COVER STORY MORE THAN a GAME While Boardrooms and Locker Rooms Can Seem Worlds Away from Each Other, the People in Them Are United by a Desire to Succeed
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COVER STORY MORE THAN A GAME While boardrooms and locker rooms can seem worlds away from each other, the people in them are united by a desire to succeed. TIM DOUTRÉ caught up with three passionate football administrators from the West to fi nd out how they intertwine the worlds of business and sport on a daily basis. FINANCIAL PRESSURE isn’t as successful as we like we are minnows compared to their “They take a lot of work, effort ONE thing that resonates in the have the capability to be able to AFL counterparts but the focus and planning. Then there is your sporting and business worlds is withstand that. That’s something on professionalism and the non-football revenue areas as that people want to be associated we haven’t been able to do in the bottom line is still very much at well. At the moment we have got a with success. past as a footy club.” the forefront of Mr Penaluna’s fully operational childcare centre, thinking. When he started as we’ve got a club community So when a football club is not VFL clubs are by no means CEO there was only himself, a sports hall. achieving on the fi eld the pressure in the same boat as AFL clubs, despite hosting the next crop of football manager and a part- “The days of just purely putting can be felt off it. Good clubs, like time sports club manager in the AFL stars on a weekly basis. a team out on the paddock and good businesses, plan for when administration. It was a role he hoping they win on the weekend times are tough. Revenue streams are limited described as “very, very much are pretty much gone. “We are very fortunate that and penny pinching is a necessity. hands on”. But like AFL clubs, living and dying “So much goes into it which we have built up a very strong The fi nancial position of fi nancially on scoreboard results is a positive because we are 128 portfolio of sponsors over the last the club was far from strong, is not an option in the VFL. years old and we see our role as three or four years,” Essendon requiring conscientious decision- really important in and amongst Football Club CEO Ian Robson “You have got to aim for making and prudent spending. the direct community.” said. revenue sources that are external However, during Mr Penaluna’s “It’s an annual challenge. It to the club, then it’s not reliant tenure the club has gone from From a revenue point of view never gets any easier. You’re on whether you win or lose,” strength to strength, appointing Mr Penaluna couldn’t be prouder working to safeguard, you are Werribee Football Club CEO Mark their fi fth full-time employee this of his organisation. always thinking ahead.” Penaluna said. year, in addition to their full-time “We have made a profi t every Mr Robson spoke of the “You will have that stability. senior coach Scott West – one of year for the eight years I have “confronting” period in 2010 when If you are reliant on ‘x’ amount of only three full-time VFL coaches. been here and we will make a people felt Essendon was “devoid members to come through the PREMIERSHIPS AND PROFITS profi t this year. of hope”. door and you do have a bad year Football clubs like businesses use “Sponsorship for the third “The harsh reality is: in this then it’s a real challenge. You have traditional measures to gauge year in a row is at a record level. industry changes have to be to make sure you are not reliant success. Generating a profi t and We’ve worked hard to develop a made and we brought about a on any particular facet.” managing your assets are critical business, a social venue being the change. James (Hird) and Mark TACKLING TURNOVER to success. However, Mr Robson Tigers’ Clubhouse, that’s really (Thompson) came to, or back With a turnover of $50 million, said sporting club’s differ in one helped give us a kick along. Our to the club, depending on your 45 players and 90 full-time staff key area. turnover has gone from $650k in perspective, almost overnight that – the Essendon Football Club is “The fi rst rule of business 2003 to $1.15 million in 2012.” hope returns.” more than just a kick-to-kick at the is: income should exceed NO ROOM FOR EMOTION Western Bulldogs CEO Simon expenditure. The football industry, weekend. Emotions and sport go hand-in- Garlick said there was “no doubt” or for that matter the professional “It’s quite a complex business hand, but when you are the head there is a correlation between sport industry, we are very good in that sense,” Mr Robson said. honcho you can’t afford to get successful sides and an infl ux at turning it on its head and saying swept up in the romance. No one of membership and corporate The Bulldogs are comparatively ‘this is how much we are going knows that better than Mr Garlick. support but like Mr Robson he “one of the smaller clubs”, to spend, now this is, therefore stressed the importance of being according to Mr Garlick, but he how much we are going to have “Working in footy clubs, it’s prepared for leaner times. noted they registered an annual to raise’. nearly a prerequisite for you turnover of $35 million and were to have a genuine interest and “The important thing is, that “Most businesses say ‘this “growing all the time”. passion and love for what you even this year when we have had is how much we can generate, a year we would rather not (on the “Over the last fi ve years in therefore, this is how much we do because they are pretty all- fi eld) and perhaps taken a step particular there has been a real can spend’. We sort of do it in consuming,” he said. or two back to go forward, in the ability for us to establish and reverse.” But he noted the importance long run we are fi nancially robust consolidate our revenue fl ows and Mr Garlick described member- of the club in the community and enough to forecast another profi t. now we have hit fi ve operating ship, sponsorship and corporate said it was a driving factor when “We’ve now got a base to build profi ts in succession and likely to support as “core football it came to planning for the future. upon that means when we do have do again this year,” he said. revenues”, which for the Bulldogs “It’s important to understand a year or two on the fi eld that The VFL’s Werribee Tigers have grown in recent years. when you work with an 14 BUSiNESS WEST.