SOUTHPORT SHARKS Annual Report 2019 We will always remember Bali 2002 ANNUAL REPORT 2019 3 Southport Australian Rules Football Club Ltd ABN 33 010 452 936 Rules Football Club Ltd Southport Australian wards eam uditor’s Report uditor’s tatements Office Holders and Life Members President’ T Chief Ex Football R 2019 Football T 2019 Football A Directors A Financial S Directors Independent A Report reasurer’s s Report Report ecutive Officer’s eport IndependenceDeclaration uditor’s ’ Report ’ Declaration 7 4 5 6 9 11 14 12 15 10 33 32 Auditors: Pty Ltd WPIAS 4 Helensvale Road Helensvale QLD 4212 Contents Southport Australian Rules Football Club Ltd Southport Australian ABN 33 010 452 936 Avenues Cnr Olsen & Musgrave Southport QLD 4215 Phone: 07 5532 1155 Facsimile: 07 5532 9101 Email: [email protected] southportsharks.com.au Website: Premiers 1961-62-64-66-75-76-77-79-80 GCAFL Premiers 1983-85-87-89-90-92 QAFL Club Champions 1983-84-85-86-87-90-91-92-93-94 QAFL QSFL Premiers 1997-98-99 AFL Queensland Premiers 2000-05-06-08 AFL Queensland Minor Premiers 2001-02-04-05-06 2008 AFL Queensland Club of the Year 2012 NEAFL Club of the Year NEAFL Premiers 2018 mber 2002 Bali lways reme always e will W 4 ANNUAL REPORT 2019 P Stevens C Glenister A Garton R Fankhauser R Enders DIRECTORS S Stephens TREASURER R Stewart SECRETARY R Langford VICE PRESIDENT Dr AMackenzie PRESIDENT Office HoldersandLifeMembers *deceased Southport Australian RulesFootballClubLtd ABN33010452936 Mrs MWood* Mrs TCarmody D McNamara* M Veivers Mrs AFankhauser PATRONS J Burge D Wise G Screech B Merrett D James C Watts A Devine C Mansbridge S Stephens D Bowtell C Crowley J Cotter Z Taylor D Burns MEMBERS PLAYER LIFE P Stevens A Moroney A Garton L Busch* D Hannell* W Burns* F Atchison* B Lowe Dr AMackenzie B Rickard* D Burns N Wallace* Z Taylor J Gonard W Hassall A McDonald* W Wood* W Fankhauser* LIFE MEMBERS B Thompson C Crowley J Cotter R Stewart K Gent R Chapman* N Dare R Fankhauser R Langford P Wyatt* W Leslie W Morris Mrs AFankhauser R Devine S Alexander* G Hubbard G Carmody* G Alexander ANNUAL REPORT 2019 5 Southport Australian Rules Football Club Ltd ABN 33 010 452 936 Rules Football Club Ltd Southport Australian Again, I would like to thank the loyal staff for their professionalism and to thank the loyal staff for their professionalism Again, I would like It is really gratifying that and patronage. the members for their support and that so many people visitations a week we have around 15,000 their entertainment and social venue ofare enjoying the club as continue to fulfil its aims and objectives The club was able to choice. at all levels. providing forThe Junior club had another very successful season, as (Under 18’s to Under 18’s over 450 boys and girls from Under 8’s an enormous amount of organising withSurfers Sharks). This takes and players togames spread over three days and coaches, managers and game as well as all the other volunteers in canteen be catered for, in the finalspresentation roles. The club was again well represented and this was a satisfying reward for their effort. football hasThe success of the Junior club in the area of female Women’s open age enabled us to gain a license for our first ever have beenteam. Appointments for the coach and management This new pathway for the club. finalised and it heralds an exciting via academies and competition will produce future players for AFLW AFL pathways, and further structures on the same level as men’s to supporting AFL football in all commitment demonstrates the club’s its forms on the Gold Coast. with the Gold Coast Suns Partnership top level AFL, the Patron At to continue desire for this It is the club’s continued through 2019. through 2020 and beyond. season and NEAFL clubs will 2020 looms again as another exciting strengthen the There are proposals to further continue to improve. their playersplaying conditions for the AFL clubs to try to provide Northern and WAFL. with a competition comparable to VFL, SANFL has already withdrawn from NEAFL and it will be an Thunder Territory clubs to improveenormous challenge for us and the other non-AFL it is a challenge However, the quality of our lists to remain competitive. stated ambition to field we relish, as it has always been the club’s teams in the best available competition and succeed. So bring on 2020 – Go Sharks! Dr Alan Mackenzie President

The 2019 season was eagerly of theanticipated in the wake success.2018 NEAFL Premiership back toThe opportunity to win Althoughback flags beckoned. playerthere were the inevitable the groupmovements, the core of The standardremained available. of the recruits was very high, to the extent we believed the list was a bit deeper and stronger than 2018. In fact, we did win more games, lost only once to a non-AFL side and finished the season in second no control. place, securing home ground finals and setting up a good chance securing home ground finals and setting up place, Final against Aspleyat the flag. A comfortable win in the Preliminary against Reserve ensured another home Grand Final at Fankhauser totally dominated thethe undefeated Brisbane Lions. Brisbane had for the seasoncompetition, averaging a 62-point winning margin were still able toand although ‘restricted’ to 16 listed players, they this proved too field a side with over 530 AFL games. Inevitably, were gallantly, although they fought difficult for our players who, aftermath, it was nosoundly defeated by 76 points. As I said in the running second to Winx! It was like disgrace. Daniel, assisted Congratulations to the coaching panel led by Steve and Ryan Davis. It is always Matthew Primus by Matthew Lappin, and this, intensity, difficult to be up every week for games of high handled by theas well as the overall list management, was skillfully Operations, coaching staff and General Manager - Football Jarrod Field. volunteers, Board staff, are very grateful to the support We and parentsMembers and our loyal supporters, including partners contribution is invaluable. of the players. Your The Best and Fairest count was again a very tight contest. Andrew Medal for the second time afterBoston won the Doc Mackenzie trophy He also won the Gerry Carmody being runner up last year. His consistent high-level performances, for Best Finals Player. despite being heavily tagged every week, certainly earn him a all-time elite players. place among the club’s were co-captains and continued to set a Andrew and Seb Tape as well as their off-field influencetremendous on-field example, along with the other members of the leadership group. although the back to back Overall it was a season to be proud of, flag opportunity eluded us. Off the field, the club was again well supported by our senior management. It was a difficult year for the licensed club and Mantra at Sharks due to a slow economy and strong competition. It has been a slow recovery since the Commonwealth Games, but with astute management led by CEO Dean Bowtell, assisted Treasurer, and overseen by Club by Chris Jones and senior staff, the club is continuing to provide entertainment Shaun Stephens, + members. The club continues to and enjoyment for our 40,000 seek diversified sources of income and will continue to develop the strategic plan to maximise the use of our freehold land within the Gold Coast Health and Knowledge Precinct. This will provide of promoting and fostering objectives ongoing support for our key at all levels on the Rules Football the growth of Australian Gold Coast. concerns this year has been the threat of theOne of our key Hub incorporating a second casino in the heart of Global Tourism drivers of have made strong submissions to the key Southport. We the project, but it is a Government decision, over which we have President’s Report President’s Dr Alan Mackenzie 6 ANNUAL REPORT 2019 Shaun Stephens Treasurer’s Report roadworks) werefundedfromtheinvestmentaccount. improvements (EventCentrerefurbishmentandMeliaCourt year. Costsassociatedwiththehotelandbudgetedcapital gains, interestanddividendsyieldof$50,674 forthefinancial achieved aclosingbalanceof$881,039 withunrealised The currentcashandinvestmentportfolioasat1stOctober depreciation, interestandamortisation. of $1,699,687 forthefinancialyearended1stOctober, 2019, before Football ClubLtd’s auditedaccountsrepresentanOperatingProfit As aresultofturbulenttradingperiod,SouthportAustralian Rules influenced byCPI,EventCentre, Aviary andthehotel. actual increasewasanadditional$390ktotheamountbudgeted, increase wasexpectedduetotheopeningofhotel, costs alsohadalargeimpactonthebottomline. Whilstan established toprovidefuturesavingstheclub. Employment costs, andvariousproceduresmonitoringsystemshavebeen costs duringtheyear. Managementhaveanalysedtheoperating returns inadifficultmarket withtheclubincurringhigheroperating The FitnessCentre, EventCentreandGamingprovidedlower below budgetedforecast. of theclubrecordedadeclinefromprioryearandfellwell and restaurantsshowedapositivegrowth,thoughtheremainder As aresultofthehotel,club’s totalrevenueincreased,bars therefore resultinginalowerreturnoninvestment. room ratesandcontrollingoverheadswhichranabovebudget, Difficulties associatedwiththisnewinvestmentincludedlower entertainment venueintheprecinct. through theclubandarooftopbarprovidinganupmarket an averageoccupancyof69%fortheyear, increasedpatrons number ofpositiveswithinaslowGoldCoastmarket, including During MantraatSharks’ firstfullyearoftrade, therewerea more versatile. of theclub’s 2019financialyear, requiringustobecome the in-boundmarket hasbecomevolatileinthefinalquarter occupancy ratesandtrafficthroughtheclub. Notwithstanding, the Chinesein-boundmarket, whichhadanimpactonhotel conditions, theclubexploredotheropportunitiesincluding As consumptionwassoftintheearlyquartersduetoabove positive investmentoutlook. Broadbeach toBurleighHeadsin2020, leadingtoamorebroadly Southport Australian RulesFootballClubLtd ABN33010452936 ** ProfitbeforeInterest,Depreciationand Amortisation. * Total OperatingRevenue excluding internalrevenue(loyalty&vouchers) including proposedstage3Afrom & KnowledgeandLightRail projects beingtheM1,Health spending withlocalinfrastructure contrast, positivesareGovernment household disposableincome. In expenditure duetoweaker having animpactonconsumption historically lowinterestrates,all conditions, slowgrowthand which haveledtotighterfinancial global anddomesticuncertainties There havebeenanumberof

Treasurer Shaun Stephens invest intotheclubeveryday. on behalfoftheBoard,Ithankyouforyourtirelessefforts year. To theseniormanagementandallstaffofSouthportSharks, Dean Bowtell,andCFO, TimLili’i,fortheircontributionduringthe and support during thefinancial year. Aspecial thankyoutoCEO, I wouldlike tothanktheBoardofDirectorsfortheirinvolvement investment for2020. will continuetoreceivesupport,thoughtheclubhasreviewedits Southport SharkssincetheinceptionofGoldCoastSunsand The Patron Partnership hasbeenanongoinginvestmentfrom $1,191,666 during the2019financialyear. the Patron Partnership oftheGoldCoastSunsAFLtovalue the growthofAFLonGoldCoastwithsupportthrough donations. Inaddition,SARFC continuestopromoteandfoster groups electedthroughtheCommunityBenefitsFundtoreceive Gold CoastHospitalFoundationandSouthportJuniorAFLbeing and in-kinddonationsinexcess of$233,885 withHeadspace, SARFC continuestosupportlocalcommunitygroupswithcash and ongoingcommitments. comfort forclubmembersthatweareabletomeetourliabilities acquisition. Thenetassetsoftheclubare$29,620,937, providing associated costwasrecordedinthebalancesheetatdateof Poker MachineLicencesataweightedaveragecost,asno balance sheetofcapitalinvestments.Additionsincluded280 The club’s netassetsremainstrongwithanincreasetothe the risktoleranceofthisportfolio. at 70%cashand30%equitiestheBoardcontinuestomonitor investment model.Theclub’s investmentstructurehascontinued Financial ManagementasaresultofANZrestructuringits the portfoliomanagementhasbeenchangedtoRightAdvice Whilst theclubmaintainsitsinvestmentswithWestpac Bank, ANNUAL REPORT 2019 7 Southport Australian Rules Football Club Ltd ABN 33 010 452 936 Rules Football Club Ltd Southport Australian was contributed to our respective community program partners: was contributed to our Coast Hospital Foundation, Headspace, Gold Coast Suns, Gold many other non-affiliated groups. Southport Juniors and 2008 agreement has been in place since Partnership The Patron serving sponsorships on record. longest and is one of the AFL’s seen significant growth of our game, we have During this time, Our investment of $10.5m including the introduction of AFLW. goal in growing has been worthwhile and has not only met our our city has the game but contributed to the significant benefits received since the birth of the Gold Coast Suns. Sharks team will represent Southport Next year our first women’s and we look forward to It will be an historic occasion in the QFAW. New change welcoming our new recruits in the coming months. playing group have rooms to accommodate the expansion of our government grant been planned and the club hopes to secure a becomes available. for the construction of the facility when funding Capital Expenditure & Strategy on the Hotel Our operational objectives will continue to focus and Food delivering additional business to our Events Centre our new loyalty the launch of & Beverage departments. Also, will commence next year with a range of program named ACCESS for members. new benefits and an improved reward structure of the club’s Capital expenditure will include the replacement of a Building main air-conditioning system and the installation to improve the energy efficiency of the club. Management System is well overdue for a refurbishment & Restaurant Bar Carmody’s the new year. and planning for the project will commence in Precinct The growth of the Gold Coast Health & Knowledge significant and the Northern Gold Coast corridor represent Since the Commonwealth opportunities for our club in the future. and it is Games, the city has accelerated its strategic priorities aligns itself to important that the club consistently reviews and these changes. The possibility of another casino operating on the Gold Coast remains a concern, particularly with the opening of Queens Wharf Gold in Brisbane in 2022 and the continued expansion of The Star Coast. If three casinos operating within a 100km radius becomes and many clubs will the industry will inevitably suffer, a reality, For this reason, Sharks will continue to investigate not survive. opportunities to build a sustainable business by mitigating future risks and delivering strong commercial outcomes. to extend a sincere thank you to our Board of I would like Directors. Our industry continues to rapidly change and your commitment to embracing this challenge for the good of the club The continual reference to our objective of is commendable. promoting AFL, the interests of our members and our willingness to support the local community is noteworthy. and Management team, thank you for your our Executive To professionalism and unrelenting commitment to improvement. Our staff are the backbone of our culture and represent the face of you you listen, you serve and, importantly, entertain, Sharks. You Notably, smile and give our members wonderful experiences daily. the improvement in our service standards this year has been outstanding - thank you! to our members who continually support and trust Finally, Southport Sharks, thank you for your loyalty and all the best for a happy and healthy 2020. Merry Christmas and safe, Dean Bowtell CEO In 2019, industries across the nation In 2019, faced tough trading conditions caused by a sluggish economy. was low for Consumer confidence most of the year with discretionary spend in retail and hospitality Sharks’ negatively affected. Southport financial performance was not immune to these external factors and reflects the soft trading result for the year. Gaming continued to produce another flat result against this trend will change in the previous years, and it is unlikely unless the industry undergoes significant future, legislative reform. The Events Centre encountered a tough trading period The Events Centre encountered a tough trading with flat sales and a decline in profit. against last year, and trade Competition for events including conferences shows is intense and a restructure of the sales team has been introduced to improve our enquiry and conversion rate. The Fitness Centre recorded a moderate decline in profit, yet most promising was the 5% growth in membership against an increasingly saturated market. The Hotel and Aviary Rooftop Bar’s impact on the Food Bar’s Rooftop The Hotel and Aviary with a changing and Beverage departments were positive, customer profile and sales increasing by 11%. The Hotel sector encountered tough trading conditions, The Hotel sector encountered tough trading conditions, business. As a with the region experiencing a 9% decline in occupancy for new entrant into the accommodation market, 69% for the Mantra at Sharks was positive at an average of room revenue was below the forecast due However, year. and limited growth to a volatile Chinese in-bound market future that from the domestic segment. It is expected in the will diminish as the property reliance on the in-bound market gains a stronger presence in the local region.

Chief Executive Officer’s Report Officer’s Executive Chief Dean Bowtell • visitation and service feedback all improved against Membership, team leaders and duty to thank our staff, last year and I would like result. Service standards managers for delivering an exceptional reviews improved significantly and compared to last year, increased by 40%. Customer and member feedback totalled 1200 for the year with 81% of comments being 4-5 stars. we received As a reflection of our service standards in 2019, & a number of awards including Queensland/NT Restaurant and Events Centre), Frenzy’s (Carmody’s, Finalist Caterers Awards (Employability category) Awards Gold Coast Business Excellence Finalist (Midscale Hotel category). and Hotel Management Awards & In addition, our Mantra at Sharks was awarded the Best Tourism Master Facility over $10m at the Queensland Leisure Builders Awards. Community Southport Sharks plays a significant role in supporting the Gold Coast community and is a major stimulant to the local economy. Sharks represents 1 in 8 adults on With a membership of 45,000, business model has grown over the the Gold Coast. The club’s last 12 months with 300 employees and a significant increase in of $1.4 million excess in suppliers and contractors. Furthermore, • • • • Operational Performance prior to adjustments for loyalty, was $43.7m, Revenue Total before was $1.7m rewards and vouchers, and Operating Profit based revenue interest, depreciation and amortisation. Broad a full 12 months) increased by 6.5%, (due to the Hotel trading for sales growth. while costs to maintain business, exceeded

ANNUAL REPORT 2019 9 (Best & Fairest) Andrew Boston Southport Australian Rules Football Club Ltd ABN 33 010 452 936 Rules Football Club Ltd Southport Australian Doc Mackenzie Medal Doc Mackenzie Tyler Roos Tyler Runner-Up (Best & Fairest) Jed Turner Memorial Trophy Fankhauser Wally Seb Tape Award Trademark Dylan Fyfe Coaches Award Alex Aurrichio McDonald Most Dedicated Player Ken Gerry Carmody Best Player in Finals Andrew Boston Kenelley Luke of the Year Club Person Bill Wood at the NEAFL Congratulations to all the award winners. In addition, Brodie Murdoch and on 25th August, Night in Brisbane Awards the Year. of Andrew Boston were named in the NEAFL Team Haydn Kiel for his contribution to the to acknowledge I would like at the end of club as he announced his retirement from NEAFL games for Haydn played 104 senior the season. A former junior, and 2006 and Southport Sharks including Premierships in 2005 club. has always shown a strong commitment to the & Conditioning Staff, Thank you also to our Coaches, Strength Volunteers for your contribution this season. and Medical Staff for the Team Thanks also to Dean Bowtell and his Management Sub-Committee support of the football program and to the Football club remains who put in many hours of work to ensure the competitive. the including season in 2020, look forward to another exciting We team. Women's introduction of our first ever Senior Jarrod Field General Manager - Football Operations

Season 2019 has been another Season 2019 has been club great success with the reaching a second successive NEAFL Grand Final. of the North In the 2019 competition Football League East Australian (NEAFL), Southport competed Grade against four AFL Reserve Suns, Brisbane (Gold Coast Teams and GWS Swans Lions, Sydney Giants) and five non-AFL Clubs (NT victory at Graham Road since 2012; and victory at Graham Road University at Blacktown was our Five win over Sydney Round first ever victory at that venue. Round Two win at Aspley by eight points was our first Two Round

• 2019 proved to be a difficult year when it came to travelling interstate. Round Three meant a 2am arrival for Delayed flights to Canberra for Round Sydney caused the then a cancelled flight to a midday game, 15 game to be rescheduled. Full credit to the playing group who still performed well despite poor game preparations. were able to win 13 games during the season which qualified We break, Following a week’s us in second position on the ladder. we hosted a Preliminary Final against Aspley and prevailed by 30 points. This victory qualified us for another NEAFL Grand Final where we hosted the undefeated Brisbane Lions at Fankhauser the Lions of 2019 had very few injuries Unfortunately, Reserve. and fielded the maximum allowable 16 listed AFL players on Grand The game was over fairly early and we ended up losing Final Day. by 76 points. Following the finals series, our Presentation Night was held in the with at Sharks Events Centre on 20th September, Dempsey Room the following being awarded: • 2019 Football Report Football 2019 Jarrod Field Thunder, Aspley, Redland, Canberra and Sydney University). Canberra and Sydney Redland, Aspley, Thunder, and Coach, Adelaide Captain Prior to the season, former Port alongside Senior Matthew Primus was added to the coaching staff and Daniel, and Assistant Coaches, Matthew Lappin Coach, Steve Ryan Davis (playing). were included on Following the success of 2018, 17 new players Mackenzie Shaw, the list of 42, including former AFL players Matt Stubbs. Fields, Josh Williams and Trent Willis, Tom Group was voted on by the players and the The Leadership following players were appointed: Boston and Andrew Co-Captains Seb Tape Vice Captain Michael Manteit Rhys Clark Ryan Davis, Group Jordan Taylor, Leadership and Josh Hall wins recorded in season 2019, Among the 13 Home and Away there were two notable early season performances which ensured we were in contention for a finals berth: 10 ANNUAL REPORT 2019 2019 FootballTeam Southport Australian RulesFootballClubLtd ABN33010452936 SOUTHPORT SHARKS NEAFL 2019GRANDFINALISTS Photo Credit:TJ Yelds SportsPhotography ANNUAL REPORT 2019 11 1 1 4 4 8 2 2 0 13 14 18 18 15 12 10 10 67 34 33 28 30 Games Southport Australian Rules Football Club Ltd ABN 33 010 452 936 Rules Football Club Ltd Southport Australian Player Ethan REEVES Jake HINDS Jake Cody FILEWOOD Jack O'SHEA CLEMENTS Rob Josh WILLIAMS Trent STUBBS Trent SHEERS Kai Jai LYONS Matt DORAN ROOS Tyler Harry ARNOLD Sam JEWELL Daniel CHARLESWORTH Timakoi BOWIE Timakoi Anthony DJUROVITCH Jack MENTHA GRANT Blake Alex RODRICK Emmanuel BARU Kwaby BOAKYE Kwaby No. 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 Andrew Boston Roos Tyler Jed Turner Seb Tape Dylan Fyfe Alex Aurrichio Andrew Boston Kenelley Luke Daniel Stephen & Ryan Davis Matthew Primus, Matthew Lappin Matthew Palmer Matthew Palmer Scott James Andrew Boston & Seb Tape 4 0 71 17 14 31 15 19 12 37 33 43 44 27 38 38 45 39 24 36 56 104 Games Player Haydn KIEL Dylan MUTU Matt SHAW Michael MANTEIT Ryan DAVIS Dylan FYFE Seb TAPE WILLIS Mackenzie Alex AURRICHIO Andrew BOSTON Brodie MURDOCH Rhys CLARK Rhett LLOYD Jordan TAYLOR Lee DALE Lee Mitch JOHNSON Jamison SHEA Charlie FORD FIELDS Tom MILLER Tom Josh HALL Jed TURNER No. Doc Mackenzie Medal (Best & Fairest) Doc Mackenzie Runner Up (Best & Fairest) Memorial Trophy Fankhauser Wally Award Trademark Coaches Award McDonald Most Dedicated Player Ken Gerry Carmody Best Player in Finals the Year of Club Person Bill Wood NEAFL Coach Assistant Coaches & Conditioning Strength Game Day Runner Physiotherapist NEAFL Captains 1 2 3 4 7 6 8 10 11 5 14 12 13 15 16 17 21 18 19 20 22 23 2019 Football Awards Football 2019 12 FINANCIAL REPORT 2019 Directors’ Report (b) (a) The objectives,bothshort&long-term,are: Objectives exempt fromincometax. to accountatfairvalue, pleaserefertonote12.Thecompanyis of $1,312,360forgamingmachinelicencesnotpreviouslybrought $1,458,094). Includedintheresultisothercomprehensiveincome 01 October2019totallingto$2,508,046 (2018:deficitof The companyrecognisedadeficitfortheperiodended Operating Result the dateofthisreportunlessotherwisestated. Directors havebeeninofficesincethestartoffinancialyearto Royce Enders Shaun Stephens Adam Garton Robert Langford Alan Mackenzie year andtothedateofthisreportare: The namesofeachpersonwhohasbeenadirectorduringthe Directors ended 01October2019. Your directorspresentthisreportonthecompanyforperiod (e) (d) (c) Southport Australian RulesFootballClubLtd ABN33010452936 (f)

or theWorld; necessary anddesirablebytheBoardinanypartofAustralia (or itssuccessor)oranyothercompetitionsconsidered to competeincompetitionsorganisedbyAFLQueensland teams offootballersrepresentingtheSARFC. Theseteams maintaining, providing,supportingandmanagingateamor To promotetheplayingofAustralian RulesFootballby may determine; Football Club(SARFC) orsuchothernameastheBoard maintain teamsbearingthenameSouthportAustralian Rules the GoldCoastandInternationallytoprovidefor To promote, fosterandsupportAustralian RulesFootballon determined fromtimetobytheBoard; members, theirguestsandsuchotherpersonsasmaybe considered bytheBoardasappropriateforuseof by theBoardcontainingsuchfacilitiesandamenities determined the company’s premisesorsuchother placeorplaces To providealicensedcluborsimilaraccommodation at To encourageandpromoteanyathleticgames orsports; supporting thefootballcodeona national level. of thenationalteambasedon Gold Coast,isinvolvedin state levelcompetition.Thecompany, asapatronpartner and enteringbothofthemforparticipationinlocaland/or the seniorteamsandsupportingaffiliatedjuniorclub The strategyforachievingtheseobjectivesisbyfunding licensed cluband/orthegameofAustralian RulesFootball. interests ofthecompany, itsmembers,theconductof which isconsideredtodirectlyorindirectlyadvancethe To conductsuchotherbusiness,undertakingorenterprise

Clayton Glenister R P Richard Fankhauser aul Stevens onald Stewart

Auditor’s IndependenceDeclaration long-term objectivesarebeingachieved. of thecompanyandwhethercompany's short-termand are usedbythedirectorstoassessfinancialsustainability of bothquantitativeandqualitativebenchmarks.Thebenchmarks The companymeasuresitsownperformancethroughtheuse Key Performance Measures occurred duringthefinancialyear. No significantchangesinthenatureofcompany's activities participation levelandmaintainingfinancialstability. company measuresitssuccessinpromotingthesportbyplayer in diversecommercialactivitiesandcommunityinitiatives.The Rules FootballontheGoldCoastismadepossiblebyengaging promoting, fosteringandsupportingthegrowthofAustralian teams playingAustralian RulesFootball.Thekey objectiveof maintain ahighqualityplayingandtrainingfacilityforuseby senior teamstoparticipateatbothlocalandstatelevels The principalactivityofthecompanyistoenterjuniorand Principal Activities attendances wereasfollows: During thefinancialyearfollowingmeetingswereheldand Meetings following thisDirectors’ Report. October 2019hasbeenreceivedandcanbefoundimmediately The Auditor’s IndependenceDeclarationfortheperiodended01 Director Royce Enders Ronald Stewart Shaun Stephens Robert Langford Alan Mackenzie Adam Garton Richard Fankhauser Clayton Glenister Paul Stevens No. Attended 9 6 9 8 8 8 8 4 7 No. eligible to attend 10 10 10 10 10 10 10 10 10 Attended AGM 1 1 1 1 1 1 1 1 1

FINANCIAL REPORT 2019 13

aradise Medical , Fellow NTAA and Registered Tax Agent Tax and Registered , Fellow NTAA Southport Australian Rules Football Club Ltd ABN 33 010 452 936 Rules Football Club Ltd Southport Australian artner of MBA Lawyers since 2007; Chairman of Oximax since 2007; artner of MBA Lawyers Mr R Stewart DIRECTOR

eting

aws, Bachelor of Arts, MAICD and Dip. Financial Services aws, Bachelor of Arts, MAICD and Dip. eaching esponsibilities: Chairman and Club's Nominee to Gold Coast Suns Nominee to Gold and Club's esponsibilities: Chairman esponsibilities: Vice President

Treasurer Special Responsibilities: of an Accountancy Practice Experience: Company Director since 2009; Principal Experience: Company Director since 2011; Managing P Experience: Company Director since 2011; Managing Special R Employed owner of Surfers P since 1973. Company Director since 1983. Self Experience: President Experience: Company Director since 2007 United LLC; Director of Intelligent Infrastructure Solutions and Safe-Cam Technology. United LLC; Centre since 1972 and Board Member of Gold Coast Suns Centre since 1972 and Experience: Company Director since 1995 Qualifications: Diploma of T Special R Diploma of Accountancy Qualifications: Diploma of Financial Services, Experience: Company Director since 2004 Qualifications: Commercial Cook Qualifications: Bachelor or Architecture Qualifications: Diploma of Sales and Mark Qualifications: Bachelor of L Qualifications: Bachelor of Medicine and Bachelor of Surgery Qualifications: Bachelor Experience: Company Director since 2015 Experience: Company Director since 1995 Experience: Company Director since 2001 Special Responsibilities: Company Secretary Special Responsibilities:

R.S. Stewart Dated this 1st day of November 2019 Dr A Mackenzie DIRECTOR The company is incorporated under the Corporations Act 2001 and is an entity limited by guarantee. If the company is wound The company is incorporated under the Corporations Act 2001 and is an entity limited by guarantee. each towards meeting any outstanding the constitution states that each member is required to contribute a maximum of $50.00 up, the total maximum amount that the members of the company are liable to contribute 01 October 2019, At obligations of the company. (2018: $2,284,850). if the company is wound up is $2,274,650 Events subsequent to reporting date affected or may significantly affect the No matters or circumstances have arisen since the end of the financial year which significantly the results of those operations, or the state of affairs of the company in future financial years. operations of the company, The financial report was authorised for issue by the directors on the same date as this report. Signed in accordance with a resolution of the directors. Members Guarantee R. Enders Information on Directors Information on A.G. Mackenzie Directors’ Report Directors’ P. E. Stevens P. R.K. Langford S. Stephens R. Fankhauser A.N. Garton C. Glenister 14 FINANCIAL REPORT 2019 Southport Australian RulesFootballClubLtd ABN33010452936 FINANCIAL REPORT 2019 15 2018($) 11,163,323 (528,838) 1,660,500 (4,738,745) (30,783,117) (3,587,242) 31,780,603 25,356,024 (1,458,094) (1,458,094) (1,458,094) 2019 ($) 1,410,894 1,312,360 (1,185,689) 1,312,360 12,180,946 (5,217,352) (4,334,384) 27,023,249 33,986,843 (3,820,406) (3,820,406) (2,508,046) (33,698,070)

5 5 6 5 6 12 3d Note Southport Australian Rules Football Club Ltd ABN 33 010 452 936 Rules Football Club Ltd Southport Australian The accompanying notes form part of these financial statements. Income tax expense Surplus/(Deficit) after income tax Other comprehensive income to Gaming machine licences not previously brought account at fair value the year comprehensive income for Total FOR THE YEAR ATTRIBUTABLE COMPREHENSIVE LOSS TOTAL MEMBERS OF THE COMPANY TO Services revenue Gross profit Depreciation and amortisation Finance costs Other expenses Surplus/(Deficit) before income tax Other revenue Cost of sales Sales revenue

Financial Statements Financial income other comprehensive or loss and of profit Statement for the period ended 1 October 2019 for the period ended 16 FINANCIAL REPORT 2019

The accompanyingnotesformpartof thesefinancialstatements. MEMBERS' FUNDS LIABILITIES Southport Australian RulesFootballClubLtd ABN33010452936 ASSETS as at1October2019 Statement offinancialposition Financial Statements TOTAL MEMBERS'FUNDS Retained Surplus NET ASSETS TOTAL LIABILITIES Total Non-CurrentLiabilities Long-term Provisions Borrowings NON-CURRENT LIABILITIES Total CurrentLiabilities Short-term Provisions Borrowings Trade andOtherPayables CURRENT LIABILITIES TOTAL ASSETS Total Non-CurrentAssets Property, PlantandEquipment Intangible Assets NON-CURRENT ASSETS Total CurrentAssets Other Assets Financial Assets Inventories Trade andOtherReceivables Cash andEquivalents CURRENT ASSETS Note 10 16 16 15 15 12 13 14 11 9 8

7 29,620,937 29,620,937 54,602,740 16,060,609 59,441,155 29,820,218 53,089,850 13,759,609 29,620,937 15,949,273 4,838,415 2,903,574 3,223,921 1,854,369 1,512,890 8,681,319 2019 ($) 881,039 519,329 124,759 409,714 111,336 54,938,298 29,608,654 61,737,637 54,800,593 32,128,983 32,128,983 15,783,938 13,824,716 32,128,983 15,663,427 6,799,338 5,009,606 8,777,227 3,311,908 1,735,581 2018 ($) 830,365 263,607 517,446 137,706 178,314 120,511 FINANCIAL REPORT 2019 17 0 0 0 17,713 561,581 2018 ($) 2018 ($) 1,669,423 (528,838) 3,004,512 2,779,617 (1,100,000) (1,458,094) 33,587,077 1,669,423 2,005,095 4,390,742 5,009,606 42,026,010 32,128,983 32,128,983 (3,005,526) (37,635,269) (2,443,945) 0 0 0 0 20,310 2019 ($) 2019 ($) (841,955) 235,245 (1,191,666) 44,173,619 (841,955) (1,185,689) 32,128,983 5,009,606 (1,499,322) (2,106,032) 2,903,574 2,592,290 (2,508,046) (41,581,329) 29,620,937 29,620,937 (1,499,322)

7 4 Note Southport Australian Rules Football Club Ltd ABN 33 010 452 936 Rules Football Club Ltd Southport Australian Note The accompanying notes form part of these financial statements.

TOTAL MEMBERS' FUNDS TOTAL Balance at the end of the financial year Balance at the end of MEMBERS’ FUNDS SURPLUS RETAINED to members of the company comprehensive loss attributable Total Balance at the beginning of the financial year Balance at the beginning Patron partner sponsorship Patron Interest received Receipts from members & guests Receipts to suppliers & employees Payments Cash generated from operations Finance costs Net cash generated from (used in) operating activities Proceeds from sale of investments Proceeds from sale of property, plant and equipment Proceeds from sale of property, Payment for property, plant and equipment for property, Payment Payments for intangible assets Payments Net cash generated from (used in) investing activities from borrowings Receipt of borrowings Repayment Net cash generated from (used in) financing activities Net increase (decrease) in cash and cash equivalents held Cash and cash equivalents at the beginning of the financial year THE END OF THE FINANCIAL AT EQUIVALENTS AND CASH CASH YEAR CASH FLOW FROM OPERATING ACTIVITIES FROM OPERATING FLOW CASH CASH FLOW FROM INVESTING ACTIVITIES FROM INVESTING FLOW CASH CASH FLOWS FROM FINANCING ACTIVITIES FLOWS CASH

Financial Statements of cash flows Statement 2019 for the period ended 1 October Financial Statements Financial funds in members’ of changes Statement 1 October 2019 for the period ended

18 FINANCIAL REPORT 2019 (d) (c) (b) (a) NOTE 3:SUMMARY OFSIGNIFICANT ACCOUNTING POLICIES The financialstatementswereauthorisedforissueon1November2019bythedirectorsofcompany. dollars, whichisthecompany's functionalcurrency. presented inthefinancialstatementshavebeenroundedtonearestdollar. Thesefinancialstatementsare presentedin Australian costs, modified,whereapplicable, bythemeasurementatfairvalueofselectedfinancialassetsandliabilities.Theamounts The financialstatements,except forthecashflowinformation,havebeenpreparedonanaccrualsbasisandarebasedhistorical Basis ofMeasurement of thesefinancialstatementsarepresentedbelowandhavebeenconsistentlyappliedunlessstatedotherwise. relevant andreliableinformationabouttransactions,eventsconditions.Materialaccountingpoliciesadoptedinthepreparation Australian AccountingStandards setoutaccountingpoliciesthattheAASB hasconcludedwouldresultinfinancialstatementscontaining of Australian AccountingStandards. comply withAustralian AccountingStandards –Reduced DisclosureRequirements assetoutinAASB 1053:ApplicationofTiers Requirements oftheAustralian AccountingStandards Board(AASB) andtheCorporationsAct2001.Thesefinancialstatements financial statementswhichhavebeenpreparedinaccordancewith Australian Accounting Standards – Reduced Disclosure In theopinionofdirectors,companyisnotpubliclyaccountable. ThefinancialstatementsareTier2generalpurpose Basis ofAccounting NOTE 2:BASIS OFPREPARATION guarantee andisanot-for-profitentity. under theCorporationsAct2001anddomiciledinAustralia. Southport Australian RulesFootballClubLtd. isacompanylimitedby These financialstatementsareforSouthport Australian RulesFootball Club Ltd. (thecompany)asanindividualentity, incorporated Reporting entity NOTE 1:REPORTING ENTITY Notes tothefinancialstatementsforperiodended1October2019 Financial Statements Southport Australian RulesFootballClubLtd ABN33010452936

Section 50-45oftheIncomeTax AssessmentAct1997. No provisionforincometaxhasbeenraisedastheCompanyself-assessed thatitisexempt fromincometaxunder Income Tax flows includedinreceiptsfromcustomersorpaymentstosuppliers. arising frominvestingorfinancingactivitieswhicharerecoverablefrom, orpayableto, the ATO arepresented asoperatingcash payables intheStatement ofFinancialPosition. Cashflowsarepresentedonagrossbasis.TheGST componentsofcashflows receivable orpayable. ThenetamountofGST recoverable from,orpayableto, theATO isincludedwithotherreceivablesor recoverable fromtheAustralian Taxation Office (ATO). Receivables andpayablesarestatedinclusiveoftheamount GST Revenues, expensesandassetsarerecognisednetoftheamountGST, except wheretheamountofGST incurredisnot Goods andServicesTax (GST) for thecurrentfinancialyear. Whenrequired,comparativeinformationisreclassifiedwhereappropriatetoenhancecomparability. When requiredbyAccountingStandards, comparativefigureshavebeenadjustedtoconformchangesinpresentation Comparative Figures economic data,obtainedbothexternallyandwithinthecompany. available currentinformation.Estimatesassumeareasonableexpectationoffutureeventsandarebasedontrends The directorsevaluateestimatesandjudgmentsincorporatedintothefinancialstatementsbasedonhistoricalknowledgebest Critical AccountingEstimatesandJudgments

FINANCIAL REPORT 2019 19 ,

Southport Australian Rules Football Club Ltd ABN 33 010 452 936 Rules Football Club Ltd Southport Australian

Items of property, plant and equipment are measured on the cost basis and are therefore carried at cost less accumulated plant and equipment are measured on the cost basis and are therefore carried at cost Items of property, held as at 30 September 2003 depreciation and any accumulated impairment losses. Plant & equipment and fixtures & fittings were credited to revaluation surplus in were revalued on 30 September 2003 by independent valuers. The revaluation surpluses the Company elected to measure these revalued assets at the date funds. In accordance with AASB1 members’ value as their deemed cost at that date. equivalents to IFRSs at their fair value and use that fair of transition to Australian the fair value of the asset plant and equipment that has been contributed at no cost, or for nominal cost are valued at Property, at the date it is acquired. Inventories are measured at the lower of cost and net realizable value. Inventories acquired at no cost, or for nominal Inventories are measured at the lower of cost and net realizable value. consideration, are valued at the current replacement cost as at the date of acquisition. Property, Plant and Equipment Property, and measurement Recognition Cash and Cash Equivalents Inventories Leases where substantially all the risks and benefits incidental to the ownership of the asset (but not the legal ownership) assets, of fixed Leases substantially all the risks and Lease payments for operating leases, where are classified as finance leases. are transferred to the company, are recognised as expenses on a straight-line basis over the lease term. benefits remain with the lessor, this is considered a reciprocal transaction and the grant revenue is recognised in the statement of financial position as a liability this is considered a reciprocal transaction and otherwise the grant is recognised as income on receipt. until the service has been delivered to the contributor; when received. Donations and bequests are recognised as revenue in the instrument. to receive a dividend has been established. Dividend revenue is recognised when the right and services tax (GST). All revenue is stated net of the amount of goods interest method, which for floating rate financial assets is the rate inherent Interest revenue is recognised using the effective Revenue the comparative the cumulative effective method and therefore from Contracts using 15: Revenue AASB The Company has applied accounting policies The revenue 118: Revenue. AASB restated and continues to be presented under information has not been impact on 15 did not have a material of AASB 15 and the adoption AASB 118 are not materially different to those under under AASB the company. from the rendering of a service is of goods to customers. Revenue from the sale of goods is recognised upon the delivery Revenue or rebates provided to any discounts is stated as excluding the customers. Revenue recognised upon the delivery of the service to 15. patrons in line with AASB profit and loss when the entity obtains control of the grant and it is probable that the Non-reciprocal grant revenue is recognised in flow to the entity and the amount of the grant can be measured reliably. economic benefits gained from the grant will be satisfied before the entity is eligible to receive the contribution, the If conditions are attached to the grant which must until those conditions are satisfied. recognition of the grant as revenue will be deferred entity incurs an obligation to deliver economic value directly back to the contributor When grant revenue is received whereby the Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within short-term borrowings with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown of Financial Position. in current liabilities on the Statement

(i) (g) (h) (f) (CONT.) POLICIES ACCOUNTING OF SIGNIFICANT 3: SUMMARY NOTE (e) Financial Statements Financial 1 October 2019 the period ended statements for the financial Notes to 20 FINANCIAL REPORT 2019

(k) (j) (i) Notes tothefinancialstatementsforperiodended1October2019 Financial Statements Southport Australian RulesFootballClubLtd ABN33010452936

useful livesoftheimprovements.Thedepreciationratesusedforeachclassdepreciableassetsare: for use. Leasehold improvementsaredepreciatedovertheshorterofeitherunexpiredperiodleaseorestimated depreciated onastraightlinebasisovertheasset’s usefullifetothecompanycommencingfromtimeassetisheldready The depreciableamountofallfixed assets,includingbuildingsandcapitalisedleasedbutexcluding freeholdland,is Depreciation (refer toNote3(o)fordetailsofimpairment). in profitorloss.Aformalassessmentofrecoverableamountismadewhenimpairmentindicatorsarepresent the carryingamountiswrittendownimmediatelytoitsestimatedrecoverableandimpairmentlossesarerecognised In theeventcarryingamountofproperty, plantandequipmentisgreaterthanitsestimatedrecoverableamount, Subsequent measurement The assets’ residualvaluesandusefullivesarereviewed,adjustedifappropriate, attheendofeachreportingperiod The company’s obligationsforlongtermemployeebenefitsarepresented asnon-currentliabilitiesinitsstatementoffinancial related service. not expectedtobesettledwhollywithin12monthsaftertheendof annualreportingperiodinwhichtheemployeesrender The companyclassifieslongserviceleaveasnon-currentforamounts applicabletoemployeeswith7-10years’ serviceastheyare (ii) Otherlongtermemployeebenefits as currentemployeebenefitsforamountsapplicabletoemployees withtenormoreyears’ service. The companyclassifiesannualleaveentitlementsascurrentemployee benefits.Thecompanyclassifieslongserviceleave and salariesarerecognisedaspartofcurrenttradeotherpayables inthestatementoffinancialposition. The company’s obligationsforshorttermemployeebenefits,otherthanannualleaveandlongservice leave, suchaswages undiscounted amountsexpectedtobepaidwhentheobligationissettled. which theemployeesrenderrelatedservice, includingwagesandsalaries.Shorttermemployeebenefitsaremeasuredatthe than terminationbenefits)thatareexpectedtobesettledwhollywithin12monthsaftertheendofannualreportingperiodin Provision ismadeforthecompany’s obligationforshorttermemployeebenefits.Short-termbenefitsare(other (i) Short-termemployeebenefits Employee Benefits the Profitor Loss astheyarewon. directors’ bestestimateoftheamountslikely tobewonintheshortterm.Duringyearjackpotsarerecognisedasanexpense (ii) AprovisionforjackpotsisrecognisedintheStatement ofFinancialPosition attheendoffinancialyearbasedon represent thebestestimateofamountsrequiredtosettleobligationatendreportingperiod. is probablethatanoutflowofeconomicbenefitswillresultandcanbereliablymeasured.Provisionsrecognised (i) ProvisionsarerecognisedwhentheCompanyhasalegalorconstructiveobligation,asresultofpastevents,forwhichit Provisions Fixtures andFittings Plant andEquipment Leasehold Improvements Buildings andImprovements Freehold Class ofFixed Land Property included intheS Gains andlossesondisposalsaredeterminedbycomparingproceedswiththecarryingamount.Thesegainsor will flowtothecompany Subsequent expenditureiscapitalisedonlywhenitprobablethatthefutureeconomicbenefitsassociatedwith (CONT.) NOTE 3:SUMMARY OFSIGNIFICANT ACCOUNTING POLICIES , PlantandEquipment(continued)

tatement ofComprehensiveIncome.

.

0.00% 2. 2. 4. 2. Asset DepreciationR 00% -10.00% 00% -50.00% 00% -50.00% 00% -50.00%

ate

FINANCIAL REPORT 2019 21

")

Southport Australian Rules Football Club Ltd ABN 33 010 452 936 Rules Football Club Ltd Southport Australian

. Obligations for unpaid superannuation guarantee contributions are . Obligations for unpaid superannuation guarantee

’s superannuation fund of choice. All contributions in respect of employee’s entitlements of employee’s All contributions in respect superannuation fund of choice. ’s

s statement of financial position. cept when the company does not have an unconditional right to defer settlement for at least 12 months after the end settlement for at least 12 months after the end does not have an unconditional right to defer cept when the company recognised as an expense when they become payable recognised as an expense when they become

- the business model for managing the financial assets cost: A financial asset that meets the following conditions is subsequently measured at amortised - the continual cash flow characteristics of the financial asset; and - the financial asset is managed solely to collect contractual cash flows; and of principal and interest on the - the contractual terms within the financial asset give rise to cash flows that are solely payments principal amount outstanding on specified dates. through other comprehensive income: A financial asset that meets the following conditions is subsequently measured at fair value Payables and Other Trade company during the reporting period that and other payables represent the liabilities for goods and services received by the Trade The balance is recognised as a current liability with the amounts normally paid remain unpaid at the end of the reporting period. within 30 days of recognition of the liability. Financial Instruments Initial recognition and measurement when the Company becomes a party to the contractual provisions of the Financial assets and financial liabilities are recognised to the date that the company commits itself to either purchase or sell the asset instrument. For financial assets, this is equivalent at fair value plus for trade receivables) are initially measured (except trade date accounting is adopted). Financial instruments (i.e. in which case transaction costs are where the instrument is classified “at fair value through profit or loss” transactions costs except are used to determine fair value. quoted prices in an active market Where available, expensed to profit or loss immediately. In other circumstances, valuation techniques are adopted. Trade receivables are initially measured at the transaction price if the trade receivables do not contain a significant financing Trade from contracts with 15: Revenue component or if the practical expedient was applied as specifed in paragraph 63 of AASB customers. Financial Assets Financial assets are subsequently measured at: - amortised cost; - fair value through comprehensive income; or - fair value through profit or loss. Measurement is on the basis of two primary criteria: (iii) Superannuation Benefits which the company pays the applicable superannuation receive superannuation entitlements, for Employees of the company guarantee contribution to the employee are to be paid when the obligation is settled and are presented as current liabilities measured at the undiscounted amounts expected in the company’ Intangibles Software a finite life and is carried at cost less any accumulated amortisation and impairment (i) Software is initially recognised at cost. It has between one and five years. It is assessed annually for impairment. losses. Software has an estimated useful life of position ex current liabilities. in which case the obligations are reported as of the reporting period, Gaming machine licences If the association were to be wound up or the number of an indefinite life. (i) Gaming machine licences held by the club have The price. would be offered for tender sale at the prevailing market of requirements then the licences entitlements were in excess testing to the higher of fair value less costs to sell and value in use. intangible asset is subject to annual impairment of principal and interest on the - the contractual terms within the financial asset give rise to cash flows that are solely payments principal amount outstanding on specified dates; and collection and the selling of the - the business model for managing the financial asset comprises both contractual cash flows financial asset. cost and fair value through other By default, all other financial assets that do not meet the measurement conditions of amortised initially designates a financial instrument comprehensive income are subsequently at fair value through profit or loss. The company as measured at fair value through profit or loss if: to as an "accounting mismatch - it eliminates or significantly reduces a measurement or recognition inconsistency (often referred

Financial Statements Financial 1 October 2019 the period ended statements for the financial Notes to (m) (n) (l) NOTE 3: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.) POLICIES ACCOUNTING OF SIGNIFICANT 3: SUMMARY NOTE 22 FINANCIAL REPORT 2019

ositive netcashflowsfromoperatingactivitiesof$235,245 for theperiodended1October2019(2018:$2,779,617); and TE 3A:GOINGCONCERN (o) NOTE 3:SUMMARY OFSIGNIFICANT ACCOUNTING POLICIES(CONT.) Notes tothefinancialstatementsforperiodended1October2019 Financial Statements

Southport Australian RulesFootballClubLtd ABN33010452936

of theconsiderationreceivedandreceivableisrecognisedinprofitorloss. On derecognitionofafinancialassetmeasuredatamortisedcost,thedifferencebetweenasset' third party - theCompanynolongercontrolsasset(ieithaspracticalabilitytomak - allriskandrewardsofownershiptheassethavebeensubstantiallytransferred: - therighttoreceivecashflowsfromassethasexpiredorbeentransferred; the followingcriterianeedtobesatisfiedforderecognitionofafinancialset: expires, ortheassetistransferredinsuchawaythatallrisksandrewardsofownershiparesubstantiallytransferred.All position. DerecognitionoffinancialassetAisderecognisedwhentheholder' Derecognition referstotheremovalofapreviouslyrecognisedfinancialassetorliabilityfromstatement Derecognition Company' Regular waypurchasesandsalesoffinancialassetsarerecognisedderecognisedatsettlementdateinaccordancewiththe Equity instruments and isirrevocableuntilthefinancialassetderecognised. The initialmeasurementoffinancialinstrumentsatfairvaluethroughprofitorlossisaone-timeoptionontheclassification contract. - itisahybridcontractthatcontainsanembeddedderivativesignificantlymodifiesthecashflowsotherwiserequiredby assets canbemanagedandevaluatedconsistentlyonafairvaluebasis; documented appropriately - itisinaccordancewiththedocumentedriskmanagementorinvestmentstrategyandinformationaboutgroupings that wouldotherwisearisefrommeasuringassetsorliabilitiesrecognisingthegainsandlossesonthemdifferentbases; iii) Plannedgrowthandcostsavingsinitiativesunderpinningthe2020 financialbudget. ii) Successfulrenegotiationofthecurrentbankloan$7 i) P liabilities inthenormalcourseofbusinesshavingconsideredfollowing:- The directorsareconfidentofthecompany’ the yearof$2,508, realisation ofassetsandsettlementliabilitiesinthenormalcoursebusiness,notwithstandingcompanyincurredalossfor The financial,statementshavebeenpreparedonagoingconcernbasiswhichcontemplatescontinuityofnormalactivitiesand NO of thecash-generatingunittowhichassetbelongs. Where itisnotpossibletoestimatetherecoverableamountofanindividualasset,companyestimates asset istreatedasarevaluationdecreaseinaccordancewiththatotherStandard. accordance withanotherStandard (e.g. inaccordancewiththerevaluationmodelAASB 116).Anyimpairmentlossofarevalued amount overitsrecoverableisrecognisedimmediatelyinprofitorloss,unlesstheassetcarriedatarevalued higher oftheasset’s fairvaluelesscoststosellandinuse, totheasset’s carryingamount.Anyexcess oftheasset’s carrying an indicationexists,impairmenttestiscarriedoutontheassetbycomparingrecoverableamountofasset,being At theendofeachreportingperiod,companyassesseswhetherthereisanyindicationthatanassetmaybeimpaired.Ifsuch Impairment ofnon-financialassets

. s accountingpolicy

046 andhadcurrentliabilitiesthatexceeded currentassetsby$8,921,194 asat1October, 2019.

, sotheperformanceoffinancialliabilitythatispartagroupliabilitiesor

s abilitytocontinueasagoingconcernandrealiseitsassetsdischarge ,831,368 (refernote15(b))

e unilateraldecisionstoselltheasseta

s contractualrightstoitscashflows s carryingamountandthesum

FINANCIAL REPORT 2019 23

0 0 (443) 15,585 (14,394) 2018 ($) (122,115) (49,897) (183,910) 1,005,642 3,587,242 2,779,617 (1,458,094) 0 (1,883) 109,613 53,555 2019 ($) (87,987) (50,674) (146,107) 235,245 (155,250) 4,334,384 (1,312,360) (2,508,046) Note Southport Australian Rules Football Club Ltd ABN 33 010 452 936 Rules Football Club Ltd Southport Australian amount of $12,630,265. These acquisitions are not reflected in the statement of cash flows. amount of $12,630,265. Non-Cash Financing and Investing Activities by (2018: $571,794) value of $1,031,893 During the financial year the company acquired plant and equipment with an aggregate fair Westpac Bank funded costs of the hotel construction and fitout to the means of equipment financing. During the 2018 financial year

Adjustments for: Interest income Depreciation and amortisation Reconciliation of Cashflow from Operations with Surplus/(Deficit) after Income Tax with Surplus/(Deficit) after Income of Cashflow from Operations Reconciliation tax Surplus/(Deficit) after income value of investments (Increase)/Decrease in market plant & equipment Net (gain)/loss on disposal of property, Gaming machine licences brought to account Changes in assets and liabilities: (Increase)/Decrease in trade and other receivables (Increase)/Decrease in inventory (Increase)/Decrease in other assets activities Net cash generated from (used in) operating Increase/(Decrease) in trade and other payables Increase/(Decrease) in provisions NOTE 4: CASH FLOW INFORMATION FLOW 4: CASH NOTE Financial Statements Financial 1 October 2019 the period ended statements for the financial Notes to (a) 24 FINANCIAL REPORT 2019 NOTE 5:REVENUE Notes tothefinancialstatementsforperiodended1October2019 Financial Statements NOTE 6:EXPENSES Southport Australian RulesFootballClubLtd ABN33010452936 Food &Beverage Sales revenue Total revenue Total otherrevenue Other revenue Net gain/(loss)ondisposalofproperty, plant&equipment Interest anddividendsreceived Unrealised gain/(loss)oninvestments Commissions Sponsorship Other revenue Total servicesrevenue Other Hotel Gaming Memberships Services revenue Total salesrevenue Total otherexpenses Other Expenses Patron partnersponsorshipfee Salaries, wages,commissions,provisions&on-costs Gaming Tax Other expenses Total costofsales Food &Beverage Cost ofsales

Note Note 33,698,070 27,023,249 40,615,089 12,180,946 5,960,695 5,217,352 19,019,069 14,737,937 12,180,946 1,410,894 11,807,772 5,217,352 2,451,210 3,271,773 2019 ($) 2,281,197 1,191,666 2019 ($) 438,442 155,250 267,477 478,741 50,674 20,310 25,356,024 10,423,466 30,783,117 38,179,848 4,738,745 13,312,428 19,095,284 5,947,223 11,163,323 1,660,500 4,738,745 1,100,000 2,618,956 1,532,943 2018 ($) 11,163,323 2,108,841 2018 ($) 495,209 560,061 183,910 281,491 122,115 17,713 FINANCIAL REPORT 2019 25 36,654 141,642 141,660 2018 ($) 2018 ($) 2018 ($) 2018 ($) 2018 ($) 178,314 517,446 375,803 830,365 263,607 830,365 263,607 5,009,606 4,538,818 470,788 409,714 146,019 2019 ($) 2019 ($) 2019 ($) 881,039 373,310 409,714 881,039 24,690 519,329 2019 ($) 2019 ($) 100,069 629,735 124,759 2,273,839 2,903,574 Note Note Note Note Note Southport Australian Rules Football Club Ltd ABN 33 010 452 936 Rules Football Club Ltd Southport Australian Stock on Hand - Other Stock Inventories Total Finished Goods at Cost on Hand - Food & Beverage Stock Listed investments - at fair value through the profit or loss Financial Assets Total Prepayments Other Current Assets Total Current receivables Trade Other receivables and Other Receivables Current Trade Total Cash at bank Cash on hand and Cash Equivalents Cash Total Financial assets comprise investments in a portfolio of mortgage trusts and the ordinary issued capital of various entities. There are no Financial assets comprise investments in a portfolio of mortgage trusts and the ordinary issued maturity dates attached to these investments. returns or fixed fixed Provision for Impairment of Receivables day terms. These receivables are assessed for recoverability and a provision for Current trade receivables are generally on 30 evidence that an individual trade receivable is impaired. No provision was required as impairment is recognised when there is objective at 1 October 2019 (2018: Nil). NOTE 11: OTHER ASSETS 11: OTHER NOTE NOTE 10: FINANCIAL ASSETS NOTE NOTE 9: INVENTORIES NOTE NOTE 8: TRADE AND OTHER RECEIVABLES OTHER 8: TRADE AND NOTE NOTE 7: CASH AND CASH EQUIVALENTS AND CASH 7: CASH NOTE Financial Statements Financial 1 October 2019 the period ended statements for the financial Notes to 26 FINANCIAL REPORT 2019 NOTE 13:PROPERTY, PLANTANDEQUIPMENT was theweightedaveragesalespriceoflasttwogamingentitlementssoldasperOLGR website. for thesaleandpurchaseoflicenceswascreated.Thevaluationmethodusedgamingnotpreviouslybroughttoaccount the industry. Clubswantingadditionallicenceswerenowrequiredtopurchasethemfromtheexistingpooloflicences.Ineffectamarket Historically gaminglicenceswereapprovedonapplicationtotheOLGR. In2014theOLGR cappedthenumberoflicencesavailablein (c) Licencespreviouslynotbroughttoaccount are presentedasfollows: Movements inthecarryingamountsforeachclassofintangibleassetbetweenbeginningandendcurrentfinancialyear Movements inCarryingAmounts NOTE 12:INTANGIBLE ASSETS Notes tothefinancialstatementsforperiodended1October2019 Financial Statements Southport Australian RulesFootballClubLtd ABN33010452936 (b) GamingMachineLicences (a) ComputerSoftware Carrying amountattheendofyear Transfers from/(to)otherassetclasses Licences previouslynotbroughttoaccount Balance atthebeginningofyear Carrying amountattheendofyear Amortisation charge Transfers from/(to)otherassetclasses Additions Balance atthebeginningofyear Total IntangibleAssets Gaming machinelicences Less accumulatedamortisation Computer software Freehold landatcost

Buildings &landimprovementsatcost Less accumulateddepreciation

Leasehold improvementsatcost Less accumulateddepreciation

Plant &equipmentatdeemedcostand Less accumulateddepreciation

Fixtures &fittingsatdeemedcostand Less accumulateddepreciation

Work-in-progress atcost Total Property, PlantandEquipment (b) (c) Note Note Note Note (a) (c) 53,089,850 (12,458,509) 37,072,379 49,628,296 (12,555,917) 9,542,786 (2,872,312) 1,384,519 4,851,704 9,542,786 1,418,847 1,512,890 1,312,360 17,310,213 4,291,158 1,384,519 128,371 (316,381) 468,373 151,992 2019 ($) 2019 ($) (101,852) 230,223 137,706 2019 ($) (9,335) 2019 ($) 72,159 52,142 0 0 0 54,800,593 48,259,525 (10,321,565) (2,499,293) 37,937,961 9,542,786 (13,170,510) 9,542,786 5,148,501 4,285,451 1,786,158 (289,526) 18,319,011 208,972 465,740 137,706 176,214 2018 ($) 2018 ($) 230,223 2018 ($) 113,333 137,706 (92,518) 27,632 2018 ($) (9,797) 6,538 0 0 0 0 , 0 FINANCIAL REPORT 2019 27 0 0 0 0 0 0 0 0 0 0 0 0 0 (309) 183,639 176,214 2018 ($) (32,688) 897,058 208,902 208,972 1,212,705 (1,776,121) 1,772,394 (323,604) 5,152,227 1,786,158 5,148,501 13,532,174 9,542,786 11,245,377 14,605,751 11,298,343 (1,445,032) 9,542,786 (11,273,010)

37,937,961 0 0 0 0 0 0 0 0 0 0 1,187 2,633 70,875 12,500 (72,159) 52,142 176,214 36,264 98,455 2019 ($) 151,992 (26,855) 208,972 1,786,158 (169,330) 1,270,316 5,148,501 9,542,786 (403,575) 1,363,567 1,418,847 9,542,786 37,937,961 4,851,704 (1,660,266) (2,234,353) 37,072,379 Note Southport Australian Rules Football Club Ltd ABN 33 010 452 936 Rules Football Club Ltd Southport Australian of the current financial year, are presented as follows: year, of the current financial Movements in Carrying Amounts Movements in Carrying the end and equipment between the beginning and plant amounts for each class of property, Movements in the carrying

Freehold land at cost of year Balance at the beginning Carrying amount at the end of year Carrying amount at the cost. No revaluation has occurred subsequently. The freehold land has been recorded at its original Buildings & land improvements at cost Balance at the beginning of year Carrying amount at the end of year Carrying amount at the end of year Fixtures & fittings at deemed cost and at cost Balance at the beginning of year Carrying amount at the end of year at cost Work-in-progress Balance at the beginning of year Leasehold improvements at cost improvements Leasehold Balance at the beginning of year Transfer of depreciation from/to other asset classes of depreciation from/to other Transfer Additions Additions Additions from/to other asset classes Transfers asset classes of depreciation from/to other Transfer Depreciation expense Additions Transfers from/to other asset classes Transfers Additions Plant & equipment at deemed cost and at cost Balance at the beginning of year Disposals depreciation Depreciation expense Carrying amount at the end of year from/to other asset classes Transfers Transfer of depreciation from/to other asset classes Transfer Disposals cost Disposals depreciation Depreciation expense Transfer of depreciation from/to other asset classes Transfer Disposals cost Disposals depreciation Depreciation expense Transfers from/to other asset classes Transfers to other asset class Transfer Carrying amount at the end of year Disposals cost NOTE 13: PROPERTY, PLANT AND EQUIPMENT (CONTINUED) PLANT 13: PROPERTY, NOTE (a) Financial Statements Financial 1 October 2019 the period ended statements for the financial Notes to 28 FINANCIAL REPORT 2019 NOTE 14:TRADEANDOTHER PAYABLES (ii) (i) 15(c) Westpac Bankheldthe followingsecurityforthesefacilities:- NOTE 15:BORROWINGS will notenterintoafurtherloanagreementonsatisfactoryterms. 22 October2019. ThetermsoftheloanarecurrentlybeingnegotiatedwithBank.directorshavenoreason tobelievetheBank 15(b) IncludedinCurrentBankloanssecuredisanamountof$7,831,368 whichhasbeenclassifiedascurrentitanexpirydateof Westpac EquipmentFinance-Redraw limit$3.0 million 15(a) Bankingandfinancefacilitieswith Westpac Bank,liabilitiesinclude: Notes tothefinancialstatementsforperiodended1October2019 Financial Statements Southport Australian RulesFootballClubLtd ABN33010452936

Total CurrentBorrowings agreements purchase Hire Bank loanssecured Current Total Borrowings Hire purchaseagreements Bank loansecured Total currentandnon-currentborrowings: Total Non-CurrentBorrowings Hire purchaseagreements Bank loansecured Non-Current Financial liabilities as trade and other payables other and trade as liabilities Financial Less incomeinadvance Less GST payable Trade andotherpayables a. FinancialLiabilitieswithinTrade andOtherPayables Total Trade andOtherPayables Accrued expenses Income inadvance GST payable Trade payables

the CnrofMusgraveandOlsenA and undertakings(includingtheLiquorLicenseNo81098Gaming License124associatedwiththeSouthportSharksat General SecurityAgreementbySouthportA and OlsenA Mortgage bySouthportA venues, SouthportQLD. ustralian RulesFootballClubLtd ACN 010452936overSouthportSharksFootballClubCnrMusgrave venues SouthportQLD).

ustralian RulesFootballClubLtd ACN 010452936overallexistingandfutureassets

Note Note 15(b) 15(a) 15(a) 15(a) 15(c) 15(c) 24 24,630,592 15,949,273 23,359,423 15,300,000 2,378,739 3,223,921 8,059,423 8,681,319 3,223,921 (265,675) (579,507) 1,521,282 1,271,169 649,273 265,675 579,507 621,896 857,457 2019 ($) 2019 ($) 24,440,654 15,663,427 15,300,000 23,532,193 2,324,120 8,777,227 3,311,908 8,232,193 1,364,225 3,311,908 (744,577) 545,034 959,893 363,427 (243,211) 908,461 744,577 2018 ($) 2018 ($) 243,211

FINANCIAL REPORT 2019 29 280 (443) 29,772 120,511 2018 ($) 2018 ($) 373,512 120,511 573,915 153,868 (38,966) 947,427 908,461 1,551,942 1,856,535 1,735,581 1,856,092 260 111,336 32,687 109,613 2019 ($) 2019 ($) (81,328) 111,336 684,012 227,825 668,485 1,271,170 1,593,857 1,856,092 1,965,705 1,352,497 1,854,369 15 3 (k) 3 (k) Note Note Southport Australian Rules Football Club Ltd ABN 33 010 452 936 Rules Football Club Ltd Southport Australian 3 (j) (ii)

The measurement and recognition criteria relating to employee benefits are included in Note 3(k). The measurement and recognition criteria relating The measurement and recognition criteria relating to jackpot provision is included in Note 3(j).The measurement and recognition criteria relating Movements in Provisions:

Minimum payments future finance charges Less Hire Purchase Liability Total Payable: later than 1 year but not later than 5 years later than 1 year but not later than Payable: Hire Purchase Commitments not later than 1 year Payable: Number of employees at year end Long-term Provisions Long-term Employee benefits Provisions Long-term Total Total Short-term Provisions Total Employee benefits Jackpot Provision Short-term Provisions Uniform deposits Balance at the beginning of year Net additional provisions raised/(used) during year Net additional provisions raised/(used) during Carrying amount at the end of year The hire purchase agreements are primarily for gaming machines purchased by the Company. NOTE 18: CAPITAL AND LEASING COMMITMENTS AND LEASING 18: CAPITAL NOTE (c) DETAILS 17: COMPANY NOTE The principal place of business and registered office of the Company is: Rules Football Club Ltd. Southport Australian Southport QLD 4215 Corner Olsen & Musgrave Avenues, (b) (a) NOTE 16: PROVISIONS NOTE Financial Statements Financial 1 October 2019 the period ended statements for the financial Notes to 30 FINANCIAL REPORT 2019 Notes tothefinancialstatementsforperiodended1October2019 Financial Statements The CompanymadepaymentstoclosefamilymembersofKMPforservicesasemployeesfollows: to otherpersonsoremployeesunlessotherwisestated. Transactions betweenKMPandrelatedpartiesareonnormalcommercialtermsconditionsnomorefavourablethanthoseavailable or collectivelywiththeirclosefamilymembers. Other relatedpartiesincludeclosefamilymembersofKMPandentitiesthatarecontrolledorjointlybythoseindividually NOTE 20:OTHER RELATED PARTY TRANSACTIONS The totalsofremunerationpaidtoKMPtheCompanyduringyearareasfollows: including anydirector(whetherexecutive orotherwise)oftheCompanyisconsideredkey managementpersonnel(KMP). Any person(s)havingauthorityandresponsibilityforplanning,directingcontrollingtheactivitiesofCompany, directlyorindirectly, NOTE 19:KEYMANAGEMENT PERSONNELCOMPENSATION of goodsandservices.Generallytheseagreementscanbecancelledatshortnotice. The Companyisnotapartytoanymaterialnon-cancellableoperatingleases.hasenteredintoagreementswithsuppliers Operating Lease Commitments NOTE 18:CAPITAL ANDLEASING COMMITMENTS (CONTINUED) The Companymadepaymentstodirectorand/orrelatedentitiesforservicesprovidedasfollows: is $29,973 (2018:$30,607). The totalbenefitspayable(annualandlongserviceleave)toclosefamilymembersofKMPforservicesasemployeesat01October2019 The totalbenefitspayable(annualandlongserviceleave)toKMPoftheCompanyat01October2019is$337,810 (2018:$365,260). Southport Australian RulesFootballClubLtd ABN33010452936 Total Related Party Transactions Provision oflegalservicesbyadirectorrelatedentity Total Related Party Transactions Employee benefitspaid(includingsuperannuation) Total Key ManagementPersonnel Compensation Employee benefitspaid(incl.terminationandsuperannuation) Total CapitalExpenditureCommitment Plant &equipment Capital expenditurecommitmentscontractedfor: Note 520,904 520,904 2019 ($) 204,745 908,441 204,745 908,441 57,624 57,624 478,355 478,355 887,662 887,662 2018 ($) 195,222 195,222 34,286 34,286 FINANCIAL REPORT 2019 31 178,314 35,000 2018 ($) 2018 ($) 35,000 830,365 2,324,120 5,009,606 6,018,286 24,440,654 26,764,774 35,000 2019 ($) 35,000 2019 ($) 124,759 881,039 2,378,740 2,903,574 3,909,372 24,630,592 27,009,332 7 8 14 15 10 Note Note Southport Australian Rules Football Club Ltd ABN 33 010 452 936 Rules Football Club Ltd Southport Australian Financial Assets Cash and cash equivalents Financial assets held for trading Total trade and other receivables Total Financial Assets Total Auditing or reviewing financial report or reviewing Auditing Total Auditors’ Remuneration Auditors’ Total Financial Liabilities payables Trade Financial Liabilities Total Total borrowings Total Financial Statements Financial 1 October 2019 the period ended statements for the financial Notes to Net Fair Values have been based on closing quoted bid For listed financial assets and financial assets at fair value through profit or loss the fair values prices at the end of the reporting period. NOTE 24: FINANCIAL RISK MANAGEMENT 24: FINANCIAL NOTE term investments, instruments, short- financial instruments consist mainly of deposits with banks, local money market The Company's accounts receivable and payable and loans payable. the accounting policies to 139 as detailed in measured in accordance with AASB The totals for each category of financial instruments, these financial statements, are as follows: NOTE 23: CONTINGENT LIABILITIES AND ASSETS 23: CONTINGENT NOTE Rules Football Club Ltd may become payable or receivable by the Southport Australian There are no contingent liabilities or assets that requiring disclosure in the financial report. PERIOD REPORTING AFTER THE 22: EVENTS NOTE the end of the financial year which significantly affected or may significantly affect the No matters or circumstances have arisen since future financial years. the results of those operations, or the state of affairs of the company in operations of the company, NOTE 21: AUDITORS’ REMUNERATION 21: AUDITORS’ NOTE for: of the auditor of the Company Remuneration 32 FINANCIAL REPORT 2019 Signed inaccordancewitharesolutionofthedirectorsthis1stdayNovember, 2019. 2. 1. company declarethat: In accordancewitharesolutionofthedirectorsSouthportAustralian RulesFootballClubLtd. (theCompany),thedirectorsof Directors' Declaration DIRECTOR Dr AMackenzie Southport Australian RulesFootballClubLtd ABN33010452936

(b) (a) become dueandpayable. In thedirectors’ opinion,therearereasonablegroundstobelievethatthecompanywillbeablepayitsdebtsasandwhenthey are inaccordancewiththeCorporationsAct2001;and Financial Position, Statement ofChangesinMembers' FundsandStatement ofCashFlowsandNotes totheFinancialStatements, The financialstatementsandnotes,comprisingthe Statement ofProfitor LossandOtherComprehensiveIncome, Statementof

ended onthatdate give atrueandfairviewofthefinancialpositioncompanyasat01October2019itsperformanceforyear comply withAustralian AccountingStandards -Reduced DisclosureRequirements; and

DIRECTOR Mr RStewart FINANCIAL REPORT 2019 33 Southport Australian Rules Football Club Ltd ABN 33 010 452 936 Rules Football Club Ltd Southport Australian 34 FINANCIAL REPORT 2019 Southport Australian RulesFootballClubLtd ABN33010452936 FINANCIAL REPORT 2019 35 Southport Australian Rules Football Club Ltd ABN 33 010 452 936 Rules Football Club Ltd Southport Australian SOUTHPORT AUSTRALIAN RULES FOOTBALL CLUB Annual Report 2019