary Art Limited Former Director: Sydney Business Chamber Appointed Trustee to 4 October 2020 Appointed Trustee to 13 July 2018

50 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 51 Phil Waugh Kerrie Mather COMMITTEES: FINANCE, AUDIT AND RISK MANAGEMENT, COMMITTEES: BUSINESS AND STADIUM DEVELOPMENT TRUST AND MEMBERS ADVISORY GROUPS Member St Vincent’s Health Advisory Board National Manager Auto Finance St George - Westpac Banking Corporation Member UNSW School of Business Advisory Board Former Australian Wallaby Captain Former Managing Director and CEO – Sydney Airport Former NSW Waratahs Captain Former CEO – MAp Airports Limited Former British Barbarian Captain Former Executive Director – Macquarie Group Participant: Sydney to Hobart Race (Line Honours 2011) Former Board Member and Deputy Chair – Tourism and Transport Forum Masters of Commerce Appointed Trustee to 4 October 2020 Masters of International Business Graduate Australian Institute of Company Directors Appointed Trustee to 13 July 2018 Peter Ivany AM Hon Barry O’Farrell COMMITTEES: FINANCE AND STADIUM DEVELOPMENT COMMITTEE: STADIUM DEVELOPMENT Chairman – Sydney Swans Foundation and Life Member CEO, Racing Australia Ltd Chairman of Loftus Peak Advisory Board Chair, NSWRL Foundation Executive Chairman – Ivany Investment Group Deputy Chair: Australia India Council Director – IMAX Theatre Sydney Board Member: Obesity Australia Board Member – Allied Credit Director: Royal Flying Doctor Service South East Section Board Member – Sydney Zoo NSW Government’s Special Envoy for India Board Member – NIDA and Chairman – NIDA Foundation Trust Former NSW Premier Honorary Life Governor and Foundation Chairman – Jewish Communal Appeal Appointed Trustee to 13 July 2019 Adjunct Professor – University of Technology Chairman – Advisory Council, Sydney Film Festival Former CEO - Hoyts Cinemas Michael Crismale Former Board Member – TAHL, Accor Hotels Former Board Member - Museum of Contemporary Art COMMITTEE: FINANCE Former Board Member – Events New South Wales Fellow Member of Australian Institute of Company Directors Appointed Trustee to 4 October 2020 Member of Chartered Accountants in Australia and New Zealand Executive Chairman – Matrium Technologies Pty Limited Chairman - Matrium Sports Foundation Inc. Stephanie Brantz Non-Executive Chairman - Matrix Bloodstock Pty Limited COMMITTEE: BUSINESS Non-Executive Chairman - Emjay Insurance Brokers Pty Limited Sports and Events Presenter - ABC Non-Executive Chairman - JSA Financial Services Pty Limited Commentator/presenter/reporter – ESPN, Fox Sports Board member – Sydney Football Club Pty Limited Special Member Carbine Club of NSW Immediate Past Chairman – Carbine Club of New South Wales Inc. Former Sport Presenter for Channel 9/SBS Immediate Past Chairman - Australian Turf Club Corporate Host – SCG Trust Member functions Former board member – Sydney Turf Club - Sydney FC Chairman’s Club, Waratahs Chairman’s Club, Australian Rugby Union Former Independent Director – Surf Life Saving Australia Ambassador – Australian Indigenous Education Foundation, The Chappell Foundation Appointed Trustee to 4 October 2020 Appointed Trustee to 4 October 2020

52 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 53 Management organisational chart Trust meetings From 1 March 2017 to 28 February 2018, attendances by Trustees at the Finance Committee, Audit & Risk Management Committee, Business Committee, TRUST Development Committee and Trust meetings are set out below.

Audit & Risk Finance Business Development Trust Management Trustee Attendance Committee Committee Committee Meetings Committee Meetings (4) Meetings (4) Meetings (7) (8) Meetings (2) Audit & Risk Finance Business Development Management Committee Committee Committee Tony Shepherd, AO 2 1 3 6 Committee Rod McGeoch AO LLB 3 4 3 7

Stephanie Brantz # 1

Richard Colless AM + 1 3

Michael Crismale # 2 1 JAMIE BARKLEY David Gilbert 4 7 Chief Executive Officer Ron Graham + 1 1 4

Nihal Gupta ## 3 3 1 4

John Hartigan 3 3 7 BERNIE LAMERTON JASON HILL DEBORAH KELLY STEPHEN SAUNDERS Peter Ivany AM # 2 1 General Manager General Manager General Manager General Manager Corporate Services Commercial Strategy & Projects Events Alan Jones AO 2 3 Lyn Larsen + 3 3

Finance Corporate Hospitality Master Plan Sports Partner Relationship Stuart MacGill 1 5

Gold & Platinum Kerrie Mather ## - Procurement Major Building Projects Event Management Membership & Sales Maurice Newman, AC 4 2 7 Event Acquisition Payroll Services Sponsorship Design & Development Barry O’Farrell 3 7

Commercial Rights & Food and Beverage Katie Page 3 6 Contract Negotiation Phil Waugh 3 6

Steve Waugh AO + 2 3 JANE COLES PHILLIP HEADS JACQUELINE JOHNNY NAOFAL CUNNINGHAM + Completion date: 13 July 2017 # Commencement date: 14 July 2017 ## Commencement / Reappointed 22 Dec 2017 General Manager General Manager Heritage General Manager Marketing, Membership Communications & General Manager Audit & Risk Facilities Finance Business Stadium Development and ICT Govt Relations Human Resources Management Committee Committee Committee Committee Membership Heritage Venue & Asset Management Workforce Services Maurice Newman AC John Hartigan Rod McGeoch AM LLB Maurice Newman AC

Marketing Public Relations Capital Works Employee Journey Rod McGeoch AO LLB Rod McGeoch AO LLB John Hartigan Nihal Gupta

Michael Crismale Stephanie Brantz Peter Ivany AM Phil Waugh Stadium Fitness Club Communications Grounds Remuneration & Benefits Nihal Gupta David Gilbert Alan Jones AO Information & Government Relations Maintenance Recruitment Communications Technology Peter Ivany AM Nihal Gupta Kerrie Mather

Digital Transformation Tenant Management Talent Management Phil Waugh Stuart MacGill Barry O’Farrell

Right to Information & Public Kerrie Mather WH&S and Security Interest Disclosures Katie Page Customer Experience 54 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 55 CEO AND GENERAL MANAGER PROFILES

Chief Executive Officer General Manager – Commercial Jamie Barkley was appointed Chief Executive Officer of Jason Hill joined the Trust in October 2000 as Sales and the Sydney Cricket and Sports Ground Trust in February Marketing Manager. Prior to this he held management roles at 2001, responsible for the management and operation The Tattersalls Club, NSW Rugby Union and St George Rugby of the SCG and Allianz Stadium. Jamie was Chief League Club after beginning his career in sport and venue Operating Officer of the Trust from October 1999 and management at South Sydney Rugby League in 1994. General Manager of the Sydney International Aquatic He was appointed General Manager – Business Development in March 2005. This and Athletic Centres at Sydney Olympic Park from role evolved into his current position as General Manager – Commercial in 2011 following a restructure of Trust divisions. This restructure saw Jason assume 1994. responsibility for corporate hospitality and Gold and Platinum membership sales, advertising signage, wi-fi and IPTV opportunities, sponsorship sales, commercial Jamie has a Bachelor of Arts and a Master of Business rights and sports partner agreements, such as Cricket Australia, Cricket NSW, Administration from the Royal Melbourne Institute of Technology. Sydney Sixers, Sydney Swans, Waratahs, Wallabies, Sydney Sevens, Sydney FC He has more than 30 years’ experience in venue management, and Sydney Roosters. He also looks after all the on-site office premises tenancies. delivering major sport and entertainments events. Jason has a Bachelor of Economics degree with Honours in Industrial Relations. He Jamie is a member of the Australian Institute of Company Directors and is a board member of the Venue Management Association (Asia and Pacific) Ltd. a Director of the Sydney Cricket Club. He was a Director of the Bradman Foundation until December 2017 when his eight-year term expired.

General Manager – Corporate Services Bernie Lamerton joined the Trust in 1984 after 12 General Manager – Membership, Marketing & ICT years with the Audit Office of NSW. He was appointed Jane Coles was appointed General Manager – Membership to position of General Manager in 1994. & Marketing in August 2011. She is responsible for the strategic direction and overall management of a large and Bernie is qualified in accounting, having CPA status with the Australian Society of Certified Practicing Accountants. diverse team including membership and customer services,

He holds the combined role of Chief Financial Officer and Trust marketing, the Stadium Club and Information and Secretary. He is responsible for preparation of the Trust’s statutory Communication Technology (ICT) departments. financial statements and is the longest serving employee at the rust.T

Jane joined the Trust in December 1995 at the Sydney Olympic Park Aquatic and Athletic Centres and moved to the SCG and Allianz Stadium in February 2001. She has over 20 years’ experience in marketing and brand, membership and customer experience, segmentation, strategy, digital and stakeholder management. In May 2014, Jane was appointed as the second female Director of SCG Cricket assisting with the future direction and planning of the Sydney Cricket Club and SCG XI membership. In July 2015, Jane assumed responsibility for the ICT portfolio including corporate ICT, the Connected Stadium Solution and overarching digital precinct strategy and transformation.

Jane’s qualifications include a Bachelor of Science in Kinesiology (Honours) and certificates in Marketing, Leadership and Event Management.

56 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 57 General Manager – Communications, General Manager – Human Resources Heritage and Government Relations Jacqueline Cunningham was appointed General Phillip Heads started with the Trust in April 2014 after a Manager – Human Resources in November 2015.

two-decade career in newspapers. Phillip was most She is responsible for leading the implementation of strategic objectives, recently the Director of Sport at News Corp NSW, providing counsel and advice to senior stakeholders, developing strategic people plans that address current and future challenges and leading a team during which he served as a sports editor and assistant of staff to ensure service delivery enables and facilitates the achievement of Human Resources strategic objectives that are aligned to overall business editor of The Daily and Sunday Telegraphs. objectives. In 2017 her responsibilities were extended to include Customer Experience to drive initiatives that put the customer at the heart of our He has had a long association with the Trust first as a fan and member and business and establishing a rich customer centric culture. then as a sportswriter. One of his first jobs in journalism was to cover the Sydney Swans’ run to the 1996 AFL Grand Final. Jacqueline joined the Trust in September 2008 as the Manager – Human Resources and is also responsible for Right to Information and Public Interest Disclosures. She has over 20 years’ experience complimented by appropriate tertiary qualifications in Human Resources disciplines including regional experience in South East Asia.

General Manager – Strategy and Projects Deborah Kelly joined the Sydney Cricket and Sports General Manager – Facilities Ground Trust in April 2016 as General Manager, Strategy and Major Projects. Johnny Naofal joined the Trust in February 2016 as General Manager- Facilities. He is responsible for the This role is responsible for developing the Trust’s strategic real estate project pipeline, including project commercialization, and Government and development and implementation of business stakeholder engagement. processes related to strategic facility and operational Deborah has over 15 years’ experience in investment banking, funds management of Trust assets including Turf management management and real estate. Prior to joining the Trust, Deborah held senior executive positions at Mirvac Group, Stonebridge Group and Babcock & and the annual capital works program. Brown. Deborah is a Fellow of the Institute of Chartered Accountants of Australia and New Zealand. Johnny previously was the Director of Building Services with the International Convention Centre Sydney and the Sydney Exhibition Centre. His expertise include strategic, financial and business planning advice for all administrative and operational aspects of a major facility’s assets. General Manager – Events Stephen Saunders joined the Trust in April 2017 as General Manager- Events. He is responsible for event acquisition, event delivery, and key venue supply agreements including catering services, ticketing, merchandise and Liquor Licensee.

Stephen is familiar with all aspects of major event planning with a very strong network with leading sporting bodies, Governments and international sporting codes. He has a proven track record in thinking strategically and delivering highly creative and commercial successful outcomes.

Stephen holds a Bachelor of Business Management, Marketing and HR from the University of Queensland. 58 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 59 Charter: Sydney Cricket Performance Statement »» Long term venue hire agreements in place with Australian Rugby & Sports Ground Act, Jamie Barkley Union (Wallabies Tests until 2031 Chief Executive Officer and World Rugby Sevens until 1978 No. 72 Annual Salary: $571,505 2019), NRL finals (until 2021), NSW Rugby/Waratahs Rugby The Trust was constituted under this The Chairman reported that the Chief (Super Rugby until 2031), Cricket Act and is charged with the care, Executive Officer performed to a high Australia (international cricket control and management of the level during 2016-17. until 2022/23), Sydney Sixers scheduled lands dedicated for public (until 2022/23), and Sydney FC recreation. The Chief Executive Officer’s major (until 2027) achievements during the year included: The Trust may allow the scheduled »» Progress on construction of lands or any part thereof to be used »» An operating profit of $1.4 million, Australian Rugby Development by persons, clubs, associations, exceeding budget of $1.2 million Centre, home of Australian Rugby leagues or unions at such times and by 16 per cent Union and University of on such terms and conditions as the Technology, Sydney (Opened in » Trust may think fit and proper for » Increased operating revenue by 2017) cricket, football, athletics, public 5.7 per cent - to $91.6 million amusement or any other purpose compared to $86.5 million in the »» Completion of Trust’s Concept which the Minister may approve. previous year Plan including future stages of the SCG redevelopment program, » The Trust may carry out works for » Capital debt reduced from $79 Allianz Stadium project and the the improvement, development and million to $77 million surrounding Moore Park precinct maintenance of the Trust lands » including the redesigning of areas, » Maintained high retention of »» Reviewed and upgraded security the construction of any building or Platinum, Gold and SCG Members operations at the grounds and structure on the Trust lands, and the with revenue of $26.5 million precinct including new CCTV provision of stands and other compared to $25.4 million in 2016 systems accommodation for spectators »» Successful sporting events: frequenting Trust land. The Chief Executive Officer International and domestic cricket managed a capital works program including the New Year’s Test, of $12.9 million, including: Constitution of the Trust One-Day Internationals, T20 Big Bash League (Sydney Sixers), »» Upgrade of retail catering outlets Under Section 5 (2), the Trust shall AFL (Sydney Swans) at the SCG, at the SCG and Allianz Stadium have and may exercise and perform Super Rugby (NSW Waratahs), »» Upgrade to private suites at the functions conferred or imposed NRL (Sydney Roosters, St George the SCG and Allianz Stadium on it by or under the Act, and shall in Illawarra Dragons, South Sydney the exercise or performance of its Rabbitohs) and A-League football »» Refurbishment of Allianz Stadium functions, be subject to the control (Sydney FC) at Allianz Stadium home and away changerooms and direction of the Minister for »» Upgrade to Stadium Club » Sport and Recreation. » Successful major events spa and pool plant room including: Rugby Test (Australia v » The Trust consists of 15 members, England), Australia v UAE » Safety and Compliance 13 appointed by the Governor and (football), NRL Finals, Coldplay upgrade for the precinct two elected by Members. Each concerts, World Rugby Sevens »» Additional solar powered Trustee is appointed for a term of up (men’s and women’s), Anzac Cup lighting in the MP1 car to four years. and the A-League Grand Final park and surrounds

60 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 61 OPERATING SURPLUS FINANCIAL INDICATORS Excluding grants and FIVE YEAR OPERATING The tables outlined below detail the Trust’s revenue, debt levels, operating allocation of reserves SURPLUS V BUDGET and debt restructure surplus, earnings before interest and membership renewal financials. 6.0

5.0

15% 4.0 On Budget to 3.0 $ 2m 2.0 Actual 1.0

Budget 0 2013/14 2014/15 2015/16 2016/17 2017/18

REVENUE DEBT LEVELS Operating revenue FIVE-YEAR REVENUE 90 9% 100 75 80 99 On 2016/17 to 86 92 60 76 84 60 $ 92m 40 45 20 Operating Revenue 30 0 2013/14 2014/15 2015/16 2016/17 2017/18 15

0 2013/14 2014/15 2015/16 2016/17 2017/18

EBITDA FIVE-YEAR EBITDA In line with budget 25 $ 18m 20 15 19 18 18 17 10 14

5

0 2013/14 2014/15 2015/16 2016/17 2017/18

62 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 63

The Trustee’s Responsibilities for the Financial Statements The Trustees are responsible for the preparation and fair presentation of the financial statements in accordance with Australian Accounting Standards and the PF&A Act and for such internal control as the Trustees determine is necessary to enable the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error.

INDEPENDENT AUDITOR’S REPORT In preparing the financial statements, the Trustees are responsible for assessing the Trust’s ability to Sydney Cricket and Sports Ground Trust continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting except where the Trust’s operations will cease as a result of an administrative restructure. To Members of the New South Wales Parliament Auditor’s Responsibilities for the Audit of the Financial Statements Opinion My objectives are to: I have audited the accompanying financial statements of the Sydney Cricket and Sports Ground Trust • obtain reasonable assurance about whether the financial statements as a whole are free from (the Trust), which comprise the Statement of Profit or Loss and Other Comprehensive Income for the material misstatement, whether due to fraud or error year ended 28 February 2018, the Statement of Financial Position as at 28 February 2018, the • issue an Independent Auditor’s Report including my opinion. Statement of Changes in Equity and the Statement of Cash Flows, for the year then ended, notes comprising a Statement of Significant Accounting Policies and other explanatory information. Reasonable assurance is a high level of assurance, but does not guarantee an audit conducted in accordance with Australian Auditing Standards will always detect material misstatements. In my opinion the financial statements: Misstatements can arise from fraud or error. Misstatements are considered material if, individually or • give a true and fair view of the financial position of the Trust as at 28 February 2018, and of its in aggregate, they could reasonably be expected to influence the economic decisions users take financial performance and its cash flows for the year then ended in accordance with Australian based on the financial statements. Accounting Standards A description of my responsibilities for the audit of the financial statements is located at the Auditing • are in accordance with section 41B of the Public Finance and Audit Act 1983 (PF&A Act) and and Assurance Standards Board website at: www.auasb.gov.au/auditors_responsibilities/ar4.pdf. the Public Finance and Audit Regulation 2015. The description forms part of my auditor’s report.

My opinion should be read in conjunction with the rest of this report. My opinion does not provide assurance: Basis for Opinion • that the Trust carried out its activities effectively, efficiently and economically I conducted my audit in accordance with Australian Auditing Standards. My responsibilities under the • about the security and controls over the electronic publication of the audited financial standards are described in the ‘Auditor’s Responsibilities for the Audit of the Financial Statements’ statements on any website where they may be presented section of my report. • about any other information which may have been hyperlinked to/from the financial statements.

I am independent of the Trust in accordance with the requirements of the:

• Australian Auditing Standards • Accounting Professional and Ethical Standards Board’s APES 110 ‘Code of Ethics for Professional Accountants’ (APES 110).

I have fulfilled my other ethical responsibilities in accordance with APES 110.

Parliament promotes independence by ensuring the Auditor-General and the Audit Office of New South Wales are not compromised in their roles by: Aaron Green Director, Financial Audit Services • providing that only Parliament, and not the executive government, can remove an Auditor-General • mandating the Auditor-General as auditor of public sector agencies 15 June 2018 • precluding the Auditor-General from providing non-audit services. SYDNEY

I believe the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.

64 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 65 BEGINNING OF AUDITED FINANCIAL STATEMENTS

Statement of Profit or Loss and Other Comprehensive Income for the Year Ended 28 February 2018

2018 2017 NOTES $’000 $’000

REVENUE

Membership 2a 27,149 26,466 Hire Fees 13,120 10,915 Catering 2b 27,778 23,297 Advertising and Sponsorship 2c 15,153 15,706 Corporate Seating sales 2d 4,416 3,805 Other Revenue 2e 11,820 11,348

Total Revenue 99,436 91,537

EXPENDITURE

Operating Expenses 3a 61,708 54,331 Employee Related Expense 3b 19,258 18,871 Depreciation 6 13,678 13,291 Finance Costs 3c 2,833 3,932 Finance Costs - Premium on Debt Restructure 2f 3,625 -

Total Expenditure 101,102 90,425

OPERATING RESULT (1,666) 1,112

Gain/(Loss) on Disposal of Plant & Equipment 2f 25 (8,052) Gain/(Loss) on Disposal of Land – Conversion to Finance Lease 2g 23,785 -

NET RESULT 22,144 (6,940)

OTHER COMPREHENSIVE INCOME Items that will not be reclassified subsequently to profit or loss Net increase/(decrease) in property, plant 6 (85,696) - and equipment revaluation reserve Actuarial gains/(losses) on defined benefit pension plans 10 (468) 287

Total Other Comprehensive Income (86,164) 287

TOTAL COMPREHENSIVE INCOME (64,020) (6,653)

The accompanying notes form part of these financial statements.

66 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 67 Statement of Financial Position as at 28 February 2018 Statement of Changes in Equity for the Year Ended 28 February 2018

Asset Accumulated Revaluation 2018 2017 Funds Reserve Total NOTES $’000 $’000 Notes $’000 $’000 $’000

ASSETS BALANCE AT 1 MARCH 2017 326,016 360,828 686,844 Current Assets Net Result for the Year 22,144 - 22,144

Cash and Cash Equivalents 4 3,430 9,657 Other Comprehensive Income Net increase/(decrease) in 6 - (85,696) (85,696) Receivables 5 16,210 17,334 property, plant and equipment Inventories 1,526 1,453 revaluation reserve Total Current Assets 21,166 28,444 Disposal of Land 6 679 (679) -

Actuarial Gains/(Losses) on 10 (468) - (468) Non-Current Assets defined benefit pension plans Total Comprehensive Property, Plant & Equipment 6 695,164 779,670 22,355 (86,375) (64,020) Income for the year Intangible Assets 7 2,248 - Receivables 5 30,347 6,735 Transactions with owners in their capacity as owners Total Non-Current Assets - - - 727,759 786,405 Increase/(decrease) in net assets from equity transfers Total Assets 748,925 814,849 BALANCE AT 28 FEBRUARY 2018 348,371 274,453 622,824

LIABILITIES

Current Liabilities Asset Payables 8a 21,989 21,046 Accumulated Revaluation Other Liabilities 8b 17,564 18,197 Funds Reserve Total Notes $’000 $’000 $’000 Borrowings 9 - 8,838 Provisions 10 2,288 2,594 BALANCE AT 1 MARCH 2016 332,669 360,828 693,497

Total Current Liabilities 41,841 50,675 Net Result for the Year (6,940) - (6,940) Net increase/(decrease) in Non-Current Liabilities property, plant and equipment 6 - - - revaluation reserve Payables 8a 2,491 4,811 Actuarial Gains/(Losses) on 10 287 - 287 Other Liabilities 8b 2,027 3,332 defined benefit pension plans Total Comprehensive Borrowings 9 78,187 68,128 (6,653) - (6,653) Income for the year Provisions 10 1,555 1,059 Transactions with owners Total Non-Current Liabilities 84,260 77,330 in their capacity as owners - - - Increase/(decrease) in net Total Liabilities 126,101 128,005 assets from equity transfers

BALANCE AT 28 FEBRUARY 2017 326,016 360,828 686,844 Net Assets 622,824 686,844

The accompanying notes form part of these financial statements. EQUITY

Reserves 274,453 360,828 Accumulated Funds 348,371 326,016 Total Equity 622,824 686,844

The accompanying notes form part of these financial statements.

68 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 69 Statement of Cash Flows for the Year Ended 28 February 2018 Notes to the Financial Statements for the Year Ended 28 February 2018

2018 1.Summary of Significant Accounting Policies NOTES 2017 $’000 $’000 These amendments remove the CASH FLOWS FROM OPERATING ACTIVITIES a) Reporting Entity d) Borrowing Costs requirement for the Trust to comply Receipts The Trust is constituted under the with the requirements of the GSE Act Borrowing costs consist of interest provisions of the Sydney Cricket & 2013 and effectively abolish the and other costs incurred in Receipts from Operations 106,687 99,873 Sports Ground Act, 1978. The Sydney Cricket and Sport Ground connection with the borrowing of Interest Received 100 168 activities of the Trust concentrate Trust Staff Agency from 1 April 2017. funds. Borrowing costs are upon its primary role in the care, recognised as expenses in the Other 1,035 543 control and management of the These financial statements for the period in which they are incurred. Sydney Cricket Ground and Allianz year ended 28 February 2018 have Total Receipts 107,822 100,584 Stadium which together are lands been authorised for issue by the Audit e) Insurance dedicated for public recreation. The and Risk Committee on 4 June 2018. Trust is domiciled in Australia and its The Trust’s insurance activities are Payments principal office is at Moore Park b) Basis of Preparation conducted through the NSW Suppliers and Employees (83,068) (77,716) Road, Paddington. Treasury Managed Fund Scheme of self-insurance for Government Interest Paid (3,480) (4,049) The Trust’s financial statements are The Sydney Cricket & Sports Ground entities. The expense (premium) is general-purpose financial Other (2,667) (2,672) Trust, as a reporting entity, is a determined by the Fund Manager statements, which have been Public Trading Enterprise. The Trust based on past claims experience. prepared on an accruals basis and in Total Payments is a not for profit entity (profit is not (89,215) (84,437) accordance with: its principle objective). The reporting f) Accounting for the Goods entity is consolidated as part of the »» applicable Australian Accounting NSW Total State Sector Accounts. and Services Tax (GST) NET CASH FLOWS FROM OPERATING ACTIVITIES 15b 18,607 16,147 Standards (which include Australian Accounting Income, expenses and assets are These financial statements for the Interpretations) year ended 28 February 2018 recognised net of the amount of CASH FLOWS FROM INVESTING ACTIVITIES GST, except that the: represent the Trust’s full operations »» other professional authoritative for the year ended 28 February 2018 Purchase of Property, Plant and Equipment (23,367) (13,651) pronouncements of the Australian » and reflect the abolition of the » amount of GST incurred by the Proceeds from Sale of Plant and Equipment 99 193 Accounting Standards Board. Trust as a purchaser that is not Sydney Cricket and Sport Ground recoverable from the Australian Trust Staff Agency (Agency) from 1 NET CASH FLOWS FROM INVESTING ACTIVITIES (23,268) (13,458) »» the requirements of the Public Taxation Office is recognised as April 2017. Finance and Audit Act 1983 and part of an asset’s cost of Public Finance and Audit acquisition or as part of an item of The Sydney Cricket and Sports Regulation 2015. expense and CASH FLOWS FROM FINANCING ACTIVITIES Ground Trust Staff Agency was Proceeds from Borrowings - - established on 24 February 2014 Selected non-current assets, »» receivables and payables are under the Government Sector financial assets and financial stated with the amount of GST Repayment of Borrowings (1,566) (1,661) Employment Act 2013 (GSEA) to liabilities are measured at fair value. included. provide personnel services to the NET CASH FLOWS FROM FINANCING ACTIVITIES (1,566) (1,661) The other financial statement items Trust. In previous years the Trust are prepared in accordance with the Cash flows are included in the consolidated its Financial historical cost convention. Statement of Cash Flows on a gross Statements to include the activities basis. However, the GST NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS (6,227) 1,028 of this Agency. Judgements, key assumptions and components of cash flows arising estimations management as made from investing and financing Opening Cash and Cash Equivalents 9,657 8,629 On 2 March 2016 the Government are disclosed in the relevant notes to activities which are recoverable from, Sector Employment Legislation the financial statements. or payable to, the Australian Taxation Amendment Act 2017 No 2 was Office are classified as operating CLOSING CASH AND CASH EQUIVALENTS 15a 3,430 9,657 issued. The Act made the following All amounts are rounded to the cash flows. amendments relevant to the Trust: nearest one thousand dollars and are The accompanying notes form part of these financial statements. expressed in Australian currency. g) Revenue Recognition »» reference to the Trust was removed from the GSE Act 2013 c) Statement of Compliance Revenue is measured at the fair value of the consideration or contribution »» the Sydney Cricket and Sports The financial statements and notes received or receivable. Additional Ground Trust Act 1978 No 72 was comply with Australian Accounting comments regarding the accounting amended to allow the Trust to Standards, which include Australian policies for the recognition of income employ staff. Accounting Interpretations. are discussed below.

70 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 71 Notes to the Financial Statements for the Year Ended 28 February 2018 Notes to the Financial Statements for the Year Ended 28 February 2018

(i) Sale of goods (ii) Capitalisation thresholds carrying amount of each asset in the As a not-for-profit entity, revaluation (vi) Maintenance (viii) Loans and receivables Revenue from the sale of goods is Property, plant and equipment and class does not differ materially from increments and decrements are Day-to-day servicing costs or Loans and receivables are non- recognised as revenue when the intangible assets costing $5,000 and its fair value at reporting date. offset against one another within a maintenance are charged as derivative financial assets with fixed Trust transfers the significant risks above individually (or forming part of Interim formal revaluations are class of non-current assets, but not expenses as incurred, except or determinable payments that are and rewards of ownership of the a network costing more than $5,000) carried out in the years between the otherwise. where they relate to the not quoted in an active market. assets. are capitalised. All items under comprehensive revaluation. A replacement of a part or These financial assets are $5,000 and above $2,000 which are comprehensive revaluation of Where an asset that has previously component of an asset, in which recognised initially at fair value, usually based on the transaction (ii) Rendering of services considered at risk of theft are buildings was completed on 28 been revalued is disposed of, any case the costs are capitalised and capitalised and recorded in the February 2018 based on an balance remaining in the asset depreciated. cost, or face value. Subsequent Revenue is recognised when the Trust’s assets register. independent assessment. A full revaluation reserve in respect of measurement is at amortised cost service is provided or by reference to revaluation of land was last that asset is transferred to (vii) Leased assets using the effective interest method, the stage of completion (based on completed on 28 February 2016 and accumulated funds. less an allowance for any impairment (iii) Revaluation of property, A distinction is made between labour hours incurred to date). plant and equipment the last interim formal revaluation of receivables. Any changes are was completed on 28 February (iv) Impairment of property, finance leases which effectively recognised in the net result for the (iii) Investment revenue Physical non-current assets are 2018, both based on an plant and equipment transfer from the lessor to the year when impaired, derecognised or valued in accordance with the independent assessment. lessee substantially all the risks through the amortisation process. Interest revenue is recognised using ‘Valuation of Physical Non-Current As a not-for-profit entity, impairment and benefits incidental to the effective interest method as set Assets at Fair Value’ Policy and Non-specialised assets with short under AASB 136 Impairment of ownership of the leased assets, Short-term receivables with no out in AASB 139 Financial Guidelines Paper (TPP 14-01). This useful lives are measured at Assets is unlikely to arise. As and operating leases under which stated interest rate are measured at Instruments: Recognition and policy adopts fair value in depreciated historical cost, as a property, plant and equipment is the lessor does not transfer the original invoice amount where Measurement. Rental revenue from accordance with AASB 13 Fair Value surrogate for fair value. The Trust carried at fair value (or an amount substantially all the risks and the effect of discounting is operating leases is recognised in Measurement and AASB 116 has assessed that any difference that approximates fair value), benefits. immaterial. accordance with AASB 117 Leases Property, Plant and Equipment. between fair value and depreciated impairment can only arise in the rare on a straight-line basis over the historical cost is unlikely to be circumstances where the costs of Where a non-current asset is (ix) Inventories lease term. Property, plant and equipment is material. disposal are material. Specifically, acquired by means of a finance Inventories are stated at the lower measured at the highest and best use impairment is unlikely for not-for- lease, at the commencement of the of cost and net realisable value. by market participants that is When revaluing non-current assets profit entities given that AASB 136 lease term, the asset is recognised h) Grants Recognition Cost is calculated using the physically possible, legally permissible using the cost approach, the gross modifies the recoverable amount test at its fair value or, if lower, the weighted average cost or ‘first in Grants are recognised as revenue and financially feasible. The highest amount and the related accumulated for non-cash generating assets of present value of the minimum lease first out’ method. when the Trust obtains control over and best use must be available at a depreciation are separately not-for-profit entities to the higher of payments, at the inception of the the assets comprising the grant. period that is not remote and take into restated. For other assets valued fair value less costs of disposal and lease. The corresponding liability (x) Investments Control is normally obtained upon account the characteristics of the using other valuation techniques, depreciated replacement cost, where is established at the same amount. the receipt of cash. asset being measured, including any any balances of accumulated depreciated replacement cost is also Lease payments are allocated Investments are initially recognised socio-political restrictions imposed by depreciation at the revaluation date fair value. between the principal component at fair value plus, in the case of i) Assets government. In most cases, after in respect of those assets are and the interest expense. investments not at fair value through taking into account these credited to the asset accounts to Depreciation of property, plant, profit or loss, transaction costs. The (i) Acquisitions of assets considerations, the highest and best which they relate. The net asset equipment and intangible assets Property, plant and equipment Trust determines the classification of use is the existing use. In limited accounts are then increased or acquired under finance leases are its financial assets after initial Assets acquired are initially circumstances, the highest and best decreased by the revaluation Property, plant and equipment, depreciated over the asset’s useful recognition and, when allowed and recognised at cost. Cost is the use may be a feasible alternative use, increments or decrements. other than land, are depreciated at life. However, if there is no appropriate, re-evaluates this at amount of cash or cash equivalents where there are no restrictions on use rates based on their expected reasonable certainty that the lessee each financial year end. paid or the fair value of the other or where there is a feasible higher Revaluation increments are credited useful lives for the Trust, using the entity will obtain ownership at the consideration given to acquire the restricted alternative use. directly to asset revaluation reserve, straight-line method. end of the lease term, the asset is Fair value through profit or loss - The asset at the time of its acquisition or except that, to the extent that an depreciated over the shorter of the Trust subsequently measures construction or, where applicable, Fair value of property, plant and increment reverses a revaluation All material identifiable components estimated useful life of the asset investments classified as ‘held for the amount attributed to that asset equipment is based on a market decrement in respect of that class of of assets are depreciated separately and the lease term. trading’ or designated upon initial when initially recognised in participants’ perspective, using asset previously recognised as an over their useful lives. Land is not a recognition ‘at fair value through accordance with the requirements of valuation techniques (market expense in the net result, the depreciable asset. Operating lease payments are profit or loss’ at fair value. Financial other Australian Accounting approach, cost approach, income increment is recognised immediately charged to the statement of assets are classified as ‘held for Standards. approach) that maximise relevant as revenue in the net result. Depreciation rates of each class of comprehensive income in the trading’ if they are acquired for the observable inputs and minimise depreciable assets are: periods in which they are incurred. purpose of selling in the near term. Assets acquired at no cost, or for unobservable inputs. Also refer Note Revaluation decrements are Lease payments from operating Gains or losses on these assets are nominal consideration, are initially 6 for further information regarding recognised immediately as expenses »» Buildings and Improvements leases where the Trust is a lessor is recognised in the net result for the recognised at their fair value at the fair value. in the net result, except that, to the 1.1% - 20% recognised in income on a straight- year. date of acquisition. Fair value is the extent that a credit balance exists in line basis over the lease term. The »» Plant and Equipment price that would be received to sell The Trust re-values each class of the asset revaluation reserve in respective leased assets are The Hour-Glass Investment Facilities 5% - 33.3% an asset in an orderly transaction property, plant and equipment at respect of the same class of assets, included by the lessor entity in the are designated at fair value through between market participants at least every three years or with they are debited directly to the asset »» Intangible Assets Statement of Financial Position profit or loss using the second leg of measurement date. sufficient regularity to ensure that the revaluation reserve. 5% - 10% based on their nature. the fair value option under AASB

72 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 73 Notes to the Financial Statements for the Year Ended 28 February 2018 Notes to the Financial Statements for the Year Ended 28 February 2018

139.9(b)(ii); i.e. these financial assets the carrying amount would have been transaction cost or face value. based on remuneration rate which are or asset is recognised based on the »» Level 2 – inputs other than are managed and their performance had there not been an impairment Subsequent measurement is at expected to be paid when the liability difference between the present value quoted prices included within is evaluated on a fair value basis, in loss. amortised cost using the effective is settled. The Trust has determined of the Trust’s defined benefit Level 1 that are observable, either accordance with a documented risk interest method. Short-term that the calculation of projecting and obligations and the fair value of fund directly or indirectly. management strategy, and discounting annual leave to be (xii) De-recognition of financial payables with no stated interest rate assets as at the reporting date, as »» Level 3 – inputs that are not information about these assets is immaterial and as such the liability is assets and financial liabilities are measured at the original invoice adjusted for unrecognised past service based on observable market data provided internally on that basis to amount where the effect of classified as a short-term liability in costs, unrecognised gains/(losses), A financial asset is derecognised (unobservable inputs). the Trust’s key management discounting is immaterial. accordance with TC 15/09. when the contractual rights to the and limitations on net assets. The net personnel. cash flows from the financial assets liability or asset is actuarially The Trust recognises transfers The liability arising in respect of annual expire; or if the Trust transfers the (ii) Borrowings determined. between levels of the fair value The movement in the fair value of the leave is recognised and measured by financial asset: Loans are not held for trading or hierarchy at the end of the reporting Hour-Glass Investment Facilities applying the nominal value based on Consequential costs to period during which the change has incorporates distributions received as designated at fair value through remuneration rates plus the annual employment: »» where substantially all the risks occurred. well as unrealised movements in fair profit or loss and are recognised at leave-on-leave liability. The Trust has and rewards have been amortised cost using the effective value and is reported in the line item determined that the calculation of Consequential costs to employment Refer Note 14 for further disclosures transferred or interest rate method. Gains or ‘investment revenue’. projecting and discounting annual are recognised as liabilities and regarding fair value measurements of losses are recognised in the net leave to be immaterial and as such the expenses where the employee financial and non-financial assets. »» where the Trust has not result for the year on de-recognition. Purchases or sales of investments liability is classified as a short-term benefits to which they relate have transferred substantially all the liability in accordance with TC 15/09. under contract that require delivery of been recognised. This includes (l) Equity And Reserves the asset within the timeframe risks and rewards, if the Trust has The finance lease liability is All other employee benefit liabilities outstanding amounts of payroll tax, established by convention or not retained control. determined in accordance with are measured at the present value of workers’ compensation insurance (i) Asset revaluation reserve regulation are recognised on the AASB 117 Leases. the estimated future cash outflows to premiums and fringe benefits tax. trade date; i.e. the date the Trust Where the Trust has neither be made in respect of services The asset revaluation reserve is used commits to purchase or sell the transferred nor retained (iii) Employee benefits and provided by employees up to the to record increments and asset. The fair value of investments substantially all the risks and other provisions reporting date. In determining the (k) Fair Value Management decrements on the revaluation of that are traded at fair value in an rewards or transferred control, the present value of future cash outflows, and Hierarchy non-current assets. This accords active market is determined by asset is recognised to the extent of Salaries and Wages, Annual Leave, the market yield on national with the Trust’s policy on the reference to quoted current bid prices the Trust’s continuing involvement Long Service Leave, Sick Leave: government bonds, which have terms Fair value is the price that would be revaluation of property, plant and at the close of business on the in the asset. to maturity approximating the terms of received to sell an asset or paid to equipment as discussed in note 1(i) statement of financial position date. Provision is made for annual leave the related liability are used. The transfer a liability in an orderly (iii). A financial liability is derecognised and long service leave estimated to provisions for leave entitlements also transaction between market (xi) Impairment of financial when the obligation specified in the be payable to employees as at include the relevant on-costs. participants at the measurement date. (ii) Accumulated funds contract is discharged or cancelled assets reporting date. The fair value measurement is based The category ‘Accumulated Funds’ or expires. on the presumption that the All financial assets, except those Superannuation: includes all current and prior period Unused non-vesting sick leave does transaction to sell the asset or transfer measured at fair value through profit For defined contribution retained funds. (xiii) Intangible Assets the liability takes place either in the and loss, are subject to an annual not give rise to a liability, as it is not superannuation schemes, employer principal market for the asset or review for impairment. An allowance The entity recognises intangible considered probable that sick leave contributions are expensed when liability or in the absence of a principal (m) Comparative Information for impairment is established when assets only if it is probable that taken in the future will be greater incurred. A liability is recognised only market, in the most advantageous there is objective evidence that the future economic benefits will flow to than the benefits accrued in the to the extent of unpaid employer Except when an Australian market for the asset or liability. Trust will not be able to collect all the entity and the cost of the asset future. Benefits for Rostered Days contributions at reporting date. Accounting Standard permits or amounts due. can be measured reliably. Intangible Off (RDOs) have not been accrued, requires otherwise, comparative A number of the Trust’s accounting assets are measured initially at cost. as the Trust policy is not to cash out As per Accounting Standard AASB information is presented in respect policies and disclosures require the For financial assets carried at Where an asset is acquired at no or these balances. 119 for defined benefit superannuation of the previous period for all measurement of fair values, for both amortised cost, the amount of the nominal cost, the cost is its fair value schemes, expenses are recognised amounts reported in the financial allowance is the difference between as at the date of acquisition. Benefits for long service leave and based on the current service costs financial and non-financial assets and statements. the asset’s carrying amount and the annual leave have been provided on and net interest and expected return liabilities. When measuring fair value, present value of estimated future (xiv) Other Assets the basis of emerging entitlements on fund assets now recognised as the valuation technique used for recognised service for long maximises the use of relevant (n) Changes in Accounting cash flows, discounted at the Other assets are recognised on a other comprehensive income for the service leave, and quantum due at observable inputs and minimises the effective interest rate. The amount of historic cost basis. reporting period as calculated and Policies, Including New or the impairment loss is recognised in reporting date for annual leave. advised by Mercer. In accordance use of unobservable inputs. Under Revised Australian the net result for the year. with NSW Treasury policy TC 14-05 AASB 13, the Trust categorises, for (j) Liabilities In accordance with Accounting Accounting for Superannuation and disclosure purposes, the valuation Accounting Standards Any reversals of impairment losses Standard AASB 119 “Employee AASB 119 Employee Benefits, the techniques based on the inputs used (i) Payables (i) Effective for the first time in are reversed through the net result for Benefits” liabilities arising in respect Trust recognises actuarial gains and in the valuation techniques as follows: 2017-18 the year, where there is objective These amounts represent liabilities of salaries and wages, annual leave losses and the actual return on fund evidence. Reversals of impairment for goods and services provided to and other employee benefits assets for defined benefit »» Level 1 - quoted prices in active The accounting policies applied in losses of financial assets carried at the Trust and other amounts. expected to be settled within twelve superannuation schemes outside of markets for identical assets / 2017-18 are consistent with those of amortised cost cannot result in a Payables are recognised initially at months of the reporting date are the net result in the ‘other liabilities that the Trust can access the previous financial year except for carrying amount that exceeds what fair value, usually based on the measured at their nominal amounts comprehensive income’. A net liability at the measurement date. the following new or revised

74 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 75 Notes to the Financial Statements for the Year Ended 28 February 2018 Notes to the Financial Statements for the Year Ended 28 February 2018

Australian Accounting Standard that – Deferral of AASB 15 for Not-for- The Club is an Incorporated 2. Revenue has been applied for the first time in Profit Entities Association under the Associations 2017-18. »» AASB 2016-8 Amendments to Incorporation Act 1984. The Trust Australian Accounting Standards and the Club have an association 2018 AASB 124, Related Party – Australian Implementation which involves the provision by the 2017 $’000 Disclosures. Guidance for Not-for-Profit Trust of administrative and other $’000 The Trust has implemented this Entities services to the Club. The Trust is Standard, as per the guidelines from » represented on the Club’s Board of (a) Membership Treasury Circular 16-12 and has » AASB 2017-1 Amendments to Australian Accounting Standards Directors in accord with the Club issued questionnaires to key Constitution. The Club is not management personnel. – Transfer of investment Property, Membership Annual Subscriptions 21,969 20,693 Annual Improvements 2014-2016 considered to be controlled by the SCG Member Entrance Fees 669 649 Cycle and Other Amendments Trust. Any expenses that were (ii) Effective for the first time in incurred during the past year through Platinum/Gold Member Entrance Fees 4,511 5,124 »» AASB 2017-3 Amendments to 2017-18 payroll, operational expenditure and Australian Accounting Standards At reporting date, a number of management time have been – Clarifications to AASB 4 27,149 26,466 accounting standards adopted by recouped from the Sydney Cricket »» AASB 2017-4 Amendments to the AASB had been issued but are Club through the Club’s operational (b) Catering not yet effective. At present New Australian Accounting Standards account. The Trust has established – Uncertainty over Income Tax South Wales Treasury is mandating a Bank Deposit Account as security Income received from liquor and food trading for events, functions and non-event days is detailed as follows: Treatments not to early adopt any of the new against the overdraft facility of the Standards/Interpretations as per »» AASB2017-5 Amendments to Sydney Cricket Club. Treasury Circular TC 18-01. Australian Accounting Standards Liquor Sales 22,100 18,133 – Effective Date of Amendments (p) Tax Status Food Sales Commission 4,684 4,191 The following new Standards/ to AASB 10 and AASB 128 and Interpretations have not been early Editorial Corrections Contract Premium Amortisation 994 973 adopted by the Trust and are not yet The activities of the Sydney Cricket »» AASB2017-6 Amendments to effective. and Sports Ground Trust are exempt 27,778 23,297 Australian Accounting Standards from the provisions of the Income – Prepayment Features with » Tax Assessment Act and other » AASB 9 Financial Instruments Negative Compensation Federal Government taxation LIQUOR TRADING »» AASB 15, AASB 2014-5, AASB »» AASB2017-7 Amendments to legislation, with the exception of the 2015-8 and 2016-3 regarding The Trust operates through a managing agent for liquor trading in the public, members and corporate areas of the Australian Accounting Standards requirement to pay fringe benefits Revenue from Contracts with Sydney Cricket Ground and Allianz Stadium. Income from liquor trading represents gross liquor sales at the Sydney – Long-term Interests in tax and GST. The Trust also pays Cricket Ground and Allianz Stadium. Customers Associates and Joint Ventures payroll tax. » » AASB 16 Leases »» Interpretation 22 Foreign Currency FOOD TRADING »» AASB 17 Insurance Contracts Transactions and Advance (q) Debt Management Consideration Income from food trading comprises a share of gross food sales at the Sydney Cricket Ground and Allianz Stadium »» AASB 1058 Income of Not-for- received by the Trust, together with amortisation of contract premiums received as a licence fee paid in advance under » Strategy profit Entities » Interpretation 23 Uncertainty over the previous and new catering contract. The Trust’s current catering contract which commenced on 1 November 2015 Income Tax Treatment »» AASB 1059 Service Concession The NSW Treasury Corporation is due to expire on 31 October 2020. The total premium received under the contract is being amortised annually over Arrangements: Grantors It is considered that the actively manages the Trust’s portfolio the term of the contract. implementation of these Standards of debt. The Corporation has »» AASB 2016-5 Amendments to will not have any material impact (or provided the Trust the facility Australian Accounting Standards their impact is yet to be determined) whereby maturing loans may be – Classification and Measurement on the Trust’s financial results. rolled over and replaced with new of Share-based Payment loans whilst maintaining the original Transactions (o) Sydney Cricket Club capital value of the portfolio. »» AASB 2016-6 Amendments to Borrowings and Advances are Australian Accounting Standards In 2007 the Trust joined with the shown as current and non-current – Applying AASB 9 with AASB 4 administration of the former UTS- liabilities and include the provision Insurance Contracts Balmain District Cricket Club in for rollover upon maturity. Borrowing »» AASB 2016-7 Amendments to establishing the new entity of the costs are recognised as expenses in Australian Accounting Standards Sydney Cricket Club (the Club). the period in which they are incurred.

76 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 77 Notes to the Financial Statements for the Year Ended 28 February 2018 Notes to the Financial Statements for the Year Ended 28 February 2018

(c) Advertising and Sponsorship During 2017/18 the Trust secured a construction lease with Australian Rugby Union and UTS to facilitate construction of a building on a parcel of Trust land and to subsequently enter into a long term lease for occupancy of the site. The then current value of land subject to lease was $892,000 and the fair value of the lease receivable was $24.177m (net present 2018 2017 value of the annual lease payments). As such the Trust recorded a one off gain on disposal of land of $23.285m. $’000 $’000 ADVERTISING & SPONSORSHIP 15,153 15,706 3. Expenditure Income includes payments under contract with various companies for naming rights, exclusive product rights, 2018 sponsorship and advertisements that are displayed on fences, grandstands and video scoreboards at the Sydney 2017 $’000 Cricket Ground and Allianz Stadium. $’000

(d) Corporate Seating Sales (a) Operating Expenses

Premium Seating 1,780 250 Event Operating Costs 21,244 17,660 Private/Corporate Boxes 2,636 3,555 Ground Operation & Maintenance 10,879 9,137 Utilities and Services 3,758 3,103 4,416 3,805 Liquor Cost of Goods Sold 6,642 5,641 Liquor Management Fee 7,619 6,248 Income includes hire/rental of corporate facilities sold on an annual basis and corporate seating sold on a daily and seasonal basis providing dining/viewing for major and other events at the Sydney Cricket Ground and Allianz Stadium. Corporate Seating Expenses 1,869 1,792 Marketing Expenses 3,700 3,989 (e) Other Revenue Advertising & Sponsorship 1,788 2,826 Audit Fees (Audit Office of NSW) 118 115 Merchandising 620 585 Accounting and Legal Services 377 555 Ticketing 1,293 1,198 Consultant Fees 1,022 1,063 Parking Fees 2,251 2,143 Architects Fees - 93 Interest Received 100 168 Travel 148 98 Rental Income 4,897 4,307 Postage/Freight 297 151 Contributions 1,485 1,961 Communication Expenses 394 345 Insurance Recoveries 330 81 Printing and Stationery 1,169 965 Sundry 844 905 Bad Debts Written off - 19 Insurance 453 498 11,820 11,348 Members Seating 231 33 (f) Gain / (Loss) on Disposal of Property, Plant & Equipment 61,708 54,331

Proceeds from Disposal 99 193 The Audit Office of NSW’s fee for auditing the annual financial statements for the year ended 28 February 2018 is Written down value of assets disposed (74) (8,245) $118,000 ($115,000 in 2017).

Gain/(Loss) on disposal of Plant & Equipment 25 (8,052) Reconciliation – Total Maintenance:

Ground Operation & Maintenance expense as above 10,879 9,137 (g) Gain / (Loss) on Disposal of Land Employee related maintenance expense include in Note 3(b) 4,146 3,711 Total maintenance expenses included in Note 3(a) + 3(b) 15,025 12,848 Proceeds from Disposal 24,677 - Written down value of assets disposed (892) -

Gain on disposal of Land 23,785 -

78 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 79 Notes to the Financial Statements for the Year Ended 28 February 2018 Notes to the Financial Statements for the Year Ended 28 February 2018

2018 2017 5. Receivables $’000 $’000 2018 2017 (b) Employee Related Expense $’000 $’000

Salaries and Wages 14,994 14,872 CURRENT: Trustees Remuneration 192 192 Annual Leave and Long Service Leave 1,152 1,448 Prepayments 3,392 3,036 Superannuation 1,270 1,239 Accrued Income 7,754 8,013 Workers Compensation 223 (240) Catering Debtors 959 2,326 Payroll Tax 796 808 Sundry Debtors 2,327 3,680 Other Staff Related Expenses 631 552 Allowance for impairment - (21) Finance Lease Receivable 1,286 300 19,258 18,871 GST Receivable 492 -

16,210 17,334 (c) Finance Costs

Interest on Loans 2,671 3,635 NON-CURRENT: Other Finance Charges 162 297 Finance Lease Receivable 28,140 4,472 2,833 3,932 Prepayments 2,207 2,263 Premium on Debt Restructure 3,625 - 30,347 6,735 6,458 3,932

MOVEMENT IN THE ALLOWANCE FOR IMPAIRMENT

4. Cash and Cash Equivalents Balance at 1 March 21 128

For the purpose of the Statement of Cash Flows, cash and cash equivalents include cash at bank, cash on hand, Amounts written off during the year - - short-term deposits and bank overdraft. Cash and cash equivalent assets recognised in the Statement of Financial Amounts recovered during the year - (128) Position are reconciled at the end of the financial year to the Statement of Cash Flows as follows: Increase/(decrease) in allowance recognised in surplus or deficit (21) 21

Balance at reporting date - Cash 3,425 9,652 21 NSW Treasury Corporation Hour-Glass 5 5 2018 2018 2017 2017 Cash and cash equivalents per Statement of Financial Position 3,430 9,657 $’000 $’000 $’000 $’000

Cash and cash equivalents per Statement of Cash Flows 3,430 9,657 FINANCE LEASE RECEIVABLE Gross Investment Present Value Gross Investment Present Value

The fair value measurement hierarchy for NSW Treasury Corporation Hour-Glass facility is Level 2. Refer Note 14 for < 1 year 1,286 1,286 300 300 details regarding credit risk, liquidity risk and market risk arising from financial instruments. > 1 year < 5 years 5,144 4,621 1,200 1,035 > 5 years 80,003 23,520 11,643 3,437

86,433 29,426 13,143 4,772

80 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 81 Notes to the Financial Statements for the Year Ended 28 February 2018 Notes to the Financial Statements for the Year Ended 28 February 2018

The finance lease relates to a 50 year licence granted by the Trust to a hirer to construct and occupy premises on Trust 6. PROPERTY, PLANT AND EQUIPMENT (CONT’D) land. Unearned finance income at 28 February 2018 stood at $8.1m (29 February 2017: $8.4m). Contingent rentals VALUATION OF LAND, BUILDINGS AND IMPROVEMENTS relating to CPI adjustment of $54,016 were collected during 2018 ($47,411 in 2017). Details regarding credit risk, liquidity risk and market risk, including financial assets that are either past due or impaired, are disclosed in Note 14. (a) Fair Value Hierarchy

6. Property, Plant and Equipment TOTAL FAIR LEVEL 1 LEVEL 2 LEVEL 3 VALUE 2018 $’000 $’000 $’000 $’000 2018 2017 $’000 $’000 Property

Land at Valuation 60,627 61,519 Land - - 60,627 60,627 Buildings and Improvements (at fair value) 830,539 887,169 Buildings - - 618,057 618,057

Accumulated Depreciation (212,482) (183,355) - - 678,684 678,684

618,057 703,814

TOTAL FAIR Plant and Equipment (at fair value) 33,211 29,669 LEVEL 1 LEVEL 2 LEVEL 3 VALUE 2017 $’000 $’000 $’000 $’000 Accumulated Depreciation (16,731) (15,332) 16,480 14,337 Property Land - - 61,519 61,519 Total Carrying Amount 695,164 779,670 Buildings - - 703,814 703,814 The Trust’s current Industrial Special Risks insurance policy as at 28 February 2018 provides a cover on buildings, - - 765,333 plant & equipment to the value of $1,172M ($1,108M in 2017). 765,333

RECONCILIATIONS (b) Valuation Techniques, Inputs and Processes PLANT AND LAND BUILDINGS EQUIPMENT TOTAL Valuation techniques used are as recorded value is not materially valuation of buildings and 2018 $’000 $’000 $’000 $’000 follows: different from fair value - with no improvements was transferred to the change made the recoded value. Asset Revaluation Reserve as at 28 Carrying amount as at 1 March 2017 61,519 703,814 14,337 779,670 Land – level 3 February 2018. Building – level 3 Net Revaluation Increment - 123,163 - 123,163 Land is valued using observable As a result of the revaluations, an Buildings are mostly specialised Additions - 11,906 3,877 15,783 valuation input (market evidence) Asset Revaluation Reserve remains buildings with unobservable input established. The balance of this Reclassification - 76 (76) - available to provide a reasonable hierarchy due to lack of market Reserve as at 28 February 2018 guide to the value of the land. Disposals (892) (41) (73) (1,007) evidence. Depreciated replacement stood at $274.5M (28 February 2017: Valuers have also relied on market cost (DRC) was used to value the Impairment - (208,859) - (208,859) $360.8M). evidence of similar assets such as assets. When DRC is used, they are Depreciation Expense - (12,001) (1,585) (13,586) open space, industrial and classified as level 3 input. Level 3 – measurement additional commercial sales with adjustment disclosure Carrying amount as at 28 February 2018 60,627 618,057 16,480 695,164 for size, condition, location, During 2017/18 the Trust received an comparability, zoning to determine independent valuation by WT Due to its uniqueness, specialised 2017 its fair values. Partnership, registered quantity nature of building assets, valuers have surveyors, of the replacement cost applied a cost approach using Carrying amount as at 1 March 2016 61,519 712,929 13,380 787,828 During 2015/16, the Trust received of buildings and improvements at the depreciated replacement cost method. Net Revaluation Increment - - - - an independent valuation by Knight Sydney Cricket Ground and Allianz These assets do not generally have an Frank Valuations of its vested lands, Stadium. The valuation at active market to determine their fair Additions - 10,699 2,690 13,389 based on an “as zoned and used replacement cost was converted to values. With lack of market evidence, Reclassification - 75 (75) - basis,” providing a valuation of written down replacement cost by there is not significant changes to Disposals - (8,112) (144) (8,256) $61.5M as at 29 February 2016. the determination of the remaining unobservable inputs which would allow its classification to change from Depreciation Expense - (11,777) (1,514) (13,291) Interim valuations of land were useful life of each building. The conducted as at 28 February 2017 valuation increment of $122.8M level 3 to level 1 or 2. Carrying amount as at 28 February 2017 61,519 703,814 14,337 779,670 and 28 February 2018 to determine if recorded since the previous

82 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 83 Notes to the Financial Statements for the Year Ended 28 February 2018 Notes to the Financial Statements for the Year Ended 28 February 2018

6. PROPERTY, PLANT AND EQUIPMENT (CONT’D) 7. INTANGIBLE ASSETS (CONT’D) VALUATION OF LAND, BUILDINGS AND IMPROVEMENTS RECONCILIATIONS (c) Reconciliation of Recurring Level 3 Fair Value Measurements (Land and Buildings) SOFTWARE TOTAL 2018 $’000 $’000 2018 LEVEL 3 Carrying amount as at 1 March 2017 - - TOTAL RECURRING LEVEL 3 Additions 2,339 2,339 LAND BUILDINGS FAIR VALUE Reclassification - - $’000 $’000 $’000 Disposals - - Fair Value as at 1 March 2017 61,519 703,814 765,333 Impairment - - Additions/Reclassifications (892) 12,708 11,816 Depreciation Expense (91) (91) Revaluation Increments/decrements recognised in other comprehensive income – including in the Carrying amount as at 28 February 2017 2,248 2,248 - (86,464) (86,464) line item/’Net increase/(decrease) in property, plant and equipment revaluation reserve’ 2017

Depreciation - (12,001) (12,001) Carrying amount as at 1 March 2016 - -

Fair Value as at 28 February 2018 60,627 618,057 678,684 Additions - - Reclassification - - Disposals - - 2017 LEVEL 3 Depreciation Expense - -

TOTAL RECURRING Carrying amount as at 28 February 2017 - - LEVEL 3 LAND BUILDINGS FAIR VALUE $’000 $’000 $’000 8. Liabilities Fair Value as at 1 March 2016 61,519 712,929 774,448 Additions/Reclassifications - 10,774 10,774 2018 2017 Revaluation Increments/decrements recognised $’000 $’000 in other comprehensive income – including in the - (8,112) (8,112) line item/’Net increase/(decrease) in property, plant and equipment revaluation reserve’ (a) Payables Depreciation - (11,777) (11,777) CURRENT:

Fair Value as at 28 February 2018 61,519 703,814 765,333 Sundry Creditors 15,208 11,864 Accruals 3,300 5,543 7. Intangible Assets Finance Lease Payable 2,528 2,457 GST Payable - 70 Interest Payable 953 1,112 2018 2017 $’000 $’000 21,989 21,046

Intangible Assets 2,339 - NON-CURRENT: Accumulated Depreciation (91) - Total Carrying Amount 2,248 - Finance Lease Payable 2,491 4,811

2,491 4,811

Details regarding credit risk, liquidity risk and market risk, including a maturity 84 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 analysis of the above payables are disclosed in Note 14. 85 Notes to the Financial Statements for the Year Ended 28 February 2018 Notes to the Financial Statements for the Year Ended 28 February 2018

10. Provisions 8. LIABILITIES (CONT’D) (a) Employee Entitlements 2018 2017 (b) Other Liabilities $’000 $’000 CURRENT: 2018 2017 $’000 $’000 Provision for Annual Leave and on-costs 1,031 1,202 CURRENT: Provision for Long Service Leave and on-costs 1,257 1,392

Subscriptions Paid in Advance 12,714 11,639 2,288 2,594 Rents Paid in Advance 884 1,378 Advertising – Fees in Advance 1,814 2,005 NON-CURRENT: Catering – Licence Fees in Advance 1,039 1,040 Other Deferred Income 1,112 2,135 Provision for Long Service Leave and on-costs 258 278 17,563 18,197 Defined superannuation liability 1,297 781

NON-CURRENT: 1,555 1,059

Catering – Licence Fees in Advance 1,732 2,773 3,843 3,653 Rents Paid in Advance 61 184 Other Deferred Income 234 375 The Trust expects to settle the annual leave entitlements within the next twelve months. The amount of long service leave expected to be taken in the next twelve months is immaterial. 2,027 3,332

(b) Superannuation – Defined Benefits Plan

The Trust has a $1,296,383 ($780,569 in 2017) net liability for the employer’s obligation to defined benefit 9. Borrowings superannuation schemes at the Trust.

The funding position at 28 February 2018 in respect of the two defined benefits schemes related to personnel services received, namely the State Authorities Superannuation Scheme (SASS) and the State CURRENT: Authorities Non-Contributory Superannuation Scheme (SANCS) has been advised by Mercer:

NSW Treasury Corporation Loans - 8,838 ESTIMATED RESERVE ACCRUED NET LIABILITY FUND - 8,838 ACCOUNTS FUNDS LIABILITY AT YEAR END

2018 2017 2018 2017 2018 2017 NON-CURRENT: $’000 $’000 $’000 $’000 $’000 $’000

NSW Treasury Corporation Loans 78,187 68,128 SASS 1,983 2,428 3,183 3,054 1,201 626 SANCS 7 127 103 281 95 155 78,187 68,128 1,990 2,555 3,286 3,335 1,296 781 Total 78,187 76,966

Significant Terms & Conditions: NSW Treasury Corporation (Bullet) Loans are based upon instalment payments of interest only and repayment or rollover of principal at maturity. All borrowings are secured by Government Guarantee. Details regarding credit risk, liquidity risk and market risk, including a maturity analysis of the above borrowings are disclosed in Note 14.

86 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 87 Notes to the Financial Statements for the Year Ended 28 February 2018 Notes to the Financial Statements for the Year Ended 28 February 2018

10. PROVISIONS SUPERANNUATION - DEFINED BENEFITS PLAN (CONT’D) 10. PROVISIONS SUPERANNUATION - DEFINED BENEFITS PLAN (CONT’D)

Reconciliation of the net defined benefit obligation 2018: Accounting policy for Under a Heads of Government Description of risks recognising actuarial gains/ agreement, the New South Wales SASS SANCS losses There are a number of risks to Government undertakes to ensure 2018 2018 which the Fund exposes the that the Pooled Fund will conform $’000 $’000 Actuarial gains and losses are with the principles of the Employer. The more significant recognised immediately in other Commonwealth’s retirement incomes risks relating to the defined Net Defined Benefit Liability/(Asset) at start of year 626 155 comprehensive income in the year in policy relating to preservation, benefits are: which they occur. vesting and reporting to members Current service cost 17 10 Investment risk - The risk that and that members’ benefits are investment returns will be lower Net Interest on the net defined benefit liability/(asset) 18 4 Fund information adequately protected. than assumed and the Employer Past service cost 0 0 The Pooled Fund holds in trust the will need to increase contributions The New South Wales Government (Gains)/losses arising from settlements 0 0 investments of the closed NSW prudentially monitors and audits the to offset this shortfall public sector superannuation Pooled Fund and the Trustee Board Actual return on Fund assets less Interest income (175) (7) Longevity risk – The risk that schemes including: the State activities in a manner consistent with pensioners live longer than Actuarial (gains)/losses arising from changes in demographic assumptions 0 0 Authorities Superannuation Scheme the prudential controls of the SIS assumed, increasing future Actuarial (gains)/losses arising from changes in financial assumptions (50) (2) (SASS) and the State Authorities legislation. These provisions are in pensions Non-contributory Superannuation addition to other legislative Actuarial (gains)/losses arising from liability experience 720 (20) Scheme (SANCS). obligations on the Trustee Board and Pension indexation risk – The risk Adjustment for effect of asset ceiling 0 0 internal processes that monitor the that pensions will increase at a rate These schemes are defined benefit Trustee Board’s adherence to the greater than assumed, increasing Employer contributions 45 (45) schemes – at least a component of principles of the Commonwealth’s future pensions Effects of transfers in/out due to business combinations and disposals 0 0 the final benefit is derived from a retirement incomes policy. multiple of member salary and years Salary growth risk - The risk that Net Defined Benefit Liability/(Asset) at end of year 1,201 95 of membership. The Schemes are An actuarial investigation of the wages or salaries (on which future closed to new members. Pooled Fund is performed every three benefit amounts for active years. The last actuarial investigation members will be based) will rise Description of the regulatory was performed as at 30 June 2015. more rapidly than assumed, framework increasing defined benefit amounts Reconciliation of the fair value of fund assets: Description of other entities’ and thereby requiring additional The schemes in the Pooled Fund are responsibilities for the employer contributions Fair value of Fund assets at beginning of the period 2,428 127 established and governed by the governance of the fund Interest income 63 3 following NSW legislation, State Legislative risk - The risk is that Authorities Superannuation Act The Fund’s Trustee is responsible for legislative changes could be made Actual return on Fund assets less Interest income 175 7 1987, State Authorities Non- the governance of the Fund. The which increase the cost of providing the defined benefits Employer contributions (45) 45 Contributory Superannuation Trustee has a legal obligation to act solely in the best interests of fund Contributions by participants 24 0 Scheme Act 1987, and their The defined benefit fund assets are beneficiaries. The Trustee has the associated regulations. invested with independent fund Benefits paid (673) (176) following roles: managers and have a diversified The schemes in the Pooled Fund are Taxes, premiums & expenses paid 11 1 » asset mix. The Fund has no exempt public sector superannuation » Administration of the fund and significant concentration of Transfers in/out due to business combinations and disposals 0 0 schemes under the Commonwealth payment to the beneficiaries from investment risk or liquidity risk. Contributions to accumulation section 0 0 Superannuation Industry fund assets when required in accordance with the fund rules (Supervision) Act 1993 (SIS). The SIS Description of Significant Settlements 0 0 Legislation treats exempt public »» Management and investment of Events Exchange rate changes 0 0 sector superannuation funds as the fund assets complying funds for concessional There were no fund amendments, Fair value of Fund assets at end of the period 1,983 7 taxation and superannuation »» Compliance with other applicable curtailments or settlements during guarantee purposes. regulations the period.

88 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 89 Notes to the Financial Statements for the Year Ended 28 February 2018 Notes to the Financial Statements for the Year Ended 28 February 2018

10. PROVISIONS 10. Provisions SUPERANNUATION - DEFINED BENEFITS PLAN (CONT’D) Fair Value of Fund Assets Superannuation – Defined Benefits Plan (cont’d) entities. As such, the disclosures that derivatives may only be used to SASS SANCS All Pooled Fund assets are invested below relate to total assets of the facilitate efficient cash flow 2018 2018 by STC at arm’s length through Pooled Fund. management or to hedge the Reconciliation of the present value of the defined $’000 $’000 independent fund managers. Assets portfolio against market movements benefit obligation 2018: are not separately invested for each Derivatives, including futures and and cannot be used for speculative entity and it is not possible or options, can be used by investment purposes or gearing of the portfolio. Present value of defined benefit obligations at beginning of appropriate to disaggregate and managers. However, each manager’s As such managers make limited use 3,054 281 the year after contribution tax assumption change attribute plan assets to individual investment mandate clearly states of derivatives. Current service cost 17 10 Interest cost 80 7 As at 30 November 2017 (most recent available) Contributions by participants 23 0 Quoted prices in active Significant Actuarial (gains)/losses arising from changes in demographic assumptions 0 0 markets for identical observable Unobservable Total assets Level 1 inputs Level 2 inputs Level 3 Actuarial (gains)/losses arising from changes in financial assumptions (50) (1) Asset category (A$’000) (A$’000) (A$’000) (A$’000) Actuarial (gains)/losses arising from liability experience 721 (19) Benefits paid (673) (176) Short Term Securities 3,882,212 1,859,163 2,023,051 0 Australian Fixed Taxes, premiums & expenses paid 11 1 2,824,790 21,937 2,802,853 0 Interest Transfers in/out due to business combinations and disposals 0 0 International Contributions to accumulation section 0 0 1,477,710 9,233 1,468,477 0 Fixed Interest Past service cost 0 0 Australian Equities 9,183,595 8,739,598 443,972 25 Settlements 0 0 International Equities 12,135,583 9,159,066 2,975,726 790 Exchange rate changes 0 0 Property 3,551,499 867,863 606,475 2,077,161 Present value of defined benefit obligations at end of the period 3,183 103 Alternatives 7,926,781 391,892 3,611,120 3,923,769 Total 40,982,170 21,048,752 13,931,674 6,001,745

Reconciliation of the effect of the Asset Ceiling: The percentage invested in each asset class at the reporting date is: Adjustment for effect of asset ceiling at beginning of the period 0 0 As at 30-Nov-17 Change in the effect of asset ceiling 0 0 Short Term Securities 9.5% Adjustment for effect of asset ceiling at end of the period 0 0 Australian Fixed Interest 6.9% International Fixed Interest 3.6% Expense recognised in the Profit or Loss: Australian Equities 22.4% International Equities 29.6% Current service cost 17 10 Property 8.7% Net interest 18 3 Alternatives 19.3% Past service cost 0 0 Total 100.0% (Gains)/Loss on settlement 0 0

Expense/(income) recognised 35 13 Level 1 - quoted prices in active markets for identical assets or investment mandate clearly states that markets for identical assets or liabilities. derivatives may only be used to Amounts recognised in Other comprehensive income: liabilities. The assets in these levels facilitate efficient cash flow are listed shares; listed unit trusts. Level 3 - inputs for the asset or liability management or to hedge the portfolio that are not based on observable Actuarial (gains) losses on liabilities 671 (20) against market movements and Level 2 - inputs other than quoted market data. The assets in this level cannot be used for speculative Actual return on Fund assets less Interest income (175) (8) prices observable for the asset or are unlisted property; unlisted shares; purposes or gearing of the investment Adjustment for effect of asset ceiling 0 0 liability, either directly or indirectly. unlisted infrastructure; distressed The assets in this level are cash; debt; hedge funds. portfolio. As such managers make Total re-measurement in Other Comprehensive Income 496 (28) notes; government, semi- limited use of derivatives. The fair government and corporate bonds; Derivatives, including futures and value of the Pooled Fund Assets as at unlisted trusts containing where options, can be used by investment 31 December 2017 includes $106.9M 90 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 quoted prices are available in active managers. However, each manager’s in NSW government bonds. 91 Notes to the Financial Statements for the Year Ended 28 February 2018 Notes to the Financial Statements for the Year Ended 28 February 2018

10. PROVISIONS 10. PROVISIONS SUPERANNUATION - DEFINED BENEFITS PLAN (CONT’D) SUPERANNUATION - DEFINED BENEFITS PLAN (CONT’D)

VALUATION METHOD AND PRINCIPAL ACTUARIAL ASSUMPTIONS AT THE BALANCE DATE: Scenario G Scenario H +5% pensioner -5% pensioner (a) Significant Actuarial Assumptions at reporting date: 28 FEB 2018 Base Case mortality rates mortality rates

Salary increase rate 2.5% 2017/2018 to 2018/2019; Defined benefit obligation (A$) 3,286,803 3,330,439 3,266,623 (excluding promotional increases) 3.50% 2019/2020 and 2020/2021; 3.00% pa 2021/2022 to 2025/2026; 3.50% pa thereafter The defined benefit obligation has been calculated by changing the assumptions as outline above, whilst retaining all Rate of CPI increase 2.25% 2017/2018 to 2019/2020; 2.50% pa thereafter other assumptions.

Discount rate 2.83% pa SASS SANCS The pensioner mortality assumptions are as per the 2018 2018 Pensioner mortality 2015 Actuarial Investigation of the Pooled Fund. Expected contributions: $’000 $’000

Maturity profile of defined benefit obligation Expected employer contributions to be paid 0 0 The weighted average duration of the defined benefit obligation is17 years. in the next accounting period

Sensitivity Analysis Funding arrangements for employer contributions: The entity’s total defined benefit obligation as at 28 February 2018 under several scenarios is presented below. Funding arrangements are reviewed every three years following the release of the triennial actuarial review and was Scenarios A to F relate to sensitivity of the total defined benefit obligation to economic assumptions, and scenarios G last reviewed following completion of the triennial review as at 30 June 2017. Contribution rates are set after and H relate to sensitivity to demographic assumptions. discussions between the employer, STC and NSW Treasury.

Scenario A Scenario B Funding positions are reviewed annually and funding arrangements are adjusted as required after each annual review. Base Case -1.0% discount rate +1.0% discount rate (a) Surplus/deficit Discount rate 2.83% 1.83% 3.83% The following is a summary of the 28 February 2018 financial Rate of CPI increase as above as above as above position of the fund calculated in accordance with AAS 25 ‘Financial Reporting by Superannuation Plans’: Salary inflation rate as above as above as above 3,335,226 3,682,302 3,047,825 SASS SANCS 2018 2018 Defined benefit obligation (A$) 3,286,803 3,605,590 3,021,109 $’000 $’000

Scenario C Scenario D Accrued benefits 2,242 204 +0.5% rate of -0.5% rate of Net market value of Fund assets (2,549) (7) Base Case CPI increase CPI increase Net (surplus)/deficit (307) 197 Discount rate as above as above as above Rate of CPI increase as above above rates plus 0.5% pa above rates less 0.5% pa (b) Contribution recommendations Salary inflation rate as above as above as above Recommended contribution rates for the entity are: 3,335,226 3,431,743 3,246,585 SASS SANCS Multiple of member % member Defined benefit obligation (A$) 3,286,803 3,377,713 3,203,122 contributions salary

Scenario E Scenario F 0.00 0.00 +0.5% salary -0.5% salary Base Case increase rate increase rate

Discount rate as above as above as above Rate of CPI increase as above as above as above Salary inflation rate as above above rates plus 0.5% pa above rates less 0.5% pa

Defined benefit obligation (A$) 3,286,803 3,345,854 3,230,332

92 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 93 Notes to the Financial Statements for the Year Ended 28 February 2018 Notes to the Financial Statements for the Year Ended 28 February 2018

10. PROVISIONS 10. PROVISIONS SUPERANNUATION - DEFINED BENEFITS PLAN (CONT’D) SUPERANNUATION - DEFINED BENEFITS PLAN (CONT’D)

(c) Asset-Liability matching strategies SASS SANCS Reconciliation of the fair value of fund assets: 2017 2017 We are not aware of any asset and liability matching strategies currently adopted by the Plan. $’000 $’000

(d) Economic assumptions Fair value of Fund assets at beginning of the period 2,170 105 The economic assumptions adopted from the 2017 triennial actuarial review of the fund are: Interest income 51 2 Weighted Average Assumptions Actual return on Fund assets less Interest income 176 9 Employer contributions 38 12 Expected rate of return on fund assets 7.4% pa backing current pension liabilities Contributions by participants 25 0 Expected rate of return on fund assets backing other liabilities 6.4% pa Benefits paid (32) 0 Expected salary increase rate 2.7% to 30 June 2019, then 3.2% pa thereafter Taxes, premiums & expenses paid 0 (1) Transfers in/out due to business combinations and disposals 0 0 Expected rate of CPI increase 2.2% pa Contributions to accumulation section 0 0 Nature of asset/liability Settlements 0 0 If a surplus existed in the employer’s interest in the fund, the employer may be able to take advantage of it in the form Exchange rate changes 0 0 of a reduction in the required contribution rate, depending on the advice of the Fund’s actuary.

Where a deficiency exists, the employer is responsible for any difference between the employer’s share of Fund assets Fair value of Fund assets at end of the period 2,428 127 and the defined benefit obligation.

Reconciliation of the present value of the defined benefit obligation 2017: SASS SANCS 2017 2017 Present value of defined benefit obligations at beginning of 3,042 273 Reconciliation of the net defined benefit obligation 2017: $’000 $’000 the year before contribution tax assumption change Current service cost 44 10 Net Defined Benefit Liability/(Asset) at start of year 872 168 Interest cost 72 6 Current service cost 44 10 Contributions by participants 25 0 Net Interest on the net defined benefit liability/(asset) 21 4 Actuarial (gains)/losses arising from changes in demographic assumptions 0 0 Past service cost 0 0 Actuarial (gains)/losses arising from changes in financial assumptions (111) (8) (Gains)/losses arising settlements 0 0 Actuarial (gains)/losses arising from liability experience 15 2 Actual return on fund assets less Interest income (176) (9) Benefits paid (32) 0 Actuarial (gains)/losses arising from changes in demographic assumptions 0 0 Taxes, premiums & expenses paid (1) (2) Actuarial (gains)/losses arising from changes in financial assumptions (112) (8) Transfers in/out due to business combinations and disposals 0 0 Actuarial (gains)/losses arising from liability experience 15 2 Contributions to accumulation section 0 0 Adjustment for effect of asset ceiling 0 0 Past service cost 0 0 Employer contributions (38) (12) Settlements 0 0 Effects of transfers in/out due to business combinations and disposals 0 0 Exchange rate changes 0 0 Net Defined Benefit Liability/(Asset) at end of year 626 155 Present value of defined benefit obligations at end of the period 3,054 281

94 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 95 Notes to the Financial Statements for the Year Ended 28 February 2018 Notes to the Financial Statements for the Year Ended 28 February 2018

10. PROVISIONS 10. PROVISIONS SUPERANNUATION - DEFINED BENEFITS PLAN (CONT’D) SUPERANNUATION - DEFINED BENEFITS PLAN (CONT’D)

SASS SANCS As at 30 November 2016 (most recent available) 2017 2017 Quoted prices in Significant Reconciliation of the effect of the Asset Ceiling: $’000 $’000 active markets for observable Unobservable identical assets inputs inputs Adjustment for effect of asset ceiling at beginning of the period 0 0 Asset category Total (A$’000) Level 1 (A$’000) Level 2 (A$’000) Level 3 (A$’000) Change in the effect of asset ceiling 0 0 Short Term Securities 2,229,550 1,900,292 329,259 - Adjustment for effect of asset ceiling at end of the period 0 0 Australian Fixed Interest 2,166,440 -22,099 2,188,538 - International 734,274 28 734,246 - Fixed Interest Expense recognised in the Profit or Loss: Australian Equities 9,637,534 9,158,485 479,025 24

Current service cost 43 10 International Equities 12,111,060 8,529,666 2,556,169 1,025,225 Net interest 21 4 Property 3,517,904 926,206 592,387 1,999,311 Past service cost 0 0 Alternatives 8,600,716 347,149 4,487,130 3,766,437 (Gains)/Loss on settlement 0 0 Total 38,997,478 20,839,727 11,366,754 6,790,997

Expense/(income) recognised 64 14

The percentage invested in each asset class at the reporting date is:

Amounts recognised in Other comprehensive income: AS AT 30-NOV-16

Actuarial (gains) losses on liabilities (96) (6) Short Term Securities 5.7% Actual return on Fund assets less Interest income (176) (9) Australian Fixed Interest 5.6% Adjustment for effect of asset ceiling 0 0 International Fixed Interest 1.9% Australian Equities 24.7% Total re-measurement in Other Comprehensive Income (272) (15) International Equities 31.1% Property 9.0% Fair Value of Fund Assets Alternatives 22.0% All Pooled Fund assets are invested by STC at arm’s length through independent fund managers. Assets are not separately invested for each entity and it is not possible or appropriate to disaggregate and attribute plan assets to Total 100.0% individual entities. As such, the disclosures below relate to total assets of the Pooled Fund.

Derivatives, including futures and options, can be used by investment managers. However, each manager’s investment mandate clearly states that derivatives may only be used to facilitate efficient cash flow management or to hedge the Level 1 - quoted prices in active markets for identical assets or managers. However, each portfolio against market movements and cannot be used for speculative purposes or gearing of the portfolio. As such markets for identical assets or liabilities. manager’s investment mandate managers make limited use of derivatives. liabilities. The assets in these levels clearly states that derivatives may are listed shares; listed unit trusts. Level 3 - inputs for the asset or only be used to facilitate efficient liability that are not based on cash flow management or to hedge Level 2 - inputs other than quoted observable market data. The assets the portfolio against market movements and cannot be used for prices observable for the asset or in this level are unlisted property; speculative purposes or gearing of liability, either directly or indirectly. unlisted shares; unlisted the investment portfolio. As such The assets in this level are cash; infrastructure; distressed debt; managers make limited use of notes; government, semi- hedge funds. derivatives. The fair value of the government and corporate bonds; Pooled Fund Assets as at 30 unlisted trusts containing where Derivatives, including futures and November 2016 includes $103.7M in quoted prices are available in active options, can be used by investment NSW government bonds.

96 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 97 Notes to the Financial Statements for the Year Ended 28 February 2018 Notes to the Financial Statements for the Year Ended 28 February 2018

10. PROVISIONS 10. PROVISIONS SUPERANNUATION - DEFINED BENEFITS PLAN (CONT’D) SUPERANNUATION - DEFINED BENEFITS PLAN (CONT’D)

Valuation method and principal actuarial assumptions at the balance date: Scenario G Scenario H (a) Significant Actuarial Assumptions at reporting date: 28 FEB 2017 +0.5% pensioner -0.5% pensioner Base Case mortality rates mortality rates

2.5% 2017/2018 to 2018/2019; Defined benefit obligation (A$) Salary increase rate 3.50% 2019/2020 and 2020/2021; 3,335,226 3,314,833 3,378,325 (excluding promotional increases) 3.00% pa 2021/2022 to 2025/2026; 3.50% pa thereafter The defined benefit obligation has been calculated by changing the assumptions as outline above, whilst retaining all 1.75% 2017/2018; 2.25% 2018/2019; other assumptions. Rate of CPI increase 2.50% pa thereafter Discount rate 2.74% pa SASS SANCS 2017 2017 The pensioner mortality assumptions are as per the Pensioner mortality Expected contributions: $’000 $’000 2015 Actuarial Investigation of the Pooled Fund. Expected employer contributions to be paid in the next accounting period 38 12 Maturity profile of defined benefit obligation

The weighted average duration of the defined benefit obligation is11.3 years. Funding arrangements for employer contributions: Funding arrangements are reviewed every three years following the release of the triennial actuarial review and was Sensitivity Analysis last reviewed following completion of the triennial review as at 30 June 2017. Contribution rates are set after discussions between the employer, STC and NSW Treasury. The entity’s total defined benefit obligation as at 28 February 2017 under several scenarios is presented below. Funding positions are reviewed annually and funding arrangements are adjusted as required after each annual review. Scenarios A to F relate to sensitivity of the total defined benefit obligation to economic assumptions, and scenarios G and H relate to sensitivity to demographic assumptions. (a) Surplus/deficit The following is a summary of the 28 February 2017 financial SASS SANCS Scenario A Scenario B position of the fund calculated in accordance with AAS 25 2017 20167 Base Case -1.0% discount rate +1.0% discount rate ‘Financial Reporting by Superannuation Plans’: $’000 $’000 Discount rate 2.74% 1.74% 3.74% Accrued benefits 2,223 220 Rate of CPI increase as above as above as above Net market value of Fund assets (2,428) (126) Salary inflation rate as above as above as above Defined benefit obligation (A$) 3,335,226 3,682,302 3,047,825 Net (surplus)/deficit (205) 94

Scenario C Scenario D SASS +0.5% rate of -0.5% rate of MULTIPLE SANCS Base Case CPI increase CPI increase (b) Contribution recommendations OF MEMBER % MEMBER CONTRIBUTIONS SALARY Discount rate as above as above as above Recommended contribution rates for the entity are: above rates plus above rates less Rate of CPI increase as above 0.00 0.00 0.5% pa 0.5% pa Salary inflation rate as above as above as above (c) Asset-Liability matching strategies We are not aware of any asset and liability matching strategies currently adopted by the Plan. Defined benefit obligation (A$) 3,335,226 3,431,743 3,246,585 (d) Economic assumptions Scenario E Scenario F +0.5% salary -0.5% salary The economic assumptions adopted from the 2017 triennial actuarial review of the fund are: Base Case increase rate increase rate Discount rate as above as above as above Weighted Average Assumptions Rate of CPI increase as above as above as above Expected rate of return on fund assets backing current pension liabilities 7.4% pa above rates plus above rates less Salary inflation rate as above 0.5% pa 0.5% pa Expected rate of return on fund assets backing other liabilities 6.4% pa 2.7% to 30 June 2019, then Defined benefit obligation (A$) 3,335,226 3,400,068 3,273,280 Expected salary increase rate 3.2% pa thereafter

Expected rate of CPI increase 2.2% pa 98 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 99 Notes to the Financial Statements for the Year Ended 28 February 2018 Notes to the Financial Statements for the Year Ended 28 February 2018

10. PROVISIONS 11. CAPITAL AND OTHER EXPENDITURE COMMITMENTS (CONT’D) SUPERANNUATION - DEFINED BENEFITS PLAN (CONT’D) Nature of asset/liability Non-Cash Commitments: If a surplus existed in the employer’s interest in the fund, the employer may be able to take advantage of it in the form The Trust receives contributions of goods and services from certain sponsors. In return, the Trust provides advertising of a reduction in the required contribution rate, depending on the advice of the Fund’s actuary. space and/or use of Trust facilities. The Trust does not consider the value of facilities and advertising space provided in 2018 to be material (2017 – nil). Where a deficiency exists, the employer is responsible for any difference between the employer’s share of Fund assets and the defined benefit obligation. 12. Trustees Remuneration

11. Capital And Other Expenditure Commitments The Trust is classified as an Advisory Fees totalling $192,000 ($192,000 in the Department of Premier and Board thereby enabling the payment 2017) were paid to the Trustees in Cabinet. 2018 2017 of fees to Trust members. accordance with rates determined by $’000 $’000 Capital Commitments: 13. Contingent Liabilities and Contingent Assets The total capital expenditure contracted at reporting date but not provided for in the Financial Statements: Contingent Liabilities In 2007 the Trust joined with the Contingent Assets - Not later than 1 year - 1,611 administration of the former The Trust is not aware of any The Trust is not aware of any - Later than 1 year but not later than 5 years - - UTS-Balmain District Cricket Club significant or material contingent in establishing the new entity of the significant or material contingent Total (including GST) - 1611 liability in existence at balance date Sydney Cricket Club. The Trust asset in existence at balance date or or which has emerged subsequent to has established a Bank Deposit which has emerged subsequent to Finance Lease Commitments: balance date which would materially Account holding $40,000 as balance date which would materially impact on the financial position of security against the overdraft impact on the financial position of Future non-cancellable finance lease not provided for and payable: the Trust as shown in the Financial facility of the Sydney Cricket the Trust as shown in the Financial Statements. Club. Statements. Principal Commitments - Not later than 1 year 2,528 2,457 14. Financial Instruments Disclosures - Later than 1 year but not later than 5 years 2,491 4,811 - Later than 5 years - - The Trust’s main risks arising from risks faced by the Trust, to set risk The main risks arising from the Trust’s financial instruments are outlined limits and controls and to monitor financial instruments are interest rate Total (including GST) 5,019 7,268 below, together with the Trust’s risks. Compliance with policies is risk, credit risk and liquidity risk. The objectives, policies and processes for reviewed by the Audit Committee and Trust uses different methods to Future non-cancellable finance lease rentals payable: measuring and managing risk. Further Internal Audit on a continuous basis. measure and manage different types quantitative and qualitative of risks. These methods include - Not later than 1 year 2,646 2,646 disclosures are included throughout The Trust’s principal financial ageing analysis and monitoring of - Later than 1 year but not later than 5 years 2,534 4,960 this financial report. instruments comprise receivables, specific credit allowances which are payables, cash, short-term deposits undertaken to manage credit risk. - Later than 5 years - - The Trust has responsibility for the and fixed rate debts. The Trust Total (including GST) 5,180 7,606 establishment and oversight of risk manages its exposure to key financial The Trust reviews and agrees policies management and reviews and agrees risks, including interest rate in for managing each of the risks policies for managing each of these accordance with the Trust’s financial identified below, including the interest Operating Lease Commitments: risks. Risk management policies are risk management policy. rate risk and credit allowances. Future non-cancellable operating lease rentals not provided for and payable: established to identify and analyse the

- Not later than 1 year 263 315 - Later than 1 year but not - 263 later than 5 years - Later than 5 years - -

Total (including GST) 263 578

The total operating leases contracted at 28 February 2018 but not provided for in the financial statements.

100 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 101 Notes to the Financial Statements for the Year Ended 28 February 2018 Notes to the Financial Statements for the Year Ended 28 February 2018

14. FINANCIAL INSTRUMENTS DISCLOSURES (CONT’D) 14. FINANCIAL INSTRUMENTS DISCLOSURES (CONT’D)

(a) Financial Instrument Categories CONSOLIDATED $‘000 -0.25% 0.25% CARRYING 2018 AMOUNT PROFIT EQUITY PROFIT EQUITY CLASS NOTES CATEGORY 2017 $’000 $’000 2018 Financial Assets Financial Assets Cash and Cash Equivalents 4 N/A 3,430 9,657 Cash and Cash Equivalents 3,425 (8.6) (8.6) 8.6 8.6 Loans and Receivables Receivables (1) 5 40,466 18,770 (at amortised cost) 2017 Total 43,896 28,427 Financial Assets Cash and Cash Equivalents 9,652 (24.1) (24.1) 24.1 24.1 Financial Liabilities Financial Liabilities Payables (2) 8(a) 24,480 25,788 (at amortised cost) Managed Debt Portfolio loans whilst maintaining the original (tactical) positions within agreed Financial Liabilities capital value of the portfolio. tolerance limits to manage portfolio Borrowings 9 78,187 76,966 (at amortised cost) The Trust’s policy is to manage its duration and maturity profiles. finance costs using a mix of fixed TCorp manages interest rate risk Total 102,667 102,754 and variable rate debt. exposures applicable to specific The following sensitivity analysis is borrowings of the Trust in based on the interest rate risk At 28 February 2018 100% of the Notes accordance with a debt portfolio exposures in existence at the Trust’s borrowings were at a fixed mandate agreed between the two Statement of Financial Position date: 1. Excludes statutory receivables and prepayments (i.e. not within scope of AASB 7). rate of interest (2017: 100%). parties. 2. Excludes statutory payables and unearned revenue (i.e. not within scope of AASB 7). At 28 February 2018, if interest rates To manage this mix in a cost-efficient TCorp receives a fee for this service, had moved, as illustrated in the table manner the Trust contracts with the change in risk variable is outlined in which may include a performance below, with all other variables held (b) Market Risk Interest Rate Risk NSW Treasury Corporation (TCorp) the information below, for interest component where TCorp is able to constant, NSW TCorp have to actively manage the Trust’s Market risk is the risk that the fair rate risk and other price risk. A The Trust’s exposure to market add value by achieving a reduction in estimated that post tax surplus and portfolio of debt. The Corporation value or future cash flows of a reasonably possible change in risk interest rates relates primarily to the the Trust‘s debt costs against an equity would have been affected as has provided the Trust the facility financial instrument will fluctuate variable has been determined after Trust’s long term debt obligations agreed benchmark. TCorp may use follows: whereby maturing loans may be because of changes in market taking into account the economic and cash and cash equivalents. derivatives, primarily interest rate rolled over and replaced with new prices. The Trust’s exposures to environment in which the Trust futures, to establish short-term market risk are primarily through operates and the time frame for the Cash and Cash Equivalents price risks associated with the assessment (i.e. until the end of the A reasonably possible change of OPERATING RESULT EQUITY movement in interest rate risk on the next annual reporting period). The +/- 0.25% is used, consistent with IMPACT IMPACT Trust’s borrowings and other price sensitivity analysis is based on risk current trends in interest rates. The risks associated with the movement exposures in existence at the 2018 2018 basis will be reviewed annually and 2017 2017 in the unit price of the Hour Glass statement of financial position date. $’000 $’000 amended where there is a structural $’000 $’000 Investment Facilities. The Trust has The analysis is performed on the change in the level of interest rate no exposure to foreign currency risk same basis as for 2017. The analysis volatility. The Trust’s exposure to Consolidated Increase/Decrease in basis points and does not enter into commodity assumes that all other variables interest rate risk is set out below. contracts.The effect on profit and remain constant. AUD 100 (1%) 4,289 3,313 4,289 3,313 equity due to a reasonably possible

102 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 103 Notes to the Financial Statements for the Year Ended 28 February 2018 Notes to the Financial Statements for the Year Ended 28 February 2018

14. FINANCIAL INSTRUMENTS DISCLOSURES (CONT’D) 14. FINANCIAL INSTRUMENTS DISCLOSURES (CONT’D)

Other Price Risks (v) All trade debtors are raised when there is objective The Trust is not materially exposed recognised as amounts evidence that the Trust will not to concentrations of credit risk to a Hour-Glass Investment Facilities receivable at balance date. be able to collect all amounts single trade debtor or group of Collectability of trade debtors due. This evidence includes debtors. Exposure to ‘other price risk’ primarily arises through the investment in the TCorp Hour-Glass Investment facilities, is reviewed on an ongoing past experience, and current which are held for strategic rather than trading purposes. The Trust has no direct equity investments. The Trust holds basis. Procedures as and expected changes in (vi) Receivable balances are units in the following Hour-Glass investment trust: established are followed to economic conditions and monitored on an ongoing basis recover outstanding amounts, debtor credit ratings. No with Trust’s exposure to bad including letters of demand. interest is earned on trade debts not being significant. 2018 FACILITY INVESTMENT SECTORS INVESTMENT HORIZON 2017 Debts which are known to be debtors. $000 $000 uncollectible are written off. An (vii) Receivables which are past allowance for impairment is due but not considered Cash Facility Cash, Money market instruments Up to 2 years 5 5 impaired are aged as follows:

0-30 DAYS 31-60 DAYS 61-90 DAYS 90+ DAYS The unit price is equal to the total fair value of the net assets held by the facility divided by the total number of units on OVERDUE OVERDUE OVERDUE OVERDUE issue. Unit prices are calculated and published daily. $’000 $’000 $’000 $’000

NSW Treasury Corporation (TCorp) as trustee for the above facility is required to act in the best interest of the unit As at 28 February 2018 631 99 - 190 holders and to administer the trusts in accordance with the trust deeds. As trustee, TCorp has appointed external managers to manage the performance and risks of each facility in accordance with a mandate agreed by the parties. As at 28 February 2017 2,082 13 107 313 From April 2007 TCorp commenced acting as a manager for part of the Cash Facility. A significant portion of the administration of the facility is outsourced to an external custodian. Each column in the table reports and maturities planning to ensure The Trust’s objective is to maintain a Investments in the Hour-Glass facilities limits the Trust’s exposure to risk, as it allows diversification across a pool of gross receivables. adequate holding of high quality balance between continuity of funds with different investment horizons and a mix of investments. liquid assets. funding and flexibility through the The ageing analysis excludes use of bank overdrafts, NSW The TCorp Hour-Glass Investment Facilities are designated at fair value through profit/loss and therefore any change statutory receivables, as these are The liabilities are recognised for Treasury Corporation Hour-Glass in unit price impacts directly on net result (rather than equity). not within the scope of AASB 7 and amounts due to be paid in the future Investments and NSW Treasury excludes receivables that are not for goods or services received, Corporation loans. TCorp provides sensitivity analysis for the Hour-Glass Investment Facilities using historically based volatility past due and not impaired whether or not invoiced. Amounts information collected over a 10 year period. owing to suppliers (which are The table below summarises the (viii) There were no impaired unsecured) are settled in accordance maturity profile of the Trust’s CHANGE IN UNIT PRICE IMPACT ON SURPLUS/DEFICIT receivables at reporting date. with policy set out in Treasury financial liabilities together with the ($19,000 in 2017). Circular TC11-12. If trade terms are interest rate exposure. 2018 2017 not specified, payment is made no $’000 $’000 (d) Liquidity Risk later than the end of the month During the current and prior year following the month in which an there were no breaches on any loans Hour-Glass Cash Facility +/- 1% - - Liquidity risk is the risk that the Trust invoice or a statement is received. payable. No assets have been will be unable to meet its payment For small business suppliers pledged as collateral. The Trust’s obligations when they fall due. The payments must generally be made exposure to liquidity risk is deemed A reasonably possible change is based on the percentage change in unit price multiplied by the redemption value as Trust continuously manages risk within 30 days of receipt of the insignificant based on prior period’s at 28 February 2018. through monitoring future cash flows invoice. No interest was paid for late data and current assessment of risk. payment during the year. (c) Credit Risk (ii) The Trust trades only with (iv) TCorp/NSW State does not recognised, creditworthy third guarantee investments in the (i) Credit risk arises from the parties, and as such collateral Hour-glass, TCorp acts as financial assets of the Trust, is not requested nor is it the Trustee of the Hour-Glass. which comprise cash and Trust’s policy to securitise its cash equivalents, trade and trade and other receivables. SCG invest in units in the Hour-Glass other receivables. The Trust’s There are no trade and other Cash Facility (HGCF). The HGCF exposure to credit risk arises receivable that are past due or invest in financial instruments with a from potential default of the impaired whose terms have high quality credit rating - with an counter party, with a maximum been renegotiated. average short credit rating of A1+ exposure equal to the carrying and long term rating of AA- , most of amount. the investments would be with the (iii) All financial assets are big 4 banks. unsecured.

104 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 105 Notes to the Financial Statements for the Year Ended 28 February 2018 Notes to the Financial Statements for the Year Ended 28 February 2018

14. FINANCIAL INSTRUMENTS DISCLOSURES (CONT’D) 15. CASH FLOW INFORMATION (CONT’D) (D) LIQUIDITY RISK (CONT’D) (A) RECONCILIATION OF CASH (CONT’D)

Maturity analysis of financial liabilities is based on management’s expectation.

MATURITY ANALYSIS AND INTEREST RATE EXPOSURE 2018 2017 INTEREST RATE EXPOSURE MATURITY DATES $’000 $’000 Fixed Variable Non- Cash 3,425 9,652 Weighted Average Nominal Interest Interest interest Effective Int. Rate Amount Rate Rate bearing < 1 yr 1-5 yrs > 5 yrs NSW Treasury Corporation Hour-Glass 5 5

2018 $‘000 $‘000 $‘000 $‘000 $‘000 $‘000 $‘000 3,430 9,657

Payables 3.49% 24,480 5,019 - 19,461 21,989 2,491 - Borrowings: (b) Reconciliation From the Surplus/ (Deficit) to the Net Cash Flows From Operations 4.11% 78,187 78,187 - - - 31,684 46,503 TCorp borrowings Surplus/(deficit) for the year (1,666) 1,112

2017 Depreciation 13,678 13,291 Payables 3.42% 25,788 7,268 - 18,520 20,977 4,811 - Increase (Decrease) in Debt Transactions 2,786 (354) Borrowings: Actuarial gains/(losses) on defined 4.74% 76,966 76,966 - - 8,838 29,812 38,316 (468) 287 TCorp borrowings benefit pension plans Increase (Decrease) in Creditors 1,709 4,457 Decrease (Increase) in Inventories 74 (546) Notes: credit facility through an approved Hour-Glass Investments is based on Decrease (Increase) in Debtors 2,304 (2,047) The amounts disclosed are the $100,000 bank overdraft the Trust’s share of the value of the Increase (Decrease) in Provisions 190 (53) contractual undiscounted cash flows arrangement. underlying assets of the facility, of each class of financial liabilities based on the market value. All of the Net Cash From Operating Activities 18,607 16,147 based on the earliest date on which The Trust holds a $33K security Hour Glass facilities are valued using the Trust can be required to pay. The deposit guarantee (Sydney Water). ‘redemption’ pricing. The TCorp Firmly committed long-term financing facilities of $95M were available to the Trust at 28 February 2018. tables include both interest and The Trust holds a bank guarantee facility Hour-Glass facility is recognised at As at that date, $78.187M ($76.966M in 2017) of these facilities was in use. principal cash flows and therefore of $2.3M, with $30,651 in use (2017: Level 2 of the fair value hierarchy. will not reconcile to the statement of $2.3M) (T Greenway & J Banks Pty Ltd financial position. The amortised cost of financial 16. Related Party Disclosure (e) Fair Value instruments recognised in the The Trust monitors rolling forecasts statement of financial position (a) Key Management Personnel of liquidity reserves on the basis of Financial instruments are generally approximates the fair value, because Key management personnel are those persons having authority and responsibility for planning, directing and expected cash flow. recognised at cost, with the of the short-term nature of many of the controlling the activities of the entity, directly or indirectly. This comprises the Minister for Sport, Chief Executive exception of the TCorp Hour-Glass financial instruments. There were no Officer and Trustees. Credit Standby Arrangements: – The facilities, which are measured at fair financial instruments where the fair Trust maintains an available standby value. As discussed, the value of the value differs from the carrying amount. (b) Key Management Personnel Compensation Key management personnel compensation are as follows:

2018 15. Cash Flow Information $’000

(a) Reconciliation of Cash Short Term Employee Benefits 1,019

For the purpose of the statement of cash flows, cash includes: cash on hand, and in banks, and investments in NSW Total remuneration 1,019 Treasury Corporation Hour-Glass Facility.

Cash at 28 February 2018 as shown in the statement of cash flows is reconciled to the related items in the Statement The above disclosures are based on actual payments made for employee benefits during the reporting period. of Financial Position and accompanying notes as follows: The Trustees have access to the Trust Suite during major event days at the Sydney Cricket Ground and Allianz Stadium. On occasion expenses for travel by Trustees on Trust business are reimbursed by the Trust. There are no 106 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 other benefits paid to the Trustees. 107 Notes to the Financial Statements for the Year Ended 28 February 2018

16. RELATED PARTY DISCLOSURE

(c) Other transactions with key management personnel and related entities From time to time, key management personnel may purchase goods or services from the Trust. These purchases are on the same terms and conditions as those entered into by other customers and are immaterial in nature. There have been no material transactions other than remuneration reported for key management personnel.

During 2017-18, the Trust had related party transactions with the following entities:

»» Treasury Managed Fund – Payments for Insurance Coverage (refer to Note 3(a))

»» Treasury Corporation (TCorp) - Borrowings (refer to Note 9) and investment interest (refer to Note 2(e))

»» Treasury Banking System – Interest income on banking balances.

»» University of Technology – Lease of Premises.

These transactions were conducted at arm’s length.

17. Post Balance Date Events

No post balance date events have occurred which would materially affect the financial statements.

The Minister for Sport, Mr Stuart Ayres wrote to the Trust on 6 June 2018 regarding the new Sydney Football Stadium redevelopment and noted the NSW Government has now approved the following:

The transfer of the SFS and its functions, assets and liabilities to INSW, with the exact timing of the transfer and announcement to be agreed by the Premier, Treasurer and Minister for Sport following consultation with the Sydney Cricket and Sports Ground Trust (the Trust) and INSW. Responsibility for managing all contracts with Members, sports partners, service providers, advertisers and commercial rights holders at the SFS will remain with the Trust.

END OF AUDITED FINANCIAL STATEMENTS

108 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 109 MEMBER FEEDBACK This year, the Tours department and our tour guides adapt the tour broadened its reach with a number to suit the client’s requirements Member feedback was focused of high school and university groups and abilities. Stadium Tours are on dress regulations, car parking, engaging in activities at our grounds. rated well by users on Trip Advisor catering, member behaviour and Bespoke stadium tours are also with few complaints received. subscription fees. Dress standards popular with disability patrons are a condition of membership for attending our grounds as a member or guest. These requirements will continue to be monitored and adapted as necessary.

The Trust also conducted surveys regarding reserved seating arrangements and facilities and held focus group sessions to discuss the future plans for membership and the Stadium Club.

CORPORATE GUESTS During 2017-18, the Trust received minimal complaints from corporate guests, relating to the quality of food and in-seat service offered in these areas. This is a significant improvement on last year with the offering improved through a new deal with hospitality provider MatchPoint. Annual clients continued to make the most of the game day experience at the SCG and Allianz Stadium.

STADIUM CLUB The Stadium Club deals with members on a daily basis and remains the focal point for members feedback. Overall, the facility received similar complaints to previous years relating to CONSUMER RESPONSE car parking, gym maintenance, equipment, space and closures.

The Trust’s venues and member facilities, such as the Stadium Fitness Centre and SCG SPORTING PARTNERS Museum, catered for close to 1.9 million visitors during the reporting period. Feedback The Trust meets with all partners is closely monitored to ensure our patrons continue to receive the best possible service. before and after events to discuss operations, identify issues and work on resolutions. Senior management The Trust responds to consumer attendees, including more than with Transport NSW, Police NSW and from all parties also meet bi-monthly feedback from members, corporate 150 complaints about facilities other government agencies to ensure to discuss high-level and long-term guests, sports partners and the and services. The majority of traffic flow, ingress and egress, planning. The Trust schedules post- general public. Staff are trained comments were managed by the and other operations continue to season debriefs with each hiring to follow a set of procedures to Events and Operations department run as smoothly as possible. partner as regular management resolve complaints immediately if and responded to individually. practice to ensure learnings are possible or at least ensure prompt Seating complaints are usually acted upon for future seasons. action for more complex issues. The Trust raises feedback relating related to infrequent ticketing errors to food and beverages, concerned and are resolved on the day with MUSEUM AND TOURS Feedback Received queuing times and pricing with staff finding alternative seats for Positive feedback was received its contracted catering partner to affected patrons. These incidents from tour patrons on the knowledge GENERAL PUBLIC ensure continued improvement. are reported to our ticketing and professional manner that agency to identify causes, and we the tour guides provide. Positive and negative feedback Parking, traffic, access and security run regular seating audits at both was received from event issues were handled in consultation grounds to minimise incidents.

110 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 111 RIGHT TO INFORMATION INDEX

On 1 July 2010, the Freedom of Information Act 1989 was replaced by the Government Information (Public Access) Act 2009. 18 Asset management 62 Financial indicators

The objectives of GIPA are: 16 Attendances 44 Human resources »» Authorising and encouraging the proactive public release of government information by agencies 64 Audited financial statements (Trust) 2 Letter of submission »» Giving members of the public an enforceable right to access government information »» Providing that access to government information is restricted only when there is an overriding public interest against disclosure 64 Auditor’s report (Trust) 26 Membership and marketing Requests 67 Budget of revenue and expenditure 3 Minister’s forward During the reporting period, the Trust received four public information requests from the Sydney Morning Herald, the Shadow Minister for Sport and the Nine Network relating to the NSW Government’s stadium investment and the pending upgrade of Allianz Stadium. 19 Capital works program 33 Museum and tours The Right to Information Officer can be contacted at: 15 Catering 54 Organisational chart Level 2, Sheridan Building, Moore Park Road, NSW 2021 56 CEO and General Manager profiles 60 Performance statement Phone: (02) 9360 6601 Fax: (02) 9360 1319 4 Chairman’s report 24 Sponsorship GPO Box 150, Sydney NSW 2001

Fees and charges are as follows: 24 Commercial 28 Stadium Club 15 Concert 22 Strategy and projects Nature of Application Application Fee Processing Charge 24 Corporate hospitality 48 Trustee profiles Access to records by people $30/hour after $30 about their personal affairs first 20 hours* 34 Corporate services 55 Trust meetings All other requests $30* $30/hour 19 Environment and sustainability 8 Vision and goals Internal reviews $40** Nil

Amendment of records Nil*** Nil 12 Event management

»» Subject to 50 per cent reduction for financial hardship and public interest reasons »» No application fees may be charged for internal reviews in relation to amendment of records »» Refunds may apply as a result of successful internal reviews and applications for amendment of records

112 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 113 114 Sydney Cricket & Sports Ground Trust Annual Report 2017/18 115 General Enquiries: (02) 9360 6601 Email: [email protected] Trust Office: Administration Office, Level 2, Sheridan Building Moore Park Road, Moore Park NSW 2021 Postal Address: GPO Box 150, Sydney NSW 2001 sydneycricketground.com.au