2018/19 Annual Report

Financial Year (1 March 2018 – 28 February 2019) Contents 108 106 63 46 42 38 INFRASTRUCTURE 36 30 26 22 MEMBERSHIP 18 12 10 6 4 3 2 RIGHT TOINFORMATION CUSTOMER SATISFACTION AUDITED FINANCIALSTATEMENTS TRUSTEE ANDMANAGEMENTPROFILES HUMAN RESOURCES FINANCIAL INDICATORS CORPORATE SERVICES COMMUNITY ANDHERITAGE CUSTOMER EXPERIENCE EVENTS ANDPARTNERSHIPS KEY OBJECTIVES CEO’S REPORT CHAIRMAN’S REPORT MINISTER’S FOREWORD LETTER OFSUBMISSION 2 LETTER OF SUBMISSION Sydney Cricket & Sports Grounds 3 MINISTER’S FOREWORD General Enquiries: (02) 9360 6601 4 CHAIRMAN’S REPORT

6 CEO’S REPORT Email: [email protected] 10 KEY OBJECTIVES SCG Office: Suite 208-1M, Building 208, The Entertainment 12 EVENTS AND PARTNERSHIPS Quarter, 122 Lang Road, Moore Park NSW 2021 18 CUSTOMER EXPERIENCE 22 MEMBERSHIP GPO Box 150, Sydney NSW 2001 26 COMMUNITY AND HERITAGE sydneycricketground.com.au 30 CORPORATE SERVICES 36 FINANCIAL INDICATORS 38 INFRASTRUCTURE 42 HUMAN RESOURCES 46 TRUSTEE AND MANAGEMENT PROFILES 63 AUDITED FINANCIAL STATEMENTS 106 CUSTOMER SATISFACTION 108 RIGHT TO INFORMATION

Sydney Cricket & Sports Grounds Annual Report 2018/19 1 4 Chairman’s Report Tony Shepherd recaps a groundbreaking year for the SCG sporting precinct

4 Sporting venues aren’t always forever. In Sydney, we Inquiry in the NSW Legislative Council, an unprecedented have farewelled the old Sports Ground, the Sydney process that made public all records relating to the Stadium and the RAS Showground. Melbourne’s development of the NSW Government’s stadia strategy. Waverley Park, the first purpose-built AFL venue in the Added to that was a couple of court cases which found world, is now a residential suburb. in favour of the Government and its strategy.

Brisbane’s Suncorp Stadium bears little resemblance to As I write this, the demolition of the original SFS is all but the Lang Park where Arthur Beetson led Queensland to complete. We, like all who love sport, can’t wait to see that famed first State of Origin win in 1980. what the NSW Government delivers in its place. It will be the best stadium of its type in the world and coupled with In the US, stadiums come and go with regularity. improved access for all who use the venue.

Among many, we’ve seen the replacement of ‘The During the past year, the SCG has faced many House that Ruth Built’ Yankee Stadium and also Chicago challenges outside of its normal responsibilities. The Stadium where basketball’s Michael Jordan reigned increase load of events decanted from the Sydney supreme. Football Stadium have put unprecedented pressure on our curatorial staff who have risen to the challenge. In the UK, the big business of the Premier League drives massive investment in new home grounds. Only recently, We have also farewelled our long-serving Chief Executive Tottenham Stadium has replaced Whitehart Lane, while Officer Jamie Barkley after more than two decades of Arsenal, Manchester City and West Ham play out of contribution that puts him alongside the SCG’s most completely redeveloped venues. loyal servants in its 160 years. His departure came not long after that of former GM Corporate Services, Bernie The one constant is that when the bulldozers leave, Lamerton, whose start at the SCG predated every history remains. spectator facility in the precinct bar the historic Members Fartown will always be remembered as the place that the and Ladies Pavilions. home team of Huddersfield beat Dally Messenger and We have welcomed Kerrie Mather, who swapped her Australia’s first Kangaroos in 1909 – 5-3 for the record. Trustee badge to become only the 11th CEO at the SCG English fans, pining for football to come home, will never in our long history and the first woman in the role. Kerrie forget Queen Elizabeth handing Bobby Moore the World is the highest of high calibre leaders, having clocked up Cup in 1966 at Wembley. many other firsts during her hugely successful career running Sydney Airport and before that in infrastructure So it is for the Sydney Football Stadium, a venue and banking. rich with memories – memories that will live on in its replacement. I take this opportunity to thank our faithful fans and members, the sporting codes and clubs, our commercial The 1989 NSWRL grand final with Canberra’s extra- and community partners, the promoters and most time win to the heartbreak of countless Balmain fans. importantly the Government of NSW all for their support The 1993 visit of Diego Maradona on a night when and patience in turning a dream into reality. Argentina’s superstars had to settle for a draw against our Socceroos, or the women’s gold medal football The SCG is in the safest of hands, as is the new SFS match of the 2000 Sydney Olympics. – and I can’t wait to see it rise from the rubble of its predecessor in the months ahead. George Gregan’s tackle that saved the Bledisloe Cup in 1994 and the 1997 ARL grand final, which features among the very best moments in rugby league Immortal Andrew Johns’s career.

Last year’s Sydney Roosters-South Sydney Rabbitohs preliminary final provided the ultimate closing show. An all-time record crowd for the venue at 44,380 and a memorable Easts win against their oldest rivals.

One of the most important responsibilities of the Trustees of the Sydney Cricket and Sports Grounds is to remember and record that history while ensuring we are providing the ideal environment for the next generation of sporting superstars to write their own. And above all, that the people who are there to cheer them on can do it safely and comfortably in modern facilities. Without fans there is no game. Tony Shepherd AO Much was said and written about the need for a new Chairman Sydney Football Stadium. There was a Parliamentary

Sydney Cricket & Sports Grounds Annual Report 2018/19 5 6 CEO’S Report Kerrie Mather reflects on her new beginning at the SCG

6 Like many, the Sydney Cricket Ground holds a significant Prior to Team India’s visit for the 2018-19 summer of place in my and my family’s memories. cricket, we completed a $20m fan experience technology upgrade, reusing state-of-the-art equipment from the As a young girl, I watched from the grandstands alongside decommissioned SFS. This enabled us to: my father – spending valuable time together as he took a break from his working life. »» Switch on the biggest videoboard in an Australian stadium; Later, I attended with friends as we spent our summer holidays watching cricket from the pavilions. The SCG has »» Extend the free wi-fi network to all parts of the ground; always been a place to enjoy the sport as much as you enjoy the company of your friends and family. »» Install multi-level 360-degree LED ribbon boards; and

My memories are similar to countless others – and all are »» Expand the Internet Protocol TV network to more than linked by the special place, and the special piece of turf, 1500 screens in the venue. that is our SCG. The December 2019 arrival of the NSW Government’s I have watched centuries scored, goals kicked and all CBD and South East Light Rail line represents a significant manner of sporting highlights. In November 2018, I added improvement to the transport options to the precinct. a personal career highlight to that bank of great moments. The new light rail network will complement the traditional On the day I was appointed as the 11th CEO or equivalent ant trails to the ground that have been bedded down over of the SCG, I had my own opportunity to walk out on our generations, as well as providing new links to our ever- famous piece of turf. growing city.

The field was empty apart from our grounds team and our We’ve already seen some of the early benefits of the photographer waiting on the other side of the field. project, with the new Sydney Swans training field in Moore Park East a huge improvement on its predecessor. It is It was a great privilege to walk across the pristine surface, now a fully compliant AFL, AFLW and NEAFL-standard and I kept expecting someone to come and tell me to get elite playing field. back behind the fence. But more than that, the amenity of the unique parkland It is also a great privilege to lead the Sydney Cricket and setting – which doubles as our front door –has been Sports Grounds, to work closely with the sports that call significantly improved. The high fences have come down, the SCG home, and to work with the NSW Government on the event bus stops shifted closer to the dedicated bus the redevelopment of the Sydney Football Stadium. lanes – all linked by a large pedestrian-friendly boulevard that makes a feature of Moore Park’s trees. I thank the Trustees for putting their faith in me to continue the work of my predecessor Jamie Barkley. The SCG invested $5m as part of the project, continuing our history of greening and improving Moore Park. Jamie served more than two decades for the SCG and his achievements are too many to list, but include highlights Both projects improve the arrival to the precinct, making such as: our venues easier to get to and get home from. These are positive improvements for the many thousands of people »» Bringing the 2014 Major League Baseball Opening who visit the SCG to cheer on their teams each year. Series to the SCG; The reporting period has seen the busiest event schedule »» Redeveloping the Victor Trumper Stand (2007), and at the SCG since 1987, with the return of the football Don Bradman MA Noble and Dally Messenger Stand codes during the redevelopment of the Sydney Football (2014); Stadium.

»» Helping turn the New Year’s Test into Sydney’s largest While not without challenges, we have successfully hosted annual sporting event; blockbuster fixtures like the A-League Sydney Derby, the NRL’s Anzac Day Cup and Sydney Swans home AFL »» Hosting World Cups, grand finals, blockbusters and matches with crowds pushing the 40,000 mark. international matches for multiple sports; Meeting the needs of our members remains at the »» Signing long-term contracts with our sports partners, forefront. In a time of some change, we concentrated on including the 30-year deal with the Sydney Swans; and communication – as well as doing all we could to listen to »» Creating some of the most special days on the concerns and deal with them appropriately. Australian sporting calendar, including cricket’s Jane It’s been a busy first six months in the role. Much has McGrath Day and rugby league’s Anzac Day Cup. been achieved and there remains much to do. Above all, Jamie’s contribution is one of the most significant in the we will retain our focus on hosting fantastic sporting and 160-year sporting history of our grounds and I am enjoying entertainment events, working closely with our sports building on the very strong legacy he leaves. and commercial partners and delivering world-class experiences for everyone who comes through SCG’s Our focus is very firmly on customer experience and gates. making sure that everyone who makes the effort to come to the SCG and cheer on their team, has the best of Kerrie Mather memories to take home. Chief Executive Officer

Sydney Cricket & Sports Grounds Annual Report 2018/19 7 Who We Are

The Sydney Cricket and Sports Grounds is responsible for managing the world famous SCG, its membership and the wider sports precinct where the SFS is currently being rebuilt.

8 The precinct is conveniently located on the doorstep of the CBD and near Sydney’s gateway airport.

It is surrounded by Centennial and Moore parks, the retail facilities of EQ and the thriving restaurant and hotel strips of Oxford Street and Surry Hills. Together, the SCG and Allianz Stadium provide a home for touring concerts, rugby union, rugby league, football, AFL and cricket, with several major sporting codes and clubs based at Moore Park. There is also a university campus, sports museum, fitness centre and membership club facilities.

The grounds host nearly 100 sport and entertainment events and attracts more than 1.5 million visitors each year from NSW, Australia and beyond.

Vision Values

We celebrate sport, Customer service create history, enhance We will provide superior customer service entertainment and Leadership constantly innovate to We are leaders in our industry provide an engaging and Innovation connected experience for We are at the forefront of digital transformation our customers Integrity and accountability We always act with respect Relationships We work in partnership with all customers, stakeholders and neighbours

Sydney Cricket & Sports Grounds Annual Report 2018/19 9 10 Key Objectives

OUR CULTURE Our culture is focused on customer experience. cultural and social history that has taken place on our It enables us to deliver our vision, inspiring and driving lands to conserve, respect and showcase for the benefit our people to commit to and collaborate on our customer of generations to come. service goals. Key achievements Key achievements »» Engaged in charitable initiatives and strengthened »» Implemented a detailed internal and external customer McGrath Foundation partnership experience strategy »» Expanded the collection in the SCG Museum and its »» Improved training for staff and customer satisfaction ties with heritage bodies levels based on performance measures »» Continued to open the SCG to the public through a »» Formalised feedback through People Matter Survey growing tours program with increased participation recorded »» Recycled assets from Allianz Stadium for the benefit »» Successfully introduced a mentoring program for of suburban and rural sporting communities event day staff to develop employees »» Documented the closure of the Allianz Stadium »» Offered sponsorship to female customer service staff through photography and oral history obtaining security licenses »» Hosted a number of important media and charitable OUR HERITAGE events during the reporting period

The SCG precinct is the foundation stone of Australian sport. We will continue to publicly honour the sporting,

10 OUR CUSTOMERS »» Upgraded PA system and LED signage across the entire venue We will put the customer at the centre of our business. »» Refurbished Dally Messenger and Churchill Key achievements scoreboards with assets from Allianz Stadium »» Installed new turnstile infrastructure at Gates C, E and »» Continued new research program to measure A to improve access game day customer satisfaction

»» Improved customer satisfaction for arrival experience and security processes

»» Delivered new catering and corporate offerings at lower prices at major events

»» Expanded event day staffing levels and rolled out new customer service uniforms

»» Launched a number of digital initiatives including WaitTime technology

OUR PRECINCT

We will strengthen relationships with our neighbourhood and sporting and commercial partners to maximise the precinct’s unique sporting, cultural, parkland and entertainment offering. We will strategically invest in our grounds and facilities to conserve, refurbish and renew. Key achievements

»» Farewelled Allianz Stadium and successfully decommissioned the venue

»» Relocated sporting fixtures, staff and headquarters to Entertainment Quarter

»» Completed fit-out for new Stadium Club and tenant facilities in the Entertainment Quarter

»» Commenced demolition of Allianz Stadium with Infrastructure NSW

»» Signed a landmark 25-year deal with the Sydney Roosters

»» Hosted blockbuster summer of cricket headlined by the New Year’s Test against India

»» Continued commercial success in membership, hospitality and sponsorship OUR DIGITAL TRANSFORMATION

Two world-class venues – one powerful, state of the art connected precinct Key achievements

»» Introduced new CRM project and an improved digital ticketing experience »» Provided wi-fi for all fans in time for the New Year’s Test as part of phase three expansion »» Extensive capital works program for point of sale upgrade and network convergence

Sydney Cricket & Sports Grounds Annual Report 2018/19 11 12 Events and Partnerships

More than 1.5 million fans visited the SCG and Allianz Stadium during the reporting period with a number of major events and announcements helping to strengthen key partnerships.

Key achievements MAJOR EVENTS

»» Farewelled Allianz Stadium with a sold out NRL Finals match and a Michael Bublé concert before the venue AFL closed in October. Sydney Swans

»» Blockbuster summer of cricket at the SCG which The Sydney Swans enjoyed a strong year which came to an included One-Day and T20 internationals and a end with a cross-town blockbuster against the GWS Giants. successful New Year’s Test between Australia and India. Fans of the ‘red and white army’ enjoyed 11 home games and one final at the SCG with an average attendance of »» Agreed to a landmark 25-year deal with the Sydney more than 34,000 coming through the turnstiles for each Roosters to play home games and the new Sydney match. A breakout year for Sydney’s young guns, including Football Stadium. Oliver Florent and Will Hayward, had coach John Longmire’s men earn their spot in week one of the AFL »» Commercial success with sponsorship, membership Finals. Fans and members turned out in droves during the acquisition and hospitality sales with a focus on reporting period with a total of 413,898 Swans supporters improving existing digital assets at the SCG. coming through the SCG turnstiles in 2018.

12 NRL RUGBY UNION CRICKET Sydney Roosters NSW Waratahs The New Year’s Test The Sydney Roosters enjoyed an incredible year which finished with a The NSW Waratahs enjoyed a solid India stole the show at the New premiership win over the Melbourne season at Allianz Stadium and came Year’s Test, completing their first Storm off the back of an inspiring within one match of the Super Rugby series win on Australia soil. A total performance by an injured Cooper final. The men in blue played six crowd of 125,000 people came Cronk and his halves partner Luke home games at Allianz Stadium and through the gates across the five Keary. The Tricolours played 11 enjoyed strong support as they took days, including 36,123 fans who games in the precinct including a on some of the best teams in world attended Jane McGrath Day. Play semi-final showdown with rivals the rugby. Senior figures Michael was abandoned on the last day but South Sydney Rabbitohs which was Hooper, Bernard Foley and Nick centuries to Chesteshwar Pujara and played in front of a crowd of 44,380 Phipps steered the Waratahs to a Rishabh Pant in the first two days in the last rugby league match at home quarter final against the were enough to secure the draw and Allianz Stadium. The Roosters and Highlanders, with the 30-23 win ultimately a 2-1 series in. SCG also signed a landmark 25-year proving to be their last match after a venue hire partnership, which will loss against the Lions in South Africa Australia fought hard but it wasn’t see the club call the new SFS home the following week. The club enough to stop India with the when it opens in 2022. announced that they would play four breakthrough series ending a matches at the SCG in 2019. drought which dated back to their St George Illawarra first tour against Don Bradman’s side Wallabies of 1948. Kohli and coach Ravi Dragons Shastri were awarded honourary One of the biggest events of the year SCG membership in recognition of The St George Illawarra Dragons saw the Wallabies host Ireland at the achievement. hosted the final Anzac Day Cup at Allianz Stadium with rugby fans Allianz Stadium during the 2018 flooding the gates for the June season beating the Sydney Roosters Sydney Sixers blockbuster. It took the might of the in a physical 24-8 win in front of Irish to spoil the mood of the home The Sydney Sixers enjoyed a strong 36,067 fans. It marked the last of 16 fans with a then record crowd of season on and off the field, playing Anzac Day matches to be played at 38,359 fans watching one of the best seven home games, of which two the ground, with the marquee fixture Test matches in recent memory. were double-headers featuring the returning to the SCG for the next Ireland prevailed 20-16 at the final women’s side. The local derby three years while the Sydney whistle after a back-and-forth battle between the Sixers and their cross- Football Stadium is rebuilt. which saw the Wallabies left to rue town rivals the Sydney Thunder drew their chances late in the game. a crowd of 34,385, with average NRL Finals crowds for the year sitting above 18,000. The team defied all odds to The 2018 NRL Finals Series took on a FOOTBALL make it to the BBL semi-final where nostalgic feel as fans attended the they would eventually lose by three final matches ever to be played at the Sydney FC wickets to the Melbourne Renegades. old Allianz Stadium. The Sydney The expanded format gave fans more Roosters overcame the Cronulla Sydney FC played two Asian access to Big Bash cricket than ever Sharks 21-12 in the first encounter, Champions League matches and five before and the continued rise of the earning themselves a week off, before A-League matches during the WBBL has been well received by the Sharks returned to edge out the reporting period including a semi- members, supporters and Penrith Panthers by one point (21-20) final at Allianz Stadium and a broadcasters. in a do-or-die semi-final. Western Sydney Wanderers derby at the SCG for the first time, which The script could not have been written attracted a crowd of 30,588. Their One-Day and T20 better as the Roosters then hosted the 2017-18 season finished with a 2-3 Internationals South Sydney Rabbitohs for the loss against the Melbourne Victory in chance to progress to the grand final, what would be their final game at Australia hosted India for one-day in the last ever match to be played at Allianz Stadium before it was and T20 internationals at the SCG Allianz Stadium. A crowd of 44,380 set knocked down. However a move to with both fixtures proving popular a record for the highest attendance for the SCG saw their fortunes turn with with local and international fans. The a sporting match in the venue’s history Sydney FC going on to win another third match of the T20 series with the Roosters earning final A-League title with a penalty kick-started the summer of bragging rights with a 12-4 win at their shootout win over the Perth Glory international cricket at the ground home ground. earlier this year. with 37,339 vocal supporters turning

Sydney Cricket & Sports Grounds Annual Report 2018/19 13 and non-event days. In December 2018 Azure moved their services to Entertainment Quarter as a result of the Allianz Stadium redevelopment. Ticketing

Ticketing services for both venues and the SCG’s sports partners are provided by Ticketek, who signed a five-year deal to continue providing a distribution network for public ticket holders. Fortress have secured the rights for the SCG’s corporate and member offerings. Merchandising

Playbill Pty Ltd hold the merchandising rights at the SCG until 2021. They currently operate the Stadium Store online and event outlets at the grounds and work closely with sports partners to maximise sales. Disability Plan

out to watch India prevail with a six-wicket win over The SCG has developed a Disability Action Plan to Australia. The 50-over match in January was a different ensure people with disabilities can participate equally in story as Australia produced a 34-run victory in a return to activities at our grounds. This includes provisions for form after a tough Test series. India would go on to win accessing member and public areas on game days as the series 2-1 but another strong crowd highlighted the well as working with parking and transport providers. support for all formats of the game during the summer of international cricket at the SCG. PARTNERSHIPS Sheffield Shield Sponsorship, Supply And Advertising The SCG hosted one Sheffield Shield match in the lead Rights up to the Australian summer with NSW enjoying a win over Tasmania in November and draw against South The SCG’s advertising and sponsorship program made a Australia in December. With Test spots on the line, the significant contribution during a commercially challenging Blues secured a draw against their South Australia rivals year for the grounds given the redevelopment of Allianz with members and fans taking time during the holiday Stadium. Revenues of $13.1 million were generated via period to support the next generation of State cricketers. sales as well as supply and product rights. Michael Bublé QMS and the SCG agreed to a seven-year agreement which supersedes their current agreement and makes The last official event saw international superstar Michael them our largest commercial partner. TAB signed on to be Bublé farewell the venue with close to 30,000 fans enjoying the official naming rights partner of the wi-fi at the ground. a memorable night in the rain. The Canadian singer played a number of crowd favourites including ‘Home’, ‘Save The Accordingly, the SCG has continued to enjoy success in Last Dance For Me’ and ‘Haven’t Met You Yet’ with advertising and sponsorship partnerships with Qantas, Australian entertainers Guy Sebastian and Busby Marou TEG, IOOF, Telstra and UTS as well as our supply and helping fans say goodbye to the 30-year-old venue. product rights partners, CUB. Over the past 12 months we have renewed sponsorship and supply contracts with CCA, News Limited, Jim Beam, Tyrrell’s and Samuel OPERATIONS Smith and Sons In February Allianz Insurance Australia and the SCG came to the decision to suspend the SCG Events naming rights agreement of the venue until the opening SCG Events has become a well-recognised event of the new stadium opens in 2022. business associated with the SCG and its various The SCG and Sydney Roosters also signed a heads of corporate hospitality spaces. Stadia facilities are offered agreement to play home games at the new Sydney for private and corporate functions on non-event days Football Stadium for the next 25 years. The landmark and their financials have continued to grow under agreement places them alongside the Sydney Swans Delaware North management. as the SCG’s longest-serving hiring agreements and has reaffirmed their historical connection to the Azure Catering sporting precinct. Azure catering continues to offer catering services to members and those attending the Stadium Club on event

14 Hospitality $2,080,152 million at the end of the reporting period. The SCG focused on offering unique opportunities for current MatchPoint and SCG Hospitality enjoyed another members to upgrade their membership status without successful period with casual match day sales at advertising on the open market. $3,126,093 (70 per cent of total revenue) and a profit of $983,109 coming to the SCG. This was largely delivered Building relationships with strategic commercial partners by the Wallabies Test against Ireland, which delivered to provide quality incentives and rewards for new, 769 guests and $185,752 in total profit. Annual and referring and upgrading members was critical to these seasonal hospitality sold $1,333,604 (30 per cent of total campaigns. In February 2019 gold and platinum sales revenue) for a profit share of $829,687 off the back of a were moved in house. great calendar of sport at the SCG. Total numbers are as follows: The 12-month period accounted for 12 per cent of sales and 20 per cent of profit to the overall hospitality Total sales $2,080,152.95 program with MatchPoint and SCG Hospitality generating a profit of $1,812,796 with a share of $1,540,877 New sales 94 recorded by the SCG. A number of upgrades and adjustments were made to corporate areas during the New paid in full members 42 year as part of an ongoing commitment to providing a world class experience. New paid in part members 52 Gold And Platinum Membership Revenue paid in full $1,022,363.64 Revenue paid in part $1,057,250.01 Sales of gold and platinum memberships reached

Sydney Cricket & Sports Grounds Annual Report 2018/19 15 Event Attendance

Event Attendees CRICKET Test Match – Australia v India 125,905

T20 International Australia v India 37,339 One-Day International – Australia v India 37,556

BBL/WBBL – Sydney Sixers 126,230

Sheffield Shield – NSW Blues 2,581

Tour Match – CA XI v India 3,868

RUGBY UNION Wallabies v Ireland 44,085

Super Rugby – NSW Waratahs 85,436

Super Rugby Qualifying Final 12,067 RUGBY LEAGUE Sydney Roosters 130,925

St George Illawarra Dragons 41,142

NRL Finals Series 88,179

FOOTBALL Hyundai A-League – Sydney FC 66,155

Hyundai A-League Semi-Final 17,775 Asian Champions League – Sydney FC 16,293 AFL Sydney Swans 373,536

Finals Series 40,352 CONCERTS Michael Bublé 29,257 OTHER SCG Tour Experience 11,133 Stadium Stomp 1,727 Stadium Club 264,104

SCG AND ALLIANZ STADIUM TOTAL $1,278,681

PRECINCT TOTAL $1,555,645

16 Numbers To Note

BBL and WBBL Total attendance at the SCG 126,230 Anzac Day Cup Roosters V Dragons Attendance 41,142 Rugby total attendance 141,588 Cricket total attendance 333,479 AFL total attendance 413,888 NRL total attendance 260,246 Football total attendance 100,223

Numbers by club

SYDNEY SWANS AVERAGE SYDNEY SIXERS AVERAGE SYDNEY ROOSTERS HOME GAME ATTENDANCE HOME GAME ATTENDANCE AVERAGE HOME GAME ATTENDANCE 34,491 18,033 16,658

SWANS LARGEST ATTENDANCE FINAL RUGBY LEAGUE MATCH 40,352 44,380 Sydney Cricket & Sports Grounds Annual Report 2018/19 17 18 Customer Experience The Sydney Cricket and Sports Grounds placed the customer at the centre of its business during the reporting period with a large focus on enhancing the game day experience at the SCG.

Key achievements

»» Improved customer feedback process through regular »» Shared reporting and customer feedback to satisfaction surveys regarding food and beverage, benchmark the customer journey and encourage staff amenities, staff, car parking and technology to inform and sporting partners to implement a coordinated areas for improvement and decision-making. approach.

»» Introduced a number of internal strategies as part of a »» IImproved catering offering and customer satisfaction detailed customer experience plan for 2018/19 with ratings for arrival, presentation of staff, improved key performance indicators for each department. venue knowledge and safety and security processes.

18 CUSTOMER TRENDS

Feedback received from customers echoed improvements in nearly every aspect of the event experience. Satisfaction surveys were conducted after game days with ratings increasing across food and beverage, amenities, service, staff, wi-fi, car parking and arrival experiences. This feedback reflected the consumer enhancements made to ticketing, entry flow, way finding signage, commitment to customer needs, digital menus, water bottle refill stations as well as the website, game day app and social media channels.

Positive feedback was the result of new internal strategies, detailed customer service plans and the introduction of new performance indicators designed to improve the overall event day experience.

Cross-functional working groups were established to tackle specific challenges. Customers were also central to the staff development plan for the year, with internal training linked to detailed performance measures.

Engaging sporting and precinct partners has led to a coordinated and effective approach to improving the customer experience, and a logical progression to the strategic plan for the 2019-20 reporting period. FRAMEWORK AND PROGRESS

The foundation for our customer service standards and approach is set out in the SCG’s guest service charter. The principles for delivering customer service are:

»» Improved customer feedback process through regular satisfaction surveys regarding food and beverage, amenities, staff, car parking and technology to inform decision-making.

»» Introduced a number of internal strategies as part of a detailed customer experience plan for 2018/19 with key performance indicators for each area.

This is reinforced with all customer facing staff in the precinct, including those employed by third parties. Some examples of success in response to goals include:

»» Increased customer satisfaction ratings for the arrival experience

»» Regular customer compliments received for the responsiveness of service staff

»» The improved presentation of our staff with the introduction of new uniforms

»» Heightened venue knowledge for all event staff

»» Completion of venue-wide safety and security exercises in conjunction with the NSW Police

Sydney Cricket & Sports Grounds Annual Report 2018/19 19 TRAINING AND REPORTING »» Two new cool rooms built into Brewongle boxes

Central to all customer experience initiatives has been the »» A new 4 Pines bar in Bill O’Reilly Stand and an internal cultural movement towards true customer expanded partnership centricity. Operational training conducted throughout the »» Operation of Malabar Indian restaurants over the year was designed with a strong customer perspective in summer mind. This included season launches (featuring venue knowledge, ticketing, emergency management), handling »» Upgrade to Brewongle bars, expanding draught beer difficult situations, disability awareness, first aid, mental offerings from one to eight toughness, supervisor and security training. »» Introduction of Canadian Club and Dry in the members Customer experience reporting has been anchored in reserve regularly conducted customer satisfaction surveys. Key aspects have informed our performance measures and »» Introduction of Lavazza coffee across the SCG the results are shared with all stakeholders including several thousand lines of free customer comments. The »» Introduction of Loukamumma donuts in Bill O’Reilly continual feedback loop provide the foundation for tunnel ongoing improvement in the delivery of services on event »» Refresh of the Victor Trumper bar and food court days. »» New Oracle system roll out across all food and CATERING beverage

Delaware North are contracted to provide quality service and offerings. Several kitchen and corporate areas were upgraded at the SCG in the reporting period to improve the food and beverage experience. Works included:

20 EVENT DAY STAFF DIGITAL MARKETING INITIATIVES

During the reporting period three recruitment drives for The SCG invested in the digital customer experience casual customer service attendants resulted in more than during the reporting period with a number of initiatives 600 applications being received and a total of 98 new staff implemented to improve online engagement on event being added to the event day customer service team. days. These include: New recruits underwent a thorough screening process before completing a compulsory on-site induction »» An interactive virtual reality experience with the Sydney session. This was complemented with internal recruitment Roosters to provide a development pathway for high performing »» An augmented reality experience at the New Year’s Test team members to become team leaders, and ensure the right staff are responsible for improving the event day »» A new version of mobile app customer service offering. »» Launched WaitTime queue management and In collaboration with Total Image, we designed and wayfinding technology implemented a new uniform range for staff which took direction and inspiration from the SCG’s heritage. The »» Introduced SCG on our Facebook messenger platform signature design respects the venue’s sporting history with subtle references to rugby, cricket and 1930s fashion. »» Digital maps completed for website and app The new range was launched ahead of the New Year’s Test by Trustee Stephanie Brantz and CEO Kerrie Mather at a staff runway show.

Sydney Cricket & Sports Grounds Annual Report 2018/19 21 22 Membership

Membership services for the Sydney Cricket and Sports Grounds had a successful 2018-19 period with numbers remaining strong and work completed to transition the offering during the redevelopment. Membership is broken down into three categories – SCG, Gold and Platinum.

KEY ACHIEVEMENTS MEMBERSHIP STRATEGY »» Implemented a strategic plan including changes to the The redevelopment of the SFS saw a number of changes SCG’s waitlist benefit fee, junior membership, country made to the membership offering with the Sydney membership and joining fees. Cricket and Sports Grounds relocating facilities and services following the closure of the venue. This included »» A successful transition to interim recreational facilities finding alternative Stadium Club facilities at the for Gold and Platinum members in recognition of Entertainment Quarter and nearby venues, providing disruption from the SFS redevelopment. access for SCG members for football games relocated to the ground and ensuring Gold and Platinum members »» Annual subscriptions were increased by four per cent had a seamless transition to the interim facility. for SCG members, while fees were reduced by 10 per cent for gold and platinum members to reflect Members were consulted widely and despite the relocated sporting content and services. disruption, retention remained consistent at 97 per cent during the reporting period. The online experience for

22 members was enhanced through a new digital ticketing offering which improved reserved seating and day pass sales. Members enjoyed an exciting calendar of events at Allianz Stadium until its closure in September as well as a blockbuster season of AFL and international and domestic cricket at the SCG. Membership Support Membership Support includes a member and customer service team. The offering includes a membership call centre and email support, card replacements, waitlist applications, sale of day passes for nominated events, seat reservations and managing reciprocity with interstate and overseas venues. The team successfully helped supported members to transition to relocated facilities and services during the SFS redevelopment. SCG membership election and waitlist There was no offer for election to SCG membership in 2019. As of the May 21, there were 27,038 applicants on the SCG Waitlist dating back to January 2006. Subscription renewals and numbers Member numbers have remained stable at 18,288. The membership breakdown rests at nine per cent platinum, 33 per cent gold and 58 per cent SCG, which is consistent with previous reporting periods. In all, 38 people decided not to continue their membership for a variety of reasons. INTERNATIONAL CRICKET International cricket continued to be a popular feature of the membership offering with an exclusive program of off-field events staged during the New Year’s Test between Australia and India.

The offering for gold, platinum and SCG members included:

»» Country Members Reception on the eve of the Test

»» Traditional Members Breakfast on Day 1

»» Curators Breakfast on the field of play on Day 2

»» The Panel with Tim Gilbert and guests on Days 1-4

»» State of Play with Rodney Hogg and Wayne Phillips on Days 1-4

»» Stumps Sessions with Stephanie Brantz and guests on Days 1-4

»» Buffet breakfast and carvery lunches on Days 1-4

»» Noble Dining Lunch by Justin North on Days 1-4

»» Installation of live sites – Village Green, Sydney Live Plaza and the Club House

»» Live music by the Baker Boys on the Sydney Live EVENTS AND ENGAGEMENT Plaza Members have been consulted widely on the »» Summer Smash virtual reality experience on the plaza redevelopment of SFS and the relocation of facilities to the Entertainment Quarter and other nearby locations. »» Sculpture Tours by Henry Mulholland on Days 1-4 This included several question and answer sessions with senior executives and Trustees between November and

Sydney Cricket & Sports Grounds Annual Report 2018/19 23 January. The Members Advisory Group, responsible for Reporting figures include: canvassing members views on a range of topics, met four times during the reporting period, which Stadium »» Azure Cafe: $178,636 down (33%) Club focus groups were also held to collate feedback on »» General Revenue: $521,185 up (23%) the future of gym facilities. The membership team trialled and implemented new offerings during the reporting »» Overall Revenue: $699,822 (up 1%) period including an exclusive Footy Club experience in the Trust Suite for Sydney Swans and Sydney Sixers »» Expenditure: $1,944,746 (8% better than budget of home matches. $164,311)

A record member attendance was recorded for the final »» Overall: -$1,244,924 (12% better than budget of NRL event between the Sydney Roosters and South $173,929) Sydney Rabbitohs in September, with post-match functions held in the Captains Bar and Azure Cafe. An TRANSITIONAL PHASE expanded country member program was also implemented, with events held in Dubbo, Sydney and The Stadium Club closed in October as part of the SFS Orange held to boost engagement at rural and SCG redevelopment with the gym relocated to the sporting events. Other activities included the annual 50 Entertainment Quarter and other services set up at local and 70-year member induction in December, tailored venues. The new club opened on January 2 and included sports tours in partnership with Keith Prowse Travel and the consolidation of tenancies for the Centennial Health an Anzac Day function in the Members Pavilion. Club, Gosh Coffee, Little Birdy and Strung Out. Demolition and expansion was undertaken to include a rebranded Stadium Club with a separate cycle and group Stadium Club fitness room, 10-metre high ceilings, more classes, as well as the relocation of equipment and staff. INCOME AND EXPENDITURE The Stadium Club also acquired Off Piste’s tenancy, The Stadium Club, which includes Azure Cafe, performed directly adjacent to the gym entry, for a child-minding above expectation following the relocation of facilities facility as part of the offering. Three-hour parking at the and services during the SFS redevelopment. Wilson car park is also provided free of charge.

24

The transitional facilities including Cooper Park Tennis Centre, Bondi Waverley Squash Club, several City of Sydney pools via Belgravia Leisure and massage facilities “The Stadium Club makes at the Entertainment Quarter. Azure Café opened in the Entertainment Quarter directly across from the gym and our gold and platinum operates seven days a week. Usage rates for all new facilities continue to be consistent with previous numbers members feel at home and and work is under way to design new recreational facilities, which will be self-funded by the SCG and built we’re working hard on our in line with Infrastructure NSW plans for the new SFS. future vision for the facility.” MEMBER COMMUNICATION Member communication improved during the reporting period with content regularly distributed through newsletters, mail-outs and the Around The Grounds magazine. Information included regular updates Leah Monks regarding the SFS redevelopment, weekly game day Stadium Club Manager newsletters, CEO and Trustee updates and an increased presence on social media.

Click and open rates were consistent at 50 per cent, with the majority of members now choosing to receive communication in a digital format. Work is also under way to improve data collection with a transition to Salesforce imminent to better track member engagement with Sydney Cricket and Sports Grounds communications materials.

Sydney Cricket & Sports Grounds Annual Report 2018/19 25 26 Community and Heritage The Sydney Cricket and Sports Grounds manage public sporting facilities, which are an important part of Australia’s culture, identity and heritage. During the reporting period, the SCG engaged in a number of activities to enhance its corporate social responsibility to the people of NSW.

26 KEY ACHIEVEMENTS »» Engaged in charitable initiatives such as the SCG’s ongoing support of Jane McGrath Day, which this year raised more than $1.3 million at the New Year’s Test.

»» Strengthened museum collection and ties with heritage bodies while also improving existing heritage features of the SCG’s facilities.

»» Continued to open the SCG to the public through a growing tours program and unique community activities at major events.

»» Provided support to rural communities and sporting facilities by recycling assets from the demolition of the SFS along with other public relations initiatives. CHARITABLE INITIATIVES The Sydney Cricket and Sports Grounds engaged in charitable causes during the reporting period including the 11th instalment of Jane McGrath Day. Fans dressed in pink agreed to host the Sports Stars Sleepout for a second year on day three of the Test match to support the placement of to raise valuable funds for the Chappell Foundation and breast care nurses around Australia through the McGrath youth homelessness across Australia. Foundation. A donation of $1 was also matched for every fan who attended on day five. AWARDS The SCG continued to support charities by donating prizes The SCG was once again recognised on the world stage and purchasing tables to a number of events including the when it was awarded the global Stadium Business Venue St Vincent’s Hospital Gala Dinner, Carbine Club and an Technology Award for its state-of-the-art Venue Operations evening for the Sporting Chance Cancer Foundation. The Centre and Digital Upgrade. The judges acknowledged the lights of the Noble Bradman Messenger Stand were also SCG’s $3.5m investment in security, Venue Operations turned on in different colours to raise awareness for Centre, the digital experience and social media monitoring. charities including ‘Light it Red for Dyslexia’ and ‘Go Gold for Childhood Cancer’. The 2018 Ashes Test match was also a finalist for the Fan Experience Award, while Jane McGrath Day won Event of COMMUNITY INITIATIVES the Year at the overseas event for raising more than $1.3 million to fund nine breast care nurses. Domestically, the The SCG successfully staged several community and SCG’s Steve Waugh Augmented Reality experience was a fundraising initiatives during the reporting period including finalist in the 2018 ‘Best On-Ground Activation’ at the ‘Footy for our Farmers’ at the Swans-Hawthorn match on Mumbrella Sports Marketing awards. August 25 to support Rural Aid’s ‘Buy a Bale’ campaign. More than $150,000 was raised, with the SCG donating HERITAGE COLLECTION $52,923 or $1 for every fan who came through the gates at the SCG and for the Roosters-Broncos match at Allianz The SCG focused on taking the museum ‘beyond its Stadium. boundaries’ during the reporting period with archival displays featured around the precinct. The SCG also helped to coordinate promotional activities for Jane McGrath day, with 50c donated to the foundation The cupboard doors in the away change room were from every ‘4 Pines All Out Pink Draught Beer’ sold as part complete with signatures from top to bottom and were of a collaboration with the brewing company. The ground subsequently relocated from the museum. New doors were was also used for a 2018 Commonwealth Games installed to continue the tradition of recording significant announcement to celebrate the 80 years since the 1938 visitor bowling and batting figures. Empire Games at the SCG. The SCG installed replica lamps to the rear stairways of the To maximise the community impact of the NSW heritage-listed Ladies Pavilion to reflect the gas lamps Government’s redevelopment of Allianz Stadium, the SCG which were a feature of the stand in 1896. The lamps were worked with communities to relocate more than 15,000 recreated from just two available photographs from the seats and team equipment to areas such as Cootamundra, time and are part of a wider commitment to preserving Tamworth, Port Stevens and Cronulla. heritage.

In early 2019, the SCG welcomed 26 new Australians at a A number of significant items were received via donation citizenship ceremony to celebrate Refugee Week with or on loan including signed Diego Maradona and Pelé Swans star Alir Aliir hosting the morning. The ground also jerseys. Jonathan Thurston’s headwear that we wore in

Sydney Cricket & Sports Grounds Annual Report 2018/19 27 his last game at Allianz Stadium was donated along with Drury to ‘record’ the building. As well as photographing Anthony Minichiello’s jersey from his final performance. the building itself, the photographer also took a series of portraits of current and former Trustees, players, officials, Blue Mountains schoolboy Curtis Glassford built a LEGO media and staff in situ in the venue. version of the SCG Members Pavilion with the replica displayed during the Test match and later donated to the The building’s author Philip Cox was photographed at the museum’s collection. venue and was interviewed as part of the SCG’s oral history project.

SCG TOURS SCG Heritage staff identified items that needed to be preserved prior to the demolition of Allianz Stadium Interest in SCG Tours continued to grow with more than including the 1988 time capsule and opening plaque. 11,000 visitors recorded during the 2018-19 year. These items are now in storage for repurposing at the The implementation of the Rezdy online booking software new stadium. allowed SCG Tours to be pushed out to various online booking agencies with improved back-end invoicing, Seven sculptures were identified for relocation or storage reporting and financial processes. This was a significant as part of the demolition works. These included Dally milestone which allowed SCG Tour staff to concentrate on Messenger, Trevor Allan, Reg Gasnier, Betty Cuthbert and production development and building client relationships. Marlene Mathews, Ken Catchpole and Johnny Warren. These sculptures will eventually be reinstalled within the Several themed public tours were conducted including new stadium surrounds and work is under way to source successful Father’s Day and Footy Finals Tours. The appropriate locations. tours featured a talk with a special guest as well as food and drinks at Azure Café. ADVISORY GROUPS The SCG Tour exhibited at the Australian Tourism Exchange 2018 in Adelaide. The five-day exchange Sydney Cricket and Sports Grounds management provided the opportunity for staff to meet with hundreds participated in planning groups such as the Trust of international wholesalers and national tourism types. Advisory Group (TAG) and Community Consultative Committee (CCC). The TAG, chaired by Trustees Phil The tours office was also relocated to the rear of the Waugh and David Gilbert, met twice during the reporting Ladies Pavilion, adjacent to Gate A. The new site provides period to discuss major events, planning for the SFS easy access to Driver Avenue, the SCG Museum, and the redevelopment and other issues related to the pavilions. This new location will benefit from the light rail management of the grounds. stop which will be within 500m walking distance. The operation of the TAG was suspended given the FAREWELLING THE SFS establishment of the CCC, which was put in place by the NSW Government to canvas community, business and As part of the SFS redevelopment, the SCG sporting interest in the State Significant Development. commissioned specialist architecture photographer Carl

28 Sydney Cricket & Sports Grounds Annual Report 2018/19 29 30 Financial Services The Sydney Cricket and Sports Grounds (SCG) is a NSW Government Trading Enterprise constituted under the provisions of the Sydney Cricket and Sports Ground Act, 1978.

The SCG is a not-for-profit entity. The reporting entity is consolidated as part of the NSW Total State Sector Accounts.

Financial Performance value of the Allianz Stadium associated buildings which was $38.3m. The SCG’s operations for the financial year ended February 28, 2019 resulted in an operating deficit During the past year the SCG undertook a capital works program valued at $34.3m for renewal and (excluding relocation/disruption expenses and improvements of SCG assets. revaluation/disposal of assets) of $6.5m compared to the budget which projected an operating deficit of NSW Government grants were received for works $7.7m. commenced on the Sydney Football Stadium redevelopment. These grants were passed onto The operating performance (including relocation/ Infrastructure NSW, the delivery agent for the new disruption expenses and the revaluation/disposal of Sydney Football Stadium. assets) provided a deficit of $27.7m. Capital debt increased from $78m to $150m at the The overall net comprehensive deficiency for the close of the year. The increase in debt relates to the financial year was $54.1m, after inclusion of a non-cash SCG’s obligation to fund relocation, disruption, increment on revaluation of land of $12.2m together compensation and SCG readiness programs associated with the write-off of the remaining useful life of the asset with the redevlopment project.

30 Operating Performance

The results for the reporting period include the impact of relocation and disruption activities related to the SFSR program. Operating revenue of $84.6m compared to $99.4m in 2017/18; with a respective decrease to operating expenditure of $91.1m compared to $97.5m the previous year.

The breakdown of revenue and expenditure is outlined below:

Event Hire Fees 6% 12% Catering 18% Corporate Hospitality

25% Other Event Revenue

Membership

Advertising and Sponsorship 29% 5% 5% Rental Income

Event Operating Expenses 8% 5% Liquor Cost of Goods 27% 7% Other Event Expenditure

Staff Related

15% Maintenance and Equipment

14% Advertising and Sponsorship Servicing

19% 5% Finance Expenses

Other General

Membership Sales campaigns relating to the sale of Gold and Platinum memberships have ceased during the disruption period The SCG offers three major forms of membership – SCG and, as such, membership entrance fees recorded for the membership, gold membership and platinum membership year are lower than the previous year 2017/18. – providing entitlements to events and facilities at the SCG and Allianz Stadium. Events

Gold and platinum membership subscription rates were Long-term contractual arrangements with major sporting discounted during 2018-19 in recognition of the disruption bodies provide a broad-based program of sporting events to the membership offering as a result of the SFS at the grounds. Major sport partner contracts include redevelopment. SCG membership subscriptions were Cricket NSW, Sydney Sixers, Sydney Swans, Rugby increased in line with increased benefits and events held Australia, NSW Waratahs, National Rugby League, Sydney at the SCG during the disruption period. Membership Roosters, St George Illawarra Dragons, South Sydney retention levels have remained high at 97 per cent. Rabbitohs and Sydney FC.

Sydney Cricket & Sports Grounds Annual Report 2018/19 31 Interim agreements are in place with sporting partners Relocation and Disruption of Tenants during the construction period. The 2018/19 event schedule saw the first impacts on the relocation of On January 2, 2019 the SCG met its obligations to events from Allianz Stadium, with eight A-League INSW to provide vacant possession of Allianz Stadium, events and one Waratahs match hosted at venues associated buildings and MP1 car park. This involved outside of the SCG precinct. the SCG, sporting partners and the Stadium Club and Azure café being moved to new premises at the During the past year the total attendance of patrons at adjacent Entertainment Quarter. events staged at the SCG and Allianz Stadium was 1.2million compared to 1.5million in 20187/18 SCG Readiness reflecting events moved to other venues during the period of disruption. The SCG invested in the relocation and installation of a range of assets at the ground in order to meet its Commercial commercial obligations for events transferred from Allianz Stadium. This included new and upgraded wi-fi and IPTV, The SCG has commercial agreements with various LED signage and videoboards. partners for the provision of catering services, ticketing The project program and planning requirements to services, sale of merchandise, corporate hospitality, achieve these outcomes was extensive. Costs incurred in advertising and sponsorship rights. relation to relocation, disruption, compensation and SCG Revenues relating to these agreements have been readiness have been funded by the SCG. impacted by the changes to the event schedule during the year. Grant Revenue The SCG received $25.2m in grant revenue during the RELOCATION AND DISRUPTION period. $2.6m was received from the Office of Sport for EXPENSES the installation of spectator wi-fi services at the SCG and $22.5m received from NSW Treasury (and passed onto Relocation of Events Infrastructure NSW) for SFS redevelopment works. Allianz Stadium hosted its last event on October 8, Depreciation 2018. Events previously held at the stadium were relocated to the SCG or other NSW venues. Depreciation expense for 2018/19 of $26.6m included $12.4m of accelerated depreciation for Allianz Stadium which was consolidated on October 8, 2018.

32 Consultancy Expenses The SCG’s internal auditor, Ernst & Young, conducts annual audits as part of the three-year internal audit plan. Consultants were appointed for a range of projects in 2018/19, with payments totalling $1.4m. Capital Works

Risk Management, Insurance And During 2018/19 the SCG managed an extensive capital Audit/ Risk Committee works program totalling $32.3m. The major projects undertaken in 2018/19 included: The SCG’s major insurance risks are covered through membership of the Treasury Managed Fund. Insurance »» LED parapet installation premium costs in 2018/19 were $468,000. »» Video screens relocation The SCG insurance placement and coverage is reviewed annually by insurance brokers, Arthur J Gallagher. The »» Security control room SCG monitors insurance claims experience on an »» PA system ongoing basis with a focus on workplace health and safety performance. »» Network convergence Risk management policies and procedures are regularly »» Grow lights updated to enhance the SCG’s risk management profile in an effort to reduce future premiums. »» Ticketing infrastructure

The SCG has in place an internal audit and risk »» Catering facilities upgrade management framework overseen by the establishment of the Trust Audit and Risk Committee in accord with the Summary Of Land Vested In The Trust Government’s Internal Audit and Risk Management Policy for the NSW Pubic Sector, issued by NSW Treasury in 2015. The SCG is constituted under the Sydney Cricket and Sports Ground Act of 1978. It is charged with the care, The committee has prepared an Audit and Risk control and management of the lands described in Committee Charter consistent with the content of the policy’s model charter and developed a high-level Schedule 2 of the Act, those lands dedicated for public enterprise risk management framework. recreation.

Sydney Cricket & Sports Grounds Annual Report 2018/19 33 Major Assets – Property, Plant & associated facilities. During the year the SCG drew down Equipment $66.7m of the additional approved funds The SCG debt as February 28, 2019 stands at $150.4M. The Sydney Cricket and Sports Grounds major assets, Interest paid on capital debt during 2018/19 was $3.3m, other than land holdings, consist of buildings and as compared to $3.1m recorded in the previous year. improvements at the SCG and Allianz Stadium and its surrounds. The SCG’s target is to pay 90 per cent of accounts on time. Unavoidable delays in processing accounts The SCG re-values each class of property, plant and occasionally arise due to delays in obtaining goods in equipment at least every three years or with sufficient proper order and condition, or queries on invoices. regularity to ensure that the carrying amount of each asset in the class does not differ materially from its fair The SCG continues to encourage suppliers to accept value at the reporting date. Interim formal revaluations electronic funds transfer as the preferred method of are carried out in the years between the comprehensive payment. No interest has been paid on payments on any revaluation. accounts where delay in payment has occurred during the year. During 2018/19, the Sydney Cricket and Sports Grounds received an independent valuation by Knight Frank Valuations of its vested lands, based on an ‘as zoned and Internal And External Performance used basis’, providing a valuation of $72.8m as at Reviews February, 29 2019. The valuation increment of $12.2m recorded since the previous valuation of land was The SCG’s four main committees (Business, Finance, transferred to the Asset Revaluation Reserve as at Stadium Development and Audit & Risk Management) February 28, 2019. are responsible for continuous internal performance review of SCG activities. Monthly management reports During 2017/18 the Sydney Cricket and Sports Grounds are submitted to these committees for assessment of received an independent valuation by WT Partnership, operational performance. registered quantity surveyors, of the replacement cost of buildings and improvements at the SCG and Allianz The SCG’s internal auditor, Ernst & Young, conducts an Stadium. The valuation at replacement cost was annual audit program affirmed by the Audit & Risk converted to written down replacement cost by the Management Committee. In conducting the assigned determination of the remaining useful life of each audits, Ernst & Young seek to identify opportunities to building. further enhance the business and commercial efficiency and cost effectiveness of the Trust’s system of internal An interim valuation of buildings and improvements was control. conducted as at February 28, 2019 to determine if recorded value is not materially different from fair value The SCG also submits financial reports to the NSW – with no change made to the recorded value. Treasury Commercial Sector Division for review of operating performance and financial position as As a result of revaluations, an Asset Revaluation Reserve compared to agreed Statement of Business Intent is established. The balance of this Reserve as at performance targets established annually. February 28, 2019 stood at $286.6 (February 28, 2017: $274.4). Credit Card Use

During 2018/19 the Sydney Cricket and Sports Grounds The use of credit cards issued to SCG executive staff is disposed of Allianz Stadium, associated buildings and in accordance with Premier’s Memoranda and Treasurer’s the member Stadium Club facilities. Directions. Debt Facility Sydney Cricket Club

TThe SCG’s debt portfolio is managed by NSW Treasury In 2007, the SCG joined with the administration of the Corporation. RBA reduced cash rates by 0.50% to former UTS-Balmain District Cricket Club in establishing 1.50% and the 10-year Commonwealth Government the entity of the Sydney Cricket Club. Bond yield increased by 0.32% to 2.72% by year end. Over the year, the face value of the SCG’s borrowings The Sydney Cricket Club is an incorporated association increased from $79 million to $150.4 million, with the under the Associations Incorporation Act 1984. The SCG weighted average borrowing rate reducing to 3.65%. and the club agreed to enter an association which would involve the provision by the Trust of administrative and The increased debt was approved in order to allow the other services to the club. SCG to fund disruption costs associated with the redevelopment of the Sydney Football Stadium and The SCG is represented on the club’s board of directors in accord with the club constitution.

34

Recoverable operational expenses incurred by the SCG Cost of Printing Reports during the past year were recouped from the Sydney Cricket Club through the club’s operational account The SCG has prepared two annual reports for 2018/19 in hard copy as required for tabling in parliament, which were printed in-house with no external cost.

TIMING FOR PAYMENT OF ACCOUNTS Listed below is a schedule of accounts payable performance as at February 28, 2019, November 30 2018, August 31, 2018 and May 31, 2018.

AGED ANALYSIS AT THE END OF EACH QUARTER

CURRENT LESS THAN 30 30-60 60-90 90+ TOTAL QUARTER $ $ $ $ $ $

May 8,620,913 23,151 11,554 53,746 29,644 8,739,007 98.65% 0.26% 0.13% 0.62% 0.34% 100%

August 2,085,244 211,697 - - 3,030 2,299,971 90.66% 9.20% 0.00% 0.00% 0.13% 100%

November 2,981,854 891,550 1,562 487,602 3,612 4,366,179 68.29% 20.42% 0.04% 11.17% 0.08% 100%

February 4,791,951 1,842,854 7,326 5,114 2,772 6,650,016 72.06% 27.71% 0.11% 0.08% 0.04% 100%

ACCOUNTS PAID ON TIME WITHIN EACH QUARTER

TOTAL ACCOUNTS TOTAL ACCOUNTS QUARTER TARGET % ACTUAL % PAID ON TIME PAID

May 90% 93.77% $36,403,055 $38,820,415 August 90% 96.09% $27,450,902 $28,566,954 November 90% 97.96% $47,512,094 $48,503,869 February 90% 98.55% $71,119,212 $72,162,752

Sydney Cricket & Sports Grounds Annual Report 2018/19 35 Financial Indicators The tables outlined below detail the Trust’s revenue, debt levels, operating surplus, earnings before interest and membership renewal financials.

EBITDA Excluding grants and THREE-YEAR EBITDA allocation of reserves 46% 25 20 On budget of 15 $ 18.1 18.2 17.8 7.7m 10 Actual EBITDA 5 11.3 $ 11.3m 0 2016/17 2017/18 2018/19 2018/19 EBITDA with no SFSR (normal business) (normal business) $ 17.8m

OPERATING SURPLUS excluding grants and THREE-YEAR OPERATING SURPLUS allocation to reserves 16% 3 2 On budget of 1 1.39 1.95 1.4 $ 7.7m 0

Actual Operating surplus -1 $ 6.5m -2 -3 Operating surplus with no -6.5 SFSR (normal business) -4 $ 1.4m -5 -6 -7 2016/17 2017/18 2018/19 2018/19 (normal business)

DEBT LEVEL includes increase for SFSR works: THREE-YEAR DEBT

150.3m 160 includes increase for 140 redevelopment works of 120 $ 67m 100 Loans repaid 80 $ 1.2m 60 40 20 0 2016/17 2017/18 2018/19

36 Sydney Cricket & Sports Grounds Annual Report 2018/19 37 38 Infrastructure

A series of important precinct developments took place during the 2018-19 reporting period with a number of changes made to infrastructure as part of the wider SFS redevelopment.

Key Achievements SFS Redevelopment

»» Decommissioning of Allianz Stadium and associated The Sydney Cricket and Sports Grounds progressed utility diversion projects in line with the NSW plans for the SFS redevelopment during the reporting Government’s $729 million redevelopment. period with significant stakeholder and community consultation undertaken before the venue was »» The successful relocation of SCG administration, the demolished. These sessions informed urban and match day office, sport partner facilities and gym environmental outcomes as part of stage one and two facilities to the Entertainment Quarter and other of NSW Government’s planning process. Cox locations. Architecture were awarded the project after winning the design excellence competition and have progressed »» Improvements to security, access, PA systems, waste plans for the new world-class venue which will include management processes, wayfinding and LED improved sightlines, wider concourses, an innovative infrastructure for the SCG. roof, premium player facilities and enhanced food and beverage offerings. »» Contribution to completion of Tramway Oval redevelopment and new bus loop on Driver Avenue Infrastructure NSW received planning approval for stage in conjunction with Transport NSW. one of the redevelopment in December 2018 which

38 informed the demolition of the existing stadium and surrounding buildings, with Lendlease completing stage one of the construction contact. Demolition commenced in March 2019 with work ongoing to deliver a state-of- the-art rectangular venue by 2022. Member Facilities

The SCG is funding new member facilities in the precinct, while the NSW Government focuses on the delivery of the SFS redevelopment. In conjunction with stage two planning works, which will inform the design and delivery of the venue, the SCG project team has been working to secure the right location and envelope for next generation member facilities. The driving ambition is to provide a Stadium Club that is bigger and better than the original facility as well as being truly world-class.

The new facilities will be located close to the original club’s position, however the actual location will be refined once the location of services (power, gas, water and other services) for the stadium are finalised as part of the planning approval process. A range of concepts have been developed to maximise what can be accommodated in the future recreational facility for members based on extensive feedback received to date. Sport Partner Facilities

The SCG funded the relocation of tenancies and sport partners ahead of the redevelopment through an increase in borrowings from Treasury. This included funding new spaces in the Entertainment Quarter for the Sydney Roosters, Stadium Sports Medicine Clinic, Stadium Club, AFL NSW and Azure Café. Planning is also under way for the future of club facilities in the precinct with the Swans receiving Federal funding for a new high-performance centre within the Royal Hall of Industries. Traffic and Transport

The redevelopment of the SFS has presented an opportunity to reshape the precinct’s function on game day, with the SCG and Transport NSW making a combined $13 million investment to redevelop Tramway Oval and the existing bus loop on Driver Avenue. Sports teams and codes have provided strong submissions in support of retaining event day car »» Upgraded Dally Messenger and Churchill parking until a suitable alternative solution is available. scoreboards Total attendance numbers are predicted to grow with the opening of the new SFS and it is important to »» Refurbishment of office space in Noble Bradman ensure that the precinct remains accessible by car, Messenger Stand into a second change room foot and public transport. The new CBD and South East Light Rail project will also support the venue »» Installation of new turnstile infrastructure at Gates C, when it opens. E and A Capital Works »» Completion of stage one upgrade to assist with LED signage project The SCG made the following upgrades to the precinct during the reporting period: »» Fire hydrant systems upgrades

»» Upgraded PA and point of sale systems »» Stair nosing installation for all stands to include exit stairwells »» Upgraded static parapet signage to LED signage »» Wayfinding systems and signage upgrades (Gate E,

Sydney Cricket & Sports Grounds Annual Report 2018/19 39 Concourse of Brewongle and Clive Churchill stands), re-turfed in February to prepare for a long season of contributing to an enhanced guest experience football at the ground. At the end of the reporting period, the turf was in good condition in the leadup to Heritage Work a busy period of games for the Waratahs, Roosters and Swans. The SCG successfully implemented an The SCG made the following heritage improvements irrigation upgrade to provide water percentage control during the reporting period: as part of a push towards a more sustainable future. »» Upgraded internal Gate A turnstile infrastructure Environment and Sustainability »» Reproductions of staircase lamps for the Ladies The SCG made a number of advancements in Pavilion environment and sustainability during the reporting »» Restoration of various heritage dining tables period with 580 of the 1013 tonnes of material recovered or recycled for a research recovery rate of Playing Field Maintenance 57 per cent. Waste management sorting processes continued with more than 7000 containers segregated The decommissioning of Allianz Stadium saw a and collected towards the end of 2018. Dedicated number of sporting fixtures across AFL, cricket, rugby e-waste, recycling and timber collection programs union, rugby league and football relocated to the SCG were enforced along with trial programs focusing on for the 2018-19 calendar. The ground hosted A-League the reduction of plastic materials to find alternative at the end of the year before the SCG was transformed options for straws and plastic bin liners. The SCG into a cricket venue in time for the Big Bash season continues to review international processes and and New Year’s Test. Inclement weather saw play identify opportunities to reduce waste, with the stalled on days four and five with patches of exciting resource recovery target remaining at 75 per cent. cricket in between. The return of regular rugby union to the ground and an increased workload, saw the field

Sydney Cricket & Sports Ground Trust - Resource Recovery

303.96 320 146.02 100 300 90 280

260 80 75 240 73 220 70 63 Recovery Rate % 200 65 59 60 180 59 59

Tonnes 53 57% 160 48 50 51 51 52 140 157.94 40 120

95.77 100 87.03 30 82.84 62.29 80 65.29 66.25 70.31 49.24 69.65 42.41 60.90 35.71 22.23 20 60 48.22 41.55 50.80 52.43 35.65 26.13 27.89 40 31.33 10 33.48 19.76 20 28.76 33.60 24.67 24.54 33.94 20.18 21.74 18.03 11.57 25.25 0 0 JAN FEV MAR ABR MAY JUN JUL AUG SEP OCT NOV DEC YTD...

Waste to Landfill (Tonnes) Resources Recovered (Tonnes)

40 Security and Precinct Access capability of our people to inherently consider risk and aligns to existing frameworks or processes, where In the current threat environment, protective security possible, to avoid duplication of controls. measures continue to be the largest part of stadium operations. The security and emergency planning team The SCG continues to explore and implement strategies have developed a security and emergency framework, to assist staff in maintaining health with skin cancer in consultation with the NSW Police and other State and checks and practical training in manual handling. Federal agencies, to set minimum standards and Training our teams strengthens SCG compliance with escalations plans for the precinct. first aid, working at heights and forklift training completed for teams. Safework Month was celebrated The SCG continues to invest in the improvement of at the SCG with talks on mental wellbeing and a visit security systems including precinct accreditation, from Paralympian Brett Stibner. security and emergency operations, CCTV, body-worn video, access control and emergency and lockdown In conjunction with the facilities team, there was a focus systems. on minimising slip, trips and falls hazards. A range of works have been undertaken including the installation of Health and Safety Initiatives a railing off the members barbecue area, ongoing stair nosing installation and maintenance of existing The SCG continued managing risk with the pathways. Event day staff were briefed at training day development of the Events Safety Framework. The and pre-event briefs, to take an increased role in framework promotes the consideration of risk and highlighting hazards across the precinct. compliance for each event and sporting code. The

Lost Time Injury Trend

16.0

14.0

12.0 The Lost Time Injury Frequency 10.0 Rate (LTIFR) is displayed as a rolling average of the previous 12 months. 8.0 The rolling average shows that 6.0 LTIFR was on a downward trend for 4.0 the 2018-19 year.

2.0 18.03 -

Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18

ICT Digital Information

The ICT team completed a number of projects during The Sydney Cricket and Sports Grounds continues to the reporting period: review its Information Security Management System (ISMS) and will take steps to address any non- »» SCG phase three expansion funded by the Office of conformance, as may be relevant, to develop the ISMS Sport included wi-fi for all fans to be consistent with core requirements. Any risks will be assessed in accordance with the NSW Government’s »» A new captive portal and wi-fi analytics package to Digital Information Security Policy. improve behavioural data integration

»» Relocation and decommissioning of Allianz Stadium ICT assets and hardware

»» Cyber security audit completed with recommendations to be implemented

»» Scoping for phase five strategy and collaboration with Venues NSW

41 Sydney Cricket & Sports Grounds Annual Report 2018/19 41 42 Our People The Human Resources department focused on improving internal and external customer service during the reporting period, with attention shifting to the SCG experience with the closure of the SFS.

KEY ACHIEVEMENTS OUR CULTURE »» Increased the regularity of formal and informal The Sydney Cricket and Sports Grounds completed briefings for staff at all levels during the reporting regular engagement surveys to formalise feedback and period to increase engagement. inform cultural direction. In June 2018, all staff across the NSW public sector were given the opportunity to »» Encouraged collaboration with cross-functional participate in the People Matter Survey, with the overall working groups in areas to improve the overall participation rate at 68 per cent – the best performance customer experience in an innovative way. to date. Feedback regarding communication improved at 78 per cent as a result of regular formal and informal »» Successfully relocated SCG headquarters to the forums being held to encourage senior management to Entertainment Quarter as part of the SFS share more detail regarding business activities with staff redevelopment. at a lower level. Key indicators include an increase in improvements to public sector benchmarks in all areas, »» Completed an extensive search for a new CEO an increase in workplace health and safety measures and following the departure of Jamie Barkley and an increase in communication performance. The following welcomed Kerrie Mather as the new Chief Executive in graphs show the improvements in the SCG’s results over November. the last three years.

42 TRAINING AND DEVELOPMENT discussed tips and techniques to deescalate aggressive customers and took part in role play exercises. Training was focused on the summer of cricket at the SCG. In collaboration with Cricket Australia and the As part of Safety Month in October first aid training Sydney Sixers, two training sessions were held for was made available to all event day customer service all event day staff prior to the cricket season at the supervisors and team leaders. The training served SCG. Representatives from sporting partners shared as an opportunity to upskill the leadership group and relevant information for the upcoming cricket season. serve patrons at events in the event of an incident. This included ticketing information, venue knowledge A new mentoring program was implemented for the activities and security and emergency management event day customer service team aimed at building staff information. In excess of 300 event day staff attended. capabilities through the transfer of skills, knowledge A disability awareness training session was also held for and insight. Less experienced staff are paired with event day customer service supervisors and team leaders more experienced team members at event days on to formalise experience. The session was customised an ongoing basis. The program provides a formal to equip our event day leaders with the knowledge and channel for internal growth and succession planning. skills needed to interact effectively with disabled patrons It is expected that the program will improve event on event days. Training was delivered by Australian day customer service delivery by building collective powerchair football representative Ben Keyt, who shared staff understanding through knowledge sharing. information about inclusion, the foundations of interacting To improve diversity and increase the number of female with disabled patrons and potential challenges. security guards, the SCG offered sponsorship to Targeted customer service training for event day customer service attendants interested in completing supervisors and team leaders focused on handling training to become a licensed security guard. The conflict and dealing with customers as a point of first successful participant completed her first crowd escalation on event days. Participants underwent safety shift in 2018 and is now able to perform both self-evaluation to identify their preferred conflict style, customer service and security functions on event days.

PEOPLE MATTER SURVEY Key drivers of engagement

My workgroup works collaboratively to achieve its objectives

My organisation focuses on improving the work we do

My organisation is making necessary improvements to meet our future challenges

I feel that senior managers model the values of my organisation

I feel that senior managers effectively lead and manage change

My organisation respects individual differences 0 10 20 30 40 50 60 70 80 90 100

2016 2017 2018

Sydney Cricket & Sports Grounds Annual Report 2018/19 43 Workforce Profile Report

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, employees and executive remuneration.

Trends in the Representation of Workforce Diversity Groups

Benchmark/ Workforce Diversity Group 2016 2017 2018 Target

Women 50% 36.8% 36.0% 36.0%

Aboriginal People and 3.3% 1.9% 1.8% 1.8% Torres Strait Islanders People whose First Language Spoken 23.2% 9.7% 10.0% 11.2% as a Child was not English People with a Disability N/A 1.9% 1.8% 3.6% People with a Disability Requiring N/A 1.9% 1.8% 1.8% Work-Related Adjustment

Trends in the Distribution of Workforce Diversity Groups

Benchmark/ Workforce Diversity Group 2016 2017 2018 Target

Women 100 98 98 106

Aboriginal People and 100 N/A N/A N/A Torres Strait Islanders People whose First Language Spoken 100 N/A N/A N/A as a Child was not English

People with a Disability 100 N/A N/A N/A

People with a Disability Requiring 100 N/A N/A N/A Work-Related Adjustment

Executive Remuneration Band 2019 2018 2017 Female Male Female Male Female Male Band 4 (Secretary) 1 0 0 1 0 1 Band 3 (Deputy Secretary) 1 0 1 0 1 0 Band 2 (Executive Director) 0 2 0 2 0 2 Band 1 (Director) 4 2 2 3 2 2 Totals 6 4 3 6 3 5 10 9 8

44 Average Executive Remuneration Workforce Diversity Group Range $ 2019 $ 2018 $ 2017 $ Band 4 (Secretary) 475,151 - 548,950 640,531 631,374 615,975 Band 3 (Deputy Secretary) 337,101 - 475,150 340,972 332,673 324,616 Band 2 (Executive Director) 268,001 - 337,100 287,314 269,277 276,215 Band 1 (Director) 187,900 - 268,000 220,150 221,700 219,501

Breakdown of employees by department

2017 Feb 2018 Feb 2019 Feb

FTE Emps FTE Emps FTE Emps

Executive Staff 8.00 8.00 8.90 9.00 10.00 10.00

Administration 3.35 4.00 3.43 4.00 2.32 3.00

Event 20.03 22.00 8.35 12.00 8.52 10.50

Business Development 0.00 0.00 0.00 0.00 0.00 0.00

Membership & Marketing 34.89 59.00 34.20 55.00 30.61 43.00

Commercial 2.00 2.00 2.00 2.00 2.00 2.00

Corporate Services 12.89 14.00 10.65 11.00 11.52 12.00

Strategy & Projects 0.00 0.00 0.00 0.00 0.00 0.00

Properties / Facilties 26.00 26.00 41.93 47.00 43.66 41.50

Media & Communications 2.00 2.00 2.00 2.00 4.00 4.00

Sydney Cricket Club 0.00 0.00 0.00 0.00 0.00 0.00

Human Resources 3.00 3.00 4.04 5.00 5.40 6.00

112.16 140.00 115.50 147.00 118.03 132.00

Breakdown of employees

FULL TIME = 88 90 87 99.00

PART TIME = 22.8 23 24 14.00

CASUALS = 25.2 27 36 19.00

TOTAL EMPS = 136 140 147 132

FTE = 110.10 FTE = 112.16 FTE = 115.50 118.03

Sydney Cricket & Sports Grounds Annual Report 2018/19 45 The Trustees

ANTHONY SHEPHERD AO CHAIRMAN COMMITTEES: BUSINESS, STADIUM DEVELOPMENT & FINANCE

Bachelor of Commerce Chairman: Macquarie Specialised Asset Management Ltd Chairman: Greater Western Sydney GIANTS AFL Club Director: Racing NSW Director: Virgin Australia International Holdings Director: Menzies Research Centre External Advisor: ASIC External Advisory Advisor: Bank of Tokyo-Mitsubishi UFJ Former President: Business Council of Australia Former Chairman: Transfield Services Limited Former Chairman: National Commission of Audit Former Chairman: WestConnex Former Chairman: Sydney Motorway Corporation Pty Ltd Appointed Trustee to 4 October 2020

ROD MCGEOCH AO LLB DEPUTY CHAIRMAN; CHAIRMAN, STADIUM DEVELOPMENT COMMITTEE COMMITTEES: BUSINESS, STADIUM DEVELOPMENT & FINANCE

Lawyer Chairman: Vantage Private Equity Growth Limited Chairman: BGP Holdings Plc Chairman: Advisory Board – American Infrastructure Holdings LLC Director: Corporacion America Airports S.A. Trustee: Southern Cone Foundation, Valduz Director: Vantage Asset Management Pty Ltd Director: Ramsay Health Care Ltd Director: Maxwood Pty Ltd Director: McGeoch Holdings Pty Ltd Director: Destination NSW 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 ALAN JONES AO COMMITTEE: STADIUM DEVELOPMENT

Graduate of Queensland and Oxford universities Former speech writer and senior advisor to Prime Minister Malcolm Fraser Queen’s Birthday Honour: Officer of the Order of Australia 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 Elected to the Confederation of Australian Sports Hall of Fame - 1985 Broadcaster: Radio 2GB, Channel 7 Sunrise Program, Sky Channel Jones & Co. Program providing editorial comment and formerly with the Channel 9 Today Show presenting editorial comment daily for 20 years Awarded Australian Radio Talk Personality of the Year 1990, 1991, 1992, 1993, 1995, 1997, 1998, 1999, 2000, 2001, 2002, 2003, 2004, and 2005 Awarded Australian Radio Best Current Affairs Commentator: 1991, 1992, 1993, 1995, 1996, 1997, 1998, 2000, 2001, 2002, 2003, 2004, and 2005 Advance Australia Award – Services to the Community 1993 Awarded the Inaugural Sir Roden Cutler Medal for Services to the Community - 2003 Deputy Chairman: NSW Institute of Sport Former Deputy Chairman: Australian Sports Commission (1998-2008) Appointed Trustee to 4 October 2020

DAVID GILBERT COMMITTEES: BUSINESS, TRUST ADVISORY AND MEMBERS ADVISORY GROUPS

Match Referee: Cricket Australia Life Member and Former CEO: Cricket NSW Vice President and Former CEO: Sussex County Cricket Club Past President: Western Suburbs District Cricket Club Former Australian Cricketer Former Director: Bradman Foundation Former Director: Sydney Business Chamber

Appointed Trustee to July 13, 2022

Sydney Cricket & Sports Grounds Annual Report 2018/19 47 HON BARRY O’FARRELL COMMITTEE: STADIUM DEVELOPMENT

CEO, Racing Australia Ltd President and Independent Chair of Diabetes Australia Chair, Wests Tigers RLFC Chair, NSWRL Foundation Deputy Chair: Australia India Council Former NSW Premier Appointed Trustee to 13 July 2019

JOHN HARTIGAN CHAIRMAN, BUSINESS COMMITTEE COMMITTEES: BUSINESS & STADIUM DEVELOPMENT

Journalist Chairman: Prime Media Group Director: Australian Paralympic Committee Life Member: Bradman Foundation Former Chairman: Destination NSW Former Trustee: Anindilyakwa Mining Trust Former Chairman: News Limited Former CEO: News Limited Former Board Member: NSW Export and Investment Advisory Board Former Chairman and Director: Australian News Channel Former Director: Foxtel Former Director & Advisory Board Member: American Australian Association Appointed Trustee to 13 July 2019

KATIE PAGE COMMITTEE: BUSINESS Chief Executive Officer: Harvey Norman Holdings Limited Executive Director: Harvey Norman Holdings Limited Director: Pertama Holdings Ltd (Singapore) Director: Space Furniture Pte Ltd (Singapore) Director : The Bradman Foundation Member : Place Management NSW Board Member : UWS Foundation Council Former Member : NSW Domestic and Family Violence Corporate Leadership Group Former Member: NSW Council for Women’s Economic Opportunity Former Member: Retail Council Former Member: NSW Public Service Commission Advisory Board Former Director: Museum of Contemporary Art Limited Appointed Trustee to 4 October 2020 48 MAURICE NEWMAN, AC CHAIRMAN, FINANCE COMMITTEE; CHAIRMAN, AUDIT & RISK MANAGEMENT COMMITTEE: FINANCE AND AUDIT & RISK MANAGEMENT

Chairman: M Value Capital Advisory Board Chairman: Melon Pastoral Pty Ltd Chairman: NSW Chamber of Australia-India Trade & Investment Chairman: Bradman Foundation Chairman: Australia Father’s Day Council Senior Corporate Advisor: MMC Group of Companies Director: O’Connell Street Associates Pty Ltd Honorary Chair: Macquarie University Foundation Honorary Professor: Public Diplomacy, SPARC, Macquarie University (Soft Power Advocacy & Research Centre- SPARC) Member: Leadership Council, Committee for Economic Development of Australia (CEDA) Member, ADC Advisory Council (Australian Davos Connection) Member, Advisory Council Advance Australia Emeritus Chancellor, Macquarie University Former Chairman: Deutsche Bank Australia & New Zealand Former Chairman: Deutsche Bank Asia Pacific Advisory Board Former Chairman: Australian Securities Exchange (ASX Limited) Former Chairman: Sydney Convention & Visitors Bureau Former Chairman: Tourism New South Wales Former Chairman: Australian Broadcasting Corporation Former Chairman: Sydney Sixers Former Chairman: Loan RQ Former Chancellor: Macquarie University Former Director: Queensland Investment Corporation (QIC) Former Director: Tiger Airways Australia Limited Former Member: MARQ Services Advisory Board Appointed Trustee to 13 July 2019

MICHAEL CRISMALE COMMITTEE: FINANCE Fellow Member of Australian Institute of Company Directors Member of Chartered Accountants in Australia and New Zealand Chairman – Matrium Technologies Pty Limited Chairman - Matrium Sports Foundation Inc. Chairman - Matrix Bloodstock Pty Limited Chairman - Emjay Insurance Brokers Pty Limited Chairman - JSA Financial Services Pty Limited Board member – Sydney Football Club Pty Limited Board member – Racing NSW Former Chairman & board member - Australian Turf Club Former board member – Surf Life Saving Australia Immediate Past Chairman – Carbine Club of New South Wales Inc. Appointed Trustee to 4 October 2020

Sydney Cricket & Sports Grounds Annual Report 2018/19 49 NIHAL GUPTA COMMITTEES: AUDIT AND RISK MANAGEMENT, BUSINESS AND FINANCE

CEO & Managing Director: Principal Electronics Group Pty Ltd Chairman: Naisda Foundation Limited (Indigenous performing dance and arts) Member: Asia Society Advisory Board of Australia Former Chairman: Special Broadcasting Service (SBS) Former Chairman: NSW Multicultural Business Advisory Panel Former Member: Judicial Commission of New South Wales Former Member: NSW Export and Investment Advisory Panel Former Director: Sydney Sixers T20 Big Bash Cricket Former Director: Parramasala Limited (International South Asian arts and cultural festival) Appointed Trustee to 4 October 2020

PETER IVANY AM COMMITTEES: FINANCE AND STADIUM DEVELOPMENT Chairman – Sydney Swans Foundation and Life Member Chair - Loftus Peak Advisory Board Executive Chairman – Ivany Investment Group Director – IMAX Theatre Sydney Board Member – Allied Credit Board Member – Sydney Zoo Board Member – NIDA and Chairman – NIDA Foundation Trust Honorary Life Governor and Foundation Chairman – Jewish Communal Appeal Adjunct Professor – University of Technology Chairman – Advisory Council, Sydney Film Festival Former CEO - Hoyts Cinemas Former Board Member – TAHL, Accor Hotels Former Board Member - Museum of Contemporary Art Former Board Member – Events New South Wales Appointed Trustee to 4 October 2020

50 PHIL WAUGH COMMITTEES: FINANCE, AUDIT AND RISK MANAGEMENT, TRUST AND MEMBERS ADVISORY GROUPS

National Manager Auto Finance St George - Westpac Banking Corporation Former Australian Wallaby Captain Former NSW Waratahs Captain Former British Barbarians Captain Participant: Sydney to Hobart Race (Line Honours 2011) Masters of Commerce Masters of International Business Graduate Australian Institute of Company Directors Appointed Trustee to July 13, 2022

STEPHANIE BRANTZ COMMITTEE: BUSINESS Sports and Events Presenter - ABC Commentator/presenter/reporter – ESPN, Fox Sports Special Member Carbine Club of NSW Former Sport Presenter for Channel 9/SBS Corporate Host – SCG Trust Member functions - Sydney FC Chairman’s Club, Waratahs Chairman’s Club, Australian Rugby Union Ambassador – Australian Indigenous Education Foundation, The Chappell Foundation Appointed Trustee to 4 October 2020

STUART MACGILL COMMITTEE: BUSINESS

Consultant Specialist spin bowling NSW, NZ, ECB Former Australian Test cricket player Wine, sport and media commentator Appointed Trustee to 13 July 2019

Sydney Cricket & Sports Grounds Annual Report 2018/19 51 MANAGEMENT ORGANISATIONAL CHART

KERRIE MATHER Chief Executive Officer

PHILLIP HEADS STEPHEN JOHNNY NAOFAL JASON HILL DEBORAH KELLY JACQUELINE SAUNDERS General Manager CUNNINGHAM General Manager General Manager General Manager Heritage General Manager General Manager Facilities Commercial Strategy & Projects Communications & Events Human Resources Govt Relations

JANE COLES SUE CHANNELLS LYNDA MACKIE General Manager General Manager General Manager Marketing, Executive Services Finance Membership and ICT

52 TRUST MEETINGS From 1 March 2018 to 28 February 2019, attendances by Trustees at the Finance Committee, Audit & Risk Management Committee, Business Committee, Development Committee and Trust meetings are set out below.

Audit & Risk Finance Business Development Management Trust Trustee Attendance Committee Committee Committee Committee Meetings (9) Meetings (4) Meetings (4) Meetings (7) Meetings (2)

Tony Shepherd, AO 3 2 5 1 9

Rod McGeoch AO LLB 3 3 4 9

Stephanie Brantz 8

Michael Crismale 4 1 8

David Gilbert 4 7

Nihal Gupta 4 4 2 9

John Hartigan 4 5 8

Peter Ivany AM 3 1 3 7

Alan Jones AO 3 4

Stuart MacGill 2 9

Kerrie Mather + 1 2 5

Maurice Newman, AC 4 2 9

Barry O’Farrell 2 8

Katie Page 3 8

Phil Waugh 3 1 9

+ COMPLETION DATE: 2 NOVEMBER 2018

Audit & Risk Finance Business Stadium Development Management Committee Committee Committee Committee Maurice Newman AC John Hartigan Rod McGeoch AM LLB Maurice Newman AC

Tony Shepherd AO Tony Shepherd AO Tony Shepherd AO Michael Crismale

Rod McGeoch AO LLB Rod McGeoch AO LLB John Hartigan Nihal Gupta

Michael Crismale Stephanie Brantz Peter Ivany AM Phil Waugh

Nihal Gupta David Gilbert Alan Jones AO

Peter Ivany AM Nihal Gupta Barry O’Farrell

Phil Waugh Stuart MacGill

Katie Page

Kerrie Mather was a member of the Business and Stadium development Committees prior to resigning as Trustee on 2 November 2018

Sydney Cricket & Sports Grounds Annual Report 2018/19 53 the site by January 2, 2019 to commence demolition Charter: Sydney Cricket & of Allianz Stadium to make way for the new stadium. Sports Ground Act, 1978 The SCG funded the total cost of the relocation program as well as disruption, compensation and SCG readiness No. 72 costs from utility borrowings from NSW Treasury. The SCG operating deficit (excluding relocation The Trust was constituted under this Act and is and disruption expenses and revaluation and charged with the care, control and management of disposal of assets) for the year ended 28 February the scheduled lands dedicated for public recreation. 2019 was $6.5m compared to the budget which The Trust may allow the scheduled lands or any part projected an operating deficit of $7.7m. thereof to be used by persons, clubs, associations, A high retention of Platinum, Gold and SCG Members leagues or unions at such times and on such terms with comparable revenue despite the impacts of and conditions as the Trust may think fit and proper relocation and disruption was achieved. A reduction for cricket, football, athletics, public amusement or in the annual subscription rate for gold and platinum any other purpose which the Minister may approve. members was introduced to reflect the changed The Trust may carry out works for the improvement, conditions for the coming year. development and maintenance of the Trust lands including the redesigning of areas, the construction A capital works program of $34.3m was successfully of any building or structure on the Trust lands, and managed with major projects including: the provision of stands and other accommodation »» LED signage installation at the SCG for spectators frequenting Trust land. »» Relocation of video screens from Allianz Stadium to the SCG Constitution of the Trust »» Enhancements to the SCG Venue Operations Centre Under Section 5 (2), the Trust shall have and may »» Upgrade to the PA system at the SCG exercise and perform the functions conferred or imposed »» Installation of grow lights on it by or under the Act, and shall in the exercise or performance of its functions, be subject to the control »» Upgraded ticketing infrastructure and direction of the Minister for Sport and Recreation. »» Upgrades to catering facilities The Trust consists of 15 members, 13 appointed by the Minister and two elected by Members. Each A successful schedule of events was staged Trustee is appointed for a term of up to four years. at Allianz Stadium and the SCG including: »» Anzac Day Cup between the St George Performance Statement Illawarra Dragons and Sydney Roosters Jamie Barkley »» Wallabies v Ireland Test Chief Executive Officer »» Super Rugby qualifying final (until September 2018) »» AFL Finals game Kerrie Mather »» Asian Champions League games, Chief Executive Officer A-League derby and semi-final (from November 2018) »» Record attendance at an NRL Final Annual Salary: $523,752 between Roosters and Rabbitohs »» Michael Bublé concert to close Allianz Stadium The Chairman reported that Mr Barkley and Ms »» BBL and WBL games Mather performed to a high level during the 2018- 19 year. Below is a summary of what was achieved »» Test match between Australia and India during what was a unique period in the history »» One-Day and T20 internationals against India of the Sydney Cricket and Sports Grounds.

The implementation of the NSW Government’s stadia strategy, including construction of a new stadium A new 25-year agreement with the Sydney Roosters was at Moore Park, resulted in the relocation of member signed for home games to be played at the new stadium. facilities including Azure café at the Entertainment Ongoing management of long-term sports partner Quarter with access to tennis, swimming and squash agreements in place with Rugby Australia, ARL/NRL, facilities negotiated at other locations in Sydney. NSW Rugby/Waratahs, Sydney FC, Cricket Australia/ Establishment of interim facilities for our sports partners, Cricket NSW, Sydney Sixers and Sydney Swans and the other displaced tenancies and SCG administration AFL. was undertaken along with rescheduling of events A rejuvenated focus on customer experience at the SCG from Allianz Stadium to the SCG and other venues. to ensure it remains a celebrated entertainment option for The SCG met its obligation to the NSW Government to fans in Australia and abroad at major events. provide Infrastructure NSW with vacant possession of 54 Sydney Cricket & Sports Grounds Annual Report 2018/19 55

INDEPENDENT AUDITOR’S REPORT Sydney Cricket and Sports Ground Trust

To Members of the New South Wales Parliament Opinion I have audited the accompanying financial statements of the Sydney Cricket and Sports Ground Trust (the Trust), which comprise the Statement of Comprehensive Income for the year ended 28 February 2019, the Statement of Financial Position as at 28 February 2019, the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended, notes comprising a Statement of Significant Accounting Policies and other explanatory information.

In my opinion, the financial statements:

• give a true and fair view of the financial position of the Trust as at 28 February 2019, and of its financial performance and its cash flows for the year then ended in accordance with Australian Accounting Standards • are in accordance with section 41B of the Public Finance and Audit Act 1983 (PF&A Act) and the Public Finance and Audit Regulation 2015

My opinion should be read in conjunction with the rest of this report. Basis for Opinion I conducted my audit in accordance with Australian Auditing Standards. My responsibilities under the standards are described in the ‘Auditor’s Responsibilities for the Audit of the Financial Statements’ section of my report.

I am independent of the Trust in accordance with the requirements of the:

• Australian Auditing Standards • Accounting Professional and Ethical Standards Board’s APES 110 ‘Code of Ethics for Professional Accountants’ (APES 110).

I have fulfilled my other ethical responsibilities in accordance with APES 110.

Parliament promotes independence by ensuring the Auditor-General and the Audit Office of New South Wales are not compromised in their roles by:

• providing that only Parliament, and not the executive government, can remove an Auditor-General • mandating the Auditor-General as auditor of public sector agencies • precluding the Auditor-General from providing non-audit services.

I believe the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.

56 Other Information Other information comprises the information included in the Trust’s annual report for the year ended 28 February 2019, other than the financial statements and my Independent Auditor’s Report thereon. The Trustees of the Trust are responsible for the other information. At the date of this Independent Auditor’s Report, the other information I have received comprise the Statement by the Trustees.

My opinion on the financial statements does not cover the other information. Accordingly, I do not express any form of assurance conclusion on the other information.

In connection with my audit of the financial statements, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or my knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work I have performed, I conclude there is a material misstatement of the other information, I must report that fact.

I have nothing to report in this regard. The Trustees’ Responsibilities for the Financial Statements The Trustees are responsible for the preparation and fair presentation of the financial statements in accordance with Australian Accounting Standards and the PF&A Act, and for such internal control as the Trustees determine is necessary to enable the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the Trust’s ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting except where the Trust will be dissolved by an Act of Parliament or otherwise cease operations. Auditor’s Responsibilities for the Audit of the Financial Statements My objectives are to:

• obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error • issue an Independent Auditor’s Report including my opinion.

Reasonable assurance is a high level of assurance, but does not guarantee an audit conducted in accordance with Australian Auditing Standards will always detect material misstatements. Misstatements can arise from fraud or error. Misstatements are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions users take based on the financial statements.

A description of my responsibilities for the audit of the financial statements is located at the Auditing and Assurance Standards Board website at: www.auasb.gov.au/auditors_responsibilities/ar4.pdf. The description forms part of my auditor’s report.

My opinion does not provide assurance:

• that the Trust carried out its activities effectively, efficiently and economically • about the security and controls over the electronic publication of the audited financial statements on any website where they may be presented • about any other information which may have been hyperlinked to/from the financial statements.

Lawrissa Chan Director, Financial Audit Services

19 June 2019 SYDNEY

Sydney Cricket & Sports Grounds Annual Report 2018/19 57

58 Audited Financial Statements

Statement of profit or loss and other comprehensive income for the year ended 28 February 2019

2019 2018 NOTES $’000 $’000

REVENUE Membership 2a 24,716 27,149 Hire Fees 9,409 13,120 Catering 2b 22,320 27,778 Advertising and Sponsorship 2c 14,882 15,153 Corporate Seating sales 2d 3,917 4,416 Government Grants 2f 25,160 - Other Revenue 2e 9,298 11,820

Total Revenue 109,702 99,436

EXPENDITURE Operating Expenses 3a 88,383 61,708 Employee Related Expense 3b 18,950 19,258 Depreciation & Amortisation 6 & 7 26,562 13,678 Finance Costs 3c 3,516 2,833 Finance Costs - Premium on Debt Restructure 3c - 3,625

Total Expenditure 137,411 101,102

OPERATING RESULT (27,709) (1,666) Gain/(Loss) on Disposal of Plant & Equipment 2g (38,205) 25 Gain/(Loss) on Disposal of Land – Conversion to Finance Lease 2g - 23,785

NET RESULT (65,914) 22,144

OTHER COMPREHENSIVE INCOME Items that will not be reclassified subsequently to profit or loss

Net increase/(decrease) in land revaluation reserve 6 12,172 (85,696) Actuarial gains/(losses) on defined benefit pension plans 10 (312) (468)

Total Other Comprehensive Income 11,860 (86,164)

TOTAL COMPREHENSIVE INCOME (54,054) (64,020)

The accompanying notes form part of these financial statements.

Sydney Cricket & Sports Grounds Annual Report 2018/19 59 Statement of financial position as at 28 February 2019

2019 2018 NOTES $’000 $’000

ASSETS Current Assets Cash and Cash Equivalents 4 18,194 3,430 Receivables 5 49,700 16,210 Inventories 1,285 1,526 Total Current Assets 69,179 21,166

Non-Current Assets Property, Plant & Equipment 6 673,166 695,164 Intangible Assets 7 3,772 2,248 Receivables 5 30,246 30,347 Total Non-Current Assets 707,184 727,759

Total Assets 776,364 748,925

LIABILITIES Current Liabilities Payables 8a 27,796 21,989 Other Liabilities 8b 17,580 17,564 Provisions 10 2,080 2,288

Total Current Liabilities 47,456 41,841

Non-Current Liabilities Payables 8a 329 2,491 Other Liabilities 8b 7,550 2,027 Borrowings 9 150,353 78,187 Provisions 10 1,906 1,555 Total Non-Current Liabilities 160,138 84,260

Total Liabilities 207,594 126,101

Net Assets 568,770 622,824

EQUITY Reserves 286,625 274,453 Accumulated Funds 282,145 348,371

Total Equity 568,770 622,824 The accompanying notes form part of these financial statements.

60 Statement of changes in equity for the year ended 28 February 2019

Asset Accumulated Revaluation Funds Reserve Total Notes $’000 $’000 $’000

BALANCE AT 1 MARCH 2018 348,371 274,453 622,824 Net Result for the Year (65,914) - (65,914) Other Comprehensive Income Net increase/(decrease) in 6 - 12,172 12,172 property, plant and equipment revaluation reserve Disposal of Land 6 - - -

Actuarial Gains/(Losses) on 10 (312) - (312) defined benefit pension plans Total Comprehensive (66,226) 12,172 (54,054) Income for the year

Transactions with owners in their capacity as owners - - - Increase/(decrease) in net assets from equity transfers

BALANCE AT 28 FEBRUARY 2019 282,145 286,625 568,770

Asset Accumulated Revaluation Funds Reserve Total Notes $’000 $’000 $’000

BALANCE AT 1 MARCH 2017 326,016 360,828 686,844 Net Result for the Year 22,144 - 22,144 Other Comprehensive Income Net increase/(decrease) in property, plant and equipment 6 - (85,696) (85,696) revaluation reserve

Disposal of Land 6 679 (679) -

Actuarial Gains/(Losses) on 10 (468) - (468) defined benefit pension plans

Total Comprehensive 22,355 (86,375) (64,020) Income for the year

Transactions with owners in their capacity as owners - - - Increase/(decrease) in net assets from equity transfers

BALANCE AT 28 FEBRUARY 2018 348,371 274,453 622,824

The accompanying notes form part of these financial statements.

Sydney Cricket & Sports Grounds Annual Report 2018/19 61 Statement of cash flows for the year ended 28 February 2019

2019 2018 NOTES $’000 $’000

CASH FLOWS FROM OPERATING ACTIVITIES Receipts Receipts from Operations 92,625 106,687 Receipts from Grants 25,160 - Interest Received 347 100 Other 3,672 1,035

Total Receipts 121,804 107,822

Payments Suppliers and Employees (140,608) (83,068) Interest Paid (3,796) (3,480) Other (1,626) (2,667)

Total Payments (146,030) (89,215)

NET CASH FLOWS FROM OPERATING ACTIVITIES 15b (24,226) 18,607

CASH FLOWS FROM INVESTING ACTIVITIES Purchase of Property, Plant and Equipment (32,305) (21,028) Purchase of Intangible asset 1,993 2,339 Proceeds from Sale of Plant and Equipment 183 99

NET CASH FLOWS FROM INVESTING ACTIVITIES (34,115) (23,268)

CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from Borrowings 80,503 - Repayment of Borrowings (7,397) (1,566)

NET CASH FLOWS FROM FINANCING ACTIVITIES 73,105 (1,566)

Net Increase/(Decrease) in Cash and Cash Equivalents 14,764 (6,227)

Opening Cash and Cash Equivalents 3,430 9,657

CLOSING CASH AND CASH EQUIVALENTS 15a 18,194 3,430

The accompanying notes form part of these financial statements.

62 Notes to the financial statements for the year ended 28 February 2019

1. Summary of Significant Accounting Policies a) Reporting Entity »» the requirements of the Public Finance and Audit Act 1983 (the act) and Public Finance and Audit The Trust is constituted under the provisions of the Regulation 2015. Sydney Cricket & Sports Ground Act, 1978. The activities of the Trust concentrate upon its primary role in »» Treasurer’s directions issued under the act the care, control and management of the Sydney Cricket Ground and Allianz Stadium which together are lands Selected non-current assets, financial assets and dedicated for public recreation. The Trust is domiciled in financial liabilities are measured at fair value. The other Australia and its principal office is at Moore Park Road, financial statement items are prepared in accordance Paddington. with the historical cost convention.

The Sydney Cricket & Sports Ground Trust, as a reporting Judgements, key assumptions and estimations entity, is a Public Trading Enterprise. The Trust is a not management has made are disclosed in the relevant for profit entity (profit is not its principle objective). The notes to the financial statements. reporting entity is consolidated as part of the NSW Total State Sector Accounts. All amounts are rounded to the nearest one thousand dollars and are expressed in Australian currency. These financial statements for the year ended 28 February 2019 represent the Trust’s full operations for the year ended 28 February 2019 and reflect the abolition of c) Statement of Compliance the Sydney Cricket and Sport Ground Trust Staff Agency The financial statements and notes comply with (Agency) from 1 April 2017. Australian Accounting Standards, which include Australian Accounting Interpretations. The Sydney Cricket and Sports Ground Trust Staff Agency was established on 24 February 2014 under the Government Sector Employment Act 2013 (GSEA) to d) Borrowing Costs provide personnel services to the Trust. In previous years Borrowing costs consist of interest and other costs the Trust consolidated its Financial Statements to include incurred in connection with the borrowing of funds. the activities of this Agency. Borrowing costs are recognised as expenses in the period in which they are incurred. On 2 March 2016 the Government Sector Employment Legislation Amendment Act 2017 No 2 was issued. The Act made the following amendments relevant to the e) Insurance Trust: The Trust’s insurance activities are conducted through - reference to the Trust was removed from the GSE Act the NSW Treasury Managed Fund Scheme of self- 2013 insurance for Government entities. The expense (premium) is determined by the Fund Manager based on - the Sydney Cricket and Sports Ground Trust Act 1978 past claims experience. No 72 was amended to allow the Trust to employ staff. f) Accounting for the Goods and These amendments remove the requirement for the Trust to comply with the requirements of the GSE Act 2013 Services Tax (GST) and effectively abolish the Sydney Cricket and Sport Income, expenses and assets are recognised net of the Ground Trust Staff Agency from 1 April 2017. amount of GST, except that the:

These financial statements for the year ended 28 »» amount of GST incurred by the Trust as a purchaser February 2019 have been authorised for issue by the that is not recoverable from the Australian Taxation Audit and Risk Committee on 19 June 2019. Office is recognised as part of an asset’s cost of acquisition or as part of an item of expense and b) Basis of Preparation »» receivables and payables are stated with the amount The Trust’s financial statements are general-purpose of GST included. financial statements, which have been prepared on an accruals basis and in accordance with: Cash flows are included in the Statement of Cash Flows on a gross basis. However, the GST components of cash »» applicable Australian Accounting Standards (which flows arising from investing and financing activities which include Australian Accounting Interpretations) are recoverable from, or payable to, the Australian Taxation Office are classified as operating cash flows.

Sydney Cricket & Sports Grounds Annual Report 2018/19 63 Notes to the financial statements for the year ended 28 February 2019

g) Revenue Recognition Value’ Policy and Guidelines Paper (TPP 14-01). This policy adopts fair value in accordance with AASB 13 Fair Revenue is measured at the fair value of the consideration Value Measurement and AASB 116 Property, Plant and or contribution received or receivable. Additional Equipment. comments regarding the accounting policies for the recognition of income are discussed below. Property, plant and equipment is measured at the highest and best use by market participants that is physically (i) Sale of goods possible, legally permissible and financially feasible. The highest and best use must be available at a period that is Revenue from the sale of goods is recognised as revenue not remote and take into account the characteristics of the when the Trust transfers the significant risks and rewards asset being measured, including any socio-political of ownership of the assets. restrictions imposed by government. In most cases, after (ii) Rendering of services taking into account these considerations, the highest and best use is the existing use. In limited circumstances, the Revenue is recognised when the service is provided or highest and best use may be a feasible alternative use, by reference to the stage of completion (based on labour where there are no restrictions on use or where there is a hours incurred to date). feasible higher restricted alternative use.

(iii) Investment revenue Fair value of property, plant and equipment is based on a Interest revenue is recognised using the effective interest market participants’ perspective, using valuation method as set out in AASB 9 Financial Instruments: techniques (market approach, cost approach, income Recognition and Measurement. Rental revenue from approach) that maximise relevant observable inputs and operating leases is recognised in accordance with AASB minimise unobservable inputs. Also refer Note 6 for 117 Leases on a straight-line basis over the lease term. further information regarding fair value. h) Grants Recognition The Trust re-values each class of property, plant and equipment at least every three years or with sufficient Grants are recognised as revenue when the Trust obtains regularity to ensure that the carrying amount of each control over the assets comprising the grant. Control is asset in the class does not differ materially from its fair normally obtained upon the receipt of cash. value at reporting date. Interim formal revaluations are carried out in the years between the comprehensive i) Assets revaluation. A comprehensive revaluation of buildings was completed on 28 February 2018 based on an (i) Acquisitions of assets independent assessment. A full revaluation of land was Assets acquired are initially recognised at cost. Cost is last completed on 28 February 2016 and the last interim the amount of cash or cash equivalents paid or the fair formal revaluation was completed on 28 February 2018, value of the other consideration given to acquire the both based on an independent assessment. asset at the time of its acquisition or construction or, Non-specialised assets with short useful lives are where applicable, the amount attributed to that asset measured at depreciated historical cost, as a surrogate when initially recognised in accordance with the for fair value. The Trust has assessed that any difference requirements of other Australian Accounting Standards. between fair value and depreciated historical cost is Assets acquired at no cost, or for nominal consideration, unlikely to be material. are initially recognised at their fair value at the date of When revaluing non-current assets using the cost acquisition. Fair value is the price that would be received approach, the gross amount and the related accumulated to sell an asset in an orderly transaction between market participants at measurement date. depreciation are separately restated. For other assets valued using other valuation techniques, any balances (ii) Capitalisation thresholds of accumulated depreciation at the revaluation date in respect of those assets are credited to the asset Property, plant and equipment and intangible assets accounts to which they relate. The net asset accounts costing $5,000 and above individually (or forming part of are then increased or decreased by the revaluation a network costing more than $5,000) are capitalised. All increments or decrements. items under $5,000 and above $2,000 which are considered at risk of theft are capitalised and recorded in Revaluation increments are credited directly to asset the Trust’s assets register. revaluation reserve, except that, to the extent that an increment reverses a revaluation decrement in respect of (iii) Revaluation of property, plant and equipment that class of asset previously recognised as an expense Physical non-current assets are valued in accordance in the net result, the increment is recognised immediately with the ‘Valuation of Physical Non-Current Assets at Fair as revenue in the net result.

64 Notes to the financial statements for the year ended 28 February 2019

Revaluation decrements are recognised immediately as Where a non-current asset is acquired by means of a expenses in the net result, except that, to the extent that finance lease, at the commencement of the lease term, a credit balance exists in the asset revaluation reserve in the asset is recognised at its fair value or, if lower, the respect of the same class of assets, they are debited present value of the minimum lease payments, at the directly to the asset revaluation reserve. inception of the lease. The corresponding liability is established at the same amount. Lease payments are As a not-for-profit entity, revaluation increments and allocated between the principal component and the decrements are offset against one another within a class interest expense. of non-current assets, but not otherwise. Property, plant and equipment acquired under finance Where an asset that has previously been revalued is leases are depreciated over the asset’s useful life. disposed of, any balance remaining in the asset However, if there is no reasonable certainty that the revaluation reserve in respect of that asset is lessee entity will obtain ownership at the end of the transferred to accumulated funds. lease term, the asset is depreciated over the shorter of the estimated useful life of the asset and the lease (iv) Impairment of property, plant and equipment term. As a not-for-profit entity, impairment under AASB 136 Impairment of Assets is unlikely to arise. As property, Operating lease payments are charged to the plant and equipment is carried at fair value (or an amount statement of comprehensive income in the periods in that approximates fair value), impairment can only arise which they are incurred. Lease payments from in the rare circumstances where the costs of disposal are operating leases where the Trust is a lessor is material. Specifically, impairment is unlikely for not-for- recognised in income on a straight-line basis over the profit entities given that AASB 136 modifies the lease term. The respective leased assets are included recoverable amount test for non-cash generating assets by the lessor entity in the Statement of Financial of not-for-profit entities to the higher of fair value less Position based on their nature. costs of disposal and depreciated replacement cost, where depreciated replacement cost is also fair value. (viii) Loans and receivables Loans and receivables are non-derivative financial assets (v) Depreciation of property, plant, equipment and with fixed or determinable payments that are not quoted intangible assets in an active market. These financial assets are Property, plant and equipment, other than land, are recognised initially at fair value, usually based on the depreciated at rates based on their expected useful transaction cost, or face value. Subsequent lives for the Trust, using the straight-line method. measurement is at amortised cost using the effective interest method, less an allowance for any impairment of All material identifiable components of assets are receivables. Any changes are recognised in the net result depreciated separately over their useful lives. Land is not for the year when impaired, derecognised or through the a depreciable asset. amortisation process.

Depreciation rates of each class of depreciable assets Short-term receivables with no stated interest rate are are: measured at the original invoice amount where the effect of discounting is immaterial. »» Buildings and Improvements 1.1% - 20% »» Plant and Equipment 5% - 33.3% (ix) Inventories »» Intangible Assets 10% - 33.3% Inventories are stated at the lower of cost and net realisable value. Cost is calculated using the weighted average cost or ‘first in first out’ method. (vi) Maintenance Day-to-day servicing costs or maintenance are (x) Investments charged as expenses as incurred, except where they Investments are initially recognised at fair value plus, in relate to the replacement of a part or component of an the case of investments not at fair value through profit or asset, in which case the costs are capitalised and loss, transaction costs. The Trust determines the depreciated. classification of its financial assets after initial recognition and, when allowed and appropriate, re-evaluates this at (vii) Leased assets each financial year end. A distinction is made between finance leases which effectively transfer from the lessor to the lessee Fair value through profit or loss - The Trust subsequently substantially all the risks and benefits incidental to measures investments classified as ‘held for trading’ or ownership of the leased assets, and operating leases designated upon initial recognition ‘at fair value through under which the lessor does not transfer substantially profit or loss’ at fair value. Financial assets are classified all the risks and benefits. as ‘held for trading’ if they are acquired for the purpose

Sydney Cricket & Sports Grounds Annual Report 2018/19 65 Notes to the financial statements for the year ended 28 February 2019

of selling in the near term. Gains or losses on these control, the asset is recognised to the extent of the assets are recognised in the net result for the year. Trust’s continuing involvement in the asset.

The Hour-Glass Investment Facilities are designated at A financial liability is derecognised when the obligation fair value through profit or loss using the second leg of specified in the contract is discharged or cancelled or the fair value option under AASB 139.9(b)(ii); i.e. these expires. financial assets are managed and their performance is evaluated on a fair value basis, in accordance with a (xiii) Intangible Assets documented risk management strategy, and information The entity recognises intangible assets only if it is about these assets is provided internally on that basis to probable that future economic benefits will flow to the the Trust’s key management personnel. entity and the cost of the asset can be measured reliably. The movement in the fair value of the Hour-Glass Intangible assets are measured initially at cost. Where an Investment Facilities incorporates distributions received as asset is acquired at no or nominal cost, the cost is its fair well as unrealised movements in fair value and is reported value as at the date of acquisition. in the line item ‘investment revenue’. (xiv) Other Assets Purchases or sales of investments under contract that Other assets are recognised on a historic cost basis. require delivery of the asset within the timeframe established by convention or regulation are recognised on the trade date; i.e. the date the Trust commits to purchase (j) Liabilities or sell the asset. The fair value of investments that are (i) Payables traded at fair value in an active market is determined by These amounts represent liabilities for goods and reference to quoted current bid prices at the close of business on the statement of financial position date. services provided to the Trust and other amounts. Payables are recognised initially at fair value, usually (xi) Impairment of financial assets based on the transaction cost or face value. Subsequent measurement is at amortised cost using the effective All financial assets, except those measured at fair value interest method. Short-term payables with no stated through profit and loss, are subject to an annual review for interest rate are measured at the original invoice amount impairment. An allowance for impairment is established where the effect of discounting is immaterial. when there is objective evidence that the Trust will not be able to collect all amounts due. (ii) Borrowings For financial assets carried at amortised cost, the amount Loans are not held for trading or designated at fair value of the allowance is the difference between the asset’s through profit or loss and are recognised at amortised carrying amount and the present value of estimated future cost using the effective interest rate method. Gains or cash flows, discounted at the effective interest rate. The losses are recognised in the net result for the year on amount of the impairment loss is recognised in the net de-recognition. result for the year. The finance lease liability is determined in accordance Any reversals of impairment losses are reversed through with AASB 117 Leases. the net result for the year, where there is objective evidence. Reversals of impairment losses of financial (iii) Employee benefits and other provisions assets carried at amortised cost cannot result in a carrying Salaries and Wages, Annual Leave, Long Service Leave, amount that exceeds what the carrying amount would Sick Leave: have been had there not been an impairment loss. Provision is made for annual leave and long service leave (xii) De-recognition of financial assets and financial estimated to be payable to employees as at reporting liabilities date. A financial asset is derecognised when the contractual rights to the cash flows from the financial assets expire; Unused non-vesting sick leave does not give rise to a or if the Trust transfers the financial asset: liability, as it is not considered probable that sick leave taken in the future will be greater than the benefits »» where substantially all the risks and rewards have accrued in the future. Benefits for Rostered Days Off been transferred or (RDOs) have not been accrued, as the Trust policy is not to cash out these balances. »» where the Trust has not transferred substantially all the risks and rewards, if the Trust has not retained control. Benefits for long service leave and annual leave have been provided on the basis of emerging entitlements for Where the Trust has neither transferred nor retained recognised service for long service leave, and quantum substantially all the risks and rewards or transferred due at reporting date for annual leave.

66 Notes to the financial statements for the year ended 28 February 2019

In accordance with Accounting Standard AASB 119 (k) Fair Value Management “Employee Benefits” liabilities arising in respect of salaries and wages, annual leave and other employee and Hierarchy benefits expected to be settled within twelve months of Fair value is the price that would be received to sell an asset the reporting date are measured at their nominal amounts or paid to transfer a liability in an orderly transaction based on remuneration rate which are expected to be paid between market participants at the measurement date. The when the liability is settled. The Trust has determined that fair value measurement is based on the presumption that the calculation of projecting and discounting annual leave to the transaction to sell the asset or transfer the liability takes be immaterial and as such the liability is classified as a place either in the principal market for the asset or liability or short-term liability in accordance with TC 15/09. in the absence of a principal market, in the most advantageous market for the asset or liability. The liability arising in respect of annual leave is recognised and measured by applying the nominal value based on A number of the Trust’s accounting policies and disclosures remuneration rates plus the annual leave-on-leave liability. require the measurement of fair values, for both financial The Trust has determined that the calculation of projecting and non-financial assets and liabilities. When measuring and discounting annual leave to be immaterial and as such fair value, the valuation technique used maximises the use the liability is classified as a short-term liability in of relevant observable inputs and minimises the use of accordance with TC 18/03. All other employee benefit unobservable inputs. Under AASB 13, the Trust liabilities are measured at the present value of the estimated categorises, for disclosure purposes, the valuation future cash outflows to be made in respect of services techniques based on the inputs used in the valuation provided by employees up to the reporting date. In techniques as follows: determining the present value of future cash outflows, the »» Level 1 - quoted prices in active markets for identical market yield on national government bonds, which have assets / liabilities that the Trust can access at the terms to maturity approximating the terms of the related measurement date. liability are used. The provisions for leave entitlements also include the relevant on-costs. »» Level 2 – inputs other than quoted prices included within Level 1 that are observable, either directly or Superannuation: indirectly. For defined contribution superannuation schemes, »» Level 3 – inputs that are not based on observable employer contributions are expensed when incurred. A market data (unobservable inputs). liability is recognised only to the extent of unpaid employer The Trust recognises transfers between levels of the fair contributions at reporting date. value hierarchy at the end of the reporting period during which the change has occurred. As per Accounting Standard AASB 119 for defined benefit superannuation schemes, expenses are recognised based Refer Note 14 for further disclosures regarding fair value on the current service costs and net interest and expected measurements of financial and non-financial assets. return on fund assets now recognised as other comprehensive income for the reporting period as (l) Equity And Reserves calculated and advised by Mercer. In accordance with NSW Treasury policy TC 14-05 Accounting for (i) Asset revaluation reserve Superannuation and AASB 119 Employee Benefits, the The asset revaluation reserve is used to record Trust recognises actuarial gains and losses and the actual increments and decrements on the revaluation of return on fund assets for defined benefit superannuation non-current assets. This accords with the Trust’s policy schemes outside of the net result in the ‘other on the revaluation of property, plant and equipment as comprehensive income’. A net liability or asset is discussed in note 1(i)(iii). recognised based on the difference between the present value of the Trust’s defined benefit obligations and the fair (ii) Accumulated funds value of fund assets as at the reporting date, as adjusted for The category ‘Accumulated Funds’ includes all current unrecognised past service costs, unrecognised gains/ and prior period retained funds. (losses), and limitations on net assets. The net liability or asset is actuarially determined. (m) Comparative Information Consequential costs to employment: Except when an Australian Accounting Standard permits Consequential costs to employment are recognised as or requires otherwise, comparative information is liabilities and expenses where the employee benefits to presented in respect of the previous period for all which they relate have been recognised. This includes amounts reported in the financial statements. outstanding amounts of payroll tax, workers’ compensation insurance premiums and fringe benefits tax.

Sydney Cricket & Sports Grounds Annual Report 2018/19 67 Notes to the financial statements for the year ended 28 February 2019

(n) Changes in Accounting Policies, Standards – Australian Implementation Guidance for Including New or Revised Australian Not-for-Profit Public Sector Licensors »» AASB 2018-5 Amendments to Australian Accounting Accounting Standards Standards - Deferral of AASB 1059 (i) Effective for the first time in 2018-19 »» AASB 2018-6 Amendments to Australian Accounting The accounting policies applied in 2018-19 are Standards – Definition of a Business consistent with those of the previous financial year »» AASB 2018-7 Amendments to Australian Accounting except for the following new or revised Australian Standards – Definition of Material Accounting Standard that has been applied for the first time in 2018-19. »» AASB 2018-8 Amendments to Australian Accounting Standards – Right-of-Use Assets of Not-for-Profit AASB 9 Financial Instruments Entities The Trust has implemented this Standard, as per the »» Interpretation 22 Foreign Currency Transactions and guidelines from TC 19-04 Advance Consideration (Not-for-profits only) (ii) Adopted but not effective in 2018/19 »» Interpretation 23 Uncertainty over Income Tax At reporting date, a number of accounting standards Treatment adopted by the AASB had been issued but are not yet It is considered that the implementation of these effective. At present New South Wales Treasury is Standards will not have any material impact (or their mandating not to early adopt any of the new Standards/ impact is yet to be determined) on the Trust’s financial Interpretations as per Treasury Circular TC 19-04. results. The following new Standards/Interpretations have not been early adopted by the Trust and are not yet effective. (o) Sydney Cricket Club In 2007 the Trust joined with the administration of the »» AASB 15, AASB 2014-5, AASB 2015-8 and 2016-3 regarding Revenue from Contracts with Customers former UTS-Balmain District Cricket Club in establishing (Not-for-profits only) the new entity of the Sydney Cricket Club (the Club). The Club is an Incorporated Association under the »» AASB 16 Leases Associations Incorporation Act 1984. The Trust and the »» AASB 17 Insurance Contracts Club have an association which involves the provision by »» AASB 1058 Income of Not-for-profit Entities the Trust of administrative and other services to the Club. The Trust is represented on the Club’s Board of Directors »» AASB 1059 Service Concession Arrangements: in accord with the Club Constitution. The Club is not Grantors considered to be controlled by the Trust. Any expenses »» AASB 2016-8 Amendments to Australian Accounting that were incurred during the past year through payroll, Standards – Australian Implementation Guidance for operational expenditure and management time have Not-for-Profit Entities been recouped from the Sydney Cricket Club through the »» AASB 2017-1 Amendments to Australian Accounting Club’s operational account. The Trust has established a Standards – Transfer of Investment Property, Annual Bank Deposit Account as security against the overdraft Improvements 2014-2016 Cycle and Other facility of the Sydney Cricket Club. Amendments »» AASB 2017-4 Amendments to Australian Accounting (p) Tax Status Standards – Uncertainty over Income Tax Treatments The activities of the Sydney Cricket and Sports Ground »» AASB2017-6 Amendments to Australian Accounting Trust are exempt from the provisions of the Income Tax Standards – Prepayment Features with Negative Assessment Act and other Federal Government taxation Compensation legislation, with the exception of the requirement to pay »» AASB2017-7 Amendments to Australian Accounting fringe benefits tax and GST. The Trust also pays payroll Standards – Long-term Interests in Associates and tax. Joint Ventures »» AASB 2018-1 Amendments to Australian Accounting (q) Debt Management Strategy Standards – Annual Improvements The NSW Treasury Corporation actively manages the »» 2015-2017 Cycle Trust’s portfolio of debt. The Corporation has provided the Trust the facility whereby maturing loans may be »» AASB 2018-2 Amendments to Australian Accounting Standards – Plan Amendment, Curtailment or rolled over and replaced with new loans whilst Settlement maintaining the original capital value of the portfolio. Borrowings and Advances are shown as current and non- »» AASB 2018-3 Amendments to Australian Accounting current liabilities and include the provision for rollover Standards – Reduced Disclosure Requirements upon maturity. Borrowing costs are recognised as »» AASB 2018-4 Amendments to Australian Accounting expenses in the period in which they are incurred. 68 Notes to the financial statements for the year ended 28 February 2019

2. Revenue

2019 2018 $’000 $’000

(a) Membership

Membership Annual Subscriptions 22,512 21,969 SCG Member Entrance Fees 124 669 Platinum/Gold Member Entrance Fees 2,080 4,511

24,716 27,149

(b) Catering

Income received from liquor and food trading for events, functions and non-event days is detailed as follows:

Liquor Sales 17,458 22,100 Food Sales Commission 3,822 4,684 Contract Premium Amortisation 1,040 994

22,320 27,778

Liquor Trading The Trust operates through a managing agent for liquor trading in the public, members and corporate areas of the Sydney Cricket Ground and Allianz Stadium. Income from liquor trading represents gross liquor sales at the Sydney Cricket Ground and Allianz Stadium. Food Trading Income from food trading comprises a share of gross food sales at the Sydney Cricket Ground and Allianz Stadium received by the Trust, together with amortisation of contract premiums received as a licence fee paid in advance under the previous and new catering contract. The Trust’s current catering contract which commenced on 1 November 2015 is due to expire on 31 October 2020. The total premium received under the contract is being amortised annually over the term of the contract. (c) Advertising and Sponsorship

Income includes payments under contract with various companies for naming rights, exclusive product rights, sponsorship and advertisements that are displayed on fences, grandstands and video scoreboards at the Sydney Cricket Ground and Allianz Stadium.

14,882 15,153

(d) Corporate Seating Sales Premium Seating 1,698 1,780 Private/Corporate Boxes 2,219 2,636

3,917 4,416

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

Sydney Cricket & Sports Grounds Annual Report 2018/19 69 Notes to the financial statements for the year ended 28 February 2019

(e) Other Revenue

2019 2018 $’000 $’000

Merchandising 613 620 Ticketing 1,221 1,293 Parking Fees 1,620 2,251 Interest Received 347 100 Rental Income 4,560 4,897 Contributions 30 1,485 Insurance Recoveries 3 330 Tour Fees 217 258 Sundry 686 586

9,297 11,820

(f) Government Grants

The SCG Trust is acting as a counter agency whereby NSW Treasury is funding, via a grant, expenditure on the new Stadium. These funds are, in turn, being passed through from the SCG Trust to Infrastructure NSW who are the delivery agency for the new Stadium.

NSW Government Grant 25,160 -

(g) Gain / (Loss) on Disposal of Property, Plant & Equipment Proceeds from Disposal 183 99 Written down value of assets disposed (38,388) (74)

Gain/(Loss) on disposal of Plant & Equipment (38,205) 25

On 8 October 2018 the Sydney Football Stadium was closed for demolition. On 2 January 2019 the Sheridan building and other associated buildings were also closed for demolition. The written down value of the Stadium and other buildings $38.228M have been recorded in disposal of property, plant & equipment.

The Indoor Cricket Centre building is scheduled for demolition in July 2019. The building was revalued at 28 February 2019 and a remaining useful life of 4 months was determined. Additional accumulated depreciation of $12.426M has been recorded in the asset revaluation reserve.

Gain / (Loss) on Disposal of Land Proceeds from Disposal - 24,677 Written down value of assets disposed - (892)

Gain on disposal of Land - 23,785

During 2017/18 the Trust entered into arrangements with Australian Rugby Union and UTS to facilitate construction of a building on a parcel of Trust land and to subsequently enter into a long-term lease for occupancy of the site. The then current value of land subject to lease was $892,000 and the fair value of the lease receivable was $24.177M (net present value of the annual lease payments). As such the Trust recorded a one-off non-cash gain on disposal of land of $23.285M.

70 Notes to the financial statements for the year ended 28 February 2019

3. Expenditure 2019 2018 $’000 $’000

(a) Operating Expenses

Event Operating Costs 17,801 21,244 Ground Operation & Maintenance 9,258 10,879 Utilities and Services 3,854 3,758 Liquor Cost of Goods Sold 5,215 6,642 Liquor Management Fee 6,003 7,619 Corporate Seating Expenses 2,682 1,869 Marketing Expenses 3,440 3,700 Advertising & Sponsorship 1,664 1,788 Audit Fees (Audit Office of NSW) 121 118 Accounting and Legal Services 1,186 377 Consultant Fees 1,396 1,022 Travel 152 148 Postage/Freight 170 297 Communication Expenses 311 394 Printing and Stationery 966 1,169 Bad Debts Written off - - Insurance 468 453 Members Seating 185 231 Compensation Costs - event disruption 12,788 - Relocation Costs 18,603 - Decommissioning/Venue Readiness 2,120 -

88,383 61,708

The Audit Office of NSW’s fee for auditing the annual financial statements for the year ended 28 February 2019 is $121,000 ($118,000) in 2018).

Reconciliation – Relocation and Compensation: Compensation costs – Cricket NSW 713 - Compensation costs – event disruption 12,075 - Relocation costs 18,603 - Decommissioning/Venue Readiness 2,120 - Total 33,511 -

A deed of agreement has been executed between the SCG Trust and NSW Cricket Association (CNSW). The deed provides for the SCG Trust to pay CNSW the amount of $15M for compensation relating to the relocation of CNSW’s temporary and permanent training/administration facilities. $713,000 was paid in 2018/19 with the balance to be paid in 2019/20

Sydney Cricket & Sports Grounds Annual Report 2018/19 71 Notes to the financial statements for the year ended 28 February 2019

Reconciliation – Total Maintenance Expenses:

2019 2018 $’000 $’000

Ground Operation & Maintenance expense as above 9,258 10,879 Employee related maintenance expense include in Note 3(b) 4,306 4,146 Total maintenance expenses included in Note 3(a) + 3(b) 13,564 15,025

(b) Employee Related Expense Salaries and Wages 14,232 14,994 Trustees Remuneration 203 192 Annual Leave and Long Service Leave 1,324 1,152 Superannuation 1,288 1,270 Workers Compensation 381 223 Payroll Tax 799 796 Other Staff Related Expenses 723 631

18,950 19,258

(c) Finance Costs Interest on Loans 3,430 2,671 Other Finance Charges 86 162

3,516 2,833 Premium on Debt Restructure - 3,625

3,516 6,458

4. Cash and Cash Equivalents

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 Position are reconciled at the end of the financial year to the Statement of Cash Flows as follows:

Cash 18,187 3,425 NSW Treasury Corporation Hour-Glass 7 5 Cash and cash equivalents per Statement of Financial Position 18,194 3,430

Cash and cash equivalents per Statement of Cash Flows 18,194 3,430

The fair value measurement hierarchy for NSW Treasury Corporation Hour-Glass facility is Level 2. Refer Note 14 for details regarding credit risk, liquidity risk and market risk arising from financial instruments.

72 Notes to the financial statements for the year ended 28 February 2019

5. Receivables

2019 2018 $’000 $’000

CURRENT:

Prepayments 31,408 3,392 Accrued Income 7,968 7,754 Catering Debtors 478 959 Sundry Debtors 6,880 2,327 Allowance for impairment - - Finance Lease Receivable 1,286 1,286 GST Receivable 1,680 492

49,700 16,210

NON-CURRENT:

Finance Lease Receivable 28,059 28,140 Prepayments 2,187 2,207

30,246 30,347

MOVEMENT IN THE ALLOWANCE FOR IMPAIRMENT

Balance at 1 March - - Amounts written off during the year - 21 Amounts recovered during the year - - Increase/(decrease) in allowance recognised in surplus or deficit - 21

Balance at reporting date - -

2019 2019 2018 2018 $’000 $’000 $’000 $’000

FINANCE LEASE RECEIVABLE Gross Investment Present Value Gross Investment Present Value

< 1 year 1,286 1,286 1,286 1,286 > 1 year < 5 years 5,144 4,621 5,144 4,621 > 5 years 78,694 23,438 80,003 23,520

85,124 29,344 86,433 29,426

The finance leases relate to licences granted by the Trust to sporting partners to construct and occupy premises on Trust land. Unearned finance income at 28 February 2019 stood at $56.2M (28 February 2018: $57.4M).

Sydney Cricket & Sports Grounds Annual Report 2018/19 73 Notes to the financial statements for the year ended 28 February 2019

6. Property, Plant and Equipment

2019 2018 $’000 $’000

Land at Valuation 72,799 60,627 Buildings and Improvements (at fair value) 705,208 830,539 Accumulated Depreciation (140,406) (212,482)

564,802 618,057

Plant and Equipment (at fair value) 54,086 33,211 Accumulated Depreciation (18.521) (16,731) 35,565 16,480

Total Carrying Amount 673,166 695,164

The Trust’s current Industrial Special Risks insurance policy as at 28 February 2019 provides a cover on buildings, plant & equipment to the value of $973k ($1,172M in 2018).

RECONCILIATIONS

PLANT AND LAND BUILDINGS EQUIPMENT TOTAL 2019 $’000 $’000 $’000 $’000

Carrying amount as at 1 March 2018 60,627 618,057 16,480 695,164 Net Revaluation Increment 12,172 - - 12,172 Additions - 10,058 20,163 30,221 Reclassification - (1,212) 1,212 - Disposals - - (160) (160) Written off - (38,068) (160) (38,228) Depreciation Expense - (24,033) (1,970) (26,003)

Carrying amount as at 28 February 2019 72,799 564,802 35,565 673,166

2018 Carrying amount as at 1 March 2017 61,519 703,814 14,337 779,670 Net Revaluation Increment - 123,163 - 123,163 Additions - 11,906 3,877 15,783 Reclassification - 76 (76) - Disposals (892) (41) (73) (1,007) Impairment - (208,859) - (208,859) Depreciation Expense - (12,001) (1,585) (13,586) Carrying amount as at 28 February 2018 60,627 618,057 16,480 695,164

74 Notes to the financial statements for the year ended 28 February 2019

6. PROPERTY, PLANT AND EQUIPMENT (CONT’D) VALUATION OF LAND, BUILDINGS AND IMPROVEMENTS (a) Fair Value Hierarchy

TOTAL FAIR LEVEL 1 LEVEL 2 LEVEL 3 VALUE 2019 $’000 $’000 $’000 $’000

Property Land - 72,799 - 72,799 Buildings - - 564,802 564,802

- 72,799 564,802 637,601

LEVEL 1 LEVEL 2 LEVEL 3 TOTAL FAIR VALUE 2018 $’000 $’000 $’000 $’000

Property Land - 60,627 - 60,627 Buildings - - 618,057 618,057

- 60,627 618,057 678,684

(b) Valuation Techniques, Inputs and Processes

Valuation techniques used are as follows:

Land – level 2 During 2017/18 the Trust received an independent valuation by WT Partnership, registered quantity Land is valued using observable valuation input (market surveyors, of the replacement cost of buildings and 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 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 location, comparability, zoning to determine its fair building. The valuation increment of $122.8M recorded values. since the previous valuation of buildings and improvements was transferred to the Asset Revaluation During 2018/19, the Trust received an independent Reserve as at 28 February 2018. valuation by Cushman & Wakefield of its vested lands, based on an “as zoned and used basis,” providing a The balance of this Reserve as at 28 February 2019 valuation of $72.8M as at 28 February 2019. stood at $286.6M (28 February 2018: $274.5M).

Building – level 3 Level 3 – measurement additional disclosure

Buildings are mostly specialised buildings with Due to its uniqueness, specialised nature of building assets, unobservable input hierarchy due to lack of market valuers have applied a cost approach using depreciated evidence. Depreciated replacement cost (DRC) was replacement cost method. These assets do not generally used to value the assets. When DRC is used, they are have an active market to determine their fair values. With classified as level 3 input. lack of market evidence, there is not significant changes to unobservable inputs which would allow its classification to change from level 3 to level 1 or 2.

Sydney Cricket & Sports Grounds Annual Report 2018/19 75 Notes to the financial statements for the year ended 28 February 2019

6. PROPERTY, PLANT AND EQUIPMENT (CONT’D) VALUATION OF LAND, BUILDINGS AND IMPROVEMENTS (c) Reconciliation of Recurring Level 3 Fair Value Measurements (Land and Buildings)

2019

LEVEL 2 LEVEL 3 LAND BUILDINGS FAIR VALUE $’000 $’000 $’000 Fair Value as at 1 March 2018 60,627 618,057 678,684 Additions/Reclassifications - 8,845 8,845 Revaluation Increments/decrements recognised in other comprehensive income – including in the 12,172 (38,068) (38,220) line item/’Net increase/(decrease) in property, plant and equipment revaluation reserve’ Depreciation - (24,033) (11,708)

Fair Value as at 28 February 2019 72,799 564,802 637,601

2018 LEVEL 3

LEVEL 2 LEVEL 3 LAND BUILDINGS FAIR VALUE $’000 $’000 $’000 Fair Value as at 1 March 2017 61,519 703,814 765,333 Additions/Reclassifications (892) 12,708 11,816 Revaluation Increments/decrements recognised in other comprehensive income – including in the - (86,464) (86,464) line item/’Net increase/(decrease) in property, plant and equipment revaluation reserve’ Depreciation - (12,001) (12,001)

Fair Value as at 28 February 2018 60,627 618,057 678,684

7. Intangible Assets

2019 2018 $’000 $’000

Intangible Assets 4,332 2,339 Accumulated Amortisation (560) (91) Total Carrying Amount 3,772 2,248

76 Notes to the financial statements for the year ended 28 February 2019

7. Intangible Assets (cont’d)

RECONCILIATIONS

CUSTOMER SOFTWARE LISTS GOODWILL TOTAL 2019 $’000 $’000 $’000 $’000

Carrying amount as at 1 March 2018 2,248 - - 2,248 Net Revaluation Increment - - - - Additions 246 1,304 534 2,084 Reclassification - - - - Disposals - - - - Written off - - - - Amortisation Expense (336) (159) (65) (560)

Carrying amount as at 28 February 2018 2,159 1,145 469 3,772

2018 Carrying amount as at 1 March 2017 2,339 - - 2,339 Net Revaluation Increment - - - - Additions - - - - Reclassification - - - - Disposals - - - - Impairment - - - - Amortisation Expense (91) - - (91) Carrying amount as at 28 February 2018 2,248 - - 2,248

8. Liabilities

2019 2018 $’000 $’000

(a) Payables CURRENT:

Sundry Creditors 19,273 15,208 Accruals 4,942 3,300 Finance Lease Payable 2,161 2,528 Interest Payable 1,420 953

27,796 21,989

NON-CURRENT:

Finance Lease Payable 329 2,491 329 2,491

Details regarding credit risk, liquidity risk and market risk, including a maturity analysis of the above payables are disclosed in Note 14.

Sydney Cricket & Sports Grounds Annual Report 2018/19 77 Notes to the financial statements for the year ended 28 February 2019

8. LIABILITIES (CONT’D) (b) Other Liabilities

2019 2018 $’000 $’000

CURRENT:

Subscriptions Paid in Advance 11,526 12,714 Rents Paid in Advance 778 884 Advertising – Fees in Advance 955 1,814 Catering – Licence Fees in Advance 1,040 1,039 Other Deferred Income 3,281 1,112

17,580 17,563

NON-CURRENT:

Catering – Licence Fees in Advance 693 1,732 Rents Paid in Advance 14 61 Other Deferred Income 6,843 234

7,550 2,027

9. Borrowings

CURRENT:

NSW Treasury Corporation Loans - - - -

NON-CURRENT:

NSW Treasury Corporation Loans 150,353 78,187 150,353 78,187

Total 150,353 78,187

Significant Terms & Conditions: 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 risk, liquidity risk and market risk, including a maturity analysis of the above borrowings are disclosed in Note 14.

78 Notes to the financial statements for the year ended 28 February 2019

10. Provisions 2019 2018 (a) Employee Entitlements $’000 $’000

CURRENT:

Provision for Annual Leave and on-costs 1,011 1,031 Provision for Long Service Leave and on-costs 1,069 1,257

2,080 2,288

NON-CURRENT:

Provision for Long Service Leave and on-costs 237 258

Defined superannuation liability 1,669 1,297

1,906 1,555

3,986 3,843

The Trust expects to settle the annual leave entitlements within the next twelve months. The amount of long service leave expected to be taken in the next twelve months is immaterial.

(b) Superannuation – Defined Benefits Plan The Trust has a $1,669,223 ($1,296,383 in 2018) net liability for the employer’s obligation to defined benefit superannuation schemes at the Trust.

The funding position at 28 February 2019 in respect of the two defined benefits schemes related to personnel services received, namely the State Authorities Superannuation Scheme (SASS) and the State Authorities Non-Contributory Superannuation Scheme (SANCS) has been advised by Mercer:

ESTIMATED RESERVE ACCRUED NET LIABILITY FUND ACCOUNTS FUNDS LIABILITY AT YEAR END

2019 2018 2019 2018 2019 2018 $’000 $’000 $’000 $’000 $’000 $’000

SASS 1,940 1,983 3,499 3,183 1,559 1,201 SANCS 8 7 118 103 110 95

1,948 1,990 3,617 3,286 1,669 1,296

Sydney Cricket & Sports Grounds Annual Report 2018/19 79 Notes to the financial statements for the year ended 28 February 2019

10. PROVISIONS SUPERANNUATION - DEFINED BENEFITS PLAN (CONT’D)

Accounting policy for recognising actuarial Description of other entities’ responsibilities for gains/losses the governance of the fund

Actuarial gains and losses are recognised immediately in The Fund’s Trustee is responsible for the governance of other comprehensive income in the year in which they the Fund. The Trustee has a legal obligation to act solely occur. in the best interests of fund beneficiaries. The Trustee has the following roles: Fund information »» Administration of the fund and payment to the The Pooled Fund holds in trust the investments of the beneficiaries from fund assets when required in closed NSW public sector superannuation schemes accordance with the fund rules including: the State Authorities Superannuation Scheme »» Management and investment of the fund assets (SASS) and the State Authorities Non-contributory Superannuation Scheme (SANCS). »» Compliance with other applicable regulations These schemes are defined benefit schemes – at least a Description of risks component of the final benefit is derived from a multiple of member salary and years of membership. The There are a number of risks to which the Fund exposes Schemes are closed to new members. the Employer. The more significant risks relating to the defined benefits are: Description of the regulatory framework Investment risk - The risk that investment returns will The schemes in the Pooled Fund are established and be lower than assumed and the Employer will need to governed by the following NSW legislation, State increase contributions to offset this shortfall Authorities Superannuation Act 1987, State Authorities Non-Contributory Superannuation Scheme Act 1987, and Longevity risk – The risk that pensioners live longer their associated regulations. than assumed, increasing future pensions

Pension indexation risk – The risk that pensions will The schemes in the Pooled Fund are exempt public sector increase at a rate greater than assumed, increasing superannuation schemes under the Commonwealth future pensions Superannuation Industry (Supervision) Act 1993 (SIS). The SIS Legislation treats exempt public sector Salary growth risk - The risk that wages or salaries (on superannuation funds as complying funds for which future benefit amounts for active members will concessional taxation and superannuation guarantee be based) will rise more rapidly than assumed, purposes. increasing defined benefit amounts and thereby requiring additional employer contributions Under a Heads of Government agreement, the New South Wales Government undertakes to ensure that the Pooled Legislative risk - The risk is that legislative changes Fund will conform with the principles of the could be made which increase the cost of providing Commonwealth’s retirement incomes policy relating to the defined benefits preservation, vesting and reporting to members and that The defined benefit fund assets are invested with members’ benefits are adequately protected. independent fund managers and have a diversified The New South Wales Government prudentially monitors asset mix. The Fund has no significant concentration and audits the Pooled Fund and the Trustee Board of investment risk or liquidity risk. activities in a manner consistent with the prudential controls of the SIS legislation. These provisions are in Description of Significant Events addition to other legislative obligations on the Trustee There were no fund amendments, curtailments or Board and internal processes that monitor the Trustee settlements during the period. Board’s adherence to the principles of the Commonwealth’s retirement incomes policy.

An actuarial investigation of the Pooled Fund is performed every three years. The last actuarial investigation was performed as at 30 June 2018.

80 Notes to the financial statements for the year ended 28 February 2019

10. PROVISIONS SUPERANNUATION - DEFINED BENEFITS PLAN (CONT’D)

Reconciliation of the net defined benefit obligation 2018:

SASS SANCS 2019 2019 $’000 $’000

Net Defined Benefit Liability/(Asset) at start of year 1,201 95 Current service cost 20 3 Net Interest on the net defined benefit liability/(asset) 34 3 Past service cost 0 0 (Gains)/losses arising from settlements 0 0 Actual return on Fund assets less Interest income (3) (1) Actuarial (gains)/losses arising from changes in demographic assumptions 16 0 Actuarial (gains)/losses arising from changes in financial assumptions 280 6 Actuarial (gains)/losses arising from liability experience 11 4 Adjustment for effect of asset ceiling 0 0 Employer contributions 0 0 Effects of transfers in/out due to business combinations and disposals 0 0

Net Defined Benefit Liability/(Asset) at end of year 1,559 110

Reconciliation of the fair value of fund assets: Fair value of Fund assets at beginning of the period 1,983 8 Interest income 1,983 8 Actual return on Fund assets less Interest income 54 0 Employer contributions 3 0 Contributions by participants 0 0 Benefits paid 24 0 Taxes, premiums & expenses paid (112) 0 Transfers in/out due to business combinations and disposals (12) 0 Contributions to accumulation section 0 0 Settlements 0 0 Exchange rate changes 0 0

Fair value of Fund assets at end of the period 1,940 8

Sydney Cricket & Sports Grounds Annual Report 2018/19 81 Notes to the financial statements for the year ended 28 February 2019

10. Provisions

Superannuation – Defined Benefits Plan (cont’d) SASS SANCS 2019 2019 Reconciliation of the present value of the defined $’000 $’000 benefit obligation 2018:

Present value of defined benefit obligations at beginning of 3,184 103 the year after contribution tax assumption change Current service cost 20 3 Interest cost 88 2 Contributions by participants 24 0 Actuarial (gains)/losses arising from changes in demographic assumptions 16 0 Actuarial (gains)/losses arising from changes in financial assumptions 280 6 Actuarial (gains)/losses arising from liability experience 11 4 Benefits paid (112) 0 Taxes, premiums & expenses paid (12) 0 Transfers in/out due to business combinations and disposals 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 3,499 118

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

Expense recognised in the Profit or Loss:

Current service cost 20 3 Net interest 34 3 Past service cost 0 0 (Gains)/Loss on settlement 0 0

Expense/(income) recognised 54 6

Amounts recognised in Other comprehensive income:

Actuarial (gains) losses on liabilities 307 9 Actual return on Fund assets less Interest income (3) 1 Adjustment for effect of asset ceiling 0 0

Total re-measurement in Other Comprehensive Income 304 8

Fair Value of Fund Assets possible or appropriate to disaggregate and attribute All Pooled Fund assets are invested by STC at arm’s plan assets to individual entities. As such, the length through independent fund managers. Assets are disclosures below relate to total assets of the Pooled not separately invested for each entity and it is not Fund.

82 Notes to the financial statements for the year ended 28 February 2019

10. PROVISIONS SUPERANNUATION - DEFINED BENEFITS PLAN (CONT’D)

Derivatives, including futures and options, can be used or to hedge the portfolio against market movements and by investment managers. However, each manager’s cannot be used for speculative purposes or gearing of investment mandate clearly states that derivatives may the portfolio. As such managers make limited use of only be used to facilitate efficient cash flow management derivatives.

As at 30 November 2017 (most recent available)

Quoted prices in active Significant markets for identical observable Unobservable Total assets Level 1 inputs Level 2 inputs Level 3 Asset category (A$’000) (A$’000) (A$’000) (A$’000)

Short Term Securities 3,845,538 1,626,895 2,218,643 0 Australian Fixed 2,199,199 7,968 2,191,232 0 Interest International 1,371,539 32,330 1,338,810 399 Fixed Interest Australian Equities 7,580,239 7,081,918 495,266 3,055 International Equities 10,273,844 7,897,078 2,376,554 213 Property 3,485,411 596,740 767,678 2,120,993 Alternatives 10,488,520 424,255 6,070,406 3,993,859

Total 39,244,291 17,667,184 15,458,588 6,118,519

The percentage invested in each asset class at the reporting date is:

As at 30-Nov-18 Short Term Securities 9.8% Australian Fixed Interest 5.6% International Fixed Interest 3.5% Australian Equities 19.3% International Equities 26.2% Property 8.9% Alternatives 26.7%

Total 100.0%

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 shares; listed unit trusts. investment mandate clearly states that derivatives may only be used to facilitate efficient cash flow Level 2 - inputs other than quoted prices observable for management or to hedge the portfolio against market the asset or liability, either directly or indirectly. The movements and cannot be used for speculative assets in this level are cash; notes; government, purposes or gearing of the investment portfolio. As semi-government and corporate bonds; unlisted trusts such managers make limited use of derivatives. The fair containing where quoted prices are available in active value of the Pooled Fund Assets as at 31 December markets for identical assets or liabilities. 2018 includes $105.8M in NSW government bonds. 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.

Sydney Cricket & Sports Grounds Annual Report 2018/19 83 Notes to the financial statements for the year ended 28 February 2019

10. PROVISIONS SUPERANNUATION - DEFINED BENEFITS PLAN (CONT’D)

VALUATION METHOD AND PRINCIPAL ACTUARIAL ASSUMPTIONS AT THE BALANCE DATE:

(a) Significant Actuarial Assumptions at reporting date: 28 FEB 2019

Salary increase rate 2.7% 2018/2019 (excluding promotional increases) 3.2% pa thereafter 2.0% 2018/2019, 2.25% 2019/2020 Rate of CPI increase 2.50% pa thereafter Discount rate 2.11% pa The pensioner mortality assumptions are as per the Pensioner mortality 2018 Actuarial Investigation of the Pooled Fund.

Maturity profile of defined benefit obligation The weighted average duration of the defined benefit obligation is 17 years. Sensitivity Analysis The entity’s total defined benefit obligation as at 28 February 2019 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 and H relate to sensitivity to demographic assumptions.

Scenario A Scenario B Base Case -1.0% discount rate +1.0% discount rate

Discount rate 2.11% 1.11% 3.11% Rate of CPI increase as above as above as above Salary inflation rate as above as above as above Defined benefit obligation (A$) 3,616,961 4,129,143 3,193,808

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 Rate of CPI increase as above above rates plus 0.5% pa above rates less 0.5% pa Salary inflation rate as above as above as above Defined benefit obligation (A$) 3,616,961 3,834,931 3,418,269

Scenario E Scenario F +0.5% salary -0.5% salary Base Case increase rate increase rate Discount rate as above as above as above Rate of CPI increase as above as above as above Salary inflation rate as above above rates plus 0.5% pa above rates less 0.5% pa Defined benefit obligation (A$) 3,616,961 3,653,698 3,582,342

Scenario G Scenario H +5% pensioner -5% pensioner Base Case mortality rates mortality rates

Defined benefit obligation (A$) 3,616,961 3,676,569 3,580,261

The defined benefit obligation has been calculated by changing the assumptions as outline above, whilst retaining all other assumptions. 84 Notes to the financial statements for the year ended 28 February 2019

10. PROVISIONS SUPERANNUATION - DEFINED BENEFITS PLAN (CONT’D)

SASS SANCS 2018 2018 Expected contributions: $’000 $’000

Expected employer contributions to be paid 0 0 in the next accounting period

Funding arrangements for employer contributions: 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 2018 Contribution rates are set after discussions between the employer, STC and NSW Treasury.

Funding positions are reviewed annually and funding arrangements are adjusted as required after each annual review.

(a) Surplus/deficit The following is a summary of the 31 December 2018 financial position of the fund calculated in accordance with AAS 25 ‘Financial Reporting by Superannuation Plans’:

SASS SANCS 2018 2018 $’000 $’000

Accrued benefits 1,941 66 Net market value of Fund assets (1,933) (8)

Net (surplus)/deficit 8 58

(b) Contribution recommendations Recommended contribution rates for the entity are: SASS SANCS Multiple of member % member contributions salary

0.00 0.00

Sydney Cricket & Sports Grounds Annual Report 2018/19 85 Notes to the financial statements for the year ended 28 February 2019

10. PROVISIONS SUPERANNUATION - DEFINED BENEFITS PLAN (CONT’D)

(c) Asset-Liability matching strategies

We are not aware of any asset and liability matching strategies currently adopted by the Plan.

(d) Economic assumptions The economic assumptions adopted from the 2017 triennial actuarial review of the fund are:

Weighted Average Assumptions

Expected rate of return on fund assets 7.4% pa backing current pension liabilities Expected rate of return on fund assets backing other liabilities 6.4% pa Expected salary increase rate 2.7% to 2018/2019 3.2% pa thereafter

Expected rate of CPI increase 2.2% 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.

SASS SANCS 2018 2018 Reconciliation of the net defined benefit obligation 2018: $’000 $’000

Net Defined Benefit Liability/(Asset) at start of year 626 155 Current service cost 17 10 Net Interest on the net defined benefit liability/(asset) 18 4 Past service cost 0 0 (Gains)/losses arising settlements 0 0 Actual return on fund assets less Interest income (175) (7) Actuarial (gains)/losses arising from changes in demographic assumptions 0 0 Actuarial (gains)/losses arising from changes in financial assumptions (50) (2) Actuarial (gains)/losses arising from liability experience 720 (20) Adjustment for effect of asset ceiling 0 0 Employer contributions 45 (45) Effects of transfers in/out due to business combinations and disposals 0 0

Net Defined Benefit Liability/(Asset) at end of year 1,201 95

86 Notes to the financial statements for the year ended 28 February 2019

10. PROVISIONS SUPERANNUATION - DEFINED BENEFITS PLAN (CONT’D)

SASS SANCS Reconciliation of the fair value of fund assets: 2018 2018 $’000 $’000

Fair value of Fund assets at beginning of the period 2,428 127 Interest income 63 3 Actual return on Fund assets less Interest income 175 7 Employer contributions (45) 45 Contributions by participants 24 0 Benefits paid (673) (176) Taxes, premiums & expenses paid 11 1 Transfers in/out due to business combinations and disposals 0 0 Contributions to accumulation section 0 0 Settlements 0 0 Exchange rate changes 0 0

Fair value of Fund assets at end of the period 1,983 7

Reconciliation of the present value of the defined benefit obligation 2018:

Present value of defined benefit obligations at beginning of 3,042 273 the year before contribution tax assumption change Current service cost 17 10 Interest cost 80 7 Contributions by participants 23 0 Actuarial (gains)/losses arising from changes in demographic assumptions 0 0 Actuarial (gains)/losses arising from changes in financial assumptions (50) (1) Actuarial (gains)/losses arising from liability experience 721 (19) Benefits paid (673) (176) Taxes, premiums & expenses paid 11 1 Transfers in/out due to business combinations and disposals 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 3,183 103

SASS SANCS 2018 2018 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

Sydney Cricket & Sports Grounds Annual Report 2018/19 87 Notes to the financial statements for the year ended 28 February 2019

10. PROVISIONS SUPERANNUATION - DEFINED BENEFITS PLAN (CONT’D)

Expense recognised in the Profit or Loss:

Current service cost 17 10 Net interest 18 3 Past service cost 0 0 (Gains)/Loss on settlement 0 0

Expense/(income) recognised 35 13

Amounts recognised in Other comprehensive income:

Actuarial (gains) losses on liabilities 671 (20) Actual return on Fund assets less Interest income (175) (8) Adjustment for effect of asset ceiling 0 0

Total re-measurement in Other Comprehensive Income 496 (28)

Fair Value of Fund Assets 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.

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 hedge the portfolio against market movements and cannot be used for speculative purposes or gearing of the portfolio. As such managers make limited use of derivatives.

88 Notes to the financial statements for the year ended 28 February 2019

10. PROVISIONS SUPERANNUATION - DEFINED BENEFITS PLAN (CONT’D)

As at 30 November 2016 (most recent available)

Quoted prices in Significant 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) Short Term Securities 3,882,212 1,859,163 2,023,051 0 Australian Fixed Interest 2,824,790 21,937 2,802,853 0 International 1,477,710 9,233 1,468,477 0 Fixed Interest Australian Equities 9,183,595 8,739,598 443,972 25 International Equities 12,135,583 9,159,066 2,975,726 790 Property 3,551,499 867,863 606,475 2,077,161 Alternatives 7,926,781 391,892 3,611,120 3,923,769

Total 40,982,170 21,048,752 13,931,674 6,001,745

The percentage invested in each asset class at the reporting date is:

AS AT 30-NOV-17

Short Term Securities 9.5% Australian Fixed Interest 6.9% International Fixed Interest 3.6% Australian Equities 22.4% International Equities 29.6% Property 8.7% Alternatives 19.3%

Total 100.0%

Level 1 - quoted prices in active markets for identical Derivatives, including futures and options, can be used by assets or liabilities. The assets in these levels are listed investment managers. However, each manager’s shares; listed unit trusts. investment mandate clearly states that derivatives may only be used to facilitate efficient cash flow management 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 the assets in this level are cash; notes; government, semi- investment portfolio. As such managers make limited use government and corporate bonds; unlisted trusts of derivatives. The fair value of the Pooled Fund Assets containing where quoted prices are available in active as at 31 December 2017 includes $106.9M in NSW markets for identical assets or liabilities. government bonds. 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.

Sydney Cricket & Sports Grounds Annual Report 2018/19 89 Notes to the financial statements for the year ended 28 February 2019

10. PROVISIONS SUPERANNUATION - DEFINED BENEFITS PLAN (CONT’D)

Valuation method and principal actuarial assumptions at the balance date:

(a) Significant Actuarial Assumptions at reporting date: 28 FEB 2018

2.5% 2017/2018 to 2018/2019; Salary increase rate 3.50% 2019/2020 and 2020/2021; (excluding promotional increases) 3.00% pa 2021/2022 to 2025/2026; 3.50% pa thereafter Rate of CPI increase 2.25% 2017/2018 to 2019/2020; 2.50% pa thereafter Discount rate 2.83% pa The pensioner mortality assumptions are as per the Pensioner mortality 2015 Actuarial Investigation of the Pooled Fund.

Maturity profile of defined benefit obligation The weighted average duration of the defined benefit obligation is 17 years.

Sensitivity Analysis The entity’s total defined benefit obligation as at 28 February 2018 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 and H relate to sensitivity to demographic assumptions.

Scenario A Scenario B Base Case -1.0% discount rate +1.0% discount rate Discount rate 2.83% 1.83% 3.83% Rate of CPI increase as above as above as above Salary inflation rate as above as above as above Defined benefit obligation (A$) 3,286,803 3,605,590 3,021,109

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 above rates plus above rates less Rate of CPI increase as above 0.5% pa 0.5% pa Salary inflation rate as above as above as above

Defined benefit obligation (A$) 3,286,803 3,377,713 3,203,122

Scenario E Scenario F +0.5% salary -0.5% salary Base Case increase rate increase rate Discount rate as above as above as above Rate of CPI increase as above as above as above above rates plus above rates less Salary inflation rate as above 0.5% pa 0.5% pa Defined benefit obligation (A$) 3,286,803 3,345,854 3,230,332

90 Notes to the financial statements for the year ended 28 February 2019

10. PROVISIONS SUPERANNUATION - DEFINED BENEFITS PLAN (CONT’D)

Scenario G Scenario H +0.5% pensioner -0.5% pensioner Base Case mortality rates mortality rates

Defined benefit obligation (A$) 3,286,803 3,330,439 3,266,623

The defined benefit obligation has been calculated by changing the assumptions as outline above, whilst retaining all other assumptions.

SASS SANCS 2018 2018 Expected contributions: $’000 $’000

Expected employer contributions to be paid in the next accounting period 0 0

Funding arrangements for employer contributions: 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 2017. Contribution rates are set after discussions between the employer, STC and NSW Treasury. Funding positions are reviewed annually and funding arrangements are adjusted as required after each annual review.

(a) Surplus/deficit The following is a summary of the 28 February 2018 financial SASS SANCS position of the fund calculated in accordance with AAS 25 2018 2018 ‘Financial Reporting by Superannuation Plans’: $’000 $’000

Accrued benefits 2,242 204 Net market value of Fund assets (2,549) (7)

Net (surplus)/deficit (307) 197

SASS MULTIPLE SANCS (b) Contribution recommendations OF MEMBER % MEMBER Recommended contribution rates for the entity are: CONTRIBUTIONS SALARY

0.00 0.00

(c) Asset-Liability matching strategies We are not aware of any asset and liability matching strategies currently adopted by the Plan.

(d) Economic assumptions The economic assumptions adopted from the 2017 triennial actuarial review of the fund are:

Weighted Average Assumptions

Expected rate of return on fund assets backing current pension liabilities 7.4% pa Expected rate of return on fund assets backing other liabilities 6.4% pa 2.7% to 30 June 2019, then Expected salary increase rate 3.2% pa thereafter

Expected rate of CPI increase 2.2% pa

Sydney Cricket & Sports Grounds Annual Report 2018/19 91 Notes to the financial statements for the year ended 28 February 2019

10. PROVISIONS SUPERANNUATION - DEFINED BENEFITS PLAN (CONT’D) 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.

11. Capital And Other Expenditure Commitments

2019 2018 $’000 $’000 Capital Commitments:

The total capital expenditure contracted at reporting date but not provided for in the Financial Statements:

- Not later than 1 year 130,900 - - Later than 1 year but not later than 5 years 671,000 - Total (including GST) 801,900 -

Finance Lease Commitments: Future non-cancellable finance lease not provided for and payable:

Principal Commitments - Not later than 1 year 2,161 2,528 - Later than 1 year but not later than 5 years 329 2,491 - Later than 5 years - - Total (including GST) 2,491 5,019

Future non-cancellable finance lease rentals payable: - Not later than 1 year 2,204 2,646 - Later than 1 year but not later than 5 years 330 2,534 - Later than 5 years - -

Total (including GST) 2,534 5,180

Operating Lease Commitments: Future non-cancellable operating lease rentals not provided for and payable:

- Not later than 1 year - 263 - Later than 1 year but not - - later than 5 years - Later than 5 years - -

Total (including GST) - 263

The total operating leases contracted at 28 February 2019 but not provided for in the financial statements.

92 Notes to the financial statements for the year ended 28 February 2019

11. CAPITAL AND OTHER EXPENDITURE COMMITMENTS (CONT’D)

Non-Cash Commitments: 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 in 2019 to be material (2018 – nil).

12. Trustees Remuneration

The Trust is classified as an Advisory Board thereby enabling the payment of fees to Trust members.

Fees totalling $203,000 ($192,000 in 2018) were paid to the Trustees in accordance with rates determined by the Department of Premier and Cabinet.

13. Contingent Liabilities and Contingent Assets

Contingent Liabilities In October 2018 control of Allianz Stadium was handed over to Infrastructure NSW to commence demolition for the redevelopment of a new stadium funded by the NSW Government. As such, events previously hosted at Allianz Stadium have been relocated to either the Sydney Cricket Ground or another venue within NSW. Any losses incurred by precinct partners as a result of this relocation will be paid by way of compensation by the Trust.

The Trust is not aware of any other significant or material contingent liabilities in existence at balance date or which has emerged subsequent to balance date which would materially impact on the financial position of the Trust as shown in the Financial Statements.

In 2007 the Trust joined with the administration of the former UTS-Balmain District Cricket Club in establishing the new entity of the Sydney Cricket Club. The Trust has established a Bank Deposit Account holding $40,000 as security against the overdraft facility of the Sydney Cricket Club.

Contingent Assets The Trust 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 on the financial position of the Trust as shown in the Financial Statements.

14. Financial Instruments Disclosures

The Trust’s main risks arising from financial instruments are outlined below, together with the Trust’s objectives, policies and processes for measuring and managing risk. Further quantitative and qualitative disclosures are included throughout this financial report.

The Trust has responsibility for the establishment and oversight of risk management and reviews and agrees policies for managing each of these risks. Risk management policies are established to identify and analyse the risks faced by the Trust, to set risk limits and controls and to monitor risks. Compliance with policies is reviewed by the Audit Committee and Internal Audit on a continuous basis.

The Trust’s principal financial instruments comprise receivables, payables, cash, short-term deposits and fixed rate debts. The Trust manages its exposure to key financial risks, including interest rate in accordance with the Trust’s financial risk management policy.

The main risks arising from the Trust’s financial instruments are interest rate risk, credit risk and liquidity risk. The Trust uses different methods to measure and manage different types of risks. These methods include ageing analysis and monitoring of specific credit allowances which are undertaken to manage credit risk.

Sydney Cricket & Sports Grounds Annual Report 2018/19 93 Notes to the financial statements for the year ended 28 February 2019

14. FINANCIAL INSTRUMENTS DISCLOSURES (CONT’D)

The Trust reviews and agrees policies for managing each and credit allowances. of the risks identified below, including the interest rate risk

(a) Financial Instrument Categories

2019 2018 CLASS NOTES CATEGORY $’000 $’000

Financial Assets Cash and Cash Equivalents 4 N/A 18,194 3,430 Loans and Receivables Receivables 5 44,671 40,466 (1) (at amortised cost)

Total 62,865 43,896

Financial Liabilities Financial Liabilities Payables 8(a) 28,124 24,480 (2) (at amortised cost) Financial Liabilities Borrowings 9 150,353 78,187 (at amortised cost) Total 178,477 102,667

Notes 1. Excludes statutory receivables and prepayments (i.e. not within scope of AASB 7). 2. Excludes statutory payables and unearned revenue (i.e. not within scope of AASB 7).

(b) Market Risk environment in which the Trust operates and the time frame for the assessment (i.e. until the end of the next Market risk is the risk that the fair value or future cash annual reporting period). The sensitivity analysis is based flows of a financial instrument will fluctuate because of on risk exposures in existence at the statement of changes in market prices. The Trust’s exposures to financial position date. The analysis is performed on the market risk are primarily through price risks associated same basis as for 2017. The analysis assumes that all with the movement in interest rate risk on the Trust’s other variables remain constant. borrowings and other price risks associated with the movement in the unit price of the Hour Glass Investment Interest Rate Risk Facilities. The Trust has no exposure to foreign currency risk and does not enter into commodity contracts.The The Trust’s exposure to market interest rates relates effect on profit and equity due to a reasonably possible primarily to the Trust’s long term debt obligations and change in risk variable is outlined in the information cash and cash equivalents. below, for interest rate risk and other price risk. A reasonably possible change in risk variable has been determined after taking into account the economic

94 Notes to the financial statements for the year ended 28 February 2019

14. FINANCIAL INSTRUMENTS DISCLOSURES (CONT’D)

Cash and Cash Equivalents

A reasonably possible change of +/- 0.25% is used, consistent with current trends in interest rates. The basis will be 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.

CONSOLIDATED $‘000 -0.25% 0.25%

CARRYING AMOUNT PROFIT EQUITY PROFIT EQUITY

2019 Financial Assets Cash and Cash Equivalents 18,187 (45.5) (45.5) 45.5 45.5

2017 Financial Assets Cash and Cash Equivalents 3,425 (8.6) (8.6) 8.6 8.6

Managed Debt Portfolio

The Trust’s policy is to manage its finance costs using a TCorp receives a fee for this service, which may include mix of fixed and variable rate debt. a performance component where TCorp is able to add value by achieving a reduction in the Trust‘s debt costs At 28 February 2019 100% of the Trust’s borrowings against an agreed benchmark. TCorp may use were at a fixed rate of interest (2018: 100%). derivatives, primarily interest rate futures, to establish short-term (tactical) positions within agreed tolerance To manage this mix in a cost-efficient manner the Trust limits to manage portfolio duration and maturity profiles. contracts with the NSW Treasury Corporation (TCorp) to actively manage the Trust’s portfolio of debt. The The following sensitivity analysis is based on the interest Corporation has provided the Trust the facility whereby rate risk exposures in existence at the Statement of maturing loans may be rolled over and replaced with new Financial Position date: loans whilst maintaining the original capital value of the portfolio. At 28 February 2019, if interest rates had moved, as illustrated in the table below, with all other variables held TCorp manages interest rate risk exposures applicable to constant, NSW TCorp have estimated that post tax specific borrowings of the Trust in accordance with a surplus and equity would have been affected as follows: debt portfolio mandate agreed between the two parties.

Sydney Cricket & Sports Grounds Annual Report 2018/19 95 Notes to the financial statements for the year ended 28 February 2019

14. FINANCIAL INSTRUMENTS DISCLOSURES (CONT’D)

OPERATING RESULT EQUITY IMPACT IMPACT

2019 2018 2019 2018 $’000 $’000 $’000 $’000

Consolidated Increase/Decrease in basis points AUD 100 (1%) 9,762 4,289 9,762 4,289

Other Price Risks

Hour-Glass Investment Facilities Exposure to ‘other price risk’ primarily arises through the investment in the TCorp Hour-Glass Investment facilities, 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:-

2019 2018 FACILITY INVESTMENT SECTORS INVESTMENT HORIZON $000 $000

Cash Facility Cash, Money market instruments Up to 2 years 7 5

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 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 managers to manage the performance and risks of each facility in accordance with a mandate agreed by the parties. 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.

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.

The TCorp Hour-Glass Investment Facilities are designated at fair value through profit/loss and therefore any change in unit price impacts directly on net result (rather than equity).

TCorp provides sensitivity analysis for the Hour-Glass Investment Facilities using historically based volatility information collected over a 10 year period.

CHANGE IN UNIT PRICE IMPACT ON SURPLUS/DEFICIT

2019 2018 $’000 $’000

Hour-Glass Cash Facility +/- 1% - -

A reasonably possible change is based on the percentage change in unit price multiplied by the redemption value as at 28 February 2019.

(c) Credit Risk trade and other receivables. The Trust’s exposure to credit risk arises from potential default of the (i) Credit risk arises from the financial assets of the counter party, with a maximum exposure equal to Trust, which comprise cash and cash equivalents, the carrying amount.

96 Notes to the financial statements for the year ended 28 February 2019

14. FINANCIAL INSTRUMENTS DISCLOSURES (CONT’D)

receivable at balance date. Collectability of trade debtors is reviewed on an ongoing basis. (ii) The Trust trades only with recognised, creditworthy Procedures as established are followed to recover third parties, and as such collateral is not requested outstanding amounts, including letters of demand. nor is it the Trust’s policy to securitise its trade and Debts which are known to be uncollectible are other receivables. There are no trade and other written off. An allowance for impairment is raised receivable that are past due or impaired whose when there is objective evidence that the Trust will terms have been renegotiated. not be able to collect all amounts due. This evidence includes past experience, and current and expected changes in economic conditions and (iii) All financial assets are unsecured. debtor credit ratings. No interest is earned on trade (iv) TCorp/NSW State does not guarantee investments debtors. in the Hour-glass, TCorp acts as Trustee of the

Hour-Glass. The Trust is not materially exposed to concentrations of SCG invest in units in the Hour-Glass Cash Facility credit risk to a single trade debtor or group of debtors. (HGCF). The HGCF invest in financial instruments with a (vi) Receivable balances are monitored on an ongoing high quality credit rating - with an average short credit basis with Trust’s exposure to bad debts not being rating of A1+ and long term rating of AA- , most of the significant. investments would be with the big 4 banks. (vii) Receivables which are past due but not considered (v) All trade debtors are recognised as amounts impaired are aged as follows:

0-30 DAYS 31-60 DAYS 61-90 DAYS 90+ DAYS OVERDUE OVERDUE OVERDUE OVERDUE $’000 $’000 $’000 $’000

As at 28 February 2019 2,337 239 37 3,783 As at 28 February 2018 631 99 - 190

Each column in the table reports gross receivables. (d) Liquidity Risk The ageing analysis excludes statutory receivables, as Liquidity risk is the risk that the Trust will be unable to these are not within the scope of AASB 7 and excludes meet its payment obligations when they fall due. The receivables that are not past due and not impaired Trust continuously manages risk through monitoring future cash flows and maturities planning to ensure (viii) There were no impaired receivables at reporting adequate holding of high quality liquid assets. date. (Nil in 2018).

Sydney Cricket & Sports Grounds Annual Report 2018/19 97 Notes to the financial statements for the year ended 28 February 2019

14. FINANCIAL INSTRUMENTS DISCLOSURES (CONT’D) (D) LIQUIDITY RISK (CONT’D) The liabilities are recognised for amounts due to be paid The table below summarises the maturity profile of the in the future for goods or services received, whether or Trust’s financial liabilities together with the interest rate not invoiced. Amounts owing to suppliers (which are exposure. unsecured) are settled in accordance with policy set out in Treasury Circular TC11-12. If trade terms are not During the current and prior year there were no breaches specified, payment is made no later than the end of the on any loans payable. No assets have been pledged as month following the month in which an invoice or a collateral. The Trust’s exposure to liquidity risk is statement is received. For small business suppliers deemed insignificant based on prior period’s data and payments must generally be made within 30 days of current assessment of risk. receipt of the invoice. No interest was paid for late payment during the year.

The Trust’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, NSW Treasury Corporation Hour-Glass Investments and NSW Treasury Corporation loans.

Maturity analysis of financial liabilities is based on management’s expectation.

MATURITY ANALYSIS AND INTEREST RATE EXPOSURE

INTEREST RATE EXPOSURE MATURITY DATES

Fixed Variable Non- Weighted Average Nominal Interest Interest interest Effective Int. Rate Amount Rate Rate bearing < 1 yr 1-5 yrs > 5 yrs

2019 $‘000 $‘000 $‘000 $‘000 $‘000 $‘000 $‘000

Payables 3.65% 28,125 2,491 - 25,635 27,796 329 - Borrowings: 3.77% 150,353 150,353 - - - 24,141 126,212 TCorp borrowings

2018

Payables 3.49% 24,480 5,019 - 19,461 21,989 2,491 - Borrowings: 4.11% 78,187 78,187 - - - 31,684 46,503 TCorp borrowings

Notes: The amounts disclosed are the contractual undiscounted cash flows of each class of financial liabilities based on the earliest date on which the Trust can be required to pay. The tables include both interest and principal cash flows and therefore will not reconcile to the statement of financial position.

The Trust monitors rolling forecasts of liquidity reserves on the basis of expected cash flow.

Credit Standby Arrangements: – The Trust maintains an available standby credit facility through an approved $100,000 bank overdraft arrangement.

The Trust holds a $33K security deposit guarantee (Sydney Water)

The Trust holds a bank guarantee facility of $2.3M, with nil in use (2018: $2.3M)

98 Notes to the financial statements for the year ended 28 February 2019

15. CASH FLOW INFORMATION (CONT’D) (A) RECONCILIATION OF CASH (CONT’D) (e) Fair Value

Financial instruments are generally recognised at cost, with the exception of the TCorp Hour-Glass facilities, which are measured at fair value. As discussed, the value of the Hour-Glass Investments is based on the Trust’s share of the value of the underlying assets of the facility, based on the market value. All of the Hour Glass facilities are valued using ‘redemption’ pricing. The TCorp Hour-Glass facility is recognised at Level 2 of the fair value hierarchy.

The amortised cost of financial instruments recognised in the statement of financial position approximates the fair value, because of the short-term nature of many of the financial instruments. There were no financial instruments where the fair value differs from the carrying amount.

15. 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 2019 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:

2019 2018 $’000 $’000

Cash 18,187 3,425 NSW Treasury Corporation Hour-Glass 7 5

18,194 3,430

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

Surplus/(deficit) for the year (26,199) (1,666)

Depreciation 26,563 13,678 Increase (Decrease) in Debt Transactions (939) 2,786 Actuarial gains/(losses) on defined (312) (468) benefit pension plans Increase (Decrease) in Creditors 13,747 1,709 Decrease (Increase) in Inventories 241 74 Decrease (Increase) in Debtors (37,470) 2,304 Increase (Decrease) in Provisions 144 190

Net Cash From Operating Activities 24,225 18,607

Firmly committed long-term financing facilities of $250M were available to the Trust at 28 February 2019. As at that date, $150.353M ($78.187M in 2018) of these facilities was in use.

Sydney Cricket & Sports Grounds Annual Report 2018/19 99 Notes to the financial statements for the year ended 28 February 2019

16. RELATED PARTY DISCLOSURE 16. Related Party Disclosure

(a) Key Management Personnel Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly. This comprises the Minister for Sport, Chief Executive Officer and Trustees.

(b) Key Management Personnel Compensation Key management personnel compensation are as follows:

2019 2018 $’000 $’000

Short Term Employee Benefits 1,415 1,019 Total remuneration 1,415 1,019

The above disclosures are based on actual payments made for employee benefits during the reporting period.

The Trustees have access to the Trust Suite during major event days at the Sydney Cricket Ground and Allianz Stadium. On occasion expenses for travel by Trustees on Trust business are reimbursed by the Trust. There are no other benefits paid to the Trustees.

(c) Other transactions with key management personnel and related entities From time to time, key management personnel may purchase goods or services from the Trust. These purchases are on the same terms and conditions as those entered into by other customers and are immaterial in nature. There have been no material transactions other than remuneration reported for key management personnel.

During 2018-19, the Trust had related party transactions with the following entities:

»» Treasury Managed Fund – Payments for Insurance Coverage (refer to Note 3(a))

»» Treasury Corporation (TCorp) - Borrowings (refer to Note 9) and investment interest (refer to Note 2(e))

»» Treasury Banking System – Interest income on banking balances.

»» University of Technology – Lease of Premises.

These transactions were conducted at arm’s length.

17. Post Balance Date Events

At 28 February 2019 the Trust held a finance lease for Cisco WiFi equipment which was transferred from Allianz Stadium to the Sydney Cricket Ground prior to demolition of Allianz Stadium. This equipment has subsequently been incorporated into a new lease, that includes new infrastructure purchased for completion of the WiFi coverage at the SCG. The commencement date of the new lease is 1 April 2019.

END OF AUDITED FINANCIAL STATEMENTS

100 Sydney Cricket & Sports Grounds Annual Report 2018/19 101 102 Customer Satisfaction Venues in the SCG precinct and member facilities, such as the Stadium Club and SCG Museum, catered for more than 1.5 million visitors during the reporting period. Feedback is closely monitored to ensure our patrons continue to receive the best possible customer service.

102 The SCG responds to consumer feedback from offering has improved significantly at the SCG following a members, corporate guests, sports partners and the new deal with hospitality provider MatchPoint, while season general public. Staff are trained to follow a set of suite holders continued to make the most of a busy procedures to resolve complaints immediately if possible calendar of events at the SCG. or at least ensure prompt action for more complex issues. Sporting partners The SCG meets with all partners before and after events to FEEDBACK RECEIVED discuss operations, identify issues and work on resolutions. Senior management from all parties also meet bi-monthly to General Public discuss high-level and long-term planning. Feedback was Customer satisfaction surveys conducted at several focused on field of play access for training, impacts of the events during the year reflected the improvements made SFS redevelopment on scheduling and food and beverage in the experience for general admission customers. At a offerings. Senior management have also engaged sporting high level, the customer rating at the first Swans-Giants partners for collaborative meetings to help plan for the AFL game in April 2018 was considered ‘good’ and future of the venues. improved in the Sixers-Giants BBL game in February 2019 to ‘very good’. Significant improvement to customer perceptions were seen in a number of categories including food and beverage offerings, amenities and arrival and departure experiences. The service provided by event day staff was the highest rating area, with the overall experience performing well at the New Year’s Test.

Net Promoter Score

Allianz Stadium +22.1

Sydney Cricket Ground +47.6

Members Members were surveyed at 10 events during the reporting period between the two venues with ratings hirer at the SCG when compared to Allianz Stadium. The only exception was the departure experience as a result of lower attendances, ease of egress and proximity to the members car park. The SCG rated consistently in regard to service provided by staff, amenities available and the overall event day experience. Membership renewal and the online reserved seating program were two areas identified for improvement along with point of sale implementation and its impact of cricket events during the reporting period. Stadium Club The Stadium Club is the focal point members on a daily basis and the facility remains a key focus area for feedback. The majority of comments were focused on car parking, turnstile access, member etiquette and the relocation of facilities because of the SFS redevelopment. Feedback was received regarding a two-hour car parking limit and child-minding facilities in the Entertainment Quarter. Both items were acted upon with car parking increased to three hours and a space secured to build a child-minding facility. Corporate guests Minimal complaints were received from corporate guests during the reporting period, relating to the quality of food and in-seat service offered in both venues. The corporate

Sydney Cricket & Sports Grounds Annual Report 2018/19 103 104 Right to Information The following requests were received during the reporting period:

ACCESS APPLICATIONS RECEIVED

For the reporting period of March 2018 – February 2019, the Sydney Cricket and Sports Grounds (SCG) received two access applications under the Government Information (Public Access) Act 2009.

A summary of the requests can be seen in the below table:

Nature of request Information released/ Applicant received made available Information made publicly Information regarding available in response reports prepared into the to Legislative Council Member of NSW Legislative Council proposed knock down and Standing Order – available rebuild of Allianz Stadium to be viewed on NSW Parliament website Information regarding Letter from Minister of development applications Sport authorising Trust for construction and use Member of NSW Parliament to lodge development of demountable in The applications on behalf Entertainment Quarter and of the Crown use of Byron Kennedy Hall

*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

*Refunds may apply as a result of successful internal reviews and applications for amendment of records

Information and Privacy Commission Audit

From July 2018 – October 2018, the Information and Privacy Commission NSW conducted a formal review of the Trust’s conduct in the exercise of function in dealing with an application for access to information under the Government Information (Public Access) Act 2009. On completion of this review a GIPA Act compliance report was handed down to the SCG in September 2018.

A requirement was placed on the SCG to address each of the findings within a 12-month monitoring period set by the commission commencing November 2018. In response to this report, the SCG has implemented a 12-month action plan which addresses each of the key recommendations set down in this report and provides quarterly progress updates to the commission.

104 Sydney Cricket & Sports Grounds Annual Report 2018/19 105 106 Sydney Cricket & Sports Grounds Annual Report 2018/19 107 General Enquiries: (02) 9360 6601 Email: [email protected] SCG Office: Suite 208-1M, Building 208, The Entertainment Quarter, 122 Lang Road, Moore Park NSW 2021 GPO Box 1150, Sydney NSW 2001 sydneycricketground.com.au