annual repor t 2010 CONTENTS

CONTENTS

CHAIRMAN’S REPORT 3

MANAgINg dIRECTOR & CEO’S REPORT 4-5

FINANCE dIRECTOR’S REPORT 6 dIRECTORS’ REPORT 7-8

INdEPENdENT AUdITOR’S REPORT 9

FINANCIAL REPORT 10-15 CHAIRMAN’S REPORT CHAIRMAN’S REPORT

There is no doubt 2010 has been one of the most challenging in recent years for the . likely to require our administration and training facility to be located away despite our best efforts we were unable to reach maintaining our culture and presence at Windy Hill will be sustained. With the introduction of free agency and an increased importance being placed on make the necessary progress we needed to. players the best possible opportunity for success in I would like to take this opportunity on behalf of the Essendon Football Club the future. ahead of us to bridge the gap. medical team. will stop at nothing in pursuit of our 17th Premiership. Much has already been said about the appointment of as our Senior Coach in 2011.

Football Club to stand as one and unite behind our team. ENCOURAgINg OTHERS TO dO SO TOO.” but it is going to take time and a lot of hard work. This Club has great and loyal support and I would like to recognise the OST dESA Australia. possible to ensure James has the appropriate support around him. group and broader football department in the competition. Essendon great.

bolstered by the recent appointment of three-time Premiership player has helped shape Essendon’s strong commitment to Indigenous communities. and two-time Premiership coach Mark Thompson. Furthermore danny Corcoran has returned to the Club in the newly created role of People and

Essendon Football Club.

I want to thank them all for their dedication and professional work. Any club committed and passionate staff.

year and look forward to watching our captain once again lead members and fans for your continued support of this great club. from the front. base and we need our supporters to remain loyal. training facility for the Essendon Football Club is high on the agenda. This landscape of AFL football. Chairman Essendon Football Club heritage and tradition success professionalism community Essendon Football Club Annual Report 2010 3 MANAgINg dIRECTOR & CEO’S REPORT

MANAGING DIRECTOR & CEO’S REPORT

I am pleased to be able to present my report Essendon Football Club after what has been a and beyond was made with the appointment of James Hird as Senior Coach. I would like to take this opportunity to thank former Club champion Scott assistance through the selection process. These appointments to the coaching group were further reinforced with the change with the appointment of an entirely new coaching panel and Changes such as the decision to terminate the contract of former coach of and Hayden Skipworth to full-time positions. AFL football. to the Club completes the post-season rebuilding of the coaching group - the competition. a critical off-season as the players respond to the new coaching regime and

Matthew’s time at the Club as Senior Coach. during the course of this year a number of long term business decisions COMMITMENT TO OUR COMMUNITy IS NO worth noting that prior to the deduction of all non-cash items such as confront. Other clubs will be thinking the same as us. Nobody will make it the second half of the season led to a dramatic drop in game-day consistent with broader industry trends. These underlying operating people we reach through them. to further consolidating this program in 2011. The Long Walk partnership continued to grow with a record attendance champion for his people off it and we are only too pleased to support The Long Walk through this partnership and look forward to helping to Whilst reporting a year-on-year increase on returns from the Club’s This partnership is part of our increased commitment to Indigenous programs position in future years. I would like to add my thanks to those of – programs that need the support of committed and caring organisations. this opportunity to sincerely thank dESA Australia for their important support. by the appointment of a full-time resource which has been funded by the we are to ensure that the Club remains a benchmark in the competition.

4 Essendon Football Club Annual Report 2010 essendonfc.com.au MANAgINg dIRECTOR & CEO’S REPORT

MANAGING DIRECTOR & CEO’S REPORT

welcome and thank new partner iPrimus. The Foundation is – and will continue to be – an important community The Club’s strong and enduring commitment to our community is no better groups – both match-day and non match-day – through the many ups and downs of the 2010 season. Thank you to the members of the Coleman Club and the members of our Coaches Club for your ongoing support. Thank you also to the Essendonians and President Rob Harwood. They are a coterie who continued support in 2011. Thank you also to the diamond dons and Chairman Stephen day who works tirelessly to ensure the success of this coterie. Club to ensure its growth. Thanks to the Club and Chairman cascading right throughout the Club as we attack the challenges of the 2011 We are under no illusion that there is still much hard work to be done - both of our members and supporters we are well placed to take on the challenge. It is time for us all to See you at the football in 2011.

Ian Robson Essendon Football Club Managing director & CEO

heritage and tradition success professionalism community Essendon Football Club Annual Report 2010 5 FINANCE dIRECTOR’S REPORT

FINANCE DIRECTOR’S REPORT

TRADING RESULTS

such as gate takings and merchandise sales.

FINANCIAL POSITION

LOOKING AHEAD

TIM JONAS Finance director Essendon Football Club

6 Essendon Football Club Annual Report 2010 essendonfc.com.au dIRECTORS’ REPORT

DIRECTORS’ REPORT - YEAR END 31 OCTOBER 2010

4. OPERATING RESULT 31 October 2010. For the year ended 31 October 2010 the Company had an operating loss 1. DIRECTORS 5. mEETINGS OF DIRECTORS J. Albert T. Jonas K. Egan P. Pryor CORPORATE DIRECTORS’ GOvERNANCE & mEETINGS AUDIT COmmITTEE NOmINATIONS d. Jackson NAmE OF COmmITTEE DIRECTOR Number Number Number Number Number Number eligible to eligible to eligible to Attended Attended Attended of this report unless otherwise stated. attend attend attend J. Albert 15 15 2 2 4 3 2. PRINCIPAL ACTIvITy 15 14 - - 4 2 was to conduct the Essendon Football Club and manage its affairs and to K. Egan 15 13 - - - - 15 15 2 2 4 4 R. Horsburgh 15 14 - - - - 3. ObjECTIvES AND STRATEGIES OF THE COmPANy d. Jackson 15 12 - - 4 3 T. Jonas 15 15 2 2 4 4 15 14 1 1 4 4 appointed Senior Coach James Hird P. Pryor 15 15 1 - - - I. Robson 15 15 - 2 - - 2 2 1 1 - - of the Club 6. INFORmATION ON CURRENT DIRECTORS in the community Member Audit Committee & Nominations Committee all other key stakeholders Member Audit Committee J. Albert & Nominations Committee Life Member Senior Player 1963-69 & Nominations Committee Life Member K. Egan Senior Player 1963-69 R. Horsburgh deputy Chairman outcomes in the community d. Jackson & Nominations Committee Finance director to change for future generations Life Member Chairman Audit Committee T. Jonas & Nominations Committee Life Member Nominations Committee P. Pryor Member Audit Committee I. Robson Managing director & CEO

heritage and tradition success professionalism community Essendon Football Club Annual Report 2010 7 dIRECTORS’ REPORT

7. AUDITOR INDEPENDENCE with the general standard of independence for auditors imposed by the Corporations and of the performance for the year ended on that date of the Company. Company will be able to pay its debts as and when they become due and payable. principles relating to auditor independence as set out in APES 110 Code of Ethics for Professional Accountants. This declaration is made in accordance with a resolution of the

$ ______ director director . Auditor’s Independence declaration

Auditor’s Independence Declaration To the Directors of Essendon Football Club Limited In accordance with the requirements of section 307C of the Corporations 8. mEmbERS’ GUARANTEE The Company is incorporated under the Corporations Act 2001 and is towards meeting any outstanding obligations of the Company. At 31 October relation to the audit.

______gRANT THORNTON d.A. ASHMORE Chartered Accountants Partner director director

8 Essendon Football Club Annual Report 2010 essendonfc.com.au INdEPENdENT AUdITOR’S REPORT

Independent Auditor’s Report To the members of Essendon Football Club Limited

Auditor’s responsibility

Independence

Auditor’s opinion

gRANT THORNTON d. A. ASHMORE Chartered Accountants Partner

heritage and tradition success professionalism community Essendon Football Club Annual Report 2010 9 FINANCIAL REPORT

STATEmENT OF COmPREHENSIvE INCOmE FOR THE yEAR STATEmENT OF CHANGES IN mEmbERS’ FUNDS FOR THE yEAR ENDED 31 OCTObER 2010 ENDED 31 OCTObER 2010

Note 2010 2009 Asset Financial Accumulated members Asset $ $ Funds Funds $ $ $ $ - 31 October 2008 Total income for the year 31 October 2009 Total Net asset contribution arising from - merger with Melton Country Club income for the year - 31 October 2010 STATEmENT OF FINANCIAL POSITION AS AT 31 OCTObER 2010

Note 2010 2009 STATEmENT OF CASH FLOWS FOR THE yEAR ENDED 31 OCTObER 2010 $ $ Note 2010 2009 CURRENT ASSETS $ $ 13 CASH FLOWS FROm 4 OPERATING ACTIvITIES 5 Other 6 Supporters and Other Operations TOTAL CURRENT ASSETS and Players NON-CURRENT ASSETS NET CASH FLOWS FROm 8 OPERATING ACTIvITIES Intangibles 9 - CASH FLOWS FROm Financial assets 7 - INvESTING ACTIvITIES TOTAL NON-CURRENT ASSETS TOTAL ASSETS -

CURRENT LIAbILITIES plant and equipment Trade and other payables 10 Payment for purchase of intangibles - 11 Net proceeds from merger of - 12 Melton Country Club

TOTAL CURRENT LIAbILITIES NET CASH FLOWS USED IN INvESTING ACTIvITIES NON-CURRENT LIAbILITIES 11 NET CASH FLOWS USED IN - - FINANCING ACTIvITIES TOTAL NON-CURRENT LIAbILITIES TOTAL LIAbILITIES NET ASSETS

mEmbERS FUNDS CASH AT END OF THE FINANCIAL yEAR Accumulated funds

- TOTAL mEmbERS FUNDS

10 Essendon Football Club Annual Report 2010 essendonfc.com.au FINANCIAL REPORT

1. STATEmENT OF SIGNIFICANT ACCOUNTING POLICIES selling in the short term or if so designated by management within the requirements in accordance with Australian Accounting Standards – Reduced disclosure Corporations Act 2001. The Essendon Football Club is an unlisted public company limited by guarantee and incorporated and domiciled in Australia. The Financial Report of Essendon Football payment is established. and economic data. Actual results may differ from these estimates. The following is a summary of the material accounting policies adopted by the STATEmENT OF CASH FLOWS FOR THE yEAR ENDED 31 OCTObER 2010 Note 2010 2009 this category. $ $ CASH FLOWS FROm OPERATING ACTIvITIES this category. Supporters and Other Operations of accounts are described in the following note. and Players NET CASH FLOWS FROm considered to determine whether an impairment has arisen. Impairment losses are OPERATING ACTIvITIES CASH FLOWS FROm INvESTING ACTIvITIES Adoption of AASb 1053 Application of Tiers of Australian Accounting Standards is reduced by the impairment loss through the use of an allowance account. and AASb 2010-2 Amendment to Australian Accounting Standards arising from Reduced Disclosure Requirements allowance account. Changes in the carrying amount of the allowance account are The Essendon Football Club has adopted the new Australian Accounting Standard - - plant and equipment disclosure requirements applicable in prior years. Payment for purchase of intangibles - amortisation and impairment losses. Net proceeds from merger of - Melton Country Club Land NET CASH FLOWS USED IN INvESTING ACTIvITIES depreciated. (c) Financial Instruments NET CASH FLOWS USED IN - - FINANCING ACTIvITIES depreciation and impairment losses. to the Company commencing from the time the asset is held ready for use. CASH AT END OF THE out below. FINANCIAL yEAR Class of Fixed Assets Depreciation Rate

heritage and tradition success professionalism community Essendon Football Club Annual Report 2010 11 FINANCIAL REPORT

A In these circumstances the gST is recognised as part of the cost of acquisition of the asset (f) Impairment of Assets (m) business Combination The Windy Hill Fitness Centre is a business owned by the company but it is independently managed under a management agreement. The Company includes (n) Leases Payments made under operating leases are recognised in the statement of plus related on-costs. (o) Intangible Assets gaming Entitlements acquired are recorded at cost less accumulated amortisation and likelihood of an employee remaining with the Company until they are entitled to Long Contributions are made by the Company to complying superannuation funds and 2. ESSENDON FOOTbALL CLUb LImITED The liability of each member of the company is limited to $20.

(i) Income Tax 3. OPERATING PROFIT FROm ORDINARy ACTIvITIES Note 2010 2009 $ $ (j) Football expenses AFL annual distribution - obligations in respect of the termination of the senior coach contract. Player acquisition costs are written off in the year they are incurred as uncertainty Merchandise - sale of goods Match receipts Windy Hill Fitness Centre - other customers which is the date of the transfer of risks. Rental income established.

12 Essendon Football Club Annual Report 2010 essendonfc.com.au FINANCIAL REPORT

3. OPERATING PROFIT FROm ORDINARy ACTIvITIES Note 2010 2009 $ $ Administration 2010 2009 $ $ Merchandise - cost of sales Opening balance Amounts used - Loss on disposable assets - Total Windy Hill Fitness Centre - other 2010 2009 $ $ 5. INvENTORIES

Merchandise - at cost 2010 2009 Food and liquor - at cost $ $

2010 2009 - Plant and Equipment $ $ 6. OTHER ASSETS

Loss on disposal of Plant and Equipment - 2010 2009 $ $ - 7. FINANCIAL ASSETS Non-current - -

4. TRADE AND OTHER RECEIvAbLES 2010 2009 $ $

Current Trade and Sundry debtors

heritage and tradition success professionalism community Essendon Football Club Annual Report 2010 13 FINANCIAL REPORT

10. TRADE AND OTHER PAyAbLES 2010 2009 $ $ 2010 2009 $ $ Trade Creditors - Plant and Equipment - at cost Accruals 11. EmPLOyEE bENEFITS

2010 2009 $ $

Current

Non Current

Plant & Leasehold 2010 Land Total Equipment 12. INCOmE RECEIvED IN ADvANCE $ $ $ $ 2010 2009 $ $ Additions - disposals - - - - 13. NOTES TO THE STATEmENT OF CASH FLOWS

Plant & Leasehold a) Reconciliation of Cash 2009 Land Total Equipment $ $ $ $ Additions - - - 2010 2009 - $ $ Cash on hand Cash at bank 9. INTANGIbLES Short term deposits 2010 2009 Trading cash $ $ Short term deposits - trust account gaming licences deposit - Total cash Accumulated amortisation - - - These deposits are on call. Gaming Total 2010 licences $ $ - - Additions

Future commitments as a result of the acquisition of these gaming licences are

14 Essendon Football Club Annual Report 2010 essendonfc.com.au FINANCIAL REPORT

13. NOTES TO THE STATEmENT OF CASH FLOWS 15. KEy mANAGEmENT PERSONNEL 2010 2009 2010 2009 $ $ $ $ - - - depreciation and amortisation - - 17. RESERvES 18. COmPANy DETAILS

14. CAPITAL AND LEASING COmmITmENTS

2010 2009 $ $ (a) Operating Lease Commitments Non-cancellable operating leases contracted for but not capitalised in the accounts.

- not later than one year - later than one year but not later than 5 years - greater than 5 years Operating lease commitments relate to the lease of Windy Hill precinct and Melton land.

(b) Capital Expenditure Commitments liability in the accounts. 2010 2009 $ $ - not later than one year - - - later than one year but not later than 5 years - - greater than 5 years - -

August 2012.

heritage and tradition success professionalism community Essendon Football Club Annual Report 2010 15 Essendon Football Club Napier Street, Essendon PO Box 17, Essendon 3040 03 9230 0300 essendonfc.com.au