2011 ANNUAL REPORT As our mantra states “On and off the Field” and some positive work was undertaken in both areas through 2011 to support development and our clubs. While there were some challenging issues faced by the Board, the ARL administration and clubs, the game continued to progress in target areas with the Board still in a position to maintain current levels of financial support by way of subsidies or incentives. On the field there were highs and lows, highs certainly being the breaking the 500 club team barrier (529), the continuation of our partnership with Maori Television for the broadcast of the Appliance Shed Fox Memorial, our most successful Premiership Grand Final Day in a number of year’s both in attendance, awareness and standard together with the success of the Auckland Vulcan’s in making the Grand Final of the NSW Cup. The season low was certainly the frustrations experienced by continual ground closures due to the inclement weather, not only did this impact on Saturday play but it had a major effect on our primary and intermediate schools programme participation. The problem however is a whole of winter sport issue and highlighted the varying standards of grounds for all grass sports throughout the new Auckland City. While social network mediums certainly highlighted grassroots frustration, there is no easy and quick solution with rugby league grounds alone needing an estimated $20 million capital improvement investment. The ARL was proactive in engagement with the 21 new Local Boards that make up the City and work will continue throughout 2012 and beyond to support the clubs to ensure rugby league and club facilities improvement is to the forefront of each of the respective Community Plans. Another key project in 2011 was the review by an Independent Panel on the governance structure of the ARL. This in part was as a result of the 2010 mediation outcome between NZRL and ARL. Key review recommendations resulted in a new Board of Directors structure to contain 2 independently appointed Directors, a new Constitution and updated By-Laws together with a new Football Committee structure to replace the Junior and Senior Management Committee. The constitution and governance structure had not been reviewed in detail for 20 years and now reflects a more modern approach to governance and administration. The new Independent Directors will be announced at the Annual General Meeting. 2011 also marked major milestones for 3 clubs with Manukau and Otahuhu celebrating centennials and Howick celebrating their 50th jubilee. Congratulations to all three clubs. SPONSORS & FUNDING PARTNERS The economic environment and an increasingly competitive pool for the sponsorship dollar is a reality especially at our level of the profile chain. While ARL continue to be creative and maximise all opportunities with our partners and potential partners it is a difficult environment. ARL are fortunate that approx 60% of its revenue is self-funded through the legacy of Carlaw Park. This allows the Board to do more for its clubs by way or direct or in- direct support easing their financial pressures. As I presented at the November Conference, our clubs on the whole pay no more that $800.00 in annual registration or user pays levies in comparison to fellow District League member clubs. For example a club the size of Manurewa with 50 plus teams only pay $800.00 yet if they were a Canterbury District League club they would be paying in excess of $20,000.00 per annum on top of other on chargeable programmes. ARL are fortunate to have a loyal and valued group of partners that enable the game to continue to deliver and support. It is important that we collectively as a game support those who support our game. I would sincerely acknowledge and thank APPLIANCE SHED, LION RED, MAORI TELEVISION, MANDRON MASONRY, SAS SPORT, TEGEL, KONICA MINOLTA, UPRIGTH ACCESS, CROWN LIFT TRUCKS, X-SPORT, HUBBARDS FOODS, SMOKEFREE AND SCHOOLTRAVEL.CO.NZ for their support in 2011. While the funding industry is also feeling the economic realities of the recession, funding organisations continued to believe in and support the work undertaken by the Auckland Rugby League through its football programmes and the Clubs of Auckland concept. It is no easy task and a significant amount of work is undertaken in each presentation to Trusts. The Trusts who supported ARL believed in our programmes and the work we as a sport and organisation do in our wide ranging community. To this end I would sincerely thank The Lion Foundation, Infinity Foundation, Four Winds Foundation, North and South Trust, Nautilus Foundation, Trillian Trust, The Southern Trust, NZ Community Trust, First Sovereign Foundation and Pub Charity. CARLAW HERITAGE TRUST The Carlaw Heritage Trust (CHT) is the legacy of the Auckland game and its future. The proceeds of the sale of Carlaw Park are held in the CHT and is an entirely separate legal entity from ARL Inc. As stated in previous Annual Reports, while the assets are held in the Trust, the annual grants received by ARL Inc and any of its subsidiaries are for accounting purposes required to be treated as a repayment of the loan as opposed to being treated as direct grant income. While the economic recession has had a major impact on forecast trust income due to the retirement village development not proceeding and therefore annual ground rental payments not being received, the trustees (Cameron McGregor, Steve Brewster, Alan Gore, Bruce Cameron and Denham Shale) have worked diligently on alternative options and will shortly be in a position to formally announce new plans in partnership with the developer for the old No 1 ground property still owned by the trust. In 2011 the trustees continued to be very supportive maintaining existing levels of funding to both ARL Inc and the RL Development Foundation. This support enabled continuation of programmes and retention of the valuable support incentives to clubs such as the youth team payments, weekend referees payments, club registration and affiliation fee rebates, club audit subsidies, ground user charges, regional representative team subsidies together with continued support of administrative operations. While this has seen a depletion of capital reserves in the short term, the medium to long term forecast once the proposed development commences will see utilised capital replaced and steady capital growth in the medium to long term together with the ability to increase current grant levels. PREMIERSHIPS The pressure was on the 16 Appliance Shed Fox Memorial Qualification Series clubs from Round 1 with 2011 the last year under the current format. While the 8 qualifiers were guaranteed a position in the new 10 team Fox Premiership in 2012, the two remaining spots were filled by the 2011 SAS Sharman Cup Grand Final teams, Pt Chevalier and Bay Roskill. For the Sharman Cup, the remaining 6 clubs automatically qualified for the 2012 and are joined by the top 4 placed teams from the 2011 Mandron Masonry Phelan Shield - New Lynn, Papatoetoe, Otara and Ellerlslie. 2 As part of the ongoing development of the premiership, our partnership with Maori Television was expanded to the broadcasting of both rounds of the Fox Memorial and the play-off series. As in 2010, the games were taken to club grounds to promote in the club community. While this was of benefit and well received, the quality of club grounds particularly in the second round did affect the standard of play due to the weather. A decision was made that the semi finals play-off games as opposed to the highest qualifier would be allocated to the best possible ground available because of the unavailability of Mt Smart No 2 or other Auckland stadiums due to Rugby World Cup contractual commitments. While the decision was met with some angst in certain quarters, it was the right decision and the quality of play was of a very high standard and projected well on television. The partnership was again a significant investment by both Maori Television and ARL with the Fox still the only grassroots sport in New Zealand with this level of free to air coverage. I am pleased to confirm that our partnership with Maori Television will continue in 2012 with the broadcast of the second round of the Fox Memorial and a new specific weekly show focusing solely on the premiership and local football. Appliance Shed Fox Memorial Qualifiers: SAS Sharman Cup Qualifiers: 1. Howick Hornets Te Atatu Roosters 2. Glenora Bears Bay Roskill Vikings 3. Papakura Sea Eagles Pt Chevalier Pirates 4. Marist Saints Mangere East Hawks 5. Manurewa Marlins Otara Scorpions 6. Northcote Tigers Richmond Bulldogs 7. Mt Albert Lions Manuaku Magpies 8. Otahuhu Leopards East Coast Bays Barracudas Top 4 Qualifiers: 1. Howick Hornets 2. Otahuhu Leopards 3. Glenora Bears 4. Mt Albert Lions Minor Premiership: Howick Hornets (Rukatai Shield) Minor Finals: Howick Hornets: 30 Otahuhu Leopards: 22 Glenora Bears: 24 Mt Albert Lions: 18 Mt Albert Lions were eliminated. Howick Hornets went directly to the Grand Final. Major Final: Otahuhu Leopards: 36 Glenora Bears: 12 Glenora Bears were eliminated. APPLIANCE SHED FOX MEMORIAL GRAND FINAL: Howick Hornets: 24 Otahuhu Leopards: 14 3 Grand Final Day brought back memories of yesteryear with the League taking a major gamble in playing the Grand Finals on Mt Smart No 1 and it was not disappointed with one of the largest Grand Final crowds seen in a decade. It was truly a fairy tale ending and an outstanding season for Howick Hornets taking out the Fox and the Rukatai for the first time in their history as well as celebrating their 50th Jubilee. While disappointed in their loss in their Centennial Year, Otahuhu Leopards can be proud of the efforts of their premiers who only just qualified for the Fox Memorial in the final 2 minutes of the last game of Grading Round qualification.