Sydney Cricket & Sports Ground Trust 2016/17 ANNUAL REPORT Financial Year (1 March 2016 – 28 February 2017) Cricket & Sports Ground Trust CONTENTS

General Enquiries: (02) 9360 6601 2 LETTER OF SUBMISSION 32 CORPORATE SERVICES

Fax: (02) 9360 1319 3 MINISTER’S FOREWORD 42 HUMAN RESOURCES 4 CHAIRMAN’S REPORT 46 TRUSTEE AND MANAGEMENT PROFILES Email: [email protected] 6 VISION AND VALUES 58 TRUST CHARTER AND CONSTITUTION Trust Office: Administration Office, Level 2, Sheridan Building Moore Park Road, Moore Park NSW 2021 8 KEY OUTCOMES AND PROGRESS 60 FINANCIAL INDICATORS 10 MANAGING THE EVENTS 62 AUDITED FINANCIAL Postal Address: GPO Box 150, Sydney NSW 2001 STATEMENTS (TRUST) 16 MANAGING THE ASSETS sydneycricketground.com.au 107 AUDITED FINANCIAL STATEMENTS 20 STRATEGY AND PROJECTS (TRUST STAFF AGENCY) 22 COMMERCIAL 134 CONSUMER RESPONSE 24 MEMBERSHIP AND MARKETING 136 RIGHT TO INFORMATION 30 MEDIA AND COMMUNICATIONS 137 INDEX

1 MINISTER’S FOREWORD

It has been a groundbreaking year of sport for NSW and the SCG and Allianz

Stadium have continued to provide a world class experience for spectators

June 2017 and competitors alike.

The Hon Stuart Ayres MP Watching sport and entertainment at Moore Park Minister for Sport is a weekly ritual for thousands of fans across the GPO Box 5431 State, with supporters turning out in droves to SYDNEY 2001 some of the biggest events of the year including Coldplay’s two sold-out concerts, the annual New Year’s Test and the Wallabies- blockbuster. Dear Minister Plenty of work has been done to capitalise on the rise Letter of Submission of women’s sport as well. Between the SCG and Allianz 2016/17 ANNUAL REPORT Stadium, all five women’s codes have now been hosted. SYDNEY CRICKET & SPORTS GROUND TRUST We saw the fruits of this journey during the second year The Trust is pleased to submit the Annual Report of the Sydney Cricket and Sports Ground Trust of the WBBL, and at the Sydney Sevens tournament for the year ended 28 February 2017 for presentation to Parliament. in February, which saw Olympic gold medallists, the Australian Women’s Sevens Team, compete alongside The Annual Report has been prepared in accordance with requirements of the Annual Reports the men in three days of action-packed rugby. (Statutory Bodies) Act 1984, Annual Reports (Statutory Bodies) Regulation 2010 and the Public The Hon Stuart Ayres MP Finance and Audit Act 1983. Then there was the incredible run by the Sydney

Swans to the AFL grand final. The supporter base Yours sincerely that turns up to the SCG for every home game has made them the biggest sporting club in NSW. Let’s not forget the ongoing success of the Sydney Sixers in the BBL, ’s One-Day Internationals, Sydney FC took the A-League competition by Sheffield Shield action and the biggest of them all, storm with their record-breaking season, winning the New Year’s Test at the SCG. Australia completed more games than any other team in history. Their a clean sweep of Pakistan in front of the largest ever penalty shootout effort in front of 41,546 fans to beat crowd against the touring country, bringing thousands of JAMIE BARKLEY Victory in the grand final will go down interstate and overseas travellers to the five-day event. Chief Executive Officer as one of the code’s greatest moments to date. The SCG has been a sentinel overlooking more The Wallabies have made Allianz Stadium their own than 160 years of sport but never before has the and while the Cook Cup was lost in 2016, the support ground seen a batsman score a century before for rugby continues to build. A total of 44,063 fans lunch - David Warner did just that with an incredible turned out for the third and final Test in June – the knock on the opening day of the Test this year. biggest crowd in the venue’s 29-year history. It’s one of the most exciting times to be a It even surpassed the day that the Socceroos took Diego part of sport in this country and I’m looking Maradona and Argentina to a 1-1 draw in their historic forward to another busy year of events at Moore 1993 World Cup Qualifier at the . Park, and of course, the Ashes in 2018.

The NSW Waratahs and I congratulate the staff of the Sydney Cricket and did it tough last year but have bounced back Sports Ground Trust on their achievements over with a renewed purpose in 2017, as they look the past 12 months and their continuing vision for to make their mark on the competition. the future of sport and entertainment in NSW.

Level 2, Sheridan Building GPO Box 150 T 02 9360 6601 Moore Park Road Sydney NSW 2001 F 02 9360 1319 The tricolours may not have been at the centre of the Moore Park NSW 2021 www.scgt.nsw.gov.au NRL Finals but it didn’t stop the crowds, with 59,384 fans turning out for two phenomenal spectacles. The Cronulla Sharks kept their premiership dream alive at Allianz Stadium, beating the North Queensland THE HON STUART AYRES MP Cowboys by 12 points in front of a jubilant crowd Minister for Sport, Minister for from the Sutherland Shire in week three. Trade, Tourism and Events

2 Sydney Cricket & Sports Ground Trust Annual Report 2017 3 in 80 games of rugby sevens across an action-packed League grand final where fans lined the rooftops of the CHAIRMAN’S REPORT weekend of fanfare. It was a great weekend enjoyed by all SCG and the adjoining showground. The A-League’s ages. Sydney Derby sold out for a sixth straight time, while the Big Bash event set a women’s attendance record. The Sydney Cricket and Sports Ground The Socceroos put on a thrilling performance for their Double-headers are common but Moore Park may not see Trust enjoyed a hugely successful year with home crowd, continuing their 10-year undefeated run at the likes of this for years to come. We are undoubtedly the stadium. The Australian side beat Jordan 5-1 in their NSW‘s favourite sporting venue. more than 1.8 million people from all over all-important World Cup Qualifier with superstar Tim Cahill scoring two goals to help the team through to the next There was plenty to celebrate off the field as well with the Sydney, regional NSW and overseas visiting stage of qualifying. Trust marking the 120-year anniversary of the Ladies the SCG precinct during 2016/17. Pavilion alongside Moore Park’s 150th birthday The winter codes made way for the cricket season in celebrations. I had the pleasure of unveiling a plaque at December, with fans getting an early taste of what was to the SCG in October alongside the Duchess of York Sarah There was plenty of sport to choose from. Some fans come when Australia and New Zealand faced off in a Ferguson and her sister Jane, in the exact location that made the annual trip to the SCG for the New Year’s Test, One-Day International. Captain Steve Smith led the way, their great grandmother had laid the pavilion’s foundation while others got their fix by watching Buddy Franklin and scoring 154 runs from 157 balls to beat AB de Villiers’ stone in 1896. the Swans work their magic during winter. record for the fastest 50-over ton at the SCG. History was also duly recognised with a lifesize bronze A standout moment was the all-time venue record crowd In January, cricket lovers from all over the world made sculpture of Johnny Warren unveiled outside Allianz at Allianz Stadium when more than 44,000 fans watch the their annual sporting homage to the grand old ground for Stadium in tribute to the Australian football legend. It was Wallabies take on England. It was the largest crowd since the New Year’s Test between Australia and Pakistan. Fans fitting also that current Socceroo champions Tim Cahill 1993 when Diego Maradona led an all-star Argentinian were treated to an incredible opening day with David and Matt McKay were on hand to unveil the latest addition side against the Socceroos in a FIFA World Cup qualifier. Warner becoming the first batsmen to score a century to the Sports Sculpture project sponsored by Basil Sellers. before lunch on home soil. His efforts set Australia up for The Trust hosted an abundance of major sporting events an emphatic 220-run victory which drew the largest crowd The SCG Trust’s thriving membership base, that includes and delivered on its mandate to make a modest surplus in between the two countries at the SCG. There is no doubt more than 40,000 signed up or on the waiting list, is vital Sydney’s highly competitive sporting landscape. Of David owns the SCG. to our existence and we thank them for their ongoing course, all surplus funds were invested back into facilities. support of the SCG and Allianz Stadium. Without our loyal Test-goers donated generously to the McGrath Foundation members, we would not be here. Our sports partners have excelled on and off the field, Tony Shepherd AO – Chairman as the SCG again turned pink on the day three to raise drawing strong crowds, creating history and surprising funds for the placement of breast cancer nurses in Within our limited resources, capital works were many along the way during a remarkable year of sport in Australia – one of the many charity initiatives the Trust undertaken to improve existing facilities including a the Harbour City. I congratulate and thank all our sports supported across the year. This year is the 10th refurbishment of the Trust’s popular Stadium Club, used partners on their hard work and success. Two finals matches were played at the Stadium with anniversary of this wonderful charity and I am sure we can by hundreds of members and guests every day. 36,717 fans watching the Cronulla Sharks dismantle the rely on your continuing strong support. It may not have fallen in the reporting period but Sydney on the way to their first We have upgraded our security and surveillance systems FC took the A-League competition by storm with a record premiership. The Sydney Sixers continued their rise in Australian sport to adapt to the current climate and ensure that our number of regular season wins, points and clean sheets with 121,473 fans attending their four BBL games at the stadiums remain safe during major events. Investments during a stunning campaign. Across 27 games, they were Then there was the 15th instalment of the traditional Anzac SCG. However, it was the women’s team who made have also been made in the precinct’s technology as we head and shoulders above the rest – 17 points to be exact. Day clash between the Sydney Roosters and St George headlines after winning the WBBL competition in just their aim to be the country’s most digitally advanced stadiums Illawarra Dragons, the most special day on the NRL second year. for the benefit of our clubs and their fans. Milos Ninkovic’s strike in their penalty shootout win over calendar. Melbourne Victory in front of 41,546 fans will go down as The white ball returned at the end of December with David To strengthen our relationship with all stakeholders the one of the greatest moments in the 29-year history of the The SCG hosted a heritage round match between the Warner continuing his impressive summer by scoring 130 Trust has created the Trust Advisory Group to discuss Stadium. Rabbitohs and Dragons as returned to its runs and taking two catches in the deep to seal victory future developments and operations that impact fans, spiritual home. over Pakistan in front of a crowd of 31,979. Add to that members, residents and the wider community. Great It marked the beginning of a new era for Sydney FC with Sheffield Shield action and it was truly a complete summer progress has been made and we look forward to the A-League supremos announcing that they will call The NSW Waratahs played eight home Super Rugby of cricket at Sydney’s home of cricket. continuing to work with key stakeholders. I thank the Allianz Stadium home for at least another 10 years. games, attracting an average crowd of 18,813. They members of the advisory group for their insights and the impressed against the Stormers, Cheetahs, Bulls and The year had plenty of sporting highlights but nothing two elected Trustees David Gilbert and Phil Waugh who so The Swans were also impressive, winning 17 regular Chiefs but strong performances by New Zealand outfits quite matched the excitement of Coldplay’s back-to-back ably represent the Trust. season games and the minor premiership. Their season cruelled them of a finals campaign in 2016. concerts at Allianz Stadium. More than 97,000 fans finished unfortunately with a loss to the snapped up tickets to watch the world’s biggest band The Trust’s staff, led by Chief Executive Jamie Barkley, in the grand-final. Their success was clear with close to International sport was also on show at Allianz Stadium, perform live, with Chris Martin orchestrating a stellar have worked tirelessly to ensure the SCG precinct remains 35,000 fans turning out for every home game at the SCG with the Wallabies hosting England in the final Test of the performance that included fireworks and a light show. the number one destination for sport in our city and a – making them the biggest team of any code or any Cook Cup series. The event attracted the largest sporting meeting place for all the people of NSW. season in Sydney. crowd in the venue’s history with 44,063 fans watching Derby day at Moore Park was another great success, with England prevail in a gripping contest. the precinct hosting two sold out events side-by-side for In rugby league, the Sydney Roosters had a number of the first time on January 14. Close to 80,000 fans attended senior players leave the squad at the start of the year and Then there was the continued success of the Sydney the Sixers-Thunder and Sydney FC-Wanderers derbies at struggled to continue their dominance from previous Sevens, which saw Olympic gold medallists, the Australian TONY SHEPHERD AO the SCG and Allianz Stadium. seasons. Women’s Sevens Team, compete alongside the men in the Chairman expanded three-day international tournament. In all 75,412 The two games place the night alongside some of the fans got their money’s worth, with 20 countries facing off biggest events in history, including the 1965 NSW Rugby

4 Sydney Cricket & Sports Ground Trust Annual Report 2017 5 VISION We celebrate sport, create history, enhance entertainment and constantly innovate to provide an engaging, and connected experience for our customers.

OUR VISION AND VALUES

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

The Moore Park precinct is in the heart of Australia’s We are at the forefront of most densely populated suburbs and on the Customer service digital transformation doorstep of Sydney’s Central Business District. It is surrounded by Centennial Park, the Entertainment We will provide superior Quarter and the thriving restaurant and hotel strips customer service of Oxford Street, and Surry Hills. Integrity and Together, the SCG and Allianz Stadium provide a home for touring concerts, , rugby accountability league, football, AFL and cricket, with several major Leadership sporting codes and clubs based at Moore Park. We always act with respect There is also a university campus, sports museum, We are leaders in our industry fitness centre and membership club facilities.

The grounds host nearly 100 sport and Relationships entertainment events and attract more than 1.8 We work in partnership with all million visitors each year from Sydney, NSW and *The vision and values are consistent with the Trust’s beyond. new Corporate Plan developed for 2017-2020 customers, stakeholders and neighbours

6 Sydney Cricket & Sports Ground Trust Annual Report 2017 7 »» Collaborating with the sports partners to design staff Facilities Goal training sessions specific to their needs and goals » STRATEGY » Collaborating with customer service supervisors at formal quarterly meetings to define and set patron »» Strategically invest in grounds and experience expectations facilities through the annual capital works »» Recruitment drives to uncover and induct experienced program and the Trust masterplan customer service staff to add to existing event staff »» Increase cooperation and collaboration between pool the Trust, sports partners and key stakeholders »» Completed quarterly upgrades to the SCG and Allianz Stadium mobile application to provide improved KEY ACHIEVEMENTS sign-on process, data integrity, integrated Mailchimp platform, mobile ordering enhancement, fan alerts and »» Engaging industry experts to provide geofence messaging innovative turf management solutions

»» Review of waste management processes to segregate key waste streams for improved resource recovery Commercial Goal

»» Renovation and upgrade of 12 corporate STRATEGY suites at the SCG and Allianz Stadium »» Increase and diversify the Trust’s revenue base »» Project management of the Australian » Rugby Development Centre and University » Negotiate strong long-term hiring deals with sports of Technology facilities onsite partners and tenants » »» Finalising tender plans for the precinct’s » Review, enhance and grow key supplies and CCTV Upgrade – Stage 1 complete sponsorship deals » »» Allianz Stadium home and away » Review the optimal membership category mix and change room refurbishment investigate other membership opportunities » »» Upgrade to the Stadium Club’s » Continue to develop and improve record management spa and pool plant room »» Review, enhance and grow the corporate hospitality, KEY OUTCOMES & PROGRESS ACHIEVED »» Completed style and equipment Gold and Platinum membership sales programs renewal of the Stadium Club KEY ACHIEVEMENTS The following actions planned in the Trust’s Corporate Plan were achieved during »» Extended an agreement with a dedicated corporate the past year. Service Goal hospitality sales agency (MatchPoint) »» Improved quality of customer marketing data to STRATEGY increase hospitality sales success rate »» Recorded two new oral histories documenting »» Strengthen ability to identify, understand and respond »» Prepared a five-year asset development plan in line Heritage Goal memories of our grounds to member, staff, partner and customer needs with commercial growth expectations in corporate sales » »» Use traditional, digital and social media channels to STRATEGY » Commemorated 120 years of the Ladies Pavilion in »» Reviewed corporate hospitality products and potential communicate with our patrons in a respectful and December 2016 to achieve sales growth »» Be an effective custodian of our heritage and open manner »» Reached agreement with Sydney FC for a 10-year traditions »» Commenced a partnership with Google Cultural extension to their venue hire and office premise Institute to deliver up to five online exhibitions and a »» Create fulfilling and memorable experiences for our » agreement until 2025-26 » Implement museum and archive plans gallery of 150 collection items for launch in 2017 partners and patrons »» Secured new partnerships with HWBE, Ingram Micro, » » Investigate opportunities for developing targeted »» Updated museum’s loan and acquisition KEY ACHIEVEMENTS Heinz and Qantas publications for all stakeholders documentation »» The Mystery Shopper program was introduced to better understand and track patron and customer KEY ACHIEVEMENTS »» Formalised the Volunteer Digitisation Program needs on event days »» Completed conservation on the 1892 panorama »» Achieved $100K in sponsorship for the museum and »» Regular and systematic training for staff to help currently displayed in the SCG Museum tour program to support heritage activities identify and react to issues that have been identified »» Commissioned a new sports sculpture to be unveiled »» Actioning an event day staff performance in 2017/18 management framework to ensure staff receive regular customer service shifts

8 Sydney Cricket & Sports Ground Trust Annual Report 2017 9 Rugby League

SYDNEY ROOSTERS The Sydney Roosters had a tough 2016 season and finished in 15th position on the NRL ladder. They won six of their 18 games, all of which came at Allianz Stadium, where 112,707 fans turned out throughout the year. The absence of James Maloney, Roger Tuivasa- Sheck and Michael Jennings, along with injuries to and Jared Waerea-Hargreaves proved costly in the end. They played 11 home games at an average attendance of 10,246 fans per fixture. Three players managed to successfully complete 24 season games – , and . The Roosters won the Auckland Nines in February, beating the Penrith Panthers 10-8 in the final to kick off NRL Finals a new season for the franchise. A total of 59,348 fans attended the Sharks went on to make it to their two NRL Finals matches played first grand final since 1978 with at Allianz Stadium in September. a 12-point win over Johnathan The South Sydney Rabbitohs played The Penrith Panthers defeated the Thurston and the North Queensland one home game at Allianz Stadium in Canterbury-Bankstown Bulldogs Cowboys. A total of 36,717 rugby 2016 against the Manly Sea Eagles. 28-12 in the opening clash before league fans attended the match, In a thrilling contest, the Northern MANAGING THE EVENTS the eventual premiers took centre including a large contingent Beaches side ended the Rabbitohs’ stage in week three. The Cronulla from the Sutherland Shire. finals hopes with a 20-12 win in front A total of 1.85 million fans attended events at the SCG and Allianz Stadium during of a Monday night crowd of 8,273.

the past financial year across AFL, rugby league, rugby union, cricket, football and ST GEORGE ILLAWARRA concerts. See the table at the end of the section for a detailed breakdown. DRAGONS The St George Illawarra Dragons returned to their spiritual home, the SCG, in March to take on old enemies the South Sydney AFL Rabbitohs. The fixture coincided with the 50-year anniversary of the Dragons’ 11th consecutive premiership at the ground in 1966. The Sydney Swans enjoyed another spectacular The Saints prevailed in a brutal year, winning 17 regular season games and the minor clash in front of 17,824 fans on premiership under the leadership of co-captains Jarrad a rainy Sydney day. In April, they McVeigh and Kieren Jack. Their season finished with a loss hosted the Sydney Roosters for to the Western Bulldogs in the grand final, with thousands the annual Anzac Day clash, which of fans watching the game from the SCG turf on the big was attended by 34,483 fans. screen. The Swans played 12 of their home fixtures at Gareth Widdop led the Dragons the venue after commencing their 30-year contract a year to a 20-18 triumph to retain the early with attendances totalling 405,818 at an average cup for a second straight year. of 33,818 fans per game. Highlights included a crowd of 42,314 for a Thursday night blockbuster against Hawthorn as well as a 36-point win over the Adelaide Crows in their semi-final encounter. Good news sees John Longmire stay on as head coach until the end of the 2020 season.

10 Sydney Cricket & Sports Ground Trust Annual Report 2017 11 SHEFFIELD SHIELD SCG EVENTS: SCG Events has Rugby Union Cricket become a well-recognised event The NSW Blues hosted four matches business associated with the Trust. at the SCG as part of the 2016- NSW WARATAHS NEW YEAR’S TEST Stadia facilities are offered for 17 Sheffield Shield season. They private and corporate functions on The NSW Waratahs played eight The 2017 New Year’s Test attracted enjoyed wins against Western non-event days and their financials home games at Allianz Stadium last the highest crowd total between Australia and South Australia have continued to grow under year with 150,501 fans attending Australia and Pakistan at the SCG. and drew their match against Delaware North management. throughout the season for an In all, 112,029 fans attended the Queensland, with one loss coming average crowd of 18,813. They beat match, including 30,305 on the against Victoria at home. The AZURE CATERING: Azure the Stormers, Cheetahs, Bulls and opening day of play, surpassing the Blues fell short of qualifying for the catering continue to offer catering Chiefs during the regular season but previous aggregate of 105,692 set final but had a successful season services to members and those losses to the , Blues and during the 2005 Test. Rain washed with a number of players elevated attending the Stadium Club on Hurricanes cruelled them of a finals out the morning session on days to the Test squad for Australia’s event and non-event days. campaign in 2016. The Waratahs two and three but that didn’t stop tour of India including Stephen finished in 10th place overall and Australia from claiming a 220-run O’Keefe and Pat Cummins. TICKETING: Ticketing services for second in the Australian conference victory to remain unbeaten against both venues and the Trust’s sports under new head coach Daryl Gibson. Pakistan at the ground. Fans and partners are provided by Ticketek, members donated generously to CONCERTS who provide a strong distribution SYDNEY SEVENS the McGrath Foundation, which network and innovative feature. raised more than $500,000 for the COLDPLAY Olympic gold medallists, the placement of breast care nurses MERCHANDISING: Playbill Australian women’s sevens team, around the country. Police donated Coldplay sold out two concerts at hold the merchandising rights at competed alongside the men at the their day three wages to the cause Allianz Stadium in December with the SCG and Allianz Stadium until Sydney Sevens in February. The and a gold coin provided entry on a total of 97,822 fans making the 2021. They operate the Stadium expanded three-day tournament the final day, bringing 17,583 fans most of the opportunity to see one Store and event outlets at the was a success, with 75,412 fans through the gates to watch Australia of the world’s biggest bands in grounds and work closely with turning out across the weekend. In win after lunch. It was the 105th action. The performances included sports partners to maximise sales. total, 80 games of rugby were played Test match played at the SCG. fireworks and a light show, with DISABILITY PLAN: at Allianz Stadium and Kippax concert-goers given illuminated The Trust continues to develop its Disability Oval with teams from 20 countries SYDNEY SIXERS multi-coloured wristbands upon featuring in the event. Canada took entry. Their back-to-back shows Action Plan, to ensure people with out the women’s World Series title The Sydney Sixers performed on at Moore Park was the finale of disabilities can participate equally and South Africa were victorious on and off the field this season with a their Australian tour, with Coldplay in activities at our grounds. Recent the men’s side of the draw, beating record 121,473 fans attending their travelling to more than 90 countries developments by the committee England 29-14 in the Cup final. four BBL games at the SCG during and selling 3.5 million albums since included installing additional Australia’s men’s and women’s sides the 2016-17 season. The men’s team its release in December last year. signage, amenities and portable finished in fourth place after losing lost to the Scorchers by nine ramps. Specially tailored tours of the in their respective semi-finals. wickets in the final, while the women SCG and Allianz Stadium have also were victorious in the second OPERATIONS been implemented, and a wheelchair WALLABIES instalment of the WBBL against the area was sectioned off near the West Australian side. The crowd CATERING: Delaware North stage for recent Coldplay concerts. The Wallabies hosted England in aggregate bettered last year’s total are completing the second year June in the final Test of the Cook those fixtures, a total of 165,792 Evergrande, Urawa Red Diamonds by 10,000 and saw the Sixers attract of a five-year contract extension. Cup series, attracting the largest fans cheered on the Sky Blues at and Shandong Luneng. A total of an average of 30,368 fans per game. They continue to provide quality crowd for a sporting event in the Allianz Stadium. Sydney FC hosted 42,045 fans attended across the service and offerings at the 28-year history of Allianz Stadium. a Sydney Derby against the Western four matches, including a crowd ONE-DAY INTERNATIONALS SCG and Allianz Stadium. In all, 44,063 fans turned out for Sydney Wanderers in January of 18,149 for Sydney FC’s 2-1 the occasion, which saw England which was attended by 40,143 triumph over Chinese powerhouse Australia played two One-Day prevail by four points in a gripping supporters as part of a double- Evergrande, which saw them clinch Internationals at the SCG in the contest to record their first clean header at Moore Park. The club went top spot in their league group. last reporting period. Captain Steve sweep of the Wallabies on Australian 21 games without a loss to set a Smith led the way against New soil. England centre Owen Farrell new A-League record. Head coach SOCCEROOS Zealand in December, scoring 154 kicked 24 of his 66 series points to Graham Arnold has re-signed for off 157 balls to beat AB de Villiers’ complete a remarkable turnaround a further two seasons after leading The Socceroos defeated Jordan 5-1 record for the fastest 50-over ton from the . Sydney FC to the grand final, where in a World Cup Qualifier in front of at the ground. A total of 22,502 they defeated Melbourne Victory in a 24,975 fans at Allianz Stadium in fans attended the match. Then in penalty shootout at Allianz Stadium. March. The win saw them progress January, Australia hosted Pakistan FOOTBALL to the next stage of qualifying, with with David Warner scoring an ASIANS CHAMPIONS Tim Cahill scoring two goals to bring unbeaten 130 runs and taking two his international tally to 47. Australia SYDNEY FC LEAGUE diving catches to help seal victory salvaged their 2-0 loss to Jordan in front of a crowd of 31,979. Sydney FC played 11 games during Four Asian Champions League earlier in the year and continued their the 2016-17 reporting period and matches were staged at Allianz success at Moore Park, where they enjoyed a remarkable undefeated haven’t lost in more than 10 years. Stadium with Sydney FC taking on run to start their season. During the Pohang Steelers, Guangzhou

12 Sydney Cricket & Sports Ground Trust Annual Report 2017 13 EVENT ATTENDANCE NUMBERS BY CODE

Event Attendees NEW CROWD RECORD AT ALLIANZ STADIUM WALLABIES V ENGLAND TEST MATCH One-Day International 44,063 Australia v New Zealand 22,502

Australia v Pakistan 31,979 BIGGEST CROWD AT THE SCG

New Year’s Test Australia v Pakistan 112,029 SWANS V HAWTHORN 42,314 BBL/WBBL Sydney Sixers 121,473 TOTAL CRICKET ATTENDANCE Domestic Cricket Sheffield Shield 6,298 BBL, WBBL, ODI, TEST, SHIELD 294,281 ARU Sydney Sevens 75,412 TOTAL RUGBY ATTENDANCE Wallabies v England Test 44,063 SYDNEY SEVENS, WALLABIES, WARATAHS 269,976 Super Rugby NSW Waratahs 150,501

A-League Sydney FC 165,792 TOTAL FOOTBALL ATTENDANCE SYDNEY FC, ASIAN CHAMPIONS LEAGUE, SOCCEROOS FFA Asian Champions League 42,045 232,812 Australia v Jordan 24,975

NRL Sydney Roosters 112,707 TOTAL RUGBY LEAGUE ATTENDANCE

St George Illawarra Dragons 52,307 ROOSTERS, DRAGONS, RABBITOHS, NRL FINALS 232,635 South Sydney Rabbitohs 8,273 TOTAL AFL ATTENDANCE Finals 59,348 SYDNEY SWANS, AFL FINALS 405,818 AFL Sydney Swans 367,682 AFL semi-final 38,136 NUMBERS BY CLUB Concerts Coldplay 97,822

Stadium Stomp Stair climbing challenge 1,480 NSW WARATAHS AVERAGE SYDNEY SWANS AVERAGE SYDNEY ROOSTERS ATTENDANCE ATTENDANCE AVERAGE ATTENDANCE SCG & ALLIANZ STADIUM TOTAL 1,534,824 EIGHT HOME GAMES 12 HOME GAMES 11 HOME GAMES

STADIUM CLUB VISITS 306,727 SCG TOUR EXPERIENCE 11,271 18,813 33,818 10,246 TOTAL 1,852,822

SYDNEY FC AVERAGE SYDNEY SIXERS AVERAGE ST GEORGE ILLAWARRA ATTENDANCE ATTENDANCE DRAGONS AVERAGE ATTENDANCE 11 HOME GAMES FOUR HOME GAMES TWO HOME GAMES

15,072 30,368 26,153 15 14 Sydney Cricket & Sports Ground Trust Annual Report 2016 cricket mode was successful with excellent coverage on Capital Works Program the wicket square. The cricket pitch provided a great contest between bat and ball during scheduled Sheffield COMPLETED WORKS INCLUDED: Shield, One-Day International and Sydney Sixers matches as well as the New Year’s Test between »» Upgrade of retail catering outlets at SCG and Allianz Australia and Pakistan. A fair and balanced outfield was Stadium also noted and groundstaff worked hard to protect the surface during unpredictable weather at the Test match »» Upgrade to private suites at both venues in January. Throughout heavy rainfall which prevented play on mornings of days two and three, SCG head »» A refurbishment of Allianz Stadium home and away curator provided insights for fans in attendance via an changerooms interview on the big screen »» Upgrade to Stadium Club spa and pool plant room Environment and Sustainability »» Upgrade to Sydney Swans air conditioning systems The Trust made groundbreaking progress to further »» Safety and compliance upgrade for the precinct improve environment and sustainability practices by working closely with Quayclean, the precinct’s cleaning »» Additional solar powered lighting in the members car and waste management service provider. Volumes, park and surroundings recovery and recycling rates were monitored with monthly reports generated to measure performance. As a result of this data, the Trust installed internal and external bin systems that encourage the segregation of key waste Playing Field Maintenance streams using colour coding and signage. Intelligent solar powered units were also installed in select member The Trust engaged experienced turf consultants in the and corporate areas, which are able to reduce handling past financial year who offered specialist advice and and service frequency by compression. Plans are in place assisted with field maintenance techniques during to expand this service throughout the precinct. challenging weather conditions in Sydney. Procurement and installation of an onsite weather station also took The precinct generates approximately 1,100 tonnes of place, to better monitor and record localised waste annually and a target of 75 per cent of resource temperature, rainfall and humidity data. The Trust also led recovery has been set. A new management plan is the way across the industry to transition to virtual logo currently being developed to help implement systems, technology, eliminating unnecessary turf damage. More enhance continual improvement and reach recovery than 80 major sporting and corporate events were held targets. In addition, the SCG, Allianz Stadium and on Trust grounds during the reporting period. Head surrounding precinct has been audited for water flow, curators Tom Parker (SCG) and Michael Finch (Allianz with a report provided by the City of Sydney to help Stadium) celebrated 20 years in charge of the two reduce day-to-day water consumption and wastage. venues. Similarly, LED low power consumption lighting has been the first choice for areas identified for lighting upgrades. MANAGING THE ASSETS ALLIANZ STADIUM The Allianz Stadium surface was maintained at a high level despite a busy schedule of rugby league, union and football. The Wallabies-England rugby Test match in June, which was attended by a record crowd, was played Operations in excellent conditions with the surface praised by team management. The NRL finals series and the beginning of The Facilities Department managed more than 5000 unscheduled maintenance jobs Sydney FC’s A-League season were also played on a world class pitch. The surface recovered well from during the reporting period under a budget of $9 million. Services included painting, Coldplay’s two concerts in December with a new flooring system installed, complete with improved airflow electrical work and mechanical orders to ensure the SCG, Allianz Stadium and mechanisms. The ground also hosted 70 games of rugby surrounding facilities remain in first class condition. during the three-day Sydney Sevens event in February as well. Proactive and selective turf replacement was scheduled through the financial year which had no Major achievements include upgrading retail and impact on the match schedule. corporate areas at the SCG and Allianz Stadium as well as Stadium Club refurbishments and the management of SCG Australian Rugby Development Centre construction. The SCG surface was in pristine condition during the reporting period, hosting 12 Sydney Swans matches including a semi-final. Transitioning the field from AFL to

16 Sydney Cricket & Sports Ground Trust Annual Report 2017 17 Security and Precint Access HEALTH AND SAFETY Safety System Update The safety and security of people inside the precinct is a high priority. In the current security climate the threat of The Trust has made progress to align its health and terrorism continues to be the largest influence on stadium safety system with ISO45001 and ISO18001, which now operations. Places of mass gathering such as the SCG sits under a new program called ‘Trust in Safety’. This and Allianz Stadium are potential targets and the Trust update is progressing through the consultative process works closely with NSW Police, intelligence agencies and and will then be readily available to staff. Live training hiring partners to determine appropriate levels of security sessions will be planned for staff to introduce the new during major events and daily operations. system and its goals.

The Trust continues to invest in physical and electronic Safety Initiatives security infrastructure including a precinct wide upgrade of CCTV systems, electronic access control, video The Trust introduced a range of safety initiatives in the analytics packages and a best in class security past financial year, which continued to promote safety as operations centre. It is anticipated that these projects will the first consideration and highest priority. These be completed in 2017. included:

Treasury Managed Fund and third party claim »» A safety week which included CPR/AED training, representatives Proclaim Management Services and health checks, flu vaccinations and hazard Arthur J Gallagher provided risk management advice for identification and control activities insurance claims. The program continues to be reviewed with sports partners, onsite tenants and contractors to »» A height safety system was installed in the Members ensure that health, safety and compliance is of a high Pavilion, Ladies Pavilion and SCG light towers to standard at Trust venues. reduce the risk of falls when working in these areas

»» A site audit was conducted to ensure the Trust was ready for the Global Harmonisation System of goods which came into effect in January 2017

»» A new contractor management system called Browz was introduced to ensure all staff complete the WHS induction requirements

Lost 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.

6

5

4

LTIFR 3

2

Relative Frequency This quarter = 0.95 1

0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2012 2013 2014 2015 2016 2017

Reportable Periods

18 Sydney Cricket & Sports Ground Trust Annual Report 2016 19 engaging and connected experience The Trust is committed to working The ARDC will include: for our customers”. with all its stakeholders to develop plans that deliver a revitalized »» Purpose-built UTS research and The Trust’s neighbours, Centennial precinct and a world-leading teaching laboratories for sport Park & Moore Park Trust, have sporting campus for the benefit and and exercise science and recently released the first ever enjoyment of the NSW sporting management courses public. masterplan for Moore Park. The »» A high-performance facility for the Trust and the Centennial Park Trust Wallabies, Wallaroos, national have worked together over the past Construction continues on the men’s and women’s Sevens 12 months to ensure that the Australian Rugby Development teams, junior development respective trusts’ goals for the Centre, which will be a new home for squads and Indigenous rugby greater Moore Park precinct align. the country’s top men’s and » women’s rugby players as well as » A café which can be utilised by More park for Moore Park is one University of Technology Sydney’s the community and visitors to the goal. Another is to make it as easy sport science and management ARDC as possible for people who visit programs. »» Facilities for the use of community Centennial Park and Moore Park, the groups and grassroots teams Entertainment Quarter, and the SCG In an Australian first the ARDC will »» An indoor training hall and rooftop and Allianz Stadium, to access and bring together elite athletes, a running track egress the precinct as easily as high-performance training facility, possible. The trusts are also working sector-leading sports scientists, UTS Construction is set to finish in together on a long-term transport students and the community within September 2017 with students, plan that leverages the NSW Australia’s leading sports and administrators and athletes to move Government investment in the CBD entertainment precinct. in from the beginning of next year. and South East Light Rail.

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 together to create a great sporting experience, the Trust is thinking about the venues it manages in the context of its sporting partners, neighbours, Government stakeholders, the local community and the fans.

Over the last 12 months the Trust has been on a journey to understand more about its neighbours, its sporting partners’ plans for the future, how Trust business effects the local community and what people enjoy about Moore Park.

The Trust will apply these insights in producing a concept plan for its precinct that seeks to meet the vision of the Trust, namely that; “We celebrate sport, create history, enhance entertainment and constantly innovate to provide an

20 Sydney Cricket & Sports Ground Trust Annual Report 2017 21 Hospitality

In December 2016, the Trust appointed MatchPoint as its exclusive Hospitality Partner, trading as SCG Hospitality for all hospitality products. MatchPoint’s agreement will provide the Trust with a comprehensive return, capitalising on their years of expertise and commitment to the delivery of a commercially robust, high quality hospitality program.

MatchPoint have entertained corporate clients at some of the world’s biggest events and venues, placing Allianz Stadium and the SCG alongside the Rugby World Cup at Twickenham, the Australian Open Tennis at Melbourne Park and the NFL at Wembley Stadium. In keeping with our desire to establish long-term partnerships, the Trust is conscious of continuing to offer the market valuable opportunities.

Gold and Platinum Membership Sales

The Trust again focused on offering members’ opportunities to upgrade their existing membership status, or to introduce friends and colleagues to the benefits of Gold and Platinum membership. Building relationships COMMERCIAL with strategic commercial partners to provide quality incentives and rewards for new, referring and A strong performance in Gold and Platinum membership sales and the wi-fi, IPTV upgrading members was critical to the success of these campaigns. advertising and a sponsorship rights program at Allianz Stadium has seen Trust This support, plus some excellent work by the entire commercial team commercial revenue remain steady at $23.1 million. saw sales reach $5.011 million.

Long-Term Hiring Agreements Sponsorship, Supply and Accordingly, the Trust has enjoyed successful advertising and sponsorship partnerships with News Corp, Tabcorp, The 2016-17 financial year was an excellent period for the Trust as it consolidated substantial event Advertising Rights Qantas, Ticketek, IOOF, Telstra, Harvey Norman, Ingram content. Last year’s efforts saw the NSW Waratahs, Sydney Swans and Sydney Sixers agree to play Micro, Heinz and UTS as well as our supply and product all home games at Moore Park, while the Wallabies and Australian Rugby’s Sydney Sevens event The Trust’s advertising and sponsorship program rights partners, CUB, CCA, Diageo, Jim Beam, Tyrrell’s, extended terms until 2031. Sydney FC also agreed to play home games at Allianz Stadium for the next continues to make a significant contribution. Revenues Samuel Smith and Sons, and Treasury Wine Estates. 10 years through to the end of the 2025-26 season. The precinct is now home to more than 65 events of $14.3 million were generated via the sale of each year across five codes including cricket, AFL, football, rugby league and rugby union. sponsorship, advertising, supply and product rights. In August of 2015, Allianz Australia committed to a five-year extension as the naming rights partner Out and About Marketing and Media (OAMM), of Allianz Stadium. This extension will take the KEY ACHIEVEMENTS our commercial rights partner, provide the Trust partnership through until February 2022 and »» 2014/15: Sydney Swans agreement until 2047 with an outstanding financial return. The Trust has promises to be a long and successful one for both » capitalised on their expertise, commercial insight organisations. We thank them for the faith and belief » 2015/16: NSW Waratahs, Wallabies, Sydney Sevens and Cricket agreements and their understanding of digital assets available they have shown in the Trust, our special and unique »» 2016/17: Sydney FC terms of agreement until 2026 as a result of the investment in wi-fi and IPTV precinct, and most importantly, in Allianz Stadium. technology at Allianz Stadium and the SCG.

22 Sydney Cricket & Sports Ground Trust Annual Report 2017 23 SCG MEMBERSHIP Other activities included: ELECTION AND WAITLIST Marketing and »» Members Breakfast, Day 1 In January 2017, the Trust offered Digital » SCG membership to 1,035 » Curators Breakfast, Day 2 applicants who joined the »» Jane McGrath High Tea, Day 3 Communications membership waitlist in 2004. »» Stumps Sessions, Days 1-3 The offer was accepted by 487 new MEMBER » members (285 opting for double » Kids Cricket Clinics, Days 1-3 COMMUNICATIONS membership, 57 for single and 145 »» Village Green, Days 1-3 for junior) representing a 47 per cent The Trust transitioned to MailChimp » uptake and $518,000 in revenue. At » Sydney Live Plaza, Days 1-3 software to provide a better the end of February 2017, there were communication offering for 22,934 applicants on the SCG Reserved seating was again offered members. This program was used to waitlist dating back to January 2005. to members for the first four days of prepare and distribute emails the Test and the two One-Day regarding upcoming events, offers SUBSCRIPTION RENEWALS Internationals at the SCG. The cost and precinct news on a weekly AND MEMBER NUMBERS was $25 per seat each day (the basis. Data was also collated from same price since 2015) and was the Trust’s wi-fi and app database, Member numbers have remained provided free of charge to those who with targeted email campaigns relatively stable at 18,763 (up by 351 have held membership for 50 years organised to promote special events. on the previous year). The increase is or more. In addition, The Trust placed regular largely due to a 47 per cent uptake advertising in major newspapers and on the 2004 SCG waitlist election. circulated exclusive offers to SCG The membership category members and waitlist members for breakdown is nine per cent Platinum, events at Allianz Stadium. 33 per cent Gold and 58 per cent SCG, which is consistent with previous reporting periods.

In total, 98 resignations were received this year, which is up slightly compared to previous years (43 resignations in 2015/16 and 68 resignations in 2014/15). MEMBERSHIP AND MARKETING Communication with these members suggests reasons for non-renewal include old age, ill health, value for The Membership and Marketing Division manages ICT, membership services, money, financial difficulties and not the Stadium Club and the marketing of Allianz Stadium, the SCG and the Trust. using membership due to travel. The high retention rate can be attributed to a strong event schedule at both grounds and enhancements MEMBERSHIP SUPPORT to member facilities and services. Members who paid their annual The division features a member and subscription prior to 1 October customer services team for the benefit received a complimentary 2017 of members and their guests. Services Sports Diary. include a membership call centre and email support to facilitate card SPECIAL ARRANGEMENTS replacements, waitlist applications, FOR CRICKET day pass sales, seat reservations and managing reciprocity with interstate The Trust provided members with an and overseas venues. expanded program of off-field activities at the New Year’s Test, The team staffs the Venue Services recognising that the social aspect of Office, which is the focal point for the event is an integral part of the access control, tours and fitness overall patron experience. Additional centre and court bookings. Staff also amenities and food and beverage assist with merchandise sales and facilities were set up along with big general enquiries. screens on the Sydney Live Plaza.

24 Sydney Cricket & Sports Ground Trust Annual Report 2017 25 CONNECTED STADIUM SOLUTION WEBSITE »» Group fitness: Pilates and Yoga classes continued to thrive as a The Connected Stadium Solution (IPTV, wi-fi, The Marketing team oversaw a minor refresh of the popular offering for members. superscreens, LED and mobile app) has undergone current website, making the events and login portal more several enhancements to ensure the Trust is innovating prominent and easier to navigate for members. Overall revenue was also boosted by its digital platforms. This includes creating different A new website is being designed and developed after a the addition of new programs such zoning to assist with fan engagement pieces, introducing tender process, with a rollout expected in late 2017. as six-week boot camp and an HTML software and making several operational changes. outdoor sunrise Yogalates class. The Marketing team continues to develop strong CUSTOMER RESEARCH relationships with sporting partners to deliver engaging, branded and informative content. The Trust conducted several focus groups with members MEMBER OFFERINGS to gain feedback and insights on the facilities and Three successful business services provided, including member dress regulations, The SCG and Allianz Stadium app is well positioned as networking events were held during activity on game days and Stadium Club operations. the game day companion, offering competitions, match the past financial year. Guest entertainment via Q&A trivia games, fan cam and express speakers included Peter Nevill, Trent food and beverage ordering. The Stadium Club Robinson, Bryan Fletcher and Phil Waugh. The Stadium Club’s most The app has undergone a major design refresh which has recent networking event raised seen the introduction of a bottom menu navigation bar. USAGE $20,400 for the Black Dog Charity ‘Digital experts’ (promotional staff) are visible at a range Visits from members and guests to the Stadium Club Foundation through Neville and of events and their primary focus is to inform and totalled 306,727 during the past financial year, an Hourn Legal. demonstrate how digital innovations can enhance the average of more than 25,000 attendees each month. game day experience. Complimentary cricket clinics were REVENUE TARGETS offered to Gold and Platinum EVENT ADVERTISING members prior to Sydney Sixers and The Stadium Club has exceeded its overall revenue One-Day International events. This The Trust created and scheduled numerous targets. Programs that contributed to this success was coordinated in conjunction with advertisements during the year in support of its sports TOURS include: the Sydney Cricket Club and SCG XI. both the pool and spa plant rooms in partners ahead of major events. Key venue messaging, late August and September. This In line with the SCG Museum business including transport and game day information, were the significantly improved water »» Kids holiday camp: Exceeded budget, largely due to FOCUS GROUP RESULTS plan, a three-year marketing plan for main focus of advertisements. filtration, quality, useability, chemical an additional program during the January school the SCG Experience (museum and holidays as well as improving the value and offering of The Stadium Club conducted and water usage. The Trust also invested in social media advertisements, tour) has been completed. The key the program itself. research over the past 12 months objectives of the marketing plan are which allows for direct communication with fans in the with members and their guests. The spa, steam and sauna rooms lead up to key promotional activities in the precinct. to: »» Tennis: The tennis coaching program also exceeded Major findings included a strong also received a complete support for expansion of facilities to refurbishment which included new budget due to the introduction of new instructors and »» Increase SCG Experience brand transform the area into a world class panels, fresh lighting and tiled floors. an additional kids clinic. recognition in the tourism market fitness club as well as ongoing improvements to the pool and The Trust has examined three »» Increase the unique offering of the member and guest etiquette. options for Stadium Club expansion SCG Museum to address the growing need for additional space, which had been UPGRADES »» Increase tour visitation and revenue highlighted in member research by approximately 30 per cent over The last 12 months has seen the projects. facility experience some major three years changes in line with our member research. The Stadium Fitness Museum, Tours and The SCG Experience partnered with Centre has been transformed into the St George Illawarra Dragons to the ‘Stadium Club’ with the space Heritage Activities deliver the ultimate tour ahead of the receiving a complete equipment and 2016 NRL heritage match. The tour style upgrade. included dressing room jersey HERITAGE presentations, player talks and a visit The upgrade included new weights Museum staff have preserved the to the SCG Museum. and cardio machines, additional cupboard doors in the Members rowers, and dumbbells up to 50kg, Pavilion, which detail signatures and In April, a program of monthly tours two ski ergs, new pin coded lockers, scores from some of the world’s best tailored for people with special squash court refurbishments, touring cricketers. The doors have needs and limited mobility was painting across the whole facility and been moved to the SCG Museum launched. A tour route was designed additional signage. and replaced with a new one to to host guests and marketing continue the tradition. Other collateral was produced to promote CAPITAL WORKS conservation works included the new initiative. Kids holiday tours treatment of the 1892 panorama were also run in April. The Stadium Club completed a from the Members Pavilion Long Bar capital works program over the past and conservation of the Doug 12 months to upgrade facilities. Walters Stand sign. This included major overhauls to

26 Sydney Cricket & Sports Ground Trust Annual Report 2017 27 »» A 69 per cent increase in fan data records Digital Information Security Annual Attestation » for the 2016/17 Financial Year for the Sydney » Targeted team and fan zoning of IPTV content at Cricket and Sports Ground Trust events » I, Bernie Lamerton am of the opinion that the Sydney » Developed a business case for the expansion of the Cricket and Sports Ground Trust (the Trust) is presently Connected Stadium Solution at the SCG reviewing its Information Security Management System (ISMS) and will take steps to address any non- The Trust prioritised and invested $1.5 million in capital conformance, as may be relevant, to develop the ISMS ICT projects this year including: to be consistent with the Core Requirements set out in the Digital Information Security Policy for the NSW Public » » ICT infrastructure including network convergence Sector. (corporate and CCTV networks) I, Bernie Lamerton am of the opinion that the Trust will » » CRM system for membership and corporate put in place necessary controls to mitigate identified risks administration to the digital information and digital information systems of the Trust which will be adequate for the foreseeable » » Scoping for digital payment solutions at the SCG and future. Allianz Stadium Risks to the digital information and digital information » » Ongoing works for a new website and CMS platform systems of the Trust will be assessed in accordance with the NSW Government Digital Information Security Policy. »» Review of backup/disaster recovery plans

Bernie Lamerton General Manager, Corporate Services June 2017

The Trust celebrated the 120-year The partnership offers an opportunity experience for patrons at our anniversary of the Ladies Pavilion in to use broader technologies such as grounds. conjunction with Moore Park’s 150th Google Street View, Google birthday celebrations. A special Cardboard, high definition filming Key achievements during the exhibition was held in the museum and web hosting platforms to place reporting period include: along with a plaque unveiling and the museum’s collection online for program of activities in December. greater audience reach. »» Venue Technology Award for fan engagement strategy In addition to weekly public tours, INFORMATION AND »» Improved navigation and user the museum was open throughout COMMUNICATIONS interaction on the SCG and Allianz the summer of cricket and during the TECHNOLOGY Stadium app Sydney Swans’ season. The tours » program attracted 11,271 visitors in The information and communications » Integrated MailChimp email the 2016-17 financial year. technology (ICT) operations section platform to provide a better made significant advancements in communication offering PROGRAMS the past financial year to continue »» Upgraded mobile payment the precinct’s digital transformation. offering for express food and The Trust has partnered with the beverage ordering Google Cultural Institute to deliver The Trust created a fan engagement five online exhibitions and a gallery »» Over 1.4 million wi-fi sessions strategy in line with corporate goals of 150 collection items for the recorded and vision to deliver an innovative proposed launch in 2017. »» More than 20,000 app downloads

28 Sydney Cricket & Sports Ground Trust Annual Report 2017 29 SOCIAL MEDIA Sydney Sevens and Big Bash stands of the SCG has allowed fans League. A number of competitions to share photos and comments Engagement and followers of the were also run to offer fans game day immediately while at events, which Trust’s social media channels packages and sporting experiences. also contributed to a growth in continue to grow. Significant Free wi-fi at Allianz Stadium and in engagement. Social media numbers increases were recorded around the Noble Bradman Messenger are as follows: events such as the New Year’s Test,

SCG Facebook Twitter Instagram 2016/17 100,615 20,900 16,000 2015/16 82,267 17,900 9,553 2014/15 42,219 12,400 4,595

Allianz Stadium Facebook Twitter Instagram 2016/17 15,438 7,390 3,984 2015/16 11,940 6,599 3,330 2014/15 8,885 6,310 2,118

PUBLIC RELATIONS AUSTRALIAN RUGBY »» A Guinness World Record attempt with Cricket Australia Strong emphasis was placed on the DEVELOPMENT CENTRE promotion of the history of Trust The SCG Trust continues to take the »» A Vogue feature for women’s venues across all communication lead role in actioning a sport channels throughout the year. The communications and engagement following key events were staged: plan related to the joint development »» The Australian Golf Digest Player of the Australian Rugby of the Year Awards »» A plaque unveiling to Development Centre by the ARU, commemorate the 120-year University of Technology Sydney and »» The Australian Cricket Media anniversary of the SCG Ladies the Trust. This includes sending Association annual dinner Pavilion. The Duchess of York, regular letters and construction MEDIA AND COMMUNICATIONS Sarah Ferguson and her sister updates to local residents and key »» The Bradman Foundation Gala Jane were invited to unveil the stakeholders. Dinner plaque in the same position their great-great grandmother laid the MEDIA foundation stone in 1896. AWARDS Communications SCG Trust staff continued to provide »» An exclusive reunion luncheon The Trust Communications team was media relations and support for was held to celebrate the 30-year awarded the 2016 Australasian event and non-event day activities, The Trust Communications Division is responsible for communications, government anniversary of the Parramatta Leisure Management Crisis including: Eels’ 1986 premiership win. For Communication Award for its efforts relations, public relations, stakeholder and community engagement, media services many of the players, it was the following the tragic accident to » and recently heritage and tours. first time they had stepped onto » NRL Final series launch Phillip Hughes at the SCG and the SCG since grand final day. during the coronial inquest. » HERITAGE AND TOURS MEMBER COMMUNICATIONS » A Test match statistics booklet A wide range of organisations held » The Communications Division The Trust places a high importance » Daily Innings news sheets during their events onsite which were assumed responsibility for the on communication with its members. the Test match supported by the Trust and generated further media exposure: Heritage program in February from Over the past year, the division has »» Weekly e-newsletters the Membership and Marketing produced the following material in »» News and information updates via » Department. This will provide a new collaboration with the membership » McGrath Foundation – Sydney the Trust website opportunity for the heritage and and marketing team: Test High Tea communications team to work »» A members booklet for the » together to identify promotional »» Two editions of the Around the Sydney Sevens and Wallabies » Carbine Club events opportunities to celebrate the rich Grounds magazine Test » history of the SCG and Allianz » Bradman Foundation Gala Dinner »» Free interactive iPad and Android Stadium. The restructure also tablet editions of the magazine » includes assuming responsibility for » St Vincent’s Hospital Gala Dinner the precinct’s museum and tours »» Members guide to the summer of program. cricket

30 Sydney Cricket & Sports Ground Trust Annual Report 2017 31 Operating Income and Expenditure

The results for the reporting period show an increase in operating revenue before grants for $91.5 million compared to 2015/16 $86.5 million, and an increase to operating expenditure, $90.4 million compared to $84.1 million the previous year.

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

»» Annual event attendance of 1.5 million patrons (1.4 million in the previous year) »» An event schedule featuring a broad range of sport and entertainment including the Cricket World Cup, international cricket, all four major football codes, World Series Sevens and one outdoor concert »» Higher catering revenue See below a detailed comment on the main aspects of the than the previous year Trust’s financial performance during the past year. »» Continued strong membership retention levels resulting MEMBERSHIP VENUE/EVENT HIRE FEES in increased annual The Trust offers three major forms During the past year the total subscription revenue of membership – SCG, Gold and attendance of patrons at »» Lower sales of new Gold Platinum – providing entitlements events staged at the SCG and and Platinum memberships to events and facilities at the Allianz Stadium was 1.5 million. and comparable sales of SCG and Allianz Stadium. Revenue from hire fees was CORPORATE SERVICES SCG memberships. $10.9 million, higher than the »» Lower demand for premium Membership subscription rates previous year $10.5 million. seating and corporate box rental were increased during 2016/17. Continued strong membership Major events staged during the year »» Higher sale of advertising and retention levels reflect the ongoing included the Australia-Pakistan Test sponsorship revenue contracts Financial Report enhancement of the event calendar Match, two One-Day Internationals, »» Higher event operating costs at the SCG and Allianz Stadium as Sydney Sixers home games, Sydney The Trust is a NSW Government Trading Enterprise constituted under the provisions and employee related expenses well as other services available to Swans fixtures, the Anzac Day »» Higher ground operation members. In 2016/17, membership Cup, NRL semi-finals, World Rugby of the Sydney Cricket and Sports Ground Act, 1978. The Trust is a not for profit and maintenance costs annual subscriptions revenue was Sevens, Asian Champions League $20.7 million compared to $19.1 and two outdoor concerts (Coldplay). » entity (profit is not its principle objective). The reporting entity is consolidated as part » Lower debt finance costs million recorded in the previous year. of the NSW Total State Sector Accounts. - interest paid following Long-term contractual arrangements reduction to capital debt Entrance fees recorded for new with major sporting bodies provide »» Comparable depreciation members at the SCG (predominantly a broad-based program of sporting The Trust’s operations for the financial year ended 28 of Government, post 2019. As a result, the Trust believes charges following completion of sales to the 12-year wait list) during events at Trust grounds. Major February 2017, resulted in an operating surplus of $1.4 it is prudent financial management to expense the related the Noble Bradman Messenger 2016/17 was $649,000 compared hirers’ contracts are current at the million compared to the budget which projected an $8.1 million in project design and associated consultancy stands construction in 2014 to $586,000 in the previous year. SCG (Cricket NSW, Sydney Sixers operating surplus of $1.2 million. costs. This resulted in a net comprehensive deficit of and the Sydney Swans) and at »» Debt repayments of $1.7 million $6.7 million being recorded and transferred to Entrance fees received from the Allianz Stadium (Australian Rugby In 2014/15 and 2015/16 the Trust received grants from accumulated funds, which stood at $326 million as at 28 »» Capital works program sale of new Gold and Platinum Union, NSW Rugby, National Rugby the NSW Government as part of its Rebuilding NSW February 2017. undertaken - $13.7 million memberships generated sales League, Sydney Roosters, St strategy to undertake a concept design process for a revenue of $5.1 million, compared George Illawarra Dragons, South new rectangular stadium to be built at Moore Park. This During the past year, the Trust undertook a capital works to $5.7 million in the previous year. Sydney Rabbitohs and Sydney FC). grant funded a significant amount of project design and program valued at $13.7 million for renewal and associated consultancy works. In April 2016, the NSW improvements to Trust assets. Premier announced a re-ordering of capital investment in NSW stadia infrastructure. Allianz Stadium would now Capital debt was reduced from $79 million to $77 million CATERING be refurbished and this would begin during the next term at the close of the year.

32 Sydney Cricket & Sports Ground Trust Annual Report 2017 33 The Trust’s net share of catering EVENT OPERATING COSTS sales (including amortised contract The Trust incurred direct event premiums) at the SCG and Allianz costs of $17.7 million during the Stadium was $5.2 million (food) year (compared to $14.3 million and $6.2 million (liquor) - compared in the previous year) in staging to $4.8 million and $6.2 million all sporting and other events at respectively in the previous year. the SCG and Allianz Stadium. Under the terms of the current GROUND OPERATION contract, a premium amount was initially paid by the caterer to AND MAINTENANCE the Trust representing catering Ground operation and maintenance fees paid in advance. Further, an expenditure of $12.2 million additional sum was paid by the was incurred during the past caterer and applied to various year on grounds, buildings and catering outlet refurbishments and plant, compared to $11.9 million purchase of associated equipment. in the previous year. The Trust The total premium amount initially employs a permanent trades paid under the current contract workforce, service contractors and is being amortised annually subcontractors to undertake the over the term of the contract. annual program of maintenance of grandstands, buildings, plant, ADVERTISING AND grounds and playing arenas at SPONSORSHIP CORPORATE the previous year. Sale revenue for the SCG and Allianz Stadium. million compared to $1.3 million in DEPRECIATION allocated premium public seating the previous year), communication Stadium advertising signage and SEATING SALES The completion and opening of for major events generated revenue CORPORATE SEATING expenses ($345,000 compared to sponsorship revenue includes the new Noble/Bradman Stand The Trust corporate packages of $250,000 compared to $310,000 EXPENSES $428,000), printing and stationery product rights at each venue. available include annual private (together with recent additional Revenue generated for 2016/17 received in the previous year. ($965,000 compared to $706,000), suites, corporate boxes and Premier Premium seat packages sold to capital works projects) has resulted was $15.7 million (including newly postage/freight ($151,000 compared Club membership, as well as a corporate customers for major in an increase to the annual contracted arrangements) compared PREMISES RENTAL INCOME to $155,000), insurance costs comprehensive range of seasonal events incur costs in marketing depreciation charge for 2016/17 to $14.8 million in the previous ($498,000 compared to $574,000) and casual box and dining room The Trust holds long-term and servicing these products which was $13.3 million, compared year. The Trust contracts the sale and accounting and legal fees packages. The Trust markets the tenancy arrangements for office including direct charges for tickets, to the previous year, $13.1 million. of advertising in the form of LED, ($555,000 compared to $402,000). sale of corporate hospitality for administration and players’ facilities catering, merchandising and other fence, grandstand facades, IPTV/ events at the SCG and Allianz located within its precinct. The costs. Premium seat costs of FINANCE COSTS wi-fi and video scoreboard signage. EMPLOYEE SALARY Stadium for Trust allocated areas Trust tenancies currently comprise $1.8 million were incurred during Costs incurred in servicing and AND WAGES Trust borrowings were reduced for cricket, Sydney Swans, Sydney headquarters for Cricket NSW, 2016/17, reflecting a reduction in commission for advertising signage from $79 million to $77 million FC, rugby union, rugby league and Sydney Sixers, Sydney Swans, NSW sales, as compared to $1.3 million and sponsorship arrangements as at 28 February 2017. Interest concert events. Revenue from rental AFL, University of Technology, NSW in costs for the previous year. Employee salaries and wages were $2.8 million compared to paid on capital debt during of private suites/corporate boxes Rugby, , incurred during the past year $2.6 million in the previous year. 2016/17 was lower at $3.9 million, during the year was $3.6 million, Sydney Roosters, Sydney FC, were $14.9 million compared to MARKETING EXPENSES as compared to $4.2 million compared to $3.8 million received in Delaware North Catering and the $14.2 million in 2015/16. These recorded in the previous year. Stadium Sports Medicine Clinic. Marketing funds were allocated costs include direct costs incurred Tenancy rental income received in in 2016/17 by the Trust to in servicing event contracts. 2016/17 was $4.3 million compared promote and market the cricket to $3.8 million in the previous year. and football seasons, the major events, available Platinum, Gold INVESTMENT MANAGEMENT and SCG membership places, sale of private suites/corporate PERFORMANCE boxes, premium seating for Interest received on investments major events, guided tours and totalled $168,000 as compared to corporate function room facilities. interest of $142,000 received in the Marketing expenditure during previous year. During the reporting 2016/17, including advertising, period available surplus funds were promotion and publications, was invested with the NSW Treasury $4.0 million compared to $3.7 Corporation in both the Hourglass million in the previous year. facility and on term deposits. The return on the Trust’s invested funds ADMINISTRATION AND from these facilities represents RELATED EXPENSES the rate of 2.34 per cent for the year ended 28 February 2017. Administrative and related expenses incurred during the past year included consulting fees ($1.1

34 Sydney Cricket & Sports Ground Trust Annual Report 2017 35 CONSULTANTS The Trust insurance placement 2.72 per cent by year end. Ground Act, 1978. It is charged with the care, control lands, based on an “as zoned and used basis,” and coverage is reviewed annually Over the year, the face value of the and management of the lands described in Schedule 2 providing a valuation of $61.5 million as at 29 Consultants were appointed for a by insurance brokers, Arthur J Trust’s borrowings reduced from of the Act, those lands dedicated for public recreation. February 2016. The valuation increment recorded range of projects in 2016/17, with Gallagher. The Trust monitors $77 million to $75 million, with since the previous valuation of land, $18.5 million, payments totalling $1.063 million. insurance claims experience on the weighted average borrowing was transferred to the Asset Revaluation Reserve. The major consultancies (above MAJOR ASSETS – PROPERTY, an ongoing basis with a focus rate reducing to 4.74 per cent. $50,000) were provided by: PLANT & EQUIPMENT on workplace health and safety During 2014/15 the Trust received an independent performance. Risk management The Trust’s major assets, other than land holdings, valuation by registered quantity surveyors, WT »» PMY Consulting: Monthly CAPITAL WORKS policies and procedures are regularly consist of buildings and improvements at the Partnership, regarding the replacement cost of buildings IT Services & Strategy updated to enhance the Trust’s During 2016/17 the Trust managed SCG and Allianz Stadium and its surrounds. and improvements at the SCG and Allianz Stadium. Development - $235,000 risk management profile in an an extensive capital works The valuation was converted to a written down effort to reduce future premiums. program totalling $13.7 million The Trust revalues each class of property, plant replacement cost by the determination of the remaining »» Turnkey Management Group: (compared to $19.1 million in the and equipment at least every three years or with useful life of each building. The valuation increment Tender Panel Assistance, The Trust has in place an internal previous year). The major projects sufficient regularity to ensure that the carrying of $14.3 million recorded since the previous valuation Masterplan Works & Membership audit and risk management undertaken in 2016/17 included: amount of each asset in the class does not differ of buildings and improvements was transferred to the Strategic Plan - $212,000 framework overseen by the materially from its fair value at the reporting date. Asset Revaluation Reserve as at 28 February 2015. » establishment of the Trust Audit » Completion of beer Interim formal revaluations are carried out in the »» Enrich Business Consulting: and Risk Committee in accord system upgrade years between the comprehensive revaluation. As a result of the revaluations, an Asset Revaluation SCG Experience Marketing with the Government’s Internal » Reserve remains established. The balance of this Plan Rollout - $80,000 » Completion of Sydney Swans Audit and Risk Management air conditioning upgrade During 2015/16, the Trust received an independent Reserve as at 28 February 2017 stood at $360.8 million. Policy for the NSW Public Sector, valuation by Knight Frank Valuations of its vested »» S&GO Pty Ltd: Stakeholder »» Upgrade to corporate suites issued by NSW Treasury in 2015. strategy - $67,000 The committee has prepared an »» Fitness Centre spa and Audit and Risk Committee Charter pool room upgrade »» Cox Architecture Pty Ltd: consistent with the content of » Masterplan Design - $58,000 » Noble Bradman Stand gas the policy’s model charter and infrastructure upgrade developed a high-level enterprise » » » Ernst & Young: Financial risk management framework. » Allianz Stadium design works Accounting/Audit »» Works associated with Services - $57,000 The Trust’s internal auditor, ARDC/UTS Building Ernst & Young, conducts annual » »» Catering facility upgrades » Asset Technologies: - Review and audits as part of the Trust’s Preparation of TAM Plan $52,000 three-year internal audit plan. »» ICT network convergence program The balance of consultants fees DEBT MANAGEMENT »» Trust Concept Plan design incurred was paid by the Trust for minor consultancies for services The Trust’s debt portfolio is managed »» Allianz Stadium safety and provided. These included: IT by NSW Treasury Corporation compliance upgrade services, masterplan design and (TCorp). The continued slowing of planning, CRM planning, Trust the Australian economy saw RBA SUMMARY OF LAND website & app, social media reduce cash rates by 0.50 per cent VESTED IN THE TRUST planning and management, to 1.50 per cent and the 10-year accounting services, ratings review, Commonwealth Government Bond The Trust was constituted under engineering services, turf inspection, yield increased by 0.32 per cent to the Sydney Cricket and Sports acoustics, communications, catering service, planning advice, claims management, surveys, WHS, employment matters, building and other services.

The number of minor consultancies was 37 and the total was $302,000.

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 2016/17 were $498,000.

36 Sydney Cricket & Sports Ground Trust Annual Report 2017 37 INTERNAL AND EXTERNAL Time for Payment of Accounts PERFORMANCE REVIEWS CREDIT CARD USE Listed below is a schedule of accounts payable performance as at 28 February Ratings agency Moody’s conducted an annual 2017, 30 November 2016, 31 August 2016 and 31 May 2016. review of the Trust’s financial operations and position The use of credit cards issued to Trust as at 29 February 2016. The report by Moody’s executive staff is in accordance with Premier’s recommended assignment of a financial rating of Memoranda and Treasurer’s Directions. AGED ANALYSIS AT THE END OF EACH QUARTER Ba2 (unchanged from the previous year) which was CURRENT LESS THAN 30 30-60 60-90 90+ TOTAL utilised by NSW Treasury in determining the amount SYDNEY CRICKET CLUB QUARTER $ $ $ $ $ $ of ratings based guarantee fees normally payable. In 2007, the Trust joined with the administration Moody’s acknowledged the assigned rating of the former UTS-Balmain District Cricket Club in May 1,996,367 13,559 6,811 - 50 2,016,787 outlook is stable and primarily reflects the stability establishing the entity of the Sydney Cricket Club. The 98.99% 0.67% 0.34% 0.00% 0.00% 100% of revenue and cash flow generated by the Trust, Sydney Cricket Club is an incorporated association with limited direct competition. The Trust’s rating under the Associations Incorporation Act 1984. The is supported by its strong liquidity profile. Trust and the club agreed to enter an association August 2,470,003 231,943 48,910 14,891 - 2,765,747 which would involve the provision by the Trust of administrative and other services to the club. The 89.30% 8.39% 1.77% 0.54% 0% 100% The key driver of the rating is the Trust’s proven ability to attract quality sporting events to its facilities and Trust is represented on the club’s board of directors thus ensure that cash flows from memberships and in accord with the club constitution. Recoverable November 1,646,952 605,775 9,912 - - 2,261,919 catering sales provide a degree of revenue certainty. operational expenses incurred by the Trust during the This ensures a key rating support, enabling the Trust past year were recouped from the Sydney Cricket 72.81% 26.78% 0.41% 0% 0% 100% to generate stable earnings and free cash flow. Club through the club’s operational account.

COST OF PRINTING REPORTS February 6,728,980 131,381 818 - - 6,681,179 The Trust’s business model ensures that its fixed operating costs are generally covered by revenue The Trust has prepared two annual reports for 2016/17 98.08% 1.91% 0.01% 0% 0% 100% that is relatively predictable from year-to-year. This in hard copy as required for tabling in parliament, protects overall profitability, while allowing the Trust which were printed in-house with no external cost. to cover interest payments, capital expenditures ACCOUNTS PAID ON TIME WITHIN EACH QUARTER and debt reduction from match-day earnings. TOTAL ACCOUNTS TOTAL ACCOUNTS Moody’s acknowledged that these strengths are QUARTER TARGET % ACTUAL % PAID ON TIME PAID tempered by the Trust’s need and willingness to partially debt-fund major capital projects. Leverage May 90% 94.46% $31,972,176 $33,847,318 has increased over the last couple of years to support August 90% 97.65% $19,621,486 $20,094,712 major capital works. This has caused leverage, as measured by Debt-to-EBITDA to rise to a level that is November 90% 97.89% $19,305,146 $19,722,136 more appropriately positioned at the Ba2 rating level. February 90% 98.42% $43,292,679 $43,985,634 The Trust’s four main committees (Business, Finance, Development and Audit & Risk Management) are responsible for continuous internal performance review of Trust activities. Monthly management Our target is to pay 90 per cent of accounts on time. Unavoidable delays in processing accounts occasionally reports are submitted to these committees for arise due to delays in obtaining goods in proper order and condition, or queries on invoices. The Trust continues to assessment of operational performance. encourage suppliers to accept electronic funds transfer as the preferred method of payment. No interest has been paid on payments on any accounts where delay in payment has occurred during the year. A minimal number of complaints The Trust’s internal auditor, Ernst & Young, conducts were received during the year concerning late payment of invoices, with each matter being resolved satisfactorily. an annual audit program affirmed by the Audit & Risk Management Committee. In conducting the assigned audits, Ernst & Young seek to identify opportunities to further enhance the business and commercial efficiency and cost effectiveness of the Trust’s system of internal control.

The Trust also submits financial reports to the Treasury Commercial Sector Division for review of operating performance and financial position as compared to agreed Statement of Business Intent performance targets established annually.

38 Sydney Cricket & Sports Ground Trust Annual Report 2017 39 40 Sydney Cricket & Sports Ground Trust Annual Report 2017 41 »» Remuneration seminar: TRAINING safety staff. Further training has The survey raised some been provided around emergency Disability Awareness conducted by issues regarding the level of management and security protocol. the anti-discrimination board of NSW transparency, the management provided training programs in the of remuneration, the link between A structured performance review past financial year. Further e-learning performance and remuneration system has been implemented on modules provided to staff included: and the competitiveness of event days that determines the remuneration. To address this, we allocation of casual shifts based »» Fraud awareness worked with Mercer to develop on performance. An ongoing a high-level communication »» Electronic communication Mystery Shopper program plan for line managers. and social media continues to provide feedback on customer experience, which RECRUITMENT CASUAL EVENT DAY informs staff training modules. EMPLOYEES The Trust appointed a new General A streamlined live reporting Manager of Strategy and Projects. Event day staff are a valuable part function for event day supervisors This role is responsible for a range of Trust operations and progress has also been implemented to of projects including the precinct has been made to provide a better equip staff with additional tools to masterplan and the management working environment for casual provide superior service delivery. of consultants, government employees at our venues. officials, sports partners and other An event day staff dashboard has stakeholders associated with the Regular feedback and engagement been generated to act as a live Trust’s development plans. Several meetings were held to understand indicator for tracking the overall other new roles dedicated to safety, their concerns, challenges and performance of staff; including security and presentation of our experiences on event days. presentation standards, incentives, venues were also introduced. Recruitment sessions were held service delivery, absenteeism in October and March where 78 and specific areas of focus. An GOVERNMENT SECTOR customer services staff were effort has been made to increase EMPLOYMENT ACT inducted into the event day team. female crowd safety officers with a number of female employees The Trust secured changes to the The new employees attended expressing their desire to take act that governs our operation two interactive training sessions part in certification training. to allow us to directly employ all alongside existing event day staff staff from 1 April 2017. Previously, that addressed customer service, Overall, significant progress has HUMAN RESOURCES while part of the broad NSW venue knowledge and patron safety. been made to improve customer public sector, Trust staff were not The new structure has delivered service delivery of event day staff employed as public servants as an overall participation rate of during the reporting period. The Human Resources department focused on a customer service strategy in the part of a ‘non-public service staff 74 per cent, which includes 259 agency’ of the NSW Government. past financial year to better serve patron needs at the SCG and Allianz Stadium. customer service and 106 crowd This had no change to the day- to-day management of staff or The approach has been driven by two perspectives; EMPLOYEE ENGAGEMENT their employment conditions. The understanding customers and strengthening culture shift to the private sector better and processes. The strategy will ensure the right Insync Survey Framework implemented the Trust’s suits the Trust’s commercial customer service behaviours aligned with Trust employee engagement survey during the reporting sporting environment and will values are communicated, managed and embedded period, with the process designed to align day-to-day help to secure major events in the everyday decision-making of employees. operations with the strategic goals of the business. The survey measured eight factors that fall under the headings; for Sydney moving forward. The following initiatives were implemented energise, execute and engage. Each factor measures The Trust remains subject to the in the past financial year. the extent to which the employees perceive the Trust as a best in practice business in their relevant area. control and direction of the Minister and continues its statutory obligation REVIEWS FOR MANAGEMENT The participation rate was 84 per cent for permanent to care, control and manage The Trust has a ‘fit for purpose’ structure designed staff and 47 per cent for event day staff, which led crown land dedicated to public to meet corporate and strategic objectives that are to the following measures being put in place: recreation. The existing conditions of reviewed on a regular basis. To ensure the structure employment, contracts and awards, has a simple connection with business priorities »» Communication forums: Direct reports of General continue to apply to all employees. and leadership, the Trust has implemented 360 Managers are invited to attend a communication reviews for senior management. The objective is forum once a month to share information, to develop a consensus from peers, direct reports ideas and encourage the direct reports to share and customers about the leadership needed for the authorised information with their colleagues. management team, which included career development »» Keeping in touch days: A policy and procedure has and building effective working relationships. been established to allow employees to attend the workplace for up to 10 keeping in touch days while they are taking unpaid parental leave of twelve months.

42 Sydney Cricket & Sports Ground Trust Annual Report 2017 43 WORKFORCE PROFILE REPORT Breakdown of employees by department

2014 Feb 2015 Feb 2016 Feb 2017 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 FTE Emps employees and executive remuneration. Executive Staff 7.00 7 7.00 7 8.00 8.00 8.00 8.00

Trends in the Representation of Workforce Diversity Groups Administration 3.36 4 3.38 4 2.34 3.00 3.35 4.00

Benchmark/ Workforce Diversity Group 2014 2015 2016 Event & Operations 17.45 19 20.70 21 23.31 27.00 20.03 22.00 Target Membership & Marketing 29.34 51 27.07 50.2 35.10 56.00 34.89 59.00 Women 50% 38.6% 35.5% 36.8%

Aboriginal People and Commercial 6.00 6 7.00 7 5.00 5.00 2.00 2.00 2.6% 3.0% 0.9% 1.9% Torres Strait Islanders Corporate Services 15.53 17 13.95 15.8 13.77 15.00 12.89 14.00 People whose First Language Spoken 19.0% 8.0% 8.5% 9.7% as a Child was not English Strategy & Projects 0.00 0 3.00 3 0.00 0.00 0.00 0.00 People with a Disability N/A 2.0% 0.9% 1.9% Properties / Facilties 31.00 31 27.00 27 26.00 26.00 26.00 26.00 People with a Disability Requiring 1.5% 2.0% 0.9% 1.9% Work-Related Adjustment Media & Communications 0.00 0 1.00 1 2.00 2.00 2.00 2.00

Human Resources 3.00 3.00 3.00 3.00 Trends in the Distribution of Workforce Diversity Groups 109.68 135 110.10 136 118.52 145.00 112.16 140.00 Benchmark/ Workforce Diversity Group 2014 2015 2016 Target

Women 100 86 95 98 Breakdown of employees Aboriginal People and 100 N/A N/A N/A Torres Strait Islanders 2014 2015 2016 2017 People whose First Language Spoken 100 N/A N/A N/A FULL TIME = 87 88 94 90 as a Child was not English PART TIME = 21 22.8 23 23 People with a Disability 100 N/A N/A N/A

People with a Disability Requiring CASUALS = 27 25.2 28 27 100 N/A N/A N/A Work-Related Adjustment TOTAL EMPS = 135 136 145 140

FTE = 109.68 FTE = 110.10 FTE = 118.52 FTE = 112.16 Executive Remuneration Band 2017 2016 2015 Female Male Female Male Female Male Band 4 (Secretary) 0 1 0 1 0 1 Band 3 (Deputy Secretary) 1 0 0 0 0 0 Band 2 (Executive Director) 0 2 0 2 0 2 Band 1 (Director) 2 2 2 3 1 3 Totals 3 5 2 6 1 6 8 8 7

*Percentage of total employee-related expenditure was 13.4% for 2015/16 compared to 12.9% for 2014/15

44 Sydney Cricket & Sports Ground Trust Annual Report 2017 45 TRUSTEE PROFILES John Hartigan – Chairman, Business Committee COMMITTEES: BUSINESS & DEVELOPMENT

Journalist Tony Shepherd AO – Chairman Chairman: Destination NSW Chairman: Prime Media Group COMMITTEES: BUSINESS, DEVELOPMENT & FINANCE Director: Australian Paralympic Committee Bachelor of Commerce Life Member: Bradman Foundation Chairman: Macquarie Specialised Asset Management Ltd Former Trustee: Anindilyakwa Mining Trust Chairman: ASTRA Former Chairman: News Limited Chairman: Greater Western Sydney GIANTS AFL Club Former CEO: News Limited Director: Racing NSW Former Board Member: NSW Export and Investment Advisory Board Director: Virgin Australia International Holdings Former Chairman and Director: Australian News Channel Director: Menzies Research Centre Former Director: Foxtel External Advisor: ASIC External Advisory Former Director & Advisory Board Member: American Australian Association Advisor: Lend Lease Appointed Trustee to 13 July 2019 Advisor: Bank of Tokyo-Mitsubishi UFJ Former Director: Reardon Capital Former President: Business Council of Australia Alan Jones AO Former Chairman: Transfield Services Limited COMMITTEE: DEVELOPMENT

Former Chairman: National Commission of Audit Graduate of Queensland and Oxford universities Former Chairman: WestConnex Former speech writer and senior advisor to Prime Minister Malcolm Fraser Former Chairman: Sydney Motorway Corporation Pty Ltd Queen’s Birthday Honour: Officer of the Order of Australia Appointed Trustee to 13 July 2017 for the services to the media and sports administration Former Australian rugby union coach Former coach of the Balmain and South Sydney rugby league clubs Rod McGeoch AO LLB – Deputy Chairman; Elected to the Confederation of Australian Sports Hall of Fame - 1985 Chairman, Development Committee Broadcaster: Radio 2GB, Channel 7 Sunrise Program, Sky Channel Jones & Co. Program providing editorial comment and formerly with the COMMITTEES: BUSINESS, DEVELOPMENT & FINANCE Channel 9 Today Show presenting editorial comment daily for 20 years Awarded Australian Radio Talk Personality of the Year 1990, Lawyer 1991, 1992, 1993, 1995, 1997, 1998, 1999, 2000, Chairman: Vantage Private Equity Growth Limited 2001, 2002, 2003, 2004, and 2005 Chairman: BGP Holdings Plc Awarded Australian Radio Best Current Affairs Commentator: Chairman: BGP Investments S.a.r.l. 1991, 1992, 1993, 1995, 1996, 1997, 1998, 2000, Chairman: Advisory Board – American Infrastructure Holdings LLC 2001, 2002, 2003, 2004, and 2005 Director: Vantage Asset Management Pty Ltd Advance Australia Award – Services to the Community 1993 Director: Ramsay Health Care Ltd Awarded the Inaugural Sir Roden Cutler Medal for Services to the Community - 2003 Director: Maxwood Pty Ltd Deputy Chairman: NSW Institute of Sport Director: McGeoch Holdings Pty Ltd Former Deputy Chairman: Australian Sports Commission (1998-2008) Director: Destination NSW Appointed Trustee to 13 July 2017 Honorary Consul General of Luxembourg in Australia Former Director: Sky City Entertainment Group Limited Former Chairman: Mediaworks Investments Ltd Appointed Trustee to 13 July 2019

46 Sydney Cricket & Sports Ground Trust Annual Report 2017 47 Stuart MacGill Maurice Newman, AC – Chairman, Finance Committee; COMMITTEE: BUSINESS Chairman, Audit & Risk Management Former Australian Test cricket player COMMITTEE: FINANCE AND AUDIT & RISK MANAGEMENT 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 Senior Corporate Advisor: MMC Group of Companies Patron: Committee for Economic Development of Australia (CEDA) Director: O’Connell Street Associates Pty Ltd Honorary Chair: Macquarie University Foundation Honorary Professor: Public Diplomacy, SPARC, Macquarie Steve Waugh AO University (Soft Power Advocacy & Research Centre- SPARC) Former Chairman: Deutsche Bank Australia & New Zealand COMMITTEE: DEVELOPMENT & MUSEUM Former Chairman: Deutsche Bank Asia Pacific Advisory Board AND ARCHIVES TASKFORCE Former Chairman: Australian Securities Exchange (ASX Limited) International businessman & philanthropist Former Chairman: Sydney Convention & Visitors Bureau Former Australian Test cricket captain Former Chairman: Tourism Inducted into the Australian Cricket & ICC Hall of Fame 2009 Former Chairman: Australian Broadcasting Corporation Founder & Chairman: Steve Waugh Foundation, Australia/India Former Chairman: Sydney Sixers Queen’s Birthday Honour: Officer of the Order of Australia Former Chairman: Loan RQ for services to cricket and charity 2003 Former Chancellor: Macquarie University Australian of the Year 2004, Australian Father of the Year 2005, Former Director: Queensland Investment Corporation (QIC) named one of Australia’s ‘National Living Treasures’ 2006 Former Director: Tiger Airways Australia Limited Member: Laureus World Sports Academy & Former Member: MARQ Services Advisory Board Sports for Good Foundation, Global Appointed Trustee to 13 July 2019 Patron: Udayan & Calcutta Girls Foundation Appointed Trustee to 13 July 2017 Ron Graham AM COMMITTEES: FINANCE, DEVELOPMENT Hon Barry O’Farrell AND AUDIT & RISK MANAGEMENT COMMITTEE: DEVELOPMENT Partner: Heidrick & Struggles Australia Pty Ltd CEO, Racing Australia Ltd Director: Redcourt Consulting Pty Ltd Deputy Chair: Australia India Council Director: Coast Distributors Pty Ltd Board Member: Obesity Australia Director: Weary Dunlop Foundation Ltd Director: Royal Flying Doctor Service South East Section Former President and Chairman: NSW Rugby Union NSW Government’s Special Envoy for India Former President and Chairman: Australian Rugby Union Former NSW Premier Australian Wallaby (18 Tests 1973-78) Appointed Trustee to 13 July 2019 Appointed Trustee to 13 July 2017

48 Sydney Cricket & Sports Ground Trust Annual Report 2017 49 Nihal Gupta David Gilbert COMMITTEES: AUDIT AND RISK MANAGEMENT, COMMITTEE: BUSINESS BUSINESS AND FINANCE President: Western Suburbs District Cricket Club CEO: Palsonic Corporation Pty Ltd Patron: NSW Schools Cricket Association Deputy Chairman: Naisda Foundation Limited Life Member and Former CEO: Cricket NSW (Indigenous performing dance and arts) Vice President and Former CEO: Sussex County Cricket Club Member: Asia Society Advisory Board of Australia Former Australian Cricketer Director: Digital Electronics Corporation Australia Pty Ltd Former Director: Bradman Foundation Former Chairman: Special Broadcasting Service (SBS) Former Director: Sydney Business Chamber Former Chairman: NSW Multicultural Business Advisory Panel Appointed Trustee to 13 July 2018 Former Member: Judicial Commission of New South Wales Former Member: NSW Export and Investment Advisory Panel Former Director: Parramasala Limited (International South Asian arts and cultural festival) Appointed Trustee to 13 July 2017 Phil Waugh COMMITTEES: FINANCE AND MUSEUM Lyn Larsen & ARCHIVES TASKFORCE National Manager Auto Finance St George - Westpac Banking Corporation COMMITTEE: BUSINESS Former Australian Wallaby Captain Honorary Member: Lord’s Taverners, Northern NSW Former NSW Waratahs Captain Member: Cricket NSW Hall of Fame Former British Barbarian Captain Member: NSW Hall of Champions Participant: Sydney to Hobart Race (Line Honours 2011) Member: Sports Australia Hall of Fame Masters of Commerce Life Member: Cricket NSW Masters of International Business Former Captain of the NSW and Australian Women’s cricket team Graduate Australian Institute of Company Directors Appointed Trustee to 13 July 2017 Appointed Trustee to 13 July 2018

Richard Colless AM Katie Page COMMITTEE: DEVELOPMENT Chairman: Moelis Australia Asset Management COMMITTEE: BUSINESS Chairman: Honan Insurance Group Chief Executive Officer: Harvey Norman Holdings Limited Former Non-executive Director: Simonds Group Limited Executive Director: Harvey Norman Holdings Limited Former Chairman: Sydney Swans Limited Director: Pirrama Holdings Ltd (Singapore) Former Chairman: Carbine Club of NSW Director: Space Furniture Pte Ltd (Singapore) Former Director: Events NSW Former Director and Chairman: ING Management Limited Member – UWS Foundation Council Former Member: JP Morgan Australian Advisory Board Member: Retail Council Former Consultant: Mercantile Mutual Member: NSW Council for Women’s Economic Opportunity Former CEO: Pacific Mutual Australia Limited Former Member: NSW Public Service Commission Advisory Board Former Chairman: Inaugural AFL (NSW/ACT) Commission Former Director: Museum of Contemporary Art Limited Former Chairman: (AFL) Appointed Trustee to 13 July 2017 Life Member AFL (2006) Life Member Sydney Swans (2013) Appointed Trustee to 13 July 2017

50 Sydney Cricket & Sports Ground Trust Annual Report 2017 51 Management organisational chart Trust meetings From 1 March 2016 to 28 February 2017, 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 Audit & Risk Committee Finance Business Development Meetings (4) Meetings (3) Meetings (6) (9) Management Meetings (4) Committee Committee Committee Committee Tony Shepherd, AO 2 2 4 8

Rod McGeoch AO LLB 1 5 8

Richard Colless AM 4 7

David Gilbert 3 9 JAMIE BARKLEY Chief Executive Officer Ron Graham 4 3 4 8 Nihal Gupta 4 3 4 9

John Hartigan 2 3 8

BERNIE LAMERTON JASON HILL Alan Jones AO 3 6 DEBORAH KELLY VACANT POSITION General Manager General Manager General Manager Events & Operations Lyn Larsen 3 8 Corporate Services Commercial Strategy & Projects Stuart MacGill 2 7

Finance Corporate Hospitality Master Plan Sports Partner Relationship Maurice Newman, AC 4 4 9

Gold & Platinum Barry O’Farrell 4 9 Procurement Major Building Projects Event Management Membership & Sales Katie Page 2 8 Payroll Services Sponsorship Design & Development Phil Waugh 3 9

Commercial Rights & Steve Waugh AO 1 4 Contract Negotiation

Audit & Risk Finance Business Development Management PHILLIP HEADS JACQUELINE Committee Committee Committee JANE COLES JOHNNY NAOFAL CUNNINGHAM Committee General Manager General Manager General Manager Communications, Heritage General Manager Maurice Newman John Hartigan Rod McGeoch Maurice Newman Membership & Marketing Facilities and Government Relations Human Resources Tony Shepherd Tony Shepherd Tony Shepherd Ron Graham

Membership Heritage Venue & Asset Management Workforce Services Rod McGeoch Rod McGeoch Richard Colless Nihal Gupta

Ron Graham David Gilbert John Hartigan Marketing Public Relations Capital Works Remuneration & Benefits Nihal Gupta Nihal Gupta Alan Jones Stadium Fitness Centre Communications Grounds Recruitment Phil Waugh Lyn Larsen Steve Waugh Information & Communications Technology Government Relations Maintenance Talent Management Stuart MacGill Barry O’Farrell

Right to Information & Public Katie Page Ron Graham Tenant Management Interest Disclosures

Venue Operations

WH&S and Security 52 Sydney Cricket & Sports Ground Trust Annual Report 2017 53 CEO AND GENERAL MANAGER PROFILES

Chief Executive Officer General Manager – Commercial Jamie Barkley was appointed as Chief Executive Jason Hill joined the Trust in October 2000 as Sales and Officer of the Sydney Cricket and Sports Ground Trust Marketing Manager. Prior to this he held management roles at in February 2001. He is responsible for management The Tattersalls Club, NSW Rugby Union and St George Rugby of the SCG and Allianz Stadium. Prior to this, Jamie League Club after beginning his career in sport and venue was Chief Operating Officer 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 from 1994. role evolved into his current position as General Manager – Commercial in 2011 following a restructure of Trust divisions. This restructure saw Jason assume Jamie has a Bachelor of Arts and a Master of Business Administration responsibility for corporate hospitality and Gold and Platinum membership sales, from the Royal Melbourne Institute of Technology. He has over advertising signage, wi-fi and IPTV opportunities, sponsorship sales, commercial 30 years’ experience in sport and venue management. rights and sports partner agreements, such as Cricket Australia, Cricket NSW, Sydney Sixers, Sydney Swans, Waratahs, Wallabies, Sydney Sevens, Sydney FC Jamie is a Director of the Bradman Foundation and the Sydney Cricket Club. and Sydney Roosters. Jason has a Bachelor of Economics degree with Honours in Industrial Relations. He is a board member of the Venue Management Association (Asia and Pacific) Ltd.

Jason has also undertaken the role of interim General Manager – Events and Operations during the period December 2016 to May 2017. Jason assisted with the responsibility for event acquisition, event delivery, sports partner contracts and key venue supply agreements including catering services, ticketing and merchandise. General Manager – Corporate Services General Manager – Membership and Marketing Bernie Lamerton joined the Trust in 1984 after 12 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, Trust Secretary marketing, the Stadium Club, the SCG Museum, Heritage as nominated in the Trust Charter and Liquor Licensee. He is and Tour Experience, and Information and Communication responsible for preparation of the Trust’s statutory financial statements and is one of the longest serving employees at the Trust. Technology (ICT) departments.

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 key stakeholder management. In May 2014, Jane was appointed as the second female Director of SCG Cricket (Sydney Cricket Club) assisting with the future direction and planning of the Club and the SCG XI membership group. In July 2015, Jane assumed responsibility for the broader ICT strategy across the precinct and the Trust’s new Connected Stadium Solution featuring a range of fan engagement features.

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

54 Sydney Cricket & Sports Ground Trust Annual Report 2017 55 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. She two-decade career in newspapers. Phillip was most is responsible for leading the implementation of recently the Director of Sport at News Corp NSW, strategic objectives, providing counsel and advice to during which he served as a sports editor and assistant senior stakeholders, developing strategic people plans editor of The Daily and Sunday Telegraphs. that address current and future challenges and leading a team of staff to ensure service delivery facilitates the He has had a long association with the Trust first as a fan and member and then as a sportswriter. One of his first jobs in journalism was to cover the achievement of Human Resources strategic objectives Sydney Swans’ run to the 1996 AFL Grand Final. that are aligned to overall business objectives.

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 General Manager – Facilities Deborah Kelly joined the Sydney Cricket and Sports Johnny Naofal joined the Trust in February 2016 and Ground Trust in April 2016 as General Manager, has over 20 years’ experience as a Facilities and Strategy and Major Projects. This role is responsible Operations Manager in the service/venue sector, most for developing and managing the Trust’s strategic real recently as the Director of Building Services with the estate projects, including project planning, stakeholder International Convention Centre Sydney and at the management, government liaison and contract Sydney Exhibition Centre at Glebe Island where he was negotiation. part of the pre-opening and executive team since Deborah has 20 years of experience in equity and debt capital markets 2013. financing, mergers and acquisitions and investor relations. Prior to joining the Trust, Deborah held senior executive positions at Mirvac Group, Skilled in the management of large mass gathering and multi-site venues, Stonebridge Group and Babcock & Brown. Deborah is a Fellow of the Johnny has a broad range of venue operations including in FM Operations Institute of Chartered Accountants of Australia and New Zealand. and security/safety, project management, facilities management, operational management, traffic and logistics management, precinct interface management and FF&E Asset Management. He has formal qualifications in project management, security/risk management and in business management.

56 Sydney Cricket & Sports Ground Trust Annual Report 2017 57 Charter: Sydney Cricket & Sports Rugby (NSW Waratahs), NRL (Sydney Roosters, St George Illawarra Dragons, South Sydney Rabbitohs) Ground Act, 1978 No. 72 and A-League football (Sydney FC) at Allianz Stadium »» Successful major events including: Rugby The Trust was constituted under this Act and is Test (Australia v England), Australia v UAE charged with the care, control and management of (football), NRL Finals, Coldplay concerts, World the scheduled lands dedicated for public recreation. Rugby Sevens (men’s and women’s), Anzac Day Cup and the A-League Grand Final The Trust may allow the scheduled lands or any part »» Long-term venue hire agreements in place with thereof to be used by persons, clubs, associations, Australian Rugby Union (Wallabies Tests until 2031 leagues or unions at such times and on such terms & World Rugby Sevens until 2019), NRL finals (until and conditions as the Trust may think fit and proper 2021), NSW Rugby (Super Rugby until 2031), Cricket for cricket, football, athletics, public amusement or Australia (international cricket until 2022/23), Sydney any other purpose which the Minister may approve. Sixers (until 2022/23), and Sydney FC (until 2027) » The Trust may carry out works for the improvement, » Construction of Australian Rugby Development Centre, development and maintenance of the Trust lands home of Australian Rugby Union and University including the redesigning of areas, the construction of Technology, Sydney (to be opened in 2017) of any building or structure on the Trust lands, and »» Completion of Trust’s Concept Plan including future the provision of stands and other accommodation stages of the SCG redevelopment program, Allianz for spectators frequenting Trust land. Stadium project and surrounding Moore Park precinct »» Reviewed and upgraded security operations at the Constitution of the Trust grounds and precinct including new CCTV systems

Under Section 5 (2), the Trust shall have and may The Chief Executive Officer managed a capital exercise and perform the functions conferred or imposed works program of $12.9 million, including: on it by or under the Act, and shall in the exercise or performance of its functions, be subject to the control »» Upgrade of retail catering outlets at and direction of the Minister for Sport and Recreation. the SCG and Allianz Stadium » The Trust consists of 15 members, 13 appointed by » Upgrade to private suites at the the Governor and two elected by Members. Each SCG and Allianz Stadium Trustee is appointed for a term of up to four years. »» Refurbishment of Allianz Stadium home and away changerooms Performance Statement »» Upgrade to Stadium Club and spa and pool plant room Jamie Barkley, Chief Executive Officer »» Safety and Compliance upgrade for the precinct Annual Salary: $571,505 »» Additional solar powered lighting in the The Chairman reported that the Chief Executive Officer MP1 car park and surrounds performed to a high level during 2016-17 the financial year. Mr Barkley’s major achievements included:

»» An operating profit of $1.4 million, exceeding budget of $1.2 million by 16 per cent »» Increased operating revenue by 5.9 per cent to $91.6 million compared to $86.5 million in the previous year »» Capital debt reduced from $79 million to $77 million »» Maintained high retention of Gold, Platinum and SCG members with revenue of $26.5 million compared to $25.4 million in 2016 »» Successful sporting events: international and domestic cricket including the New Year’s Test, One-Day Internationals, T20 Big Bash League (Sydney Sixers) and AFL (Sydney Swans) at the SCG and Super

58 Sydney Cricket & Sports Ground Trust Annual Report 2017 59 FINANCIAL INDICATORS FIVE-YEAR OPERATING OPERATING SURPLUS SURPLUS V BUDGET THE TABLES OUTLINED BELOW DETAIL THE TRUST’S REVENUE, Excluding grants and DEBT LEVELS, OPERATING SURPLUS, EARNINGS BEFORE allocation of reserves 6.0 INTEREST AND MEMBERSHIP RENEWAL FINANCIALS. 5.0 20% 4.0 3.0 On Budget to 2.0 $ 1.4m 1.0

Actual 0 2012/13 2013/14 2014/15 2015/16 2016/17 REVENUE FIVE-YEAR REVENUE Budget Operating revenue 160 140 76 6% 120 57 100 6 0 MEMBERSHIP RENEWALS 12 On 2015/16 to 80 84 85 92 20000 60 76 $ 92m 40 67 15000 20 10000 Operating Revenue 0 5000 Grant Revenue 2012/13 2013/14 2014/15 2015/16 2016/17 0 2012/13 2013/14 2014/15 2015/16 2016/17

EBITDA FIVE-YEAR EBITDA In line with budget 25 DEBT LEVELS 20 $ 18m 90 15 19 18 17 75 10 14 13 60 5 45 0 30 2012/13 2013/14 2014/15 2015/16 2016/17 15

0 2012/13 2013/14 2014/15 2015/16 2016/17

60 Sydney Cricket & Sports Ground Trust Annual Report 2017 61 62 Sydney Cricket & Sports Ground Trust Annual Report 2017 63 BEGINNING OF AUDITED FINANCIAL STATEMENTS

SYDNEY CRICKET AND SPORTS GROUND TRUST Statement of Profit or Loss and Other Comprehensive Income for the Year Ended 28 February 2017

CONSOLIDATED PARENT

2017 2016 2017 2016 NOTES $’000 $’000 $’000 $’000

REVENUE

Membership 2a 26,466 25,438 26,466 25,438 Hire Fees 10,915 10,454 10,915 10,454 Catering 2b 23,297 21,430 23,297 21,430 Advertising and Sponsorship 2c 15,706 14,790 15,706 14,790 Corporate Seating sales 2d 3,805 4,122 3,805 4,122 Government Grant 2e - 5,800 - 5,800 Other Revenue 2f 11,348 10,253 11,348 10,253

Total Revenue 91,537 92,287 91,537 92,287

EXPENDITURE

Operating Expense 3a 54,331 48,379 54,331 48,379 Employee Related Expense 3b 18,871 18,405 2,282 2,586 Personnel Services Expense 3b - - 16,302 16,111 Depreciation 6 13,291 13,130 13,291 13,130 Finance Costs 3c 3,932 4,168 3,932 4,168

Total Expenditure 90,425 84,082 90,138 84,374

OPERATING RESULT 1,112 8,205 1,399 7,913

Gain/(Loss) on Disposal of Plant & Equipment 2g (8,052) (5) (8,052) (5)

NET RESULT (6,940) 8,200 (6,653) 7,908

OTHER COMPREHENSIVE INCOME Items that will not be reclassified subsequently to profit or loss Net increase/(decrease) in property, plant 6 - 18,516 - 18,516 and equipment revaluation reserve Actuarial gains/(losses) on defined 9 287 (292) - - benefit pension plans

Total Other Comprehensive Income 287 18,224 - 18,516

TOTAL COMPREHENSIVE INCOME (6,653) 26,424 (6,653) 26,424

The accompanying notes form part of these financial statements.

64 Sydney Cricket & Sports Ground Trust Annual Report 2017 65 SYDNEY CRICKET AND SPORTS GROUND TRUST SYDNEY CRICKET AND SPORTS GROUND TRUST Statement of Financial Position as at 28 February 2017 Statement of Changes in Equity for the Year Ended 28 February 2017

CONSOLIDATED PARENT CONSOLIDATED PARENT Asset Asset Accumulated Revaluation Accumulated Revaluation 2017 2016 2017 2016 Funds Reserve Total Funds Reserve Total NOTES $’000 $’000 $’000 $’000 Notes $’000 $’000 $’000 $’000 $’000 $’000 ASSETS BALANCE AT 1 MARCH 2016 332,669 360,828 693,497 332,669 360,828 693,497 Current Assets Net Result for the Year (6,940) - (6,940) (6,653) - (6,653) Cash and Cash Equivalents 4 9,657 8,629 9,657 8,629 Other Comprehensive Income Receivables 5 17,334 15,099 17,334 15,099 Net increase/(decrease) in 6 ------Inventories 1,453 907 1,453 907 property, plant and equipment revaluation reserve Total Current Assets 28,444 24,635 28,444 24,635 Actuarial Gains/(Losses) on 9 287 - 287 - - - defined benefit pension plans Non-Current Assets Total Comprehensive (6,653) - (6,653) (6,653) - (6,653) Property, Plant & Equipment 6 779,670 787,828 779,670 787,828 Income for the year Receivables 5 6,735 6,806 6,735 6,806 Transactions with owners Total Non-Current Assets 786,405 794,634 786,405 794,634 in their capacity as owners ------Increase/(decrease) in net Total Assets 814,849 819,269 814,849 819,269 assets from equity transfers

BALANCE AT 28 FEBRUARY 2017 326,016 360,828 686,844 326,016 360,828 686,844 LIABILITIES CONSOLIDATED PARENT Current Liabilities Payables 7a 21,046 14,469 19,567 13,319 Asset Asset Accumulated Revaluation Accumulated Revaluation Other Liabilities 7b 18,197 18,279 18,197 18,279 Funds Reserve Total Funds Reserve Total Borrowings 8 8,838 8,516 8,838 8,516 Notes $’000 $’000 $’000 $’000 $’000 $’000

Provisions 9 2,594 2,344 5,132 4,855 BALANCE AT 1 MARCH 2015 324,761 342,312 667,073 324,761 342,312 667,073 Total Current Liabilities 50,675 43,608 51,734 44,969 Net Result for the Year 8,200 - 8,200 7,908 - 7,908 Net increase/(decrease) in Non-Current Liabilities property, plant and equipment 6 - 18,516 18,516 - 18,516 18,516 revaluation reserve Payables 7a 4,811 7,268 4,811 7,268 Actuarial Gains/(Losses) on Other Liabilities 7b 3,332 3,070 3,332 3,070 9 (292) - (292) - - - defined benefit pension plans Borrowings 8 68,128 70,465 68,128 70,465 Total Comprehensive 7,908 18,516 26,424 7,908 18,516 26,424 Provisions 9 1,059 1,361 - - Income for the year Total Non-Current Liabilities 77,330 82,164 76,271 80,803 Transactions with owners in their capacity as owners Total Liabilities 128,005 125,772 128,005 125,772 ------Increase/(decrease) in net assets from equity transfers

Net Assets 686,844 693,497 686,844 693,497 BALANCE AT 29 FEBRUARY 2016 332,669 360,828 693,497 332,669 360,828 693,497

The accompanying notes form part of these financial statements. EQUITY

Reserves 360,828 360,828 360,828 360,828 Accumulated Funds 326,016 332,669 326,016 332,669 Total Equity 686,844 693,497 686,844 693,497

The accompanying notes form part of these financial statements.

66 Sydney Cricket & Sports Ground Trust Annual Report 2017 67 SYDNEY CRICKET AND SPORTS GROUND TRUST SYDNEY CRICKET AND SPORTS GROUND TRUST Statement of Cash Flows for the Year Ended 28 February 2017 Notes to the Financial Statements for the Year Ended 28 February 2017

CONSOLIDATED PARENT 1.Summary of Significant Accounting Policies 2017 2017 NOTES 2016 2016 $’000 $’000 $’000 $’000 a) Reporting Entity b) Basis of Preparation

CASH FLOWS FROM OPERATING ACTIVITIES The Trust is constituted under the provisions of the The Trust’s financial statements are general-purpose Sydney Cricket & Sports Ground Act, 1978. The financial statements, which have been prepared on an Receipts activities of the Trust concentrate upon its primary role in accruals basis and in accordance with: Receipts from Operations 99,873 86,443 99,873 86,443 the care, control and management of the Sydney Cricket Ground and Allianz Stadium which together are lands »» applicable Australian Accounting Standards (which Government Grants - 5,800 - 5,800 dedicated for public recreation. The Trust is domiciled in include Australian Accounting Interpretations) Interest Received 168 142 168 142 Australia and its principal office is at Moore Park Road, Paddington. Other 543 882 543 882 »» other professional authoritative pronouncements of the Australian Accounting Standards Board. Total Receipts 100,584 93,267 100,584 93,267 The Sydney Cricket & Sports Ground Trust, as a reporting entity, is a Public Trading Enterprise. The Trust is a not »» the requirements of the Public Finance and Audit Act for profit entity (profit is not its principle objective). The 1983 and Public Finance and Audit Regulation 2015 Payments reporting entity is consolidated as part of the NSW Total State Sector Accounts. Selected non-current assets, financial assets and Suppliers and Employees (77,716) (61,399) (77,716) (61,399) financial liabilities are measured at fair value. The other The Sydney Cricket & Sports Ground Trust Staff Agency Interest Paid (4,049) (4,304) (4,049) (4,304) financial statement items are prepared in accordance (the Agency) is a Public Service Agency, established with the historical cost convention. Other (2,672) (2,770) (2,672) (2,770) pursuant to schedule 1 of the Government Sector Employment Act 2013 (GSEA). Total Payments (84,437) (68,473) (84,437) (68,473) Judgements, key assumptions and estimations management has made are disclosed in the relevant The Sydney Cricket and Sports Ground Trust Staff notes to the financial statements. Agency was established on 24 February 2014 under the NET CASH FLOWS FROM 14b 16,147 24,794 16,147 24,794 Government Sector Employment Act 2013 (GSEA) to OPERATING ACTIVITIES provide personnel services to the Trust. The All amounts are rounded to the nearest one thousand consolidated Financial Statements of the Trust include dollars and are expressed in Australian currency. the activities of this Agency. The enactment of this CASH FLOWS FROM INVESTING ACTIVITIES legislation resulted in the assets and liabilities of the c) Statement of Compliance previous entity (the Sydney Cricket and Sports Ground Purchase of Property, Plant The financial statements and notes comply with (13,651) (19,067) (13,651) (19,067) Trust Division) being transferred to the new entity (the and Equipment Sydney Cricket and Sports Ground Trust Staff Agency). Australian Accounting Standards, which include Australian Accounting Interpretations. Proceeds from Sale of 193 173 193 173 Plant and Equipment On 2 March 2016 the Government Sector Employment Legislation Amendment Act 2017 No 2 was issued. The d) Borrowing Costs NET CASH FLOWS FROM INVESTING ACTIVITIES (13,458) (18,894) (13,458) (18,894) Act made the following amendments relevant to the Trust: Borrowing costs consist of interest and other costs incurred in connection with the borrowing of funds. » Borrowing costs are recognised as expenses in the CASH FLOWS FROM FINANCING ACTIVITIES » reference to the Trust was removed from the GSE Act 2013 period in which they are incurred, in accordance with Proceeds from Borrowings - - - - Treasury’s Mandate to not-for-profit general government »» the Sydney Cricket and Sports Ground Trust Act 1978 sector entities. Repayment of Borrowings (1,661) (2,164) (1,661) (2,164) No 72 was amended to allow the Trust to employ staff. NET CASH FLOWS FROM FINANCING ACTIVITIES (1,661) (2,164) (1,661) (2,164) e) Insurance These amendments remove the requirement for the Trust to comply with the requirements of the GSE Act 2013 The Trust’s insurance activities are conducted through Net Increase/(Decrease) in and effectively abolish the Sydney Cricket and Sport the NSW Treasury Managed Fund Scheme of self- Cash and Cash Equivalents 1,028 3,736 1,028 3,736 Ground Trust Staff Agency from 1 April 2017. insurance for Government entities. The expense (premium) is determined by the Fund Manager based on Opening Cash and Cash Equivalents 8,629 4,893 8,629 4,893 In the process of preparing the consolidated financial past claims experience. statements for the Trust, consisting of the controlling and controlled entities, all inter-Trust transactions and CLOSING CASH AND 14a 9,657 8,629 9,657 8,629 balances have been eliminated. CASH EQUIVALENTS These financial statements for the year ended 28 The accompanying notes form part of these financial statements. February 2017 have been authorised for issue by the Audit and Risk Committee on 14 June 2017.

68 Sydney Cricket & Sports Ground Trust Annual Report 2017 69 SYDNEY CRICKET AND SPORTS GROUND TRUST SYDNEY CRICKET AND SPORTS GROUND TRUST Notes to the Financial Statements for the Year Ended 28 February 2017 Notes to the Financial Statements for the Year Ended 28 February 2017

f) Accounting for the Goods and Services Tax i) Assets asset in the class does not differ materially from its fair (v) Depreciation of property, plant and (GST) value at reporting date. Interim formal revaluations are equipment (i) Acquisitions of assets carried out in the years between the comprehensive Property, plant and equipment, other than land, are revaluation. The last comprehensive revaluation of Income, expenses and assets are recognised net of the Assets acquired are initially recognised at cost. Cost is depreciated at rates based on their expected useful lives buildings was completed on 28 February 2015 and the amount of GST, except that the: the amount of cash or cash equivalents paid or the fair for the Trust, using the straight-line method. value of the other consideration given to acquire the last interim formal revaluation was completed on 28 February 2017, both based on an independent »» amount of GST incurred by the Trust as a purchaser asset at the time of its acquisition or construction or, All material identifiable components of assets are where applicable, the amount attributed to that asset assessment. A full revaluation of land was completed on depreciated separately over their useful lives. Land is not that is not recoverable from the Australian Taxation 29 February 2016 based on an independent assessment. Office is recognised as part of an asset’s cost of when initially recognised in accordance with the a depreciable asset. acquisition or as part of an item of expense and requirements of other Australian Accounting Standards. Non-specialised assets with short useful lives are Depreciation rates of each class of depreciable assets measured at depreciated historical cost, as a surrogate » Assets acquired at no cost, or for nominal consideration, are: » receivables and payables are stated with the amount for fair value. The Trust has assessed that any difference of GST included. are initially recognised at their fair value at the date of acquisition. Fair value is the price that would be received between fair value and depreciated historical cost is »» Buildings and Improvements 1.1% - 20% to sell an asset in an orderly transaction between market unlikely to be material. Cash flows are included in the Statement of Cash Flows »» Plant and Equipment 5% - 33.3% participants at measurement date. on a gross basis. However, the GST components of cash When revaluing non-current assets using the cost flows arising from investing and financing activities which approach, the gross amount and the related accumulated (vi) Maintenance are recoverable from, or payable to, the Australian (ii) Capitalisation thresholds depreciation are separately restated. For other assets Day-to-day servicing costs or maintenance are charged Taxation Office are classified as operating cash flows. Property, plant and equipment and intangible assets valued using other valuation techniques, any balances of as expenses as incurred, except where they relate to the costing $5,000 and above individually (or forming part of accumulated depreciation at the revaluation date in replacement of a part or component of an asset, in which g) Revenue Recognition a network costing more than $5,000) are capitalised. All respect of those assets are credited to the asset case the costs are capitalised and depreciated. items under $5,000 and above $2,000 which are accounts to which they relate. The net asset accounts considered at risk of theft are capitalised and recorded in Revenue is measured at the fair value of the are then increased or decreased by the revaluation (vii) Leased assets consideration or contribution received or receivable. the Trust’s assets register. increments or decrements. Additional comments regarding the accounting policies A distinction is made between finance leases which for the recognition of income are discussed below. (iii) Revaluation of property, plant and Revaluation increments are credited directly to asset effectively transfer from the lessor to the lessee equipment revaluation reserve, except that, to the extent that an substantially all the risks and benefits incidental to ownership of the leased assets, and operating leases (i) Sale of goods Physical non-current assets are valued in accordance increment reverses a revaluation decrement in respect of that class of asset previously recognised as an expense under which the lessor does not transfer substantially all Revenue from the sale of goods is recognised as revenue with the ‘Valuation of Physical Non-Current Assets at Fair in the net result, the increment is recognised immediately the risks and benefits. when the Trust transfers the significant risks and rewards Value’ Policy and Guidelines Paper (TPP 14-01). This policy adopts fair value in accordance with AASB 13 Fair as revenue in the net result. of ownership of the assets. Where a non-current asset is acquired by means of a Value Measurement and AASB 116 Property, Plant and finance lease, at the commencement of the lease term, Equipment. Revaluation decrements are recognised immediately as (ii) Rendering of services expenses in the net result, except that, to the extent that the asset is recognised at its fair value or, if lower, the present value of the minimum lease payments, at the Revenue is recognised when the service is provided or a credit balance exists in the asset revaluation reserve in Property, plant and equipment is measured at the highest inception of the lease. The corresponding liability is by reference to the stage of completion (based on labour respect of the same class of assets, they are debited and best use by market participants that is physically established at the same amount. Lease payments are hours incurred to date). directly to the asset revaluation reserve. possible, legally permissible and financially feasible. The allocated between the principal component and the highest and best use must be available at a period that is interest expense. (iii) Investment revenue not remote and take into account the characteristics of As a not-for-profit entity, revaluation increments and the asset being measured, including any socio-political decrements are offset against one another within a class Interest revenue is recognised using the effective interest Property, plant and equipment acquired under finance restrictions imposed by government. In most cases, of non-current assets, but not otherwise. method as set out in AASB 139 Financial Instruments: leases are depreciated over the asset’s useful life. after taking into account these considerations, the Recognition and Measurement. Rental revenue from However, if there is no reasonable certainty that the highest and best use is the existing use. In limited Where an asset that has previously been revalued is operating leases is recognised in accordance with AASB lessee entity will obtain ownership at the end of the lease circumstances, the highest and best use may be a disposed of, any balance remaining in the asset 117 Leases on a straight-line basis over the lease term. term, the asset is depreciated over the shorter of the feasible alternative use, where there are no restrictions revaluation reserve in respect of that asset is transferred estimated useful life of the asset and the lease term. on use or where there is a feasible higher restricted to accumulated funds. h) Grants Recognition alternative use. Operating lease payments are charged to the statement (iv) Impairment of property, plant and equipment Grants are recognised as revenue when the Trust obtains of comprehensive income in the periods in which they Fair value of property, plant and equipment is based on a control over the assets comprising the grant. Control is As a not-for-profit entity, impairment under AASB 136 are incurred. Lease payments from operating leases market participants’ perspective, using valuation normally obtained upon the receipt of cash. Impairment of Assets is unlikely to arise. As property, where the Trust is a lessor is recognised in income on a techniques (market approach, cost approach, income plant and equipment is carried at fair value (or an amount straight-line basis over the lease term. The respective approach) that maximise relevant observable inputs and that approximates fair value), impairment can only arise leased assets are included by the lessor entity in the minimise unobservable inputs. Also refer Note 6 for in the rare circumstances where the costs of disposal are Statement of Financial Position based on their nature. further information regarding fair value. material. Specifically, impairment is unlikely for not-for- profit entities given that AASB 136 modifies the (viii) Loans and receivables The Trust re-values each class of property, plant and recoverable amount test for non-cash generating assets Loans and receivables are non-derivative financial assets equipment at least every three years or with sufficient of not-for-profit entities to the higher of fair value less with fixed or determinable payments that are not quoted regularity to ensure that the carrying amount of each costs of disposal and depreciated replacement cost, in an active market. These financial assets are where depreciated replacement cost is also fair value. recognised initially at fair value, usually based on the

70 Sydney Cricket & Sports Ground Trust Annual Report 2017 71 SYDNEY CRICKET AND SPORTS GROUND TRUST SYDNEY CRICKET AND SPORTS GROUND TRUST Notes to the Financial Statements for the Year Ended 28 February 2017 Notes to the Financial Statements for the Year Ended 28 February 2017

transaction cost, or face value. Subsequent (xi) Impairment of financial assets (ii) Borrowings Superannuation: measurement is at amortised cost using the effective All financial assets, except those measured at fair value Loans are not held for trading or designated at fair value For defined contribution superannuation schemes, interest method, less an allowance for any impairment of through profit and loss, are subject to an annual review through profit or loss and are recognised at amortised employer contributions are expensed when incurred. A receivables. Any changes are recognised in the net result for impairment. An allowance for impairment is cost using the effective interest rate method. Gains or liability is recognised only to the extent of unpaid for the year when impaired, derecognised or through the established when there is objective evidence that the losses are recognised in the net result for the year on employer contributions at reporting date. amortisation process. Trust will not be able to collect all amounts due. derecognition. As per Accounting Standard AASB 119 for defined Short-term receivables with no stated interest rate are For financial assets carried at amortised cost, the amount The finance lease liability is determined in accordance benefit superannuation schemes, expenses are measured at the original invoice amount where the effect of the allowance is the difference between the asset’s with AASB 117 Leases. recognised based on the current service costs and net of discounting is immaterial. carrying amount and the present value of estimated interest and expected return on fund assets now future cash flows, discounted at the effective interest (iii) Employee benefits and other provisions recognised as other comprehensive income for the (ix) Inventories rate. The amount of the impairment loss is recognised in reporting period as calculated and advised by Pillar Inventories are stated at the lower of cost and net the net result for the year. Salaries and Wages, Annual Leave, Long Service Leave, Administration. In accordance with NSW Treasury policy realisable value. Cost is calculated using the weighted Sick Leave: TC 14-05 Accounting for Superannuation and AASB 119 average cost or ‘first in first out’ method. Any reversals of impairment losses are reversed through Employee Benefits, the consolidated entity recognises the net result for the year, where there is objective Provision is made for annual leave and long service leave actuarial gains and losses and the actual return on fund assets for defined benefit superannuation schemes (x) Investments evidence. Reversals of impairment losses of financial estimated to be payable to employees as at reporting assets carried at amortised cost cannot result in a date. outside of the surplus/(deficit) in the ‘other Investments are initially recognised at fair value plus, in carrying amount that exceeds what the carrying amount comprehensive income’. The actuarial gains and losses the case of investments not at fair value through profit or would have been had there not been an impairment loss. Unused non-vesting sick leave does not give rise to a for defined benefit superannuation schemes are loss, transaction costs. The Trust determines the liability, as it is not considered probable that sick leave expensed by the parent entity as part of their personnel classification of its financial assets after initial recognition (xii) Derecognition of financial assets and taken in the future will be greater than the benefits service expenses. A net liability or asset is recognised and, when allowed and appropriate, re-evaluates this at financial liabilities accrued in the future. Benefits for Rostered Days Off based on the difference between the present value of the each financial year end. (RDOs) have not been accrued, as the Trust policy is not Trust’s defined benefit obligations and the fair value of A financial asset is derecognised when the contractual to cash out these balances. fund assets as at the reporting date, as adjusted for rights to the cash flows from the financial assets expire; Fair value through profit or loss - The Trust subsequently unrecognised past service costs, unrecognised gains/ or if the Trust transfers the financial asset: measures investments classified as ‘held for trading’ or Benefits for long service leave and annual leave have (losses), and limitations on net assets. The net liability or designated upon initial recognition ‘at fair value through been provided on the basis of emerging entitlements for asset is actuarially determined. »» where substantially all the risks and rewards have profit or loss’ at fair value. Financial assets are classified recognised service for long service leave, and quantum been transferred or as ‘held for trading’ if they are acquired for the purpose due at reporting date for annual leave. Consequential costs to employment: of selling in the near term. Gains or losses on these »» where the Trust has not transferred substantially all the Consequential costs to employment are recognised as assets are recognised in the net result for the year. In accordance with Accounting Standard AASB 119 risks and rewards, if the Trust has not retained control. liabilities and expenses where the employee benefits to “Employee Benefits” liabilities arising in respect of which they relate have been recognised. This includes The Hour-Glass Investment Facilities are designated at salaries and wages, annual leave and other employee Where the Trust has neither transferred nor retained outstanding amounts of payroll tax, workers’ fair value through profit or loss using the second leg of benefits expected to be settled within twelve months of substantially all the risks and rewards or transferred compensation insurance premiums and fringe benefits the fair value option under AASB 139.9(b)(ii); i.e. these the reporting date are measured at their nominal amounts control, the asset is recognised to the extent of the tax. financial assets are managed and their performance is based on remuneration rate which are expected to be Trust’s continuing involvement in the asset. evaluated on a fair value basis, in accordance with a paid when the liability is settled. The Trust has documented risk management strategy, and information determined that the calculation of projecting and (k) Fair Value Hierarchy A financial liability is derecognised when the obligation about these assets is provided internally on that basis to discounting annual leave to be immaterial and as such specified in the contract is discharged or cancelled or Fair value is the price that would be received to sell an the Trust’s key management personnel. the liability is classified as a short-term liability in expires. asset or paid to transfer a liability in an orderly accordance with TC 15/09. transaction between market participants at the The movement in the fair value of the Hour-Glass measurement date. The fair value measurement is based Investment Facilities incorporates distributions received (xiii) Other Assets The liability arising in respect of annual leave is on the presumption that the transaction to sell the asset as well as unrealised movements in fair value and is Other assets are recognised on a historic cost basis. recognised and measured by applying the nominal value or transfer the liability takes place either in the principal reported in the line item ‘investment revenue’. based on remuneration rates plus the annual leave-on- market for the asset or liability or in the absence of a leave liability. The Trust has determined that the principal market, in the most advantageous market for Purchases or sales of investments under contract that (j) Liabilities calculation of projecting and discounting annual leave to the asset or liability. require delivery of the asset within the timeframe (i) Payables be immaterial and as such the liability is classified as a established by convention or regulation are recognised short-term liability in accordance with TC 15/09. All other A number of the Trust’s accounting policies and on the trade date; i.e. the date the Trust commits to These amounts represent liabilities for goods and employee benefit liabilities are measured at the present disclosures require the measurement of fair values, for purchase or sell the asset. The fair value of investments services provided to the Trust and other amounts. value of the estimated future cash outflows to be made in both financial and non-financial assets and liabilities. that are traded at fair value in an active market is Payables are recognised initially at fair value, usually respect of services provided by employees up to the When measuring fair value, the valuation technique used determined by reference to quoted current bid prices at based on the transaction cost or face value. Subsequent reporting date. In determining the present value of future maximises the use of relevant observable inputs and the close of business on the statement of financial measurement is at amortised cost using the effective cash outflows, the market yield on national government minimises the use of unobservable inputs. Under AASB position date. interest method. Short-term payables with no stated bonds, which have terms to maturity approximating the 13, the Trust categorises, for disclosure purposes, the interest rate are measured at the original invoice amount terms of the related liability are used. The provisions for valuation techniques based on the inputs used in the where the effect of discounting is immaterial. leave entitlements also include the relevant on-costs. valuation techniques as follows:

72 Sydney Cricket & Sports Ground Trust Annual Report 2017 73 SYDNEY CRICKET AND SPORTS GROUND TRUST SYDNEY CRICKET AND SPORTS GROUND TRUST Notes to the Financial Statements for the Year Ended 28 February 2017 Notes to the Financial Statements for the Year Ended 28 February 2017

»» Level 1 - quoted prices in active markets for identical »» AASB 1058 Income of Not-for-profit Entities (q) Debt Management Strategy assets / liabilities that the Trust can access at the measurement date. »» AASB 2016-1 Amendments to Australian Accounting The NSW Treasury Corporation actively manages the Trust’s portfolio of debt. The Corporation has provided the Trust the facility whereby maturing loans may be rolled over and replaced with new loans whilst maintaining the original »» Level 2 – inputs other than quoted prices included Standards – Recognition of Deferred Tax Assets for Unrealised Losses capital value of the portfolio. Borrowings and Advances are shown as current and non-current liabilities and include within Level 1 that are observable, either directly or the provision for rollover upon maturity. Borrowing costs are recognised as expenses in the period in which they are indirectly. »» AASB 2016-2 Amendments to Australian Accounting incurred. »» Level 3 – inputs that are not based on observable Standards – Disclosure Initiative: Amendments to market data (unobservable inputs). AASB 107 2. Revenue The Trust recognises transfers between levels of the fair »» AASB 2016-4 Amendments to Australian Accounting value hierarchy at the end of the reporting period during Standards – Recoverable Amount of Non-Cash- which the change has occurred. CONSOLIDATED PARENT Generating Specialised Assets of Not-for-Profit Refer Note 13 for further disclosures regarding fair value Entities 2017 2016 2017 2016 measurements of financial and non-financial assets. $’000 $’000 $’000 $’000 »» AASB 2016-7 Amendments to Australian Accounting (l) Equity And Reserves Standards – Deferral of AASB 15 for Not-for-Profit Entities (a) Membership (i) Asset revaluation reserve »» AASB 2016-8 Amendments to Australian Accounting Membership Annual Subscriptions 20,693 19,125 20,693 19,125 The asset revaluation reserve is used to record Standards – Australian Implementation Guidance for SCG Member Entrance Fees 649 586 649 586 increments and decrements on the revaluation of Not-for-Profit Entities non-current assets. This accords with the Trust’s policy Platinum/Gold Member Entrance Fees 5,124 5,727 5,124 5,727 on the revaluation of property, plant and equipment as »» AASB 2017-2 Amendments to Australian Accounting discussed in note 1(i)(iii). Standards – Further Annual Improvements 2014-2016 26,466 25,438 26,466 25,438 Cycle (ii) Accumulated funds (b) Catering The category ‘Accumulated Funds’ includes all current It is considered that the implementation of these and prior period retained funds. Standards will not have any material impact on the Income received from liquor and food trading for events, functions and non-event days is detailed as follows: Trust’s financial results. (m) Comparative Information (o) Sydney Cricket Club Liquor Sales 18,133 16,676 18,133 16,676 Except when an Australian Accounting Standard permits Food Sales Commission 4,191 4,007 4,191 4,007 or requires otherwise, comparative information is In 2007 the Trust joined with the administration of the Contract Premium Amortisation 973 747 973 747 presented in respect of the previous period for all former UTS-Balmain District Cricket Club in establishing amounts reported in the financial statements. the new entity of the Sydney Cricket Club (the Club). The 23,297 21,430 23,297 21,430 Club is an Incorporated Association under the (n) Changes in Accounting Policy, Including Associations Incorporation Act 1984. The Trust and the Club have an association which involves the provision by LIQUOR TRADING New or Revised Australian Accounting the Trust of administrative and other services to the Club. The Trust operates through a managing agent for liquor trading in the public, members and corporate areas of the Standards The Trust is represented on the Club’s Board of Directors Sydney Cricket Ground and Allianz Stadium. Income from liquor trading represents gross liquor sales at the Sydney in accord with the Club Constitution. The Club is not Cricket Ground and Allianz Stadium. The accounting policies applied in 2016-17 are considered to be controlled by the Trust. Any expenses consistent with those of the previous financial year. that were incurred during the past year through payroll, operational expenditure and management time have FOOD TRADING At reporting date a number of accounting standards been recouped from the Sydney Cricket Club through the Income from food trading comprises a share of gross food sales at the Sydney Cricket Ground and Allianz Stadium adopted by the AASB had been issued but are not yet Club’s operational account. The Trust has established a received by the Trust, together with amortisation of contract premiums received as a licence fee paid in advance under effective. At present New South Wales Treasury is Bank Deposit Account as security against the overdraft the previous and new catering contract. The Trust’s current catering contract which commenced on 1 November 2015 mandating not to early adopt any of the new Standards/ facility of the Sydney Cricket Club. is due to expire on 31 October 2020. The total premium received under the contract is being amortised annually over Interpretations as per Treasury Circular TC 17-04. the term of the contract. (p) Tax Status The following new Standards/Interpretations have not been early adopted by the Trust and are not yet effective. (c) Advertising and Sponsorship The activities of the Sydney Cricket and Sports Ground Trust are exempt from the provisions of the Income Tax »» AASB 9 Financial Instruments ADVERTISING & SPONSORSHIP 15,706 14,790 15,706 14,790 Assessment Act and other Federal Government taxation legislation, with the exception of the requirement to pay »» AASB 15, AASB 2014-5, AASB 2015-8 and 2016-3 fringe benefits tax and GST. The Trust also pays payroll regarding Revenue from Contracts with Customers Income includes payments under contract with various companies for naming rights, exclusive product rights, tax. sponsorship and advertisements that are displayed on fences, grandstands and video scoreboards at the Sydney Cricket Ground and Allianz Stadium. »» AASB 16 Leases

74 Sydney Cricket & Sports Ground Trust Annual Report 2017 75 SYDNEY CRICKET AND SPORTS GROUND TRUST SYDNEY CRICKET AND SPORTS GROUND TRUST Notes to the Financial Statements for the Year Ended 28 February 2017 Notes to the Financial Statements for the Year Ended 28 February 2017

CONSOLIDATED PARENT In November 2014, the NSW Government earmarked funding for sports infrastructure as part of its Rebuilding NSW strategy. Subsequently, the Trust received government grants in 2014 and 2015 to develop a concept design to deliver a 2017 2016 2017 2016 world-class new National Rectangular Stadium (NRS) at Moore Park. In April 2016, the NSW Government announced a $’000 $’000 $’000 $’000 $1.6 billion package for Sydney Stadium redevelopment, including the refurbishment of Allianz Stadium, to begin during the next term of Government, post 2019. While the Allianz Stadium project remains under active consideration, there is no evidence to demonstrate committed funding from the Government at this time for the project. As such, the sum (d) Corporate Seating Sales $8.101M expended on the NRS concept design has been written off as at 28 February 2017. The write-off of design expenditure has been included in Gain/(Loss) on Disposal of Property, Plant & Equipment. Premium Seating 250 310 250 310 Private/Corporate Boxes 3,555 3,812 3,555 3,812 3. Expenditure 3,805 4,122 3,805 4,122 CONSOLIDATED PARENT

Income includes hire/rental of corporate facilities sold on an annual basis and corporate seating sold on a daily and 2017 2016 2017 2016 seasonal basis providing dining/viewing for major and other events at the Sydney Cricket Ground and Allianz Stadium. $’000 $’000 $’000 $’000

(e) Government Grants (a) Operating Expenses

Event Operating Costs 17,660 14,329 17,660 14,329 NSW GOVERNMENT GRANT - 5,800 - 5,800 Ground Operation & Maintenance 12,240 11,931 12,240 11,931 In 2015/16 the Trust received a grant of $5.8M from the NSW Government to undertake a concept design process for Liquor Cost of Goods Sold 5,641 5,029 5,641 5,029 the future National Football Stadium project. Liquor Management Fee 6,248 5,477 6,248 5,477 (f) Other Revenue Corporate Seating Expenses 1,792 1,296 1,792 1,296 Marketing Expenses 3,989 3,746 3,989 3,746 Advertising & Sponsorship 2,826 2,569 2,826 2,569 Merchandising 585 792 585 792 Audit Fees (Audit Office of NSW) 115 115 115 115 Ticketing 1,198 1,028 1,198 1,028 Accounting and Legal Services 555 402 555 402 Parking Fees 2,143 2,183 2,143 2,183 Consultant Fees 1,063 1,285 1,063 1,285 Interest Received 168 142 168 142 Architects Fees 93 83 93 83 Rental Income 4,307 3,832 4,307 3,832 Travel 98 173 98 173 Contributions 1,961 1,428 1,961 1,428 Postage/Freight 151 155 151 155 Insurance Recoveries 81 35 81 35 Communication Expenses 345 428 345 428 Sundry 905 813 905 813 Printing and Stationery 965 706 965 706 11,348 10,253 11,348 10,253 Bad Debts Written off 19 81 19 81 Insurance 498 574 498 574 (g) Gain / (Loss) on Disposal of Plant & Equipment Members Seating 33 - 33 -

Proceeds from Disposal 193 173 193 173 54,331 48,379 54,331 48,379 Written down value of assets disposed (8,245) (178) (8,245) (178) The Audit Office of NSW’s fee for auditing the annual financial statements for the year ended 28 February 2017 is Gain/(Loss) on disposal of $115,000 ($115,000) in 2016). (8,052) (5) (8,052) (5) Plant & Equipment Reconciliation – Total Maintenance:

Ground Operation & Maintenance 9,137 8,880 9,137 8,880 expense as above Employee related maintenance 3,711 3,269 3,711 3,269 expense include in Note 3(b) Total maintenance expenses 12,848 12,149 12,848 12,149 included in Note 3(a) + 3(b)

76 Sydney Cricket & Sports Ground Trust Annual Report 2017 77 SYDNEY CRICKET AND SPORTS GROUND TRUST SYDNEY CRICKET AND SPORTS GROUND TRUST Notes to the Financial Statements for the Year Ended 28 February 2017 Notes to the Financial Statements for the Year Ended 28 February 2017

CONSOLIDATED PARENT 5. Receivables 2017 2016 2017 2016 CONSOLIDATED PARENT $’000 $’000 $’000 $’000 2017 2016 2017 2016 (b) Employee Related Expense $’000 $’000 $’000 $’000

Salaries and Wages 14,872 14,165 1,965 1,624 CURRENT: Trustees Remuneration 192 211 192 211 Annual Leave and Long Service Leave 1,448 1,198 - - Prepayments 3,036 2,934 3,036 2,934 Superannuation 1,239 1,301 (287) 292 Accrued Income 8,013 2,050 8,013 2,050 Workers Compensation (240) 166 - - Catering Debtors 2,326 3,136 2,326 3,136 Payroll Tax 808 786 - - Sundry Debtors 3,680 6,807 3,680 6,807 Other Staff Related Expenses 552 578 412 459 Allowance for impairment (21) (28) (21) (28) Finance Lease Receivable 300 300 300 300 18,871 18,405 2,282 2,586 17,334 15,099 17,334 15,099 Personnel Services - - 16,302 16,111

18,871 18,405 18,584 18,697 NON-CURRENT:

(c) Finance Costs Finance Lease Receivable 4,472 4,494 4,472 4,494 Prepayments 2,263 2,312 2,263 2,312 Interest on Loans 3,635 3,887 3,635 3,887 6,735 6,806 6,735 6,806 Other Finance Charges 297 281 297 281

3,932 4,168 3,932 4,168 MOVEMENT IN THE ALLOWANCE FOR IMPAIRMENT

Balance at 1 March 128 66 128 66 4. Cash and Cash Equivalents Amounts written off during the year - (31) - (31) Amounts received during the year (128) (35) (128) (35) For the purpose of the Statement of Cash Flows, cash and cash equivalents include cash at bank, cash on hand, short-term deposits and bank overdraft. Cash and cash equivalent assets recognised in the Statement of Financial Increase/(decrease) in allowance 21 128 21 128 Position are reconciled at the end of the financial year to the Statement of Cash Flows as follows: recognised in surplus or deficit

Balance at reporting date 21 128 21 128 Cash 9,652 8,625 9,652 8,625 NSW Treasury Corporation Hour-Glass 5 4 5 4 2017 2017 2016 2016 Cash and cash equivalents per $’000 $’000 $’000 $’000 9,657 8,629 9,657 8,629 Statement of Financial Position FINANCE LEASE RECEIVABLE Gross Investment Present Value Gross Investment Present Value Cash and cash equivalents per 9,657 8,629 9,657 8,629 Statement of Cash Flows < 1 year 300 300 300 300 > 1 year < 5 years 1,200 1,035 1,200 1,035 The fair value measurement hierarchy for NSW Treasury Corporation Hour-Glass facility is Level 2. Refer Note 13 for > 5 years 11,643 3,437 11,943 3,459 details regarding credit risk, liquidity risk and market risk arising from financial instruments. 13,143 4,772 13,443 4,794

The finance lease relates to a 50 year licence granted by the Trust to a hirer to construct and occupy premises on Trust land. Unearned finance income at 28 February 2017 stood at $8.4M (29 February 2016: $8.7M). Contingent rentals relating to CPI adjustment of $47,411 were collected during 2017 ($40,768 in 2016). Details regarding credit risk, liquidity risk and market risk, including financial assets that are either past due or impaired, are disclosed in Note 13.

78 Sydney Cricket & Sports Ground Trust Annual Report 2017 79 SYDNEY CRICKET AND SPORTS GROUND TRUST SYDNEY CRICKET AND SPORTS GROUND TRUST Notes to the Financial Statements for the Year Ended 28 February 2017 Notes to the Financial Statements for the Year Ended 28 February 2017

6. Property, Plant and Equipment VALUATION OF LAND, BUILDINGS AND IMPROVEMENTS

CONSOLIDATED PARENT (a) Fair Value Hierarchy

2017 2016 2017 2016 TOTAL FAIR $’000 $’000 $’000 $’000 LEVEL 1 LEVEL 2 LEVEL 3 VALUE 2017 $’000 $’000 $’000 $’000 Land at Valuation 61,519 61,519 61,519 61,519 Buildings and Improvements (at fair value) 887,169 884,508 887,169 884,508 Property Accumulated Depreciation (183,355) (171,579) (183,355) (171,579) Land - - 61,519 61,519 Buildings - - 703,814 703,814 703,814 712,929 703,814 712,929 - - 765,333 765,333 Plant and Equipment (at fair value) 29,669 27,459 29,669 27,459 Accumulated Depreciation (15,332) (14,079) (15,332) (14,079) TOTAL FAIR 14,337 13,380 14,337 13,380 LEVEL 1 LEVEL 2 LEVEL 3 VALUE 2016 $’000 $’000 $’000 $’000 Total Carrying Amount 779,670 787,828 779,670 787,828 Property The Trust’s current Industrial Special Risks insurance policy as at 28 February 2017 provides a cover on buildings, Land - - 61,519 61,519 plant & equipment to the value of $1,108M ($1,092M in 2016). Buildings - - 712,929 712,929 RECONCILIATIONS - - 774,448 774,448 PLANT AND LAND BUILDINGS EQUIPMENT TOTAL 2017 $’000 $’000 $’000 $’000 (b) Valuation Techniques, Inputs and Processes

Carrying amount as at 1 March 2016 61,519 712,929 13,380 787,828 Valuation techniques used are as follows: Net Revaluation Increment - - - - Additions - 10,699 2,690 13,389 Land – level 3 During 2014/15 the Trust received an independent valuation by WT Partnership, registered quantity Reclassification - 75 (75) - Land is valued using observable valuation input (market surveyors, of the replacement cost of buildings and Disposals - (8,112) (144) (8,256) evidence) available to provide a reasonable guide to the improvements at the Sydney Cricket Ground and Allianz value of the land. Valuers have also relied on market Stadium. The valuation at replacement cost was Depreciation Expense - (11,777) (1,514) (13,291) evidence of similar assets such as open space, industrial converted to written down replacement cost by the and commercial sales with adjustment for size, condition, determination of the remaining useful life of each building. Carrying amount as at 61,519 703,814 14,337 779,670 location, comparability and zoning to determine its fair The valuation increment of $14.3m recorded since the 28 February 2017 values. previous valuation of buildings and improvements was transferred to the Asset Revaluation Reserve as at 28 2016 During 2015/16, the Trust received an independent February 2015. valuation by Knight Frank Valuations of its vested lands, Carrying amount as at 1 March 2015 43,003 708,451 13,397 764,851 based on an “as zoned and used basis,” providing a As a result of the revaluations, an Asset Revaluation valuation of $61.5M as at 29 February 2016. The Reserve remains established. The balance of this Net Revaluation Increment 18,516 - - 18,516 valuation increment recorded since the previous valuation Reserve as at 28 February 2017 stood at $360.8M (29 Additions - 16,557 1,212 17,769 of land, $18.5M, was transferred to the Asset Revaluation February 2016: $360.8M). Reclassification - (456) 456 - Reserve. Level 3 – measurement additional disclosure Disposals - - (178) (178) Building – level 3 Depreciation Expense - (11,623) (1,507) (13,130) Due to its uniqueness, specialised nature of building assets, Buildings are mostly specialised buildings with valuers have applied a cost approach using depreciated Carrying amount as at unobservable input hierarchy due to lack of market replacement cost method. These assets do not generally 61,519 712,929 13,380 787,828 29 February 2016 evidence. Depreciated replacement cost (DRC) was used have an active market to determine their fair values. With to value the assets. When DRC is used, they are lack of market evidence, there is not significant changes to classified as level 3 input. unobservable inputs which would allow its classification to change from level 3 to level 1 or 2.

80 Sydney Cricket & Sports Ground Trust Annual Report 2017 81 SYDNEY CRICKET AND SPORTS GROUND TRUST SYDNEY CRICKET AND SPORTS GROUND TRUST Notes to the Financial Statements for the Year Ended 28 February 2017 Notes to the Financial Statements for the Year Ended 28 February 2017 (c) Reconciliation of Recurring Level 3 Fair Value Measurements (Land and Buildings) 7.

2017 LEVEL 3 CONSOLIDATED PARENT

TOTAL RECURRING 2017 2016 2017 2016 LEVEL 3 $’000 $’000 $’000 $’000 LAND BUILDINGS FAIR VALUE $’000 $’000 $’000 (a) Payables Fair Value as at 1 March 2016 61,519 712,929 774,448 CURRENT: Additions/Reclassifications - 10,774 10,774 Revaluation Increments/decrements recognised Sundry Creditors 11,864 6,857 11,864 6,857 in other comprehensive income – including in the - (8,112) (8,112) line item/’Net increase/(decrease) in property, Accruals 5,543 4,014 4,064 2,864 plant and equipment revaluation reserve’ Finance Lease Payable 2,457 2,381 2,457 2,381 Depreciation - (11,777) (11,777) GST Payable 70 45 70 45 Fair Value as at 28 February 2017 61,519 703,814 765,333 Interest Payable 1,112 1,172 1,112 1,172 21,046 14,469 19,567 13,319

2016 LEVEL 3 NON-CURRENT: TOTAL RECURRING LEVEL 3 LAND BUILDINGS FAIR VALUE Finance Lease Payable 4,811 7,268 4,811 7,268 $’000 $’000 $’000 4,811 7,268 4,811 7,268 Fair Value as at 1 March 2015 43,003 708,451 751,454 Additions/Reclassifications - 16,101 16,101 Details regarding credit risk, liquidity risk and market risk, including a maturity Revaluation Increments/decrements recognised analysis of the above payables are disclosed in Note 13. in other comprehensive income – including in the 18,516 - 18,516 line item/’Net increase/(decrease) in property, plant and equipment revaluation reserve’ (b) Other Liabilities

Depreciation - (11,623) (11,623) CURRENT: Fair Value as at 29 February 2016 61,519 712,929 774,448 Subscriptions Paid in Advance 11,639 11,192 11,639 11,192 Rents Paid in Advance 1,378 1,318 1,378 1,318 Advertising – Fees in Advance 2,005 2,137 2,005 2,137 Catering – Licence Fees in Advance 1,040 400 1,040 400 Other Deferred Income 2,135 3,232 2,135 3,232

18,197 18,279 18,197 18,279

NON-CURRENT:

Catering – Licence Fees in Advance 2,773 1,467 2,773 1,467 Other Deferred Income 559 1,603 559 1,603

3,332 3,070 3,332 3,070

82 Sydney Cricket & Sports Ground Trust Annual Report 2017 83 SYDNEY CRICKET AND SPORTS GROUND TRUST SYDNEY CRICKET AND SPORTS GROUND TRUST Notes to the Financial Statements for the Year Ended 28 February 2017 Notes to the Financial Statements for the Year Ended 28 February 2017

8. Borrowings 9. Provisions CONSOLIDATED PARENT CONSOLIDATED PARENT (a) Employee Entitlements 2017 2016 2017 2016 $’000 $’000 $’000 $’000 2017 2016 2017 2016 $’000 $’000 $’000 $’000 CURRENT:

CURRENT: Provision for Annual Leave and on-costs 1,202 1,076 - - Provision for Long Service 1,392 1,268 - - Leave and on-costs NSW Treasury Corporation Loans 8,838 8,516 8,838 8,516 8,838 8,516 8,838 8,516 2,594 2,344 - -

NON-CURRENT: NON-CURRENT:

NSW Treasury Corporation Loans 68,128 70,465 68,128 70,465 Provision for Long Service 68,128 70,465 68,128 70,465 Leave and on-costs 278 321 - -

Defined superannuation liability 781 1,040 - - Total 76,966 78,981 76,966 78,981 1,059 1,361

SIGNIFICANT TERMS & CONDITIONS: 3,653 3 , 7 0 5 - - 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 The Trust expects to settle the annual leave entitlements within the next twelve months. risk, liquidity risk and market risk, including a maturity analysis of the above borrowings are disclosed in Note 13. The amount of long service leave expected to be taken in the next twelve months is immaterial.

(b) Personnel Services

CURRENT

Personnel services in respect of - - 5,132 4,855 employee entitlements of the Division

The aggregate employee benefit liability Recognised and included in - - the financial statements is as follows Accrued salaries, wages and on-costs 1,479 1,150 Provision for employee benefits (current) 2,594 2,344 - - Provision for employee 278 321 - - benefits (non-current) Defined benefit liability (non-current) 781 1,040 - -

5,132 4,855 - -

84 Sydney Cricket & Sports Ground Trust Annual Report 2017 85 SYDNEY CRICKET AND SPORTS GROUND TRUST SYDNEY CRICKET AND SPORTS GROUND TRUST Notes to the Financial Statements for the Year Ended 28 February 2017 Notes to the Financial Statements for the Year Ended 28 February 2017

(c) Superannuation – Defined Benefits Plan Description of risks defined benefit amounts and thereby requiring additional employer contributions The Trust has a $780,569 ($1,040,082 in 2016) net liability for the employer’s obligation to defined benefit There are a number of risks to which the Fund exposes superannuation schemes at the Trust. the Employer. The more significant risks relating to the defined benefits are: Legislative risk - The risk is that legislative changes could be made which increase the cost of providing the defined The funding position at 28 February 2017 in respect of the two defined benefits schemes related to personnel services benefits received, namely the State Authorities Superannuation Scheme (SASS) and the State Authorities Non-Contributory Investment risk - The risk that investment returns will be Superannuation Scheme (SANCS) has been advised by Pillar Administration: lower than assumed and the Employer will need to increase contributions to offset this shortfall The defined benefit fund assets are invested with independent fund managers and have a diversified asset mix. The Fund has no significant concentration of ESTIMATED RESERVE ACCRUED NET LIABILITY Longevity risk – The risk that pensioners live longer than FUND investment risk or liquidity risk. ACCOUNTS FUNDS LIABILITY AT YEAR END assumed, increasing future pensions

Pension indexation risk – The risk that pensions will Description of Significant Events 2017 2016 2017 2016 2017 2016 increase at a rate greater than assumed, increasing future $’000 $’000 $’000 $’000 $’000 $’000 There were no fund amendments, curtailments or pensions settlements during the period.

SASS 2,428 2,170 3,054 3,042 626 872 Salary growth risk - The risk that wages or salaries (on SANCS 127 105 281 273 155 168 which future benefit amounts for active members will be based) will rise more rapidly than assumed, increasing 2,555 2,275 3,335 3,315 781 1,040

Reconciliation of the net defined benefit obligation 2017:

Accounting policy for recognising actuarial Under a Heads of Government agreement, the New SASS SANCS gains/losses South Wales Government undertakes to ensure that the 2017 2017 Actuarial gains and losses are recognised immediately in Pooled Fund will conform with the principles of the $’000 $’000 other comprehensive income in the year in which they Commonwealth’s retirement incomes policy relating to occur. preservation, vesting and reporting to members and that Net Defined Benefit Liability/(Asset) at start of year 872 168 members’ benefits are adequately protected. Current service cost 44 10 Fund information The New South Wales Government prudentially monitors Net Interest on the net defined benefit liability/(asset) 21 4 The Pooled Fund holds in trust the investments of the and audits the Pooled Fund and the Trustee Board Past service cost 0 0 closed NSW public sector superannuation schemes activities in a manner consistent with the prudential including: the State Authorities Superannuation Scheme controls of the SIS legislation. These provisions are in (Gains)/losses arising from settlements 0 0 (SASS) and the State Authorities Non-contributory addition to other legislative obligations on the Trustee Actual return on Fund assets less Interest income (176) (9) Superannuation Scheme (SANCS). Board and internal processes that monitor the Trustee Board’s adherence to the principles of the Actuarial (gains)/losses arising from changes in demographic assumptions 0 0 These schemes are defined benefit schemes – at least a Commonwealth’s retirement incomes policy. Actuarial (gains)/losses arising from changes in financial assumptions (112) (8) component of the final benefit is derived from a multiple Actuarial (gains)/losses arising from liability experience 15 2 of member salary and years of membership. The An actuarial investigation of the Pooled Fund is Schemes are closed to new members. performed every three years. The last actuarial Adjustment for effect of asset ceiling 0 0 investigation was performed as at 30 June 2015. Employer contributions (38) (12) Description of the regulatory framework Effects of transfers in/out due to business combinations and disposals 0 0 The schemes in the Pooled Fund are established and Description of other entities’ responsibilities for the governed by the following NSW legislation, State governance of the fund Net Defined Benefit Liability/(Asset) at end of year 626 155 Authorities Superannuation Act 1987, State Authorities The Fund’s Trustee is responsible for the governance of Non-Contributory Superannuation Scheme Act 1987, and the Fund. The Trustee has a legal obligation to act solely their associated regulations. in the best interests of fund beneficiaries. The Trustee has the following roles: The schemes in the Pooled Fund are exempt public sector superannuation schemes under the »» Administration of the fund and payment to the Commonwealth Superannuation Industry (Supervision) beneficiaries from fund assets when required in Act 1993 (SIS). The SIS Legislation treats exempt public accordance with the fund rules sector superannuation funds as complying funds for concessional taxation and superannuation guarantee »» Management and investment of the fund assets purposes. »» Compliance with other applicable regulations

86 Sydney Cricket & Sports Ground Trust Annual Report 2017 87 SYDNEY CRICKET AND SPORTS GROUND TRUST SYDNEY CRICKET AND SPORTS GROUND TRUST Notes to the Financial Statements for the Year Ended 28 February 2017 Notes to the Financial Statements for the Year Ended 28 February 2017

SASS SANCS 2016 2016 Expense recognised in the Profit or Loss: $’000 $’000

Reconciliation of the fair value of fund assets: Current service cost 43 10 Net interest 21 4 Fair value of Fund assets at beginning of the period 2,170 105 Past service cost 0 0 Interest income 51 2 (Gains)/Loss on settlement 0 0 Actual return on Fund assets less Interest income 176 9 Employer contributions 38 12 Expense/(income) recognised 64 14 Contributions by participants 25 0 Benefits paid (32) 0 Amounts recognised in Other comprehensive income: Taxes, premiums & expenses paid 0 (1) Actuarial (gains) losses on liabilities (96) (6) Transfers in 0 0 Actual return on Fund assets less Interest income (176) (9) Contributions to accumulation section 0 0 Adjustment for effect of asset ceiling 0 0 Settlements 0 0 Exchange rate changes 0 0 Total re-measurement in Other Comprehensive Income (272) (15)

Fair value of Fund assets at end of the period 2,428 127 Fair Value of Fund Assets All Pooled Fund assets are invested by STC at arm’s Reconciliation of the present value of the defined benefit obligation 2017: length through independent fund managers. Assets are not separately invested for each entity and it is not Present value of defined benefit obligations at beginning of possible or appropriate to disaggregate and attribute 3,042 273 the year after contribution tax assumption change plan assets to individual entities. As such, the disclosures below relate to total assets of the Pooled Current service cost 44 10 Fund. Interest cost 72 6 Derivatives, including futures and options, can be used Contributions by participants 25 0 by investment managers. However, each manager’s Actuarial (gains)/losses arising from changes in demographic assumptions 0 0 investment mandate clearly states that derivatives may Actuarial (gains)/losses arising from changes in financial assumptions (111) (8) only be used to facilitate efficient cash flow management or to hedge the portfolio against market movements and Actuarial (gains)/losses arising from liability experience 15 2 cannot be used for speculative purposes or gearing of Benefits paid (32) 0 the portfolio. As such managers make limited use of derivatives. Taxes, premiums & expenses paid (1) (2) Transfers in 0 0 Contributions to accumulation section 0 0 Past service cost 0 0 Settlements 0 0 Exchange rate changes 0 0

Present value of defined benefit obligations at end of the period 3,054 281

Reconciliation of the effect of the Asset Ceiling:

Adjustment for effect of asset ceiling at beginning of the period 0 0 Change in the effect of asset ceiling 0 0

Adjustment for effect of asset ceiling at end of the period 0 0

88 Sydney Cricket & Sports Ground Trust Annual Report 2017 89 SYDNEY CRICKET AND SPORTS GROUND TRUST SYDNEY CRICKET AND SPORTS GROUND TRUST Notes to the Financial Statements for the Year Ended 28 February 2017 Notes to the Financial Statements for the Year Ended 28 February 2017

VALUATION METHOD AND PRINCIPAL ACTUARIAL ASSUMPTIONS AT THE BALANCE DATE: As at 30 November 2016 (most recent available) (a) Significant Actuarial Assumptions at reporting date: 28 FEB 2017 Quoted prices in active Significant markets for identical observable Unobservable 2.5% 2016/2017 to 2018/2019; Total assets Level 1 inputs Level 2 inputs Level 3 Salary increase rate 3.50% 2019/2020 and 2020/2021; Asset category (A$’000) (A$’000) (A$’000) (A$’000) (excluding promotional increases) 3.00% pa 2021/2022 to 2025/2026; 3.50% pa thereafter Short Term Securities 2,229,551 1,900,292 329,259 - 1.75% 2016/2017; 2.25% 2017/2018; Australian Fixed Rate of CPI increase 2,166,440 (-22,099) 2,188,538 - 2.50% pa thereafter Interest Discount rate 2.74% pa International 734,274 28 734,246 - The pensioner mortality assumptions are as per the Fixed Interest Pensioner mortality 2015 Actuarial Investigation of the Pooled Fund. Australian Equities 9,637,534 9,158,485 479,025 24 International Equities 12,111,060 8,529,666 2,556,169 1,025,225 Maturity profile of defined benefit obligation Property 3,517,904 926,206 592,387 1,999,311 The weighted average duration of the defined benefit obligation is11.3 years. Alternatives 8,600,716 347,149 4,487,130 3,766,437 Sensitivity Analysis Total 38,997,478 20,839,727 11,366,754 6,790,997 The entity’s total defined benefit obligation as at 28 February 2017 under several scenarios is presented below.

Scenarios A to F relate to sensitivity of the total defined benefit obligation to economic assumptions, and scenarios G The percentage invested in each asset class at the reporting date is: and H relate to sensitivity to demographic assumptions.

As at 30-Nov-16 Scenario A Scenario B Short Term Securities 5.7% Base Case -1.0% discount rate +1.0% discount rate Australian Fixed Interest 5.6% Discount rate 2.74% 1.74% 3.74% International Fixed Interest 1.9% Rate of CPI increase as above as above as above Australian Equities 24.7% Salary inflation rate as above as above as above International Equities 31.1% Property 9.0% Defined benefit obligation (A$) 3,335,226 3,682,302 3,047,825 Alternatives 22.0% Scenario C Scenario D Total 100.0% +0.5% rate of -0.5% rate of Base Case CPI increase CPI increase

Level 1 - quoted prices in active markets for identical assets or liabilities. The assets in these levels are listed shares; Discount rate as above as above as above listed unit trusts. Rate of CPI increase as above above rates plus 0.5% pa above rates less 0.5% pa Level 2 - inputs other than quoted prices observable for the asset or liability, either directly or indirectly. The assets in Salary inflation rate as above as above as above this level are cash; notes; government, semi-government and corporate bonds; unlisted trusts containing where quoted prices are available in active markets for identical assets or liabilities. Defined benefit obligation (A$) 3,335,226 3,431,743 3,246,585

Level 3 - inputs for the asset or liability that are not based on observable market data. The assets in this level are unlisted property; unlisted shares; unlisted infrastructure; distressed debt; hedge funds. Scenario E Scenario F +0.5% salary -0.5% salary Derivatives, including futures and options, can be used by investment managers. However, each manager’s Base Case increase rate increase rate investment mandate clearly states that derivatives may only be used to facilitate efficient cash flow management or to hedge the portfolio against market movements and cannot be used for speculative purposes or gearing of the Discount rate as above as above as above investment portfolio. As such managers make limited use of derivatives. The fair value of the Pooled Fund Assets as Rate of CPI increase as above as above as above at 30 November 2016 includes $103.7M in NSW government bonds. Salary inflation rate as above above rates plus 0.5% pa above rates less 0.5% pa

Defined benefit obligation (A$) 3,335,226 3,400,068 3,273,280

90 Sydney Cricket & Sports Ground Trust Annual Report 2017 91 SYDNEY CRICKET AND SPORTS GROUND TRUST SYDNEY CRICKET AND SPORTS GROUND TRUST Notes to the Financial Statements for the Year Ended 28 February 2017 Notes to the Financial Statements for the Year Ended 28 February 2017

(c) Asset-Liability matching strategies Scenario G Scenario H +5% pensioner -5% pensioner We are not aware of any asset and liability matching strategies currently adopted by the Plan. Base Case mortality rates mortality rates (d) Economic assumptions Defined benefit obligation (A$) 3,335,226 3,314,833 3,378,325 The economic assumptions adopted from the 2016 triennial actuarial review of the fund are:

Weighted Average Assumptions The defined benefit obligation has been calculated by changing the assumptions as outline above, whilst retaining all other assumptions. Expected rate of return on fund assets 7.4% pa backing current pension liabilities SASS SANCS 2017 2017 Expected rate of return on fund assets backing other liabilities 6.4% pa $’000 $’000 Expected contributions: Expected salary increase rate 2.7% to 30 June 2019, then 3.2% pa thereafter

Expected employer contributions to be paid Expected rate of CPI increase 2.2% pa 38 12 in the next accounting period Nature of asset/liability Funding arrangements for employer contributions: 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 Funding arrangements are reviewed every three years following the release of the triennial actuarial review and was of a reduction in the required contribution rate, depending on the advice of the Fund’s actuary. last reviewed following completion of the triennial review as at 30 June 2016. Contribution rates are set after discussions between the employer, STC and NSW Treasury. Where a deficiency exists, the employer is responsible for any difference between the employer’s share of Fund assets and the defined benefit obligation. Funding positions are reviewed annually and funding arrangements are adjusted as required after each annual review.

(a) Surplus/deficit SASS SANCS 2016 2016 SASS SANCS The following is a summary of the 28 February 2017 financial Reconciliation of the net defined benefit obligation 2016: $’000 $’000 position of the fund calculated in accordance with AAS 2017 2017 25 ‘Financial Reporting by Superannuation Plans’: $’000 $’000 Net Defined Benefit Liability/(Asset) at start of year 584 157 Accrued benefits 2,223 220 Current service cost 30 9 Net market value of Fund assets (2,428) (126) Net Interest on the net defined benefit liability/(asset) 14 4 Past service cost 0 0 Net (surplus)/deficit (205) 94 (Gains)/losses arising settlements 0 0 SASS SANCS Actual return on fund assets less Interest income 94 4 (b) Contribution recommendations Multiple of member % member Actuarial (gains)/losses arising from changes in demographic assumptions 230 (2) Recommended contribution rates for the entity are: contributions salary Actuarial (gains)/losses arising from changes in financial assumptions 21 2 0.00 0.00 Actuarial (gains)/losses arising from liability experience (63) 6 Adjustment for effect of asset ceiling 0 0 Employer contributions (38) (12) Effects of transfers in/out due to business combinations and disposals 0 0

Net Defined Benefit Liability/(Asset) at end of year 872 168

92 Sydney Cricket & Sports Ground Trust Annual Report 2017 93 SYDNEY CRICKET AND SPORTS GROUND TRUST SYDNEY CRICKET AND SPORTS GROUND TRUST Notes to the Financial Statements for the Year Ended 28 February 2017 Notes to the Financial Statements for the Year Ended 28 February 2017

SASS SANCS Reconciliation of the fair value of fund assets: 2016 2016 Expense recognised in the Profit or Loss: $’000 $’000

Current service cost 30 9 Fair value of Fund assets at beginning of the period 2,142 95 Net interest 14 4 Interest income 50 2 Past service cost 0 0 Actual return on Fund assets less Interest income (94) (4) (Gains)/Loss on settlement 0 0

Employer contributions 38 12 Expense/(income) recognised 44 13 Contributions by participants 26 0 Benefits paid 2 0 Taxes, premiums & expenses paid 6 0 Amounts recognised in Other comprehensive income: Transfers in 0 0 Actuarial (gains) losses on liabilities 187 6 Contributions to accumulation section 0 0 Actual return on Fund assets less Interest income 95 4 Settlements 0 0 Adjustment for effect of asset ceiling 0 0 Exchange rate changes 0 0 Total re-measurement in Other Comprehensive Income 282 10 Fair value of Fund assets at end of the period 2,170 105 Fair Value of Fund Assets

Reconciliation of the present value of the defined benefit obligation 2016: 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 individual entities. As such, the disclosures below relate to total assets of the Pooled Fund. Present value of defined benefit obligations at beginning of 2,726 253 the year before contribution tax assumption change Derivatives, including futures and options, can be used by investment managers. However, each manager’s investment Current service cost 29 9 mandate clearly states that derivatives may only be used to facilitate efficient cash flow management or to hedge the Interest cost 64 6 portfolio against market movements and cannot be used for speculative purposes or gearing of the portfolio. As such managers make limited use of derivatives. Contributions by participants 26 0 Actuarial (gains)/losses arising from changes in demographic assumptions 229 (2) Actuarial (gains)/losses arising from changes in financial assumptions 21 2 Actuarial (gains)/losses arising from liability experience (63) 6 Benefits paid 3 0 Taxes, premiums & expenses paid 7 (1) Transfers in 0 0 Contributions to accumulation section 0 0 Past service cost 0 0 Settlements 0 0 Exchange rate changes 0 0

Present value of defined benefit obligations at end of the period 3,042 273

SASS SANCS 2016 2016 Reconciliation of the effect of the Asset Ceiling: $’000 $’000

Adjustment for effect of asset ceiling at beginning of the period 0 0 Change in the effect of asset ceiling 0 0

Adjustment for effect of asset ceiling at end of the period 0 0

94 Sydney Cricket & Sports Ground Trust Annual Report 2017 95 SYDNEY CRICKET AND SPORTS GROUND TRUST SYDNEY CRICKET AND SPORTS GROUND TRUST Notes to the Financial Statements for the Year Ended 28 February 2017 Notes to the Financial Statements for the Year Ended 28 February 2017

As at 30 November 2015 (most recent available) Valuation method and principal actuarial assumptions at the balance date:

Quoted prices in Significant (a) Significant Actuarial Assumptions at reporting date: 29 FEB 2016 active markets for observable Unobservable identical assets inputs inputs 2.5% 2015/2016 to 2018/2019; Asset category Total (A$’000) Level 1 (A$’000) Level 2 (A$’000) Level 3 (A$’000) Salary increase rate 3.50% 2019/2020 and 2020/2021; (excluding promotional increases) 3.00% pa 2021/2022 to 2025/2026; Short Term Securities 2,978,555 2,943,012 35,542 - 3.50% pa thereafter Australian Fixed Interest 2,650,946 27,895 2,623,051 - 2.25% 2015/2016; 2.75% 2017/2017; International Rate of CPI increase 828,608 (75) 828,683 - 2.50% pa thereafter Fixed Interest Expected rate of return on assets 7.8% Australian Equities 9,512,077 9,057,851 446,022 8,204 Discount rate 2.41% pa International Equities 12,451,509 9,268,278 2,180,440 1,002,792 The pensioner mortality assumptions are as per the Property 3,438,598 1,036,559 701,343 1,700,696 Pensioner mortality 2015 Actuarial Investigation of the Pooled Fund. Alternatives 7,790,660 557,505 3,108,946 4,124,209 Maturity profile of defined benefit obligation Total 39,650,953 22,891,025 9,924,027 6,835,901 The weighted average duration of the defined benefit obligation is12 years.

The percentage invested in each asset class at the reporting date is: Sensitivity Analysis The entity’s total defined benefit obligation as at 29 February 2016 under several scenarios is presented below. AS AT 30-NOV-15 Scenarios A to F relate to sensitivity of the total defined benefit obligation to economic assumptions, and scenarios G Short Term Securities 7.5% and H relate to sensitivity to demographic assumptions.

Australian Fixed Interest 6.7% Scenario A Scenario B International Fixed Interest 2.1% Base Case -1.0% discount rate +1.0% discount rate Australian Equities 24.0% Discount rate 2.41% 1.41% 3.41% International Equities 31.4% Rate of CPI increase as above as above as above Property 8.7% Salary inflation rate as above as above as above Alternatives 19.6% Defined benefit obligation (A$) 3,315,442 3,687,006 3,009,339 Total 100.0% Scenario C Scenario D +0.5% rate of -0.5% rate of Base Case CPI increase CPI increase Discount rate as above as above as above Level 1 - quoted prices in active markets for identical Derivatives, including futures and options, can be used assets or liabilities. The assets in these levels are listed by investment managers. However, each manager’s above rates plus above rates less Rate of CPI increase as above shares; listed unit trusts. investment mandate clearly states that derivatives may 0.5% pa 0.5% pa only be used to facilitate efficient cash flow management Salary inflation rate as above as above as above Level 2 - inputs other than quoted prices observable for or to hedge the portfolio against market movements and the asset or liability, either directly or indirectly. The cannot be used for speculative purposes or gearing of Defined benefit obligation (A$) 3,315,442 3,414,177 3,224,772 assets in this level are cash; notes; government, semi- the investment portfolio. As such managers make limited government and corporate bonds; unlisted trusts use of derivatives. The fair value of the Pooled Fund Scenario E Scenario F containing where quoted prices are available in active Assets as at 30 November 2016 include $179.0M in the +0.5% salary -0.5% salary markets for identical assets or liabilities. NSW government bonds. Base Case increase rate increase rate

Level 3 - inputs for the asset or liability that are not based Discount rate as above as above as above on observable market data. The assets in this level are Rate of CPI increase as above as above as above unlisted property; unlisted shares; unlisted infrastructure; above rates plus above rates less distressed debt; hedge funds. Salary inflation rate as above 0.5% pa 0.5% pa Defined benefit obligation (A$) 3,315,442 3,395,656 3,238,945

Scenario G Scenario H +0.5% pensioner -0.5% pensioner Base Case mortality rates mortality rates Sydney Cricket & Sports Ground Trust Annual Report 2017 96 Defined benefit obligation (A$) 3,315,442 3,295,070 3,358,468 97 SYDNEY CRICKET AND SPORTS GROUND TRUST SYDNEY CRICKET AND SPORTS GROUND TRUST Notes to the Financial Statements for the Year Ended 28 February 2017 Notes to the Financial Statements for the Year Ended 28 February 2017

The defined benefit obligation has been calculated by changing the assumptions as outline above, whilst retaining all Nature of asset/liability Where a deficiency exists, the employer is responsible for other assumptions. If a surplus existed in the employer’s interest in the fund, any difference between the employer’s share of Fund the employer may be able to take advantage of it in the assets and the defined benefit obligation. SASS SANCS form of a reduction in the required contribution rate, 2016 2016 depending on the advice of the Fund’s actuary. Expected contributions: $’000 $’000

Expected employer contributions to be paid in the next accounting period 38 12 10. Capital And Other Expenditure Commitments

Funding arrangements for employer contributions: CONSOLIDATED PARENT

Funding arrangements are reviewed every three years following the release of the triennial actuarial review and was 2017 2016 2017 2016 last reviewed following completion of the triennial review as at 30 June 2015. Contribution rates are set after $’000 $’000 $’000 $’000 discussions between the employer, STC and NSW Treasury. Capital Commitments: Funding positions are reviewed annually and funding arrangements are adjusted as required after each annual review. The total capital expenditure contracted at reporting date but not provided for in the Financial Statements:

(a) Surplus/deficit - Not later than 1 year 1,611 - 1,611 - The following is a summary of the 29 February 2016 financial SASS SANCS - Later than 1 year but not later than 5 years - - - - position of the fund calculated in accordance with AAS 25 2016 2016 Total (including GST) 1,611 - 1,611 - ‘Financial Reporting by Superannuation Plans’: $’000 $’000

Accrued benefits 2,048 204 Finance Lease Commitments: Net market value of Fund assets (2,170) (105) Future non-cancellable finance lease not provided for and payable:

Net (surplus)/deficit (122) 99 Principal Commitments - Not later than 1 year 2,457 2,381 2,457 2,381 SASS MULTIPLE SANCS - Later than 1 year but not later than 5 years 4,811 7,268 4,811 7,268 (b) Contribution recommendations OF MEMBER % MEMBER - Later than 5 years - - - - Recommended contribution rates for the entity are: CONTRIBUTIONS SALARY Total (including GST) 7,268 9,649 7,268 9,649 0.00 0.00 Future non-cancellable finance lease rentals payable: (c) Asset-Liability matching strategies - Not later than 1 year 2,646 2,646 2,646 2,646 We are not aware of any asset and liability matching strategies currently adopted by the Plan. - Later than 1 year but not later than 5 years 4 , 9 6 0 7 , 6 0 6 4 , 9 6 0 7,606

(d) Economic assumptions - Later than 5 years - - - - The economic assumptions adopted from the 2015 triennial actuarial review of the fund are: Total (including GST) 7,606 10,252 7,606 10,252

Weighted Average Assumptions Operating Lease Commitments: Future non-cancellable operating lease rentals not provided for and payable: Expected rate of return on fund assets backing current pension liabilities 7.8% pa Expected rate of return on fund assets backing other liabilities 6.8% pa - Not later than 1 year 315 236 315 236 3.0% to 30 June 2019, then - Later than 1 year but not Expected salary increase rate 263 - 263 - 3.5% pa thereafter later than 5 years - Later than 5 years - - - - Expected rate of CPI increase 2.5% pa Total (including GST) 578 236 578 236

The total operating leases contracted at 28 February 2017 but not provided for in the financial statements.

Rugby Australia House: The Trust holds a construction licence with ARU/UTS for the current construction of the House project to be completed in late 2017. The Trust receives $20,000 per month in construction licence fees. When construction is completed, the Trust will enter into 25 year leases (plus two further options of 25 years each) with both ARU and UTS based on payment of annual land rent. 98 Sydney Cricket & Sports Ground Trust Annual Report 2017 99 SYDNEY CRICKET AND SPORTS GROUND TRUST SYDNEY CRICKET AND SPORTS GROUND TRUST Notes to the Financial Statements for the Year Ended 28 February 2017 Notes to the Financial Statements for the Year Ended 28 February 2017

Non-Cash Commitments: (a) Financial Instrument Categories The Trust receives contributions of goods and services from certain sponsors. In return, the Trust provides advertising space and/or use of Trust facilities. The Trust does not consider the value of facilities and advertising space provided CONSOLIDATED PARENT in 2017 to be material (2016 – nil). 2017 2017 CLASS NOTES CATEGORY 2016 2016 $’000 $’000 11. Trustees Remuneration $’000 $’000 Financial Assets The Trust is classified as an Advisory Board thereby The Trustees have access to the Trust Suite during major Cash and Cash Equivalents 4 N/A 9,657 8,629 9,657 8,629 enabling the payment of fees to Trust members. event days at the Sydney Cricket Ground and Allianz Loans and Receivables Stadium. On occasion expenses for travel by Trustees Receivables (1) 5 18,770 17,409 18,770 17,409 Fees totalling $192,000 ($210,583 in 2016) were paid to on Trust business are reimbursed by the Trust. There are (at amortised cost) the Trustees in accordance with rates determined by the no other benefits paid to the Trustees. Total 28,427 26,038 28,427 26,038 Department of Premier and Cabinet.

12. Contingent Liabilities and Contingent Assets Financial Liabilities Financial Liabilities Payables (2) 7(a) 25,788 21,692 25,788 20,542 (at amortised cost) Contingent Liabilities established a Bank Deposit Account holding $40,000 as Financial Liabilities security against the overdraft facility of the Sydney Borrowings 8 76,966 78,981 76,966 78,981 The Trust is not aware of any significant or material Cricket Club. (at amortised cost) contingent liability in existence at balance date or which Total 102,754 100,673 102,754 99,524 has emerged subsequent to balance date which would materially impact on the financial position of the Trust as Contingent Assets Notes shown in the Financial Statements. The Trust is not aware of any significant or material contingent asset in existence at balance date or which 1. Excludes statutory receivables and prepayments (i.e. not within scope of AASB 7). In 2007 the Trust joined with the administration of the has emerged subsequent to balance date which would 2. Excludes statutory payables and unearned revenue (i.e. not within scope of AASB 7). former UTS-Balmain District Cricket Club in establishing materially impact on the financial position of the Trust as the new entity of the Sydney Cricket Club. The Trust has shown in the Financial Statements. (b) Market Risk The sensitivity analysis is based on risk exposures in 13. Financial Instruments Disclosures existence at the statement of financial position date. The Market risk is the risk that the fair value or future cash analysis is performed on the same basis as for 2016. The flows of a financial instrument will fluctuate because of analysis assumes that all other variables remain constant. The Trust’s main risks arising from financial instruments The Trust’s principal financial instruments comprise changes in market prices. The Trust’s exposures to are outlined below, together with the Trust’s objectives, receivables, payables, cash, short-term deposits and market risk are primarily through price risks associated Interest Rate Risk policies and processes for measuring and managing risk. fixed rate debts. The Trust manages its exposure to key with the movement in interest rate risk on the Trust’s The Trust’s exposure to market interest rates relates Further quantitative and qualitative disclosures are financial risks, including interest rate in accordance with borrowings and other price risks associated with the primarily to the Trust’s long term debt obligations and included throughout this financial report. the Trust’s financial risk management policy. movement in the unit price of the Hour Glass Investment cash and cash equivalents. Facilities. The Trust has no exposure to foreign currency The Trust has responsibility for the establishment and The main risks arising from the Trust’s financial risk and does not enter into commodity contracts. oversight of risk management and reviews and agrees instruments are interest rate risk, credit risk and liquidity policies for managing each of these risks. Risk risk. The Trust uses different methods to measure and The effect on profit and equity due to a reasonably management policies are established to identify and manage different types of risks. These methods include possible change in risk variable is outlined in the analyse the risks faced by the Trust, to set risk limits and ageing analysis and monitoring of specific credit information below, for interest rate risk and other price controls and to monitor risks. Compliance with policies allowances which are undertaken to manage credit risk. risk. A reasonably possible change in risk variable has is reviewed by the Audit Committee and Internal Audit on been determined after taking into account the economic a continuous basis. The Trust reviews and agrees policies for managing each environment in which the Trust operates and the time of the risks identified below, including the interest rate frame for the assessment (i.e. until the end of the next risk and credit allowances. annual reporting period).

100 Sydney Cricket & Sports Ground Trust Annual Report 2017 101 SYDNEY CRICKET AND SPORTS GROUND TRUST SYDNEY CRICKET AND SPORTS GROUND TRUST Notes to the Financial Statements for the Year Ended 28 February 2017 Notes to the Financial Statements for the Year Ended 28 February 2017

Cash and Cash Equivalents At 28 February 2017, if interest rates had moved, as illustrated in the table below, with all other variables held A reasonably possible change of +/- 0.25% is used, consistent with current trends in interest rates. The basis will be constant, TCorp have estimated that post tax surplus and equity would have been affected as follows: reviewed annually and amended where there is a structural change in the level of interest rate volatility. The Trust’s exposure to interest rate risk is set out below. OPERATING RESULT EQUITY IMPACT IMPACT CONSOLIDATED $‘000 -0.25% 0.25% 2017 2016 2017 2016 CARRYING $’000 $’000 $’000 $’000 AMOUNT PROFIT EQUITY PROFIT EQUITY Consolidated Increase/Decrease in basis points 2017 AUD 100 (1%) 3,313 3,352 3,313 3,352 Financial Assets Cash and Cash Equivalents 9,652 (24.1) (24.1) 24.1 24.1 Other Price Risks

2016 Hour-Glass Investment Facilities Financial Assets Exposure to ‘other price risk’ primarily arises through the investment in the TCorp Hour-Glass Investment facilities, Cash and Cash Equivalents 8,625 (21.6) (21.6) 21.6 21.6 which are held for strategic rather than trading purposes. The Trust has no direct equity investments. The Trust holds units in the following Hour-Glass investment trust:

PARENT $‘000 -0.25% 0.25% 2017 FACILITY INVESTMENT SECTORS INVESTMENT HORIZON 2016 CARRYING $000 $000 AMOUNT PROFIT EQUITY PROFIT EQUITY Cash Facility Cash, Money market instruments Up to 1.5 years - 4 2017 Financial Assets 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 Cash and Cash Equivalents 9,652 (24.1) (24.1) 24.1 24.1 issue. Unit prices are calculated and published daily.

NSW Treasury Corporation (TCorp) as trustee for the above facility is required to act in the best interest of the unit holders and to administer the trusts in accordance with the trust deeds. As trustee, TCorp has appointed external 2016 managers to manage the performance and risks of each facility in accordance with a mandate agreed by the parties. Financial Assets 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. Cash and Cash Equivalents 8,625 (21.6) (21.6) 21.6 21.6 Investments in the Hour-Glass facilities limits the Trust’s exposure to risk, as it allows diversification across a pool of funds with different investment horizons and a mix of investments. Managed Debt Portfolio TCorp manages interest rate risk exposures applicable to The Trust’s policy is to manage its finance costs using a specific borrowings of the Trust in accordance with a The TCorp Hour-Glass Investment Facilities are designated at fair value through profit/loss and therefore any change mix of fixed and variable rate debt. debt portfolio mandate agreed between the two parties. in unit price impacts directly on net result (rather than equity).

At 28 February 2017 100% of the Trust’s borrowings were TCorp receives a fee for this service, which may include a TCorp provides sensitivity analysis for the Hour-Glass Investment Facilities using historically based volatility at a fixed rate of interest (2016: 100%). performance component where TCorp is able to add information collected over a 10 year period. value by achieving a reduction in the Trust‘s debt costs against an agreed benchmark. TCorp may use To manage this mix in a cost-efficient manner the Trust CHANGE IN UNIT PRICE IMPACT ON SURPLUS/DEFICIT contracts with the NSW Treasury Corporation (TCorp) to derivatives, primarily interest rate futures, to establish short-term (tactical) positions within agreed tolerance actively manage the Trust’s portfolio of debt. The 2017 2016 limits to manage portfolio duration and maturity profiles. Corporation has provided the Trust the facility whereby $’000 $’000 maturing loans may be rolled over and replaced with new loans whilst maintaining the original capital value of the The following sensitivity analysis is based on the interest Hour-Glass Cash Facility +/- 1% - - portfolio. rate risk exposures in existence at the Statement of Financial Position date.

A reasonably possible change is based on the percentage change in unit price multiplied by the redemption value as at 28 February 2017.

102 Sydney Cricket & Sports Ground Trust Annual Report 2017 103 SYDNEY CRICKET AND SPORTS GROUND TRUST SYDNEY CRICKET AND SPORTS GROUND TRUST Notes to the Financial Statements for the Year Ended 28 February 2017 Notes to the Financial Statements for the Year Ended 28 February 2017

(c) Credit Risk (v) All trade debtors are recognised as amounts MATURITY ANALYSIS AND INTEREST RATE EXPOSURE receivable at balance date. Collectability of trade (i) Credit risk arises from the financial assets debtors is reviewed on an ongoing basis. CONSOLIDATED INTEREST RATE EXPOSURE MATURITY DATES of the Trust, which comprise cash and cash Procedures as established are followed to recover equivalents, trade and other receivables. The outstanding amounts, including letters of demand. Fixed Variable Non- Trust’s exposure to credit risk arises from potential Debts which are known to be uncollectible are Weighted Average Nominal Interest Interest interest default of the counter party, with a maximum written off. An allowance for impairment is raised Effective Int. Rate Amount Rate Rate bearing < 1 yr 1-5 yrs > 5 yrs exposure equal to the carrying amount. when there is objective evidence that the Trust will 2017 $‘000 $‘000 $‘000 $‘000 $‘000 $‘000 $‘000 not be able to collect all amounts due. This (ii) The Trust trades only with recognised, creditworthy evidence includes past experience, and current and third parties, and as such collateral is not requested Payables 3.42% 25,788 7,268 - 18,520 20,977 4,811 - expected changes in economic conditions and nor is it the Trust’s policy to securitise its trade and debtor credit ratings. No interest is earned on trade Borrowings: other receivables. There are no trade and other 4.74% 76,966 76,966 - - 8,838 29,812 38,316 debtors. TCorp borrowings receivable that are past due or impaired whose terms have been renegotiated. The Trust is not materially exposed to concentrations of credit risk to a single trade debtor or group of debtors. 2016 (iii) All financial assets are unsecured.

(iv) TCorp/NSW State does not guarantee investments (vi) Receivable balances are monitored on an ongoing Payables 3.14% 21,692 9,649 - 12,043 14,424 7,268 - basis with Trust’s exposure to bad debts not being in the Hour-glass, TCorp acts as Trustee of the Borrowings: significant. 5.00% 78,981 78,981 - - 8,516 32,123 38,341 Hour-Glass. TCorp borrowings SCG invest in units in the Hour-Glass Cash Facility (vii) Receivables which are past due but not considered impaired are aged as follows: (HGCF). The HGCF invest in financial instruments with a PARENT INTEREST RATE EXPOSURE MATURITY DATES high quality credit rating - with an average short credit rating of A1+ and long term rating of AA- , most of the Fixed Variable Non- investments would be with the big 4 banks. Weighted Average Nominal Interest Interest interest Effective Int. Rate Amount Rate Rate bearing < 1 yr 1-5 yrs > 5 yrs

0-30 DAYS 31-60 DAYS 61-90 DAYS 90+ DAYS 2017 $‘000 $‘000 $‘000 $‘000 $‘000 $‘000 $‘000 OVERDUE OVERDUE OVERDUE OVERDUE $’000 $’000 $’000 $’000 Payables 3.42% 24,309 7,268 - 17,041 19,498 4,811 - Borrowings: As at 28 February 2017 2,082 13 107 313 4.74% 76,966 76,966 - - 8,838 29,812 38,316 TCorp borrowings As at 29 February 2016 865 847 40 2,322 2016

Each column in the table reports gross receivables. month following the month in which an invoice or a Payables 3.14% 20,542 9,649 - 10,893 13,274 7,268 - statement is received. For small business suppliers Borrowings: The ageing analysis excludes statutory receivables, as payments must generally be made within 30 days of 5.00% 78,981 78,981 - - 8,516 32,123 38,341 these are not within the scope of AASB 7 and excludes receipt of the invoice. No interest was paid for late TCorp borrowings receivables that are not past due and not impaired payment during the year.

(viii) There was $19,000 of impaired receivables at The Trust’s objective is to maintain a balance between Notes: reporting date. ($116,000 in 2016). continuity of funding and flexibility through the use of The amounts disclosed are the contractual undiscounted (e) Fair Value bank overdrafts, NSW Treasury Corporation Hour-Glass cash flows of each class of financial liabilities based on (d) Liquidity Risk Investments and NSW Treasury Corporation loans. the earliest date on which the Trust can be required to Financial instruments are generally recognised at cost, pay. The tables include both interest and principal cash with the exception of the TCorp Hour-Glass facilities, Liquidity risk is the risk that the Trust will be unable to The table below summarises the maturity profile of the flows and therefore will not reconcile to the statement of which are measured at fair value. As discussed, the value meet its payment obligations when they fall due. The Trust’s financial liabilities together with the interest rate financial position. of the Hour-Glass Investments is based on the Trust’s Trust continuously manages risk through monitoring exposure. share of the value of the underlying assets of the facility, future cash flows and maturities planning to ensure The Trust monitors rolling forecasts of liquidity reserves based on the market value. All of the Hour Glass facilities adequate holding of high quality liquid assets. During the current and prior year there were no breaches on the basis of expected cash flow. are valued using ‘redemption’ pricing. The TCorp on any loans payable. No assets have been pledged as Hour-Glass facility is recognised at Level 2 of the fair The liabilities are recognised for amounts due to be paid collateral. The Trust’s exposure to liquidity risk is Credit Standby Arrangements: – The Trust maintains an value hierarchy. in the future for goods or services received, whether or deemed insignificant based on prior period’s data and available standby credit facility through an approved not invoiced. Amounts owing to suppliers (which are current assessment of risk. $100,000 bank overdraft arrangement. The amortised cost of financial instruments recognised in unsecured) are settled in accordance with policy set out the statement of financial position approximates the fair in Treasury Circular TC11-12. If trade terms are not Maturity analysis of financial liabilities is based on The Trust holds a $33,000 security deposit guarantee value, because of the short-term nature of many of the specified, payment is made no later than the end of the management’s expectation. (Sydney Water). financial instruments. There were no financial instruments where the fair value differs from the carrying amount. The Trust holds a bank guarantee facility of $2.3M, with Sydney Cricket & Sports Ground Trust Annual Report 2017 $30,651 in use (2016: $63,651) (T Greenway & J Banks 104 Pty Ltd) 105 SYDNEY CRICKET AND SPORTS GROUND TRUST Notes to the Financial Statements for the Year Ended 28 February 2017

14. Cash Flow Information

(a) Reconciliation of Cash

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

Cash at 28 February 2017 as shown in the statement of cash flows is reconciled to the related items in the Statement of Financial Position and accompanying notes as follows:

CONSOLIDATED PARENT

2017 2016 2017 2016 $’000 $’000 $’000 $’000

Cash 9,652 8,625 9,652 8,625 NSW Treasury Corporation Hour-Glass 5 4 5 4

9,657 8,629 9,657 8,629

(b) Reconciliation From the Surplus/ (Deficit) to the Net Cash Flows From Operations

Surplus/(deficit) for the year 1,161 8,200 1,448 7,908

Depreciation 13,291 13,130 13,291 13,130 Increase (Decrease) in Debt Transactions (354) (375) (354) (375) Actuarial gains/(losses) on defined 287 (292) - - benefit pension plans Loss (Gain) on Sale of Non-Current Assets (49) 5 (49) 5 Increase (Decrease) in Creditors 4,457 11,201 4,457 11,201 Decrease (Increase) in Inventories (546) 198 (546) 198 Decrease (Increase) in Debtors (2,047) (7,681) (2,047) (7,681) Increase (Decrease) in Provisions (53) 408 (53) 408

Net Cash From Operating Activities 16,147 24,794 16,147 24,794

Firmly committed long-term financing facilities of $95M were available to the Trust at 28 February 2017.

As at that date, $76.966M ($78.891M in 2016) of these facilities was in use.

15. Post Balance Date Events

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

END OF AUDITED FINANCIAL STATEMENTS

106 Sydney Cricket & Sports Ground Trust Annual Report 2017 107 108 Sydney Cricket & Sports Ground Trust Annual Report 2017 109 SYDNEY CRICKET AND SPORTS GROUND TRUST STAFF AGENCY BEGINNING OF FINANCIAL STATEMENTS Statement of Financial Position as at 28 February 2017

SYDNEY CRICKET AND SPORTS GROUND TRUST STAFF AGENCY

Statement of Profit or Loss and Other Comprehensive 2017 NOTES 2016 Income for the Year Ended 28 February 2017 $’000 $’000 ASSETS Current Assets 2017 NOTES 2016 Receivables 3 5,132 4,855 $’000 $’000 Total Current Assets 5,132 4,855 REVENUE Personnel Services 16,015 16,403 Non-Current Assets Total Revenue 16,015 16,403 Total Non-Current Assets - -

EXPENDITURE Total Assets 5,132 4,855 Employee Related Expenses 2 16,302 16,111

LIABILITIES Total Expenditure 16,302 16,111 Current Liabilities Payables 4 1,479 1,150 NET RESULT (287) 292 Employee Provisions 5 2,594 2,344 Total Current Liabilities 4,073 3,494 Other Comprehensive Income Items that will not be reclassified subsequently to profit or loss Non Current Liabilities Employee Provisions 278 321 Actuarial Gain/(Loss) on defined benefit plans. 287 (292) Total Other Comprehensive Income for the year 287 (292) Superannuation Liability 5 781 1,040 Total Non Current Liabilities 1,059 1,361

TOTAL COMPREHENSIVE INCOME - - Total Liabilities 5,132 4,855

The accompanying notes form part of these financial statements.

Net Assets - -

EQUITY Accumulated Funds - -

Total Equity - -

The accompanying notes form part of these financial statements.

110 Sydney Cricket & Sports Ground Trust Annual Report 2017 111 SYDNEY CRICKET AND SPORTS GROUND TRUST STAFF AGENCY SYDNEY CRICKET AND SPORTS GROUND TRUST STAFF AGENCY Statement of Changes in Equity for the Year Ended 28 February 2017 Statement of Cash Flows for the Year Ended 28 February 2017

ACCUMULATED NOTES 2017 NOTES TOTAL 2016 FUNDS $’000 $’000 $’000 $’000 NET CASH FLOWS FROM OPERATING ACTIVITIES - - Balance At 1 March 2016 - - Surplus/(Deficit) for the Year (287) (287) NET CASH FLOWS FROM INVESTING ACTIVITIES - -

OTHER COMPREHENSIVE INCOME NET CASH FLOWS FROM FINANCING ACTIVITIES - - Actuarial Gains/(Losses) on defined benefit pension plans 287 2 8 7

NET INCREASE/(DECREASE) IN CASH - - Total Comprehensive Income for the year - - AND CASH EQUIVALENTS

BALANCE AT 28 FEBRUARY 2017 - - Opening Cash and cash equivalents - -

BALANCE AT 1 MARCH 2015 - - CLOSING CASH AND CASH EQUIVALENTS - -

The accompanying notes form part of these financial statements. Surplus/(Deficit) for the Year 292 292

OTHER COMPREHENSIVE INCOME Actuarial Gains/(Losses) on defined benefit pension plans (292) (292)

Total Comprehensive Income for the year - -

BALANCE AT 29 FEBRUARY 2016 - -

The accompanying notes form part of these financial statements.

112 Sydney Cricket & Sports Ground Trust Annual Report 2017 113 SYDNEY CRICKET AND SPORTS GROUND TRUST STAFF AGENCY SYDNEY CRICKET AND SPORTS GROUND TRUST STAFF AGENCY Notes to the Financial Statements for the Year Ended 28 February 2017 Notes to the Financial Statements for the Year Ended 28 February 2017

1. Summary of Significant Accounting Policies (f) Payables cash outflows, the market yield on national government bonds, which have terms to maturity approximating the Payables include accrued wages, salaries, and related terms of the related liability are used. The provisions for (a) Reporting Entity on costs (such as payroll tax, fringe benefits tax and leave entitlements also include the relevant on-costs. workers’ compensation insurance) where there is The Sydney Cricket & Sports Ground Trust Staff Agency Management’s judgements, key assumptions certainty as to the amount and timing of settlement. For defined contribution superannuation schemes, (the Agency) is a Public Service Agency, established and estimates made are disclosed in the employer contributions are expensed when incurred. pursuant to Schedule 1 of the Government Sector relevant notes to the financial statements. A payable is recognised when a present obligation A liability is recognised only to the extent of unpaid Employment Act 2013 (GSEA). The Trust is a not for profit arises under a contract or otherwise. It is employer contributions at reporting date. entity (profit is not its principle objective). The reporting All amounts are rounded to the nearest one thousand derecognised when the obligation expires or entity is consolidated as part of the Sydney Cricket and dollars and are expressed in Australian currency. is discharged, cancelled or substituted. As per Accounting Standard AASB 119 for defined Sports Ground Trust Accounts. The entity employs and benefit superannuation schemes, expenses are remunerates all Trust permanent and casual employees, (c) Statement of Compliance A short-term payable with no stated interest recognised based on the current service costs and net excluding Trustees and contracted event day casual staff. rate is measured at historical cost if the interest and expected return on fund assets now are The Agency’s financial statements for the year effect of discounting is immaterial. recognised as other comprehensive income for the The Agency was established on 24 February 2014 ended 28 February 2017 has been authorised reporting period as calculated and advised by Pillar under the Government Sector Employment Act for issue by the Trust on 14 June 2017. (g) Salaries and Wages, Employee Administration. In accordance with NSW Treasury 2013 (GSEA) to provide personnel services to the Benefit Provisions and Expenses policy TC 14-05 Accounting for Superannuation and Trust. The enactment of this legislation resulted in The Agency’s financial statements comply with AASB 119 Employee Benefits, the consolidated entity the assets and liabilities of the previous entity (the Australian Accounting Standards (which includes Provision is made for annual leave and recognises actuarial gains and losses and the actual Sydney Cricket and Sports Ground Trust Division) Australian Accounting Interpretations). long service leave estimated to be payable return on fund assets for defined benefit superannuation being transferred to the new entity (the Sydney to employees as at reporting date. schemes outside of the surplus/(deficit) in the ‘other Cricket and Sports Ground Trust Staff Agency). (d) Revenue Recognition comprehensive income’. The actuarial gains and Unused non-vesting sick leave does not give rise losses for defined benefit superannuation schemes On 2 March 2016 the Government Sector Employment Revenue is measured at the fair value of the to a liability, as it is not considered probable that are expensed by the parent entity as part of their Legislation Amendment Act 2017 No 2 was issued. The consideration received or receivable. Revenue from sick leave taken in the future will be greater than the personnel service expenses. A net liability or asset Act made the following amendments relevant to the Trust: the rendering of personnel services is recognised when benefits accrued in the future. Benefits for Rostered is recognised based on the difference between the the service is provided and only to the extent that the Days Off (RDOs) have not been accrued, as the present value of the Trust’s defined benefit obligations »» reference to the Trust was removed associated recoverable expenses are recognised. Trust policy is not to cash out these balances. and the fair value of fund assets as at the reporting from the GSE Act 2013 date, as adjusted for unrecognised past service costs, »» the Sydney Cricket and Sports Ground Trust Act 1978 (e) Receivables Benefits for long service leave and annual leave have unrecognised gains/(losses), and limitations on net No 72 was amended to allow the Trust to employ staff. been provided on the basis of emerging entitlements assets. The net liability or asset is actuarially determined. A receivable is recognised when it is probable that for recognised service for long service leave, and These amendments remove the requirement for the the future economic benefits associated with it will be quantum due at reporting date for annual leave. (h) Comparatives Trust to comply with the requirements of the GSE Act realised and it has a value that can be measured reliably. 2013 and effectively abolish the Sydney Cricket and It is derecognised when the contractual or other rights to In accordance with Accounting Standard AASB 119 Except when an Australian Accounting Standard Sport Ground Trust Staff Agency from 1 April 2017. future economic benefits from it expire or are transferred. “Employee Benefits” liabilities arising in respect of permits or requires otherwise, comparative information salaries and wages, annual leave and other employee is disclosed in respect of the previous period for all The Agency is domiciled in Australia and its principal A receivable is measured initially at fair value and benefits expected to be settled within twelve months amounts reported in the financial statements. office is at Moore Park Road, Paddington. subsequently at amortised cost using the effective of the reporting date are measured at their nominal interest rate method, less any allowance for impairment. amounts based on remuneration rate which are (b) Basis of Preparation A short-term receivable with no stated interest rate is expected to be paid when the liability is settled. Annual measured at the original invoice amount where the effect leave is not expected to be settled wholly before 12 The Agency’s financial statements are general of discounting is immaterial. An invoiced receivable months after the end the annual reporting period in purpose financial statements prepared in accordance is due for settlement within thirty days of invoicing. which the employees render the related service. As with the requirements of Australian Accounting such it is required to be measured at present value Standards (including Australian Accounting If there is objective evidence at year-end that a receivable in accordance with AASB 119 Employee Benefits. Interpretations), the Public Finance and Audit Act may not be collectable, its carrying amount is reduced by 1983, the Public Finance and Audit Regulation 2015 means of an allowance for impairment and the resulting The liability arising in respect of annual leave is and specific directions issued by the Treasurer. loss is recognised in the statement of comprehensive recognised and measured by applying the nominal value income. Receivables are monitored during the year and based on remuneration rates plus the annual leave- Generally, the historical cost convention has been bad debts are written off against the allowance when on-leave liability. The Trust has determined that the adopted and the financial statements do not take into they are determined to be irrecoverable. Any other loss calculation of projecting and discounting annual leave to account changing money values or current valuations. or gain arising when a receivable is derecognised is also be immaterial and as such the liability is classified as a However, certain provisions are measured at fair value. recognised in the statement of comprehensive income. short-term liability in accordance with TC 15/09. All other employee benefit liabilities are measured at the present The accrual basis of accounting has been value of the estimated future cash outflows to be made adopted in the preparation of the financial in respect of services provided by employees up to the statements, except for cash flow information. reporting date. In determining the present value of future

114 Sydney Cricket & Sports Ground Trust Annual Report 2017 115 SYDNEY CRICKET AND SPORTS GROUND TRUST STAFF AGENCY SYDNEY CRICKET AND SPORTS GROUND TRUST STAFF AGENCY Notes to the Financial Statements for the Year Ended 28 February 2017 Notes to the Financial Statements for the Year Ended 28 February 2017

(i) New Accounting Standards »» AASB 2016-2 Amendments to Australian Accounting 4. Payables Issued But Not Effective Standards – Disclosure Initiative: Amendments to AASB 107 2017 2016 The accounting policies applied in 2016-17 are $’000 $’000 »» AASB 2016-4 Amendments to Australian Accounting consistent with those of the previous financial year. Current Standards – Recoverable Amount of Non-Cash- At reporting date a number of accounting standards Generating Specialised Assets of Not-for-Profit Entities Accrued salaries, wages & on-costs 1,479 1,150 adopted by the AASB had been issued but are not yet effective. At present New South Wales Treasury is »» AASB 2016-7 Amendments to Australian Accounting 1,479 1,150 mandating not to early adopt any of the new Standards/ Standards – Deferral of AASB 15 for Not-for-Profit Interpretations as per Treasury Circular TC 17-04. Entities 5. Provisions The following new Standards/Interpretations have not »» AASB 2016-8 Amendments to Australian Accounting been early adopted by the Trust and are not yet effective Standards – Australian Implementation Guidance for Current Not-for-Profit Entities Annual Leave 1,202 1,076 »» AASB 9 Financial Instruments »» AASB 2017-2 Amendments to Australian Accounting Provision for long service leave and on-costs 1,392 1,268 » Standards – Further Annual Improvements 2014-2016 » AASB 15, AASB 2014-5, AASB 2015-8 and 2016-3 Total Employee Related Provisions 2,594 2,344 regarding Revenue from Contracts with Customers Cycle

»» AASB 16 Leases It is considered that the implementation of these Non Current Standards will not have any material impact on the Trust’s »» AASB 1058 Income of Not-for-profit Entities financial results. Provision for long service leave and on-costs 278 321 Superannuation Liability 781 1,040 »» AASB 2016-1 Amendments to Australian Accounting (j) Equity and Reserves Standards – Recognition of Deferred Tax Assets for 1,059 1,361 Unrealised Losses Accumulated funds include all current and prior period retained funds. The Trust expects to settle the annual leave The amount of long service leave expected to be entitlements within the next twelve months. taken in the next twelve months is immaterial.

2. Employee Related Expenses Superannuation – Defined Benefits Plan

2017 The Trust has a $780,569 ($1,040,082 in 2016) net liability for the employer’s 2016 obligation to defined benefit superannuation schemes at the Trust. $’000 $’000 The funding position at 28 February 2017 in respect of the two defined benefits schemes related to personnel Salaries & Wages 12,907 12,541 services received, namely the State Authorities Superannuation Scheme (SASS) and the State Authorities Annual Leave/Long Service Leave 1,448 1,199 Non-Contributory Superannuation Scheme (SANCS) has been advised by Pillar Administration: Payroll Tax 807 786 Workers Compensation Insurance (240) 166 ESTIMATED RESERVE ACCRUED NET LIABILITY FUND ACCOUNTS FUNDS LIABILITY AT YEAR END Superannuation 1,239 1,301

Other 141 118 2017 2016 2017 2016 2017 2016 $’000 $’000 $’000 16,302 16,111 $’000 $’000 $’000

SASS 2,428 2,170 3,054 3,042 626 872 3. Receivables SANCS 127 105 281 273 155 168 2,555 2,275 3,335 3,315 781 1,040 Current Parent Entity – Sydney Cricket & Sports Ground Trust 5,132 4,855

5,132 4,855 Accounting policy for recognising Fund information actuarial gains/losses The Pooled Fund holds in trust the investments of the Actuarial gains and losses are recognised closed NSW public sector superannuation schemes immediately in other comprehensive income including: the State Authorities Superannuation in the year in which they occur. Scheme (SASS) and the State Authorities Non- contributory Superannuation Scheme (SANCS).

116 Sydney Cricket & Sports Ground Trust Annual Report 2017 117 SYDNEY CRICKET AND SPORTS GROUND TRUST STAFF AGENCY SYDNEY CRICKET AND SPORTS GROUND TRUST STAFF AGENCY Notes to the Financial Statements for the Year Ended 28 February 2017 Notes to the Financial Statements for the Year Ended 28 February 2017

These schemes are defined benefit schemes – at least Description of other entities’ responsibilities Reconciliation of the net defined benefit obligation 2016: a component of the final benefit is derived from a for the governance of the fund multiple of member salary and years of membership. SASS SANCS The Schemes are closed to new members. The Fund’s Trustee is responsible for the 2017 2017 governance of the Fund. The Trustee has a legal $’000 $’000 Description of the regulatory framework obligation to act solely in the best interests of fund beneficiaries. The Trustee has the following roles: Net Defined Benefit Liability/(Asset) at start of year 872 168 The schemes in the Pooled Fund are established and governed by the following NSW legislation, Current service cost 44 10 » State Authorities Superannuation Act 1987, State » Administration of the fund and payment to Net Interest on the net defined benefit liability/(asset) 21 4 Authorities Non-Contributory Superannuation Scheme the beneficiaries from fund assets when Act 1987, and their associated regulations. required in accordance with the fund rules Past service cost 0 0 » (Gains)/losses arising from settlements 0 0 The schemes in the Pooled Fund are exempt » Management and investment of the fund assets public sector superannuation schemes under Actual return on Fund assets less Interest income (176) (9) »» Compliance with other applicable regulations the Commonwealth Superannuation Industry Actuarial (gains)/losses arising from changes in demographic assumptions 0 0 (Supervision) Act 1993 (SIS). The SIS Legislation Actuarial (gains)/losses arising from changes in financial assumptions (112) (8) treats exempt public sector superannuation funds Description of risks as complying funds for concessional taxation There are a number of risks to which the Fund Actuarial (gains)/losses arising from liability experience 15 2 and superannuation guarantee purposes. exposes the Employer. The more significant Adjustment for effect of asset ceiling 0 0 risks relating to the defined benefits are: Under a Heads of Government agreement, the New Employer contributions (38) (12) South Wales Government undertakes to ensure that Investment risk - The risk that investment returns will Effects of transfers in/out due to business combinations and disposals 0 0 the Pooled Fund will conform with the principles of the be lower than assumed and the Employer will need Commonwealth’s retirement incomes policy relating to to increase contributions to offset this shortfall Net Defined Benefit Liability/(Asset) at end of year 626 155 preservation, vesting and reporting to members and that members’ benefits are adequately protected. Longevity risk – The risk that pensioners live longer than assumed, increasing future pensions SASS SANCS The New South Wales Government prudentially monitors 2017 2017 and audits the Pooled Fund and the Trustee Board Pension indexation risk – The risk that $’000 $’000 activities in a manner consistent with the prudential pensions will increase at a rate greater than controls of the SIS legislation. These provisions are assumed, increasing future pensions Reconciliation of the fair value of fund assets: in addition to other legislative obligations on the Trustee Board and internal processes that monitor Salary growth risk - The risk that wages or salaries Fair value of Fund assets at beginning of the period 2,170 105 the Trustee Board’s adherence to the principles of (on which future benefit amounts for active members Interest income 51 2 the Commonwealth’s retirement incomes policy. will be based) will rise more rapidly than assumed, increasing defined benefit amounts and thereby Actual return on Fund assets less Interest income 176 9 An actuarial investigation of the Pooled Fund is requiring additional employer contributions Employer contributions 38 12 performed every three years. The last actuarial Contributions by participants 25 0 investigation was performed as at 30 June 2015. Legislative risk - The risk is that legislative changes could be made which increase the Benefits paid (32) 0 cost of providing the defined benefits Taxes, premiums & expenses paid 0 (1)

The defined benefit fund assets are invested Transfers in 0 0 with independent fund managers and have a Contributions to accumulation section 0 0 diversified asset mix. The Fund has no significant concentration of investment risk or liquidity risk. Settlements 0 0 Exchange rate changes 0 0 Description of significant events - There were no fund amendments, curtailments Fair value of Fund assets at end of the period 2,428 127 or settlements during the period.

118 Sydney Cricket & Sports Ground Trust Annual Report 2017 119 SYDNEY CRICKET AND SPORTS GROUND TRUST STAFF AGENCY SYDNEY CRICKET AND SPORTS GROUND TRUST STAFF AGENCY Notes to the Financial Statements for the Year Ended 28 February 2017 Notes to the Financial Statements for the Year Ended 28 February 2017

Fair Value of Fund Assets Derivatives, including futures and options, can Reconciliation of the present value of the defined benefit obligation 2017: All Pooled Fund assets are invested by STC at arm’s be used by investment managers. However, each length through independent fund managers. Assets manager’s investment mandate clearly states that Present value of defined benefit obligations at beginning of 3,042 273 are not separately invested for each entity and it is not derivatives may only be used to facilitate efficient the year after contribution tax assumption change possible or appropriate to disaggregate and attribute plan cash flow management or to hedge the portfolio Current service cost 44 10 assets to individual entities. As such, the disclosures against market movements and cannot be used for below relate to total assets of the Pooled Fund. speculative purposes or gearing of the portfolio. As Interest cost 72 6 such managers make limited use of derivatives. Contributions by participants 25 0 Actuarial (gains)/losses arising from changes in demographic assumptions 0 0

Actuarial (gains)/losses arising from changes in financial assumptions (111) (8) As at 30 November 2016 (most recent available) Actuarial (gains)/losses arising from liability experience 15 2 Quoted prices in active Significant Benefits paid (32) 0 markets for identical observable Unobservable Taxes, premiums & expenses paid (1) (2) Total assets Level 1 inputs Level 2 inputs Level 3 Transfers in 0 0 Asset category (A$’000) (A$’000) (A$’000) (A$’000) Contributions to accumulation section 0 0 Short Term Securities 2,229,551 1,900,292 329,259 - Past service cost 0 0 Australian Fixed 2,166,440 -22,099 2,188,538 - Settlements 0 0 Interest Exchange rate changes 0 0 International 734,274 28 734,246 - Fixed Interest Present value of defined benefit obligations at end of the period 3,054 281 Australian Equities 9,637,534 9,158,485 479,025 24 International Equities 12,111,060 8,529,666 2,556,169 1,025,225 Reconciliation of the effect of the Asset Ceiling: Property 3,517,904 926,206 592,387 1,999,311 Alternatives 8,600,716 347,149 4,487,130 3,766,437 Adjustment for effect of asset ceiling at beginning of the period 0 0 Change in the effect of asset ceiling 0 0 Total 38,997,478 20,839,727 11,366,754 6,790,997

Adjustment for effect of asset ceiling at end of the period 0 0 The percentage invested in each asset class at the reporting date is:

As at 30-Nov-16 Expense recognised in the Profit or Loss: Short Term Securities 5.7% Current service cost 43 10 Australian Fixed Interest 5.6% Net interest 21 4 International Fixed Interest 1.9% Past service cost 0 0 Australian Equities 24.7% (Gains)/Loss on settlement 0 0 International Equities 31.1%

Expense/(income) recognised 64 14 Property 9.0% Alternatives 22.0%

Amounts recognised in Other comprehensive income: Total 100.0%

Actuarial (gains) losses on liabilities (96) (6) Actual return on Fund assets less Interest income (176) (9) Adjustment for effect of asset ceiling 0 0

Total re-measurement in Other Comprehensive Income (272) (15)

120 Sydney Cricket & Sports Ground Trust Annual Report 2017 121 SYDNEY CRICKET AND SPORTS GROUND TRUST STAFF AGENCY SYDNEY CRICKET AND SPORTS GROUND TRUST STAFF AGENCY Notes to the Financial Statements for the Year Ended 28 February 2017 Notes to the Financial Statements for the Year Ended 28 February 2017

Level 1 - quoted prices in active markets for infrastructure; distressed debt; hedge funds. identical assets or liabilities. The assets in these Scenario C Scenario D levels are listed shares; listed unit trusts. Derivatives, including futures and options, can be used +0.5% rate of -0.5% rate of by investment managers. However, each manager’s Base Case CPI increase CPI increase Level 2 - inputs other than quoted prices observable investment mandate clearly states that derivatives for the asset or liability, either directly or indirectly. may only be used to facilitate efficient cash flow Discount rate as above as above as above The assets in this level are cash; notes; government, management or to hedge the portfolio against market Rate of CPI increase as above above rates plus 0.5% pa above rates less 0.5% pa semi-government and corporate bonds; unlisted movements and cannot be used for speculative trusts containing where quoted prices are available purposes or gearing of the investment portfolio. As Salary inflation rate as above as above as above in active markets for identical assets or liabilities. such managers make limited use of derivatives. The fair value of the Pooled Fund Assets as at 30 November Defined benefit obligation (A$) 3,335,226 3,431,743 3,246,585 Level 3 - inputs for the asset or liability that are not 2016 includes $103.7M in NSW government bonds. based on observable market data. The assets in this level are unlisted property; unlisted shares; unlisted Scenario E Scenario F +0.5% salary -0.5% salary Base Case increase rate increase rate VALUATION METHOD AND PRINCIPAL ACTUARIAL ASSUMPTIONS AT THE BALANCE DATE: Discount rate as above as above as above (a) Significant Actuarial Assumptions at reporting date: 28 FEB 2017 Rate of CPI increase as above as above as above 2.5% 2016/2017 to 2018/2019; Salary inflation rate as above above rates plus 0.5% pa above rates less 0.5% pa Salary increase rate 3.50% 2019/2020 and 2020/2021; (excluding promotional increases) 3.00% pa 2021/2022 to 2025/2026; Defined benefit obligation (A$) 3,335,226 3,400,068 3,273,280 3.50% pa thereafter 1.75% 2016/2017; 2.25% 2017/2018; Rate of CPI increase Scenario G Scenario H 2.50% pa thereafter +5% pensioner -5% pensioner Discount rate 2.74% pa Base Case mortality rates mortality rates The pensioner mortality assumptions are as per the Defined benefit obligation (A$) Pensioner mortality 3,335,226 3,314,833 3,378,325 2015 Actuarial Investigation of the Pooled Fund

Maturity profile of defined benefit obligation The defined benefit obligation has been calculated by changing the assumptions as outline above, whilst retaining all other assumptions. The weighted average duration of the defined benefit obligation is11.3 years. SASS SANCS Sensitivity Analysis 2017 2017 The entity’s total defined benefit obligation as at 28 February 2017 under several scenarios is presented below. Expected contributions: $’000 $’000

Scenarios A to F relate to sensitivity of the total defined benefit obligation to economic Expected employer contributions to be paid 38 12 assumptions, and scenarios G and H relate to sensitivity to demographic assumptions. in the next accounting period

Scenario A Scenario B Funding arrangements for employer contributions: Base Case -1.0% discount rate +1.0% discount rate Funding arrangements are reviewed every three years following the release of the triennial actuarial review and was last reviewed following completion of the triennial review as at 30 June 2016. Discount rate 2.74% 1.74% 3.74% Contribution rates are set after discussions between the employer, STC and NSW Treasury. Rate of CPI increase as above as above as above Funding positions are reviewed annually and funding arrangements are adjusted as required after each annual review. Salary inflation rate as above as above as above

Defined benefit obligation (A$) 3,335,226 3,682,302 3,047,825

122 Sydney Cricket & Sports Ground Trust Annual Report 2017 123 SYDNEY CRICKET AND SPORTS GROUND TRUST STAFF AGENCY SYDNEY CRICKET AND SPORTS GROUND TRUST STAFF AGENCY Notes to the Financial Statements for the Year Ended 28 February 2017 Notes to the Financial Statements for the Year Ended 28 February 2017

(a) Surplus/deficit SASS SANCS 2016 2016 The following is a summary of the 28 February 2017 financial SASS SANCS Reconciliation of the net defined benefit obligation 2015: $’000 $’000 position of the fund calculated in accordance with AAS 2017 2017 25 ‘Financial Reporting by Superannuation Plans’: $’000 $’000 Net Defined Benefit Liability/(Asset) at start of year 584 157 Accrued benefits 2,223 220 Current service cost 30 9 Net market value of Fund assets (2,428) (126) Net Interest on the net defined benefit liability/(asset) 14 4

Net (surplus)/deficit (205) 94 Past service cost 0 0 (Gains)/losses arising from settlements 0 0 SASS SANCS Actual return on Fund assets less Interest income 94 4 (b) Contribution recommendations Multiple of member % member Actuarial (gains)/losses arising from changes in demographic assumptions 230 (2) Recommended contribution rates for the entity are: contributions salary Actuarial (gains)/losses arising from changes in financial assumptions 21 2 0.00 0.00 Actuarial (gains)/losses arising from liability experience (63) 6 Adjustment for effect of asset ceiling 0 0 (c) Asset-Liability matching strategies Employer contributions (38) (12) Effects of transfers in/out due to business combinations and disposals 0 0 We are not aware of any asset and liability matching strategies currently adopted by the Plan. Net Defined Benefit Liability/(Asset) at end of the period 872 168 (d) Economic assumptions The economic assumptions adopted from the 2016 triennial actuarial review of the fund are:

Weighted Average Assumptions Reconciliation of the fair value of fund assets: Expected rate of return on fund assets 7.4% pa backing current pension liabilities Fair value of Fund assets at beginning of the period 2,142 95 Expected rate of return on fund assets backing other liabilities 6.4% pa Interest income 50 2 Expected salary increase rate 2.7% to 30 June 2019, then 3.2% pa thereafter Actual return on Fund assets less Interest income (94) (4) Expected rate of CPI increase 2.2% pa Employer contributions 38 12 Contributions by participants 26 0 Nature of asset/liability Benefits paid 2 0 If a surplus existed in the employer’s interest in the fund, the employer may be able to take advantage of it in Taxes, premiums & expenses paid 6 0 the form of a reduction in the required contribution rate, depending on the advice of the Fund’s actuary. Transfers in 0 0 Where a deficiency exists, the employer is responsible for any difference between Contributions to accumulation section 0 0 the employer’s share of Fund assets and the defined benefit obligation. Settlements 0 0 Exchange rate changes 0 0 Fair value of Fund assets at end of the period 2,170 105

124 Sydney Cricket & Sports Ground Trust Annual Report 2017 125 SYDNEY CRICKET AND SPORTS GROUND TRUST STAFF AGENCY SYDNEY CRICKET AND SPORTS GROUND TRUST STAFF AGENCY Notes to the Financial Statements for the Year Ended 28 February 2017 Notes to the Financial Statements for the Year Ended 28 February 2017

SASS SANCS SASS SANCS 2016 2016 2016 2016 Reconciliation of the present value of the defined benefit obligation 2016: $’000 $’000 Amounts recognised in Other comprehensive income: $’000 $’000

Present value of defined benefit obligations at beginning of Actuarial (gains) losses on liabilities 187 6 2,726 253 the year before contribution tax assumption change Actual return on Fund assets less Interest income 95 4 Current service cost 29 9 Adjustment for effect of asset ceiling 0 0 Interest cost 64 6 Total re-measurement in Other Comprehensive Income 282 10 Contributions by participants 26 0 Actuarial (gains)/losses arising from changes in demographic assumptions 229 (2) Fair Value of Fund Assets Actuarial (gains)/losses arising from changes in financial assumptions 21 2 All Pooled Fund assets are invested by STC at arm’s length through independent fund managers. Assets are not Actuarial (gains)/losses arising from liability experience (63) 6 separately invested for each entity and it is not possible or appropriate to disaggregate and attribute plan assets to Benefits paid 3 0 individual entities. As such, the disclosures below relate to total assets of the Pooled Fund. Taxes, premiums & expenses paid 7 (1) Derivatives, including futures and options, can be used by investment managers. However, each manager’s investment Transfers in 0 0 mandate clearly states that derivatives may only be used to facilitate efficient cash flow management or to hedge the Contributions to accumulation section 0 0 portfolio against market movements and cannot be used for speculative purposes or gearing of the portfolio. As such managers make limited use of derivatives. Past service cost 0 0 Settlements 0 0 As at 30 November 2015 (most recent available) Exchange rate changes 0 0 Quoted prices in Significant Present value of defined benefit obligations at end of the period 3,042 273 active markets for observable Unobservable identical assets inputs inputs Asset category Total (A$’000) Level 1 (A$’000) Level 2 (A$’000) Level 3 (A$’000)

Reconciliation of the effect of the Asset Ceiling: Short Term Securities 2.978.555 2.943.012 35.542 - Australian Fixed Interest 2.650.946 27.895 2.623.051 - Adjustment for effect of asset ceiling at beginning of the period 0 0 International Change in the effect of asset ceiling 0 0 828.608 (75) 828.683 - Fixed Interest Adjustment for effect of asset ceiling at end of the period 0 0 Australian Equities 9.512.077 9.057.851 446.022 8.204 International Equities 12.451.509 9.268.278 2.180.440 1.002.792

Expense recognised in the Profit or Loss: Property 3.438.598 1.036.559 701.343 1.700.696 Alternatives 7.790.660 557.505 3.108.946 4.124.209 Current service cost 30 9 Total 39.650.953 22.891.025 9.924.027 6.835.901 Net interest 14 4 Past service cost 0 0 The percentage invested in each asset class at the reporting date is: (Gains)/Loss on settlement 0 0 AS AT 30-NOV-15 Expense/(income) recognised 44 13 Short Term Securities 7.5% Australian Fixed Interest 6.7% International Fixed Interest 2.1% Australian Equities 24.0% International Equities 31.4% Property 8.7% Alternatives 19.6% Total 100.0%

126 Sydney Cricket & Sports Ground Trust Annual Report 2017 127 SYDNEY CRICKET AND SPORTS GROUND TRUST STAFF AGENCY SYDNEY CRICKET AND SPORTS GROUND TRUST STAFF AGENCY Notes to the Financial Statements for the Year Ended 28 February 2017 Notes to the Financial Statements for the Year Ended 28 February 2017

Level 1 - quoted prices in active markets for identical assets or liabilities. The assets in these levels are listed shares; listed unit trusts. Scenario C Scenario D +0.5% rate of -0.5% rate of Level 2 - inputs other than quoted prices observable for the asset or liability, either directly or indirectly. The assets in Base Case CPI increase CPI increase this level are cash; notes; government, semi-government and corporate bonds; unlisted trusts containing where quoted prices are available in active markets for identical assets or liabilities. Discount rate as above as above as above above rates plus above rates less Rate of CPI increase as above Level 3 - inputs for the asset or liability that are not based on observable market data. The assets in this level are 0.5% pa 0.5% pa unlisted property; unlisted shares; unlisted infrastructure; distressed debt; hedge funds. Salary inflation rate as above as above as above 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 Defined benefit obligation (A$) 3,315,442 3,414,177 3,224,772 hedge the portfolio against market movements and cannot be used for speculative purposes or gearing of the investment portfolio. As such managers make limited use of derivatives. The fair value of the Pooled Fund Assets as Scenario E Scenario F at 30 November 2015 include $179.0M in the NSW government bonds. +0.5% salary -0.5% salary Base Case increase rate increase rate

5. Provisions Discount rate as above as above as above Rate of CPI increase as above as above as above (a) Significant Actuarial Assumptions at reporting date: 29 FEB 2016 above rates plus above rates less Salary inflation rate as above 0.5% pa 0.5% pa 2.5% 2015/2016 to 2018/2019; Salary increase rate 3.50% 2019/2020 and 2020/2021; Defined benefit obligation (A$) 3,315,442 3,395,656 3,238,945 (excluding promotional increases) 3.00% pa 2021/2022 to 2025/2026; 3.50% pa thereafter Scenario G Scenario H 2.25% 2015/2016; 2.75% 2016/2017; Rate of CPI increase +5% pensioner -5% pensioner 2.50% pa thereafter Base Case mortality rates mortality rates Expected rate of return on assets 7.8% Defined benefit obligation (A$) 3,315,442 3,295,070 3,358,468 Discount rate 2.41% pa The pensioner mortality assumptions are as per the Pensioner mortality 2015 Actuarial Investigation of the Pooled Fund The defined benefit obligation has been calculated by changing the assumptions as outline above, whilst retaining all other assumptions. Maturity profile of defined benefit obligation SASS SANCS 2016 2016 The weighted average duration of the defined benefit obligation is12 years. EXPECTED CONTRIBUTIONS: $’000 $’000 SENSITIVITY ANALYSIS Expected employer contributions to be paid in the next accounting period 38 12 The entity’s total defined benefit obligation as at 29 February 2016 under several scenarios is presented below. Funding arrangements for employer contributions: Scenarios A to F relate to sensitivity of the total defined benefit obligation to economic assumptions, and scenarios G Funding arrangements are reviewed every three years following the release of the triennial actuarial and H relate to sensitivity to demographic assumptions. review and was last reviewed following completion of the triennial review as at 30 June 2015. Contribution rates are set after discussions between the employer, STC and NSW Treasury. Scenario A Scenario B Base Case -1.0% discount rate +1.0% discount rate Funding positions are reviewed annually and funding arrangements are adjusted as required after each annual review.

Discount rate 2.41% 1.41% 3.41% Rate of CPI increase as above as above as above (a) Surplus/deficit Salary inflation rate as above as above as above The following is a summary of the 29 February 2016 financial position of the fund calculated in accordance with AAS 25 ‘Financial Reporting by Superannuation Plans’: Defined benefit obligation (A$) 3,315,442 3,687,006 3,009,339 Accrued benefits 2,048 204 Net market value of Fund assets (2,170) (105)

Net (surplus)/deficit (122) 99

128 Sydney Cricket & Sports Ground Trust Annual Report 2017 129 SYDNEY CRICKET AND SPORTS GROUND TRUST STAFF AGENCY SYDNEY CRICKET AND SPORTS GROUND TRUST STAFF AGENCY Notes to the Financial Statements for the Year Ended 28 February 2017 Notes to the Financial Statements for the Year Ended 28 February 2017

SASS MULTIPLE SANCS 7. Contingent Liabilities and Contingent Assets (b) Contribution recommendations OF MEMBER % MEMBER Recommended contribution rates for the entity are: CONTRIBUTIONS SALARY Contingent Liabilities

The Agency is not aware of any significant or material contingent liability in existence at 0.00 0.00 balance date or which has emerged subsequent to balance date which would materially impact on the financial position of the Agency as shown in the FinancialStatements. (c) Asset-Liability matching strategies We are not aware of any asset and liability matching strategies currently adopted by the Plan. Contingent Assets (d) Economic assumptions The Agency is not aware of any significant or material contingent asset in existence at balance date or which has emerged subsequent to balance date which would materially impact The economic assumptions adopted from the 2015 triennial actuarial review of the fund are: on the financial position of the Agency as shown in the Financial Statements.

Weighted Average Assumptions

Expected rate of return on fund assets backing current pension liabilities 7.8% pa Expected rate of return on fund assets backing other liabilities 6.8% pa 3.0% to 30 June 2019, then Expected salary increase rate 3.5% pa thereafter

Expected rate of CPI increase 2.5% pa

Nature of asset/liability 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 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 and the defined benefit obligation. 6. Employee Benefits

Liability

The aggregate employee benefit liability recognised and included in the financial statements is as follows:

2017 2016 $’000 $’000

Accrued salaries, wages & on costs 1,479 1,150

Provision for employee benefits: Current (note 5) 2,594 2,344 Non-Current (note 5) 1,059 1,361

3,653 3,705

Total employee benefits liability 5,132 4,855

130 Sydney Cricket & Sports Ground Trust Annual Report 2017 131 8. Financial Instrument Disclosures

The Agency’s principal financial instruments comprise receivables and payables. The CEO of the Sydney Cricket & Sports Ground Trust has responsibility for the establishment and oversight of risk management. Compliance with risk management policies are reviewed by the Audit Committee and Internal Audit continuously.

Financial Instruments are carried at amortised cost. The resultant values are reported in the Statement of Financial Position and are deemed to constitute net fair values due to their short term nature. The Staff Agency does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.

FINANCIAL INSTRUMENT CATEGORIES

CARRYING Carrying AMOUNT Amount 2017 2016 CLASS NOTE CATEGORY $’000 $’000

Financial Assets

Loans and receivables Receivables 3 5,132 4,855 (measured at amortised cost) Financial Liabilities

Financial Liabilities (measured Payables 4 1,479 1,150 at amortised cost) Credit Risk

Credit risk arises when there is the possibility of the Agency’s debtors defaulting on their contractual obligations. The maximum exposure to credit risk is represented by the carrying amounts of the financial assets.

All receivables are from the parent Sydney Cricket & Sports Ground Trust, comprising salaries and entitlements of employee services provided. There are no financial assets that are past due or impaired. No collateral is held by the Staff Agency and it has not granted anyfinancial guarantees.

Liquidity Risk

Liquidity risk is the risk that the Agency will be able to meet its payment obligations when they fall due. The financial liabilities recognised are for amounts due to be paid in the future for employee services received. Amounts owing to employees are settled as they fall due. The Agency is not exposed to interest rate risk and amounts are expected to be settled within 12 months. During the current and previous year there were no defaults or breaches on any amounts payable. No assets have been pledged as collateral.

Market Risk

Market risk is the risk that the fair value of the financial instrument will fluctuate because of a change in market prices. The Agency does not have exposure to market risk as all financial instruments relate to employee payments made by the Trust. The Agency has no exposure to foreign currency or interest rate risk and does not enter into commodity contracts.

9. Post Balance Date Events

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

END OF AUDITED FINANCIAL STATEMENTS

132 Sydney Cricket & Sports Ground Trust Annual Report 2017 133 These incidents are reported to SPORTING PARTNERS to ensure learnings are acted our ticketing agency to identify upon for future seasons. The Trust meets with all partners causes, and we run regular before and after events to discuss seating audits at both grounds operations, identify issues and MUSEUM AND TOURS to minimise such incidents. work on resolutions. Senior Positive feedback is frequently management from all parties also MEMBER FEEDBACK received from the SCG Tour meet bi-monthly to discuss high- Experience on the knowledge, Member feedback was focused level and long-term planning. experience and professional manner on dress regulations, car parking, that the tour guides provide. catering, member behaviour The Trust schedules post-season Our stadium tours are also rated and subscription fees. debriefs with each hiring partner well by users on Trip Advisor. as regular management practice Dress standards are a condition of membership for attending our grounds as a member or guest. These requirements will continue to be monitored.

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

CORPORATE GUESTS During 2016-17, the Trust investigated approximately 20 complaints from corporate guests, generally relating to the quality of food and in-seat service offered in these areas.

In many cases, these were issues CONSUMER RESPONSE that could be resolved on the day and or followed up by our contracted cleaner/caterer in the The Trust’s venues and member facilities, such as the Stadium Fitness Centre and lead up to fixtures. Annual clients work closely with Trust commercial SCG Museum, catered for more than 1.8 million visitors during the reporting period. representatives to ensure customers Feedback is closely monitored to ensure our patrons continue to receive the best receive the best possible service. possible service. STADIUM CLUB The Stadium Club deals with The Trust responds to consumer feedback from The Trust raises feedback relating to food and beverages, members on a daily basis. Overall members, corporate guests, sports partners and concerned queuing times and pricing with its contracted the Stadium Club has received the general public. Staff are trained to follow a set of catering partner to ensure continued improvement. more positive feedback than procedures to resolve complaints immediately if possible complaints in the past year. or at least ensure prompt action for more complex issues. Parking issues related to availability of spaces in the Gold and Platinum car park on event and Just under 800 written and non-event days. Whilst the Trust only holds direct verbal complaints were recorded Feedback Received responsibility for this parking facility, we continue to in the last reporting period, a work closely with Centennial Park and Moore Park similar amount to the previous GENERAL PUBLIC Trust in relation to the EP2 and EP3 car parks. year. This feedback related to car parking, gym maintenance, Positive and negative feedback was received from The Trust also communicates regularly with Transport the facility and closures. event attendees, including more than 150 complaints NSW, the NSW Police and other government agencies about facilities and services. The majority of comments to ensure traffic flow, ingress and egress, and other Improvements and upgrades were managed by the Events and Operations operations continue to run as smoothly as possible. to the gym and wet facilities department and responded to individually. were well received. Seating complaints are usually related to infrequent ticketing errors and are resolved on the day with staff finding alternative seats for affected patrons.

134 Sydney Cricket & Sports Ground Trust Annual Report 2017 135 RIGHT TO INFORMATION INDEX

On 1 July 2010, the Freedom of Information Act 1989 was replaced by the Government Information (Public Access) Act 2009. 16 Asset management 10 Event management

The objectives of GIPA are: 14 Attendances 60 Financial indicators »» Authorising and encouraging the proactive public release of government information by agencies 65 Audited financial statements (Trust) 42 Human resources »» 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 110 Audited financial statements 2 Letter of submission (Trust Staff Agency) Requests 30 Media and Communications 64 Auditor’s report (Trust) Two requests were received in the last year from the Sydney Morning Herald and Channel 7 for information relating 24 Membership and marketing to the expansion of grounds controlled by the Trust and government funding for infrastructure upgrades. 107 Auditor’s report The Right to Information Officer can be contacted at: (Trust Staff Agency) 3 Minister’s forward Level 2, Sheridan Building, Moore Park Road, NSW 2021 75 Budget of revenue and expenditure 27 Museum and tours Phone: (02) 9360 6601 Fax: (02) 9360 1319 17 Capital works program 52 Organisational chart GPO Box 150, Sydney NSW 2001

Fees and charges are as follows: 13 Catering 58 Performance statement 54 CEO and General Manager profiles 136 Right to information Nature of Application Application Fee Processing Charge 22 Sponsorship Access to records by people $30/hour after 4 Chairman’s report $30 about their personal affairs first 20 hours* 22 Commercial 26 Stadium Club All other requests $30* $30/hour 20 Strategy and projects Internal reviews $40** Nil 13 Concerts

Amendment of records Nil*** Nil 23 Corporate hospitality 46 Trustee profiles 32 Corporate services 53 Trust meetings »» 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 17 Environment and sustainability 6 Vision and values »» Refunds may apply as a result of successful internal reviews and applications for amendment of records

136 Sydney Cricket & Sports Ground Trust Annual Report 2017 137 General Enquiries: (02) 9360 6601

Fax: (02) 9360 1319

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