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Annual Report 2014

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Annual Report 2014 ANNUAL REPORT 2014 CONTENTS Governance 4 The Chairman’s Report 6 The CEO’s Report 7 Highlights 2013-14 9 Our Partners 11 Financial Overview 12 Financial Statements 13 Administrative Reporting Requirements 47 Disclosure Index 50 ANNUAL REPORT 2014 3 GOVERNANCE Establishment • To be responsible for proper financial management of the National Tennis Centre and Olympic Park. The Melbourne and Olympic Parks Trust (MOPT) was established • To provide for the planning, development, promotion, on 5 October 1995 pursuant to the provisions of the Melbourne management, operation and use of other sports, recreation and Olympic Parks Act 1985 (as amended). It was created by and entertainment facilities and services in Victoria. the merger of the National Tennis Centre Trust (established 13 November 1985) and the Olympic Park Committee of • To provide for the development, promotion, management, Management (formed originally in 1909). The Act is jointly operation and use of facilities and services for the parking administered by both the Premier of Victoria, the Honourable of vehicles and other necessary services to be used in Denis Napthine, and the Minister for Sport and Recreation, the conjunction with any of the facilities operated or managed by Honourable Damian Drum. the Trust. • To provide for the management of Gosch’s Paddock by the The Melbourne and Olympic Parks Act 1985 Trust as a committee of management under the Crown Lands (Reserves) Act 1978. The Purpose of the Act: The purposes of the Act as outlined in section 3 are: Melbourne & Olympic Parks’ Formula for Success • To create a Melbourne and Olympic Parks Trust to administer the National Tennis Centre, Olympic Park and certain other Purpose land and facilities for the purposes of tennis, other sports, Melbourne & Olympic Parks – a world class business delivering recreation and entertainment. world class experiences. • To provide for the management and operation of the National Our Goals Tennis Centre and Olympic Park. In the context of an expanding precinct and substantial new • To provide for the use and promotion of the National Tennis infrastructure investment, we must: Centre and Olympic Park. 1. Maintain our financial sustainability. • To provide for the development, promotion, management, 2. Increase benefits to the people of Victoria. operation and use of sports, recreation and entertainment facilities and services in Victoria in addition to those at the 3. Ensure the customer experience is at the heart of everything National Tennis Centre and Olympic Park. we do. Under the Act, the Trust has the following primary functions: 4. Grow our utilisation by expanding into new markets. • To accept appointment and act as a committee of 5. Transform our business processes to deliver increasingly cost management of Crown lands. effective services. • To be responsible for the care, improvement, use and 6. Build an Achievement Culture - develop leaders who promotion of the National Tennis Centre and Olympic consistently achieve outstanding results and help others Park as facilities for tennis, other sports, recreation and achieve. entertainment. • To operate the National Tennis Centre and Olympic Park efficiently and effectively to obtain the best possible use of the facilities. • To provide planning for the operation of the National Tennis Centre and Olympic Park, which is coordinated between the two facilities. 4 MELBOURNE & OLYMPIC PARKS TRUST GOVERNANCE TRUSTEES Russell Caplan (Chairman) Sharelle McMahon Geoffrey Pollard AM David Stobart (from 13 May 2014) (to 25 October 2013) Deborah Beale Scott Tanner Diana Nicholson Kenneth Roche AO Steve Healy (from 19 November 2013) Ray Smith EXECUTIVE TEAM (AS AT 30 JUNE 2014) Brian Morris – Chief Executive Officer Travis Mardling – Chief Financial Officer Russell Fakira – Director of People & Operations Shane Mates – General Manager AAMI Park Greg George – Director of Commercial & Strategy Geoff McDonald – Director of Infrastructure (from 24 February 2014) Enna Giampiccolo – Corporate Communications Manager Statement of Corporate Governance Finance Audit and Risk Committee Procedures have been established at the Trust and executive The Trust has established a Finance Audit and Risk Committee to management level, which are designed to safeguard the assets advise the Trust in relation to matters falling into the broad areas of: and interests of the Trust and to ensure integrity of reporting. • financial reporting, accounting policies and internal controls The Trust acknowledges the need for and continued maintenance of the highest standards of corporate governance practice and • risk management ethical conduct by all Trustees and employees of the Trust. • governance, and • funding. Remuneration Committee The Committee meets monthly or more often as required and The Trust has established a Remuneration Committee to govern makes recommendations to the Trust on specific issues. the Trust’s policy and practise for executive remuneration and to determine the individual remuneration packages for its The Members of the Committee during the year ended 30 June executive staff. The Committee meets as required and makes 2014 were: recommendations to the Trust on specific issues. The members of the Committee during the year ended 30 June 2014 were: Ray Smith (Chair) Diana Nicholson Deborah Beale Kenneth Roche Russell Caplan Russell Caplan Diana Nicholson Kenneth Roche All Finance Audit and Risk Committee members are independent Ray Smith from management. Strategic Planning Committee The Trust’s Strategic Planning Committee is established to provide expert advice to assist the Trust to discharge its strategic planning responsibilities. The Members of the Committee during the year ended 30 June 2014 were: Russell Caplan Ray Smith Deborah Beale Scott Tanner ANNUAL REPORT 2014 5 THE CHAIRMAN’S REPORT The Melbourne & Olympic Parks precinct continues to serve Zealand Warriors this year set a Stadium NRL attendance record of our patrons and our stakeholders well, while at the same time 28,716 patrons. The annual Melbourne Derby between Melbourne progressively delivering world class new and expanded facilities Victory and Melbourne City (previously Melbourne Heart) in in a comprehensive redevelopment set out in the Melbourne Park March entertained over 25,000 fans. And Bruce Springsteen’s Master Plan. The Trust again produced strong financial results in two concerts attracted over 60,000 devotees, with the 8 February FY2014, reporting a net profit of $3.596 million, notwithstanding a concert setting an AAMI Park attendance record of 31,847. Next 24 % increase in depreciation. January, AAMI Park will host the opening game of FIFA’s Asian Cup, the biggest football tournament ever played in Australia and Our earnings are reinvested into the precinct, assisting us to seven games will be played in the stadium over two weeks. operate and maintain it at a level that enhances its reputation in Melbourne and around the world. Looking to the future, the major The stalwart of the precinct, Rod Laver Arena, set a new investment in necessary but non-revenue earning infrastructure benchmark for versatility and utilisation in October, when it will increase depreciation further and place pressure on the hosted a record 26 events for the month. This followed another Trust’s earnings. The Business Plan outlines avenues being remarkable run of 18 P!nk concerts over July and August. As a pursued by Management to sustain the Trust’s financial strength. testament to its continuing strong performance, Rod Laver Arena won the Billboard Touring Award for the P!ink tour and in 2013 was Stage 1 of the Master Plan will draw to a close with the opening the second highest grossing concert venue in the world, behind of the new Margaret Court Arena in time for the 2015 Australian London’s O2 Arena. Open. This stunning venue will make the Australian Open the only Grand Slam tournament boasting three feature courts Following redevelopment of the Olympic Park oval last year, with operable roofs. It will enhance our suite of sport and construction has started on a new Community Centre at Olympic entertainment facilities available for use year-round. The complex Park. The centre will be operated by Collingwood Football Club and reconstruction of Margaret Court Arena over a three-year period will provide new public amenities and change rooms, a health and has been tightly managed, with the arena being available each wellness centre and a new precinct café. As a part of the ongoing year for the Australian Open. Hats off to Major Projects Victoria enhancement of Melbourne & Olympic Parks, these facilities and all who have contributed. will provide greater recreational opportunities for the public, for schools and for sporting and community groups. In January, the Victorian Government announced further funding of $338 million towards Stage 2 of the Melbourne Park redevelopment, I would like to express my thanks to the Premier of Victoria, of which M&OP will contribute $40 million. This stage of the Master the Honourable Dr Denis Napthine, the Minister for Sport and Plan will include much-needed upgrades to Rod Laver Arena and Recreation and Veterans’ Affairs, the Honourable Damian Drum, the Australian Open player facilities which are now more than 26 his predecessor, the Honourable Hugh Delahunty and the Victorian years old, a new administration and Australian Open media centre, Government, for their ongoing support for the work of the Trust. and a new entrance and footbridge connecting Melbourne Park with I would like to record the Trust’s deep appreciation to CEO Birrarung Marr, Flinders Street Station and the CBD. Brian Morris and all of the team at M&OP for their expertise The 2014 Australian Open was again a great success, attended and their commitment. It is difficult to manage a fundamental by 640,454 patrons notwithstanding the extreme heat of the redevelopment of the precinct while at the same time not missing first week and producing first-time winners in the Men’s and a beat in hosting world class events. They do it brilliantly and the Women’s Singles competitions.
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