WESTERN BULLDOGS 2013 Financial Report FootscrayFootballClubLtd tradingasWestern Bulldogs ABN68005226595 Financialreport Fortheyearended31October2013 This page has been left blank intentionally. TABLEOFCONTENTS Directors'report.................................................................................................................................. 1Ͳ13 Auditor'sindependencedeclaration................................................................................................... 14 Financialreport Statementofcomprehensiveincome....................................................................................... 15 Statementoffinancialposition................................................................................................. 16 Statementofchangesinequity................................................................................................. 17 Statementofcashflows............................................................................................................ 18 Notestofinancialstatements................................................................................................... 19Ͳ34 Directors'declaration.......................................................................................................................... 35 Independentauditor'sreport.............................................................................................................. 36Ͳ37 FOOTSCRAYFOOTBALLCLUBLTDTRADINGASWESTERNBULLDOGS ABN68005226595 DIRECTORS'REPORT ThedirectorspresenttheirreporttogetherwiththefinancialreportofFootscrayFootballClubLtdtradingas WesternBulldogsfortheyearended31October2013andauditor'sreportthereon.Thisfinancialreporthas beenpreparedinaccordancewithAustralianAccountingStandards. Directorsnames Thenamesofthedirectorsinofficeatanytimeduringorsincetheendoftheyearare: PeterGordon(Appointed20December2012) DrSusanAlbertiAOHonLLD ChrisGrant BarryHall GayeHamilton GaryKent GeorgePappas GeoffreyWalshAO DavidSmorgon(Resigned20December2012) IanVeal (Resigned20December2012) Thedirectorshavebeeninofficesincethestartoftheyeartothedateofthisreportunlessotherwise stated. Results Theoperatingresultforthecompanyfortheyearended31October2013wasalossof$143,090(2012:loss of$136,679). Inthecurrentfinancialyear,thecompanyreceiveddistributionsfromtheAFLClubFutureFundof $2,995,000(2012:$2,870,000). Reviewofoperations Thecompanycontinuedtoengageinitsprincipalactivity,theresultsofwhicharedisclosedintheattached financialstatements. Significantchangesinstateofaffairs Therewerenosignificantchangesinthecompany'sstateofaffairsthatoccurredduringthefinancialyear, otherthanthosereferredtoelsewhereinthisreport. Ͳ1 Ͳ Footscray Football Club Ltd trading as Western Bulldogs ABN 68 005 226 595 1 FOOTSCRAYFOOTBALLCLUBLTDTRADINGASWESTERNBULLDOGS ABN68005226595 DIRECTORS'REPORT Principalactivities TheFootscrayFootballClubLimitedtradingasWesternBulldogsisamemberofthetheAustralianFootball League.TheprincipalactivityoftheCompanyistheencouragementofsportandtheplayingofAustralian RulesFootballbycompetingintheAustralianFootballLeaguecompetitionandpreservingandfosteringthe ideals,andcommunityspiritoftheClub. CompanyPerformance Season2013hasseentheWesternBulldogsproduceanoperatinglossof$143,090comparedtoan operatinglossof$136,659in2012. Football Afterachallengingstartto2013,theWesternBulldogsendedtheseasonwitharunofstrongperformances inthebackendoftheyear—winningfourofthefinalsixmatches. Whilefinishing15thinthecompetition,thesecondhalfoftheseasondemonstratedtheteam’s improvementaftertheClubinjectedanextra$1.2millionintoresourcesandkeypersonnelinthefootball department. Duringtheyear,theClubappointedGrahamLowetotheseniorexecutiveroleofGeneralManagerof Football–after12monthsattheKennelinthecapacityofHighPerformanceManager.Lowehas15years experienceinarangeofinternationalsportingorganisationsincludingScottishRugby,BMWOracleRacing andNewZealandRugbyUnion. InhiscapacityasGeneralManagerofFootball,Loweoverseesasettledandexperiencedteamsupportedby SeniorCoachBrendanMcCartney,ListManagerJasonMcCartney,RecruitingManagerSimonDalrympleand HighPerformanceManagerJustinCordy.Thedepartmentisalsosupportedbyadiversepanelofassistant andspecialtycoachesandaprofessionalsupportteam.Itisthebiggestandmostcredentialedfootball departmenttheclubhaseverpresented. NextyeartheClubisexpectedtoinvestupto$1.5millionmoreinfootball,lookingtohavethecapacityto paythefullsalarycapifstrategicallyrequired.Thiswillrepresenta$2.9millionincreaseinfootball departmentspendingsince2012despitewhichtheClubexpectstoremaininthebottomquartileofAFL Clubfootballdepartmentspendin2014. In2014,theClub’snewVFLteam,theFootscrayBulldogs,willplayattheVictoriaUniversityWhittenOval, coachedbyBulldogsDevelopmentManagerChrisMaple.Thisisanexcitingopportunitytonotonlydevelop futuregenerationsofBulldogsplayers,butalsopresentsafantasticopportunitytoreturncommunity footballtoWhittenOval. Ͳ2 Ͳ WESTERN BULLDOGS 2013 Financial Report 2 FOOTSCRAYFOOTBALLCLUBLTDTRADINGASWESTERNBULLDOGS ABN68005226595 DIRECTORS'REPORT CompanyPerformance(Continued) Membership TheWesternBulldogsmembershipbaseremainedstaticin2013,atjustover30,000members.Whilean extraordinarilylargenumberbyreferencetoeveryotherclubinothersportingcodesaroundthecountry andtheworld,themembershipremainsinthebottomquartileofVictorianͲbasedAFLClubs.. Apooronfieldendtothe2012seasonprovidedachallengingmarketingenvironmentformembershipin 2013andmembershipgrowthremainsimpededbytheClub’sdisadvantageousallocationoffreeͲtoͲair televisionaccessforitsgamesandtherestrictedfundingavailableforaplannedandintegratedmembership growthstrategyinitswesternregionheartland. Further,ahigherthannormalnumberofmemberschosenottorenewtheirmembership.Membership declinewasparticularlyprevalentinthehigherͲvaluemembershipcategoriesandtheearlyseasonlossof reservedseatandsocialclubmembersmeantthatrevenuelevelsacrossallthesekeyareasdippedacross 2013.TheClubneedsallofitsmemberstobepreparedtosupporttheteameventhroughcyclical downturnsinperformancelikein2012. Apromisingbeginningandendtothe2013AFLseason,combinedwithsomestructured,targetedand proactivemarketing,keptmembershipnumberstolevelsseeninthepreviousseasonwithanincreasein thenumberoflowvalue,entryproductsandsomejuniorproducts.Equally,wecompleted2013witha significantlyhigherpercentageofourmembershipbaseonpaymentplans–theautomaticmembership renewalprogramthathashadsignificantsuccessinreducingmemberchurn. Eachyear,anindependentsurveyreportiscommissionedforeachAFLClubbytheAFL.In2013,the WesternBulldogsmembershipsatisfactionreportedbythissurveyshowed; • Anincreaseinmembersatisfactionof21percentover2012; • WesternBulldogsmembersatisfactionexceededtheleagueaverageforthepreviousyear; • Significantincreasesinallareasmeasuredfrom2012to2013. Regularcommunication,specificmemberevents,andacommitmenttoindustryͲbestpracticecustomer servicehavebeenthefoundationfortheseresults. Theseresults,andtheincreaseinpositivitysurroundingtheteam’scontinueddevelopmentmeansthat 2014isexpectedtoproducemorepositiveresultswithgrowthtargetedacrossanumberofmembership categories.Anonlinerewardsplatformandmemberrecognitionprogramshouldcontinuetostrengthenour relationshipwithmembers,whileacommercialpartnershipwithVIPCleaningServices,whohavejoinedas theofficialmembershipsponsor,showstheClubisdedicatedtogrowingrevenuetosupporttheincreased ambitionofthefootballdepartment. Ͳ3 Ͳ Footscray Football Club Ltd trading as Western Bulldogs ABN 68 005 226 595 3 FOOTSCRAYFOOTBALLCLUBLTDTRADINGASWESTERNBULLDOGS ABN68005226595 DIRECTORS'REPORT CompanyPerformance(Continued) FanDevelopment SupportergrowthremainsthefoundationoftheClub’slongͲtermstrategy,andthekeypriorityisgrowthin thewesternregionofMelbourne.Thisobjectiveisendorsedandsupportedbykeystakeholdersincluding theAFL,thefivelocalgovernmentauthoritiesoftheregion,anditisalsotheregionofthehighest concentrationofBulldogmembersandsupporters. Supportergrowthobjectivesarebeingpursuedbyacombinationofonlineandofflineactivitiesincluding; •TheBulldogs’SchoolsandClubsprogram;arangeofprogramsto87westernregionprimaryschools, includingastructuredtwoweekfootballandnutritioncurriculum,WhittenOvaltours,playerappearances and,newtothisyear,afterschoolcareprogram,earlyyearsprogramandvideoconferencing. •OurrelationshipwiththeWesternRegionFootballLeaguewhichhasbeenstrengthenedwiththeClub expandingitsjuniorpartnership. •AWesternBulldogs“HeartlandAward”waspresentedattheendofeveryjuniorWRFLgamewithover 1260winnersreceivingtheaward. •ThemaintenanceoftheClub’s“OurHeartland”campaignwithitsstrongfocusontheWesternRegion. •ContinuedinvestmentincommunityservicesintheWesternRegionthroughtheSpiritWestFoundation includingsuchprogramsasFresh,DisabilityTrainingandMulticultural&SettlementProgramsandourlocal Kooriyouthinitiative,NalleiJerring. •ThereͲestablishmentoftheFootscrayBulldogsteamplayingattheWhittenOvalintheVFL. •ThepartnershipwithVictoriaUniversityandtheintegrationoftheUniversity’s‘Footscray–University Town’conceptandthedevelopmentoftheFootscrayteamasa‘collegeteam.’ WhiletheWesternRegionisapredominantfocus,itisnottheClub’sonlyfocus. TheClubhasagaincontinuedtoimplementmoreactivitiesaimedatimprovingthematchdayexperience forfansandmembersatEtihadStadium.Increasingtheamountofentertainmentforfamiliesatthe “FootscrayEnd”,thevolumeofvideosandliveproductiononthestadiumbigscreensandthenumberof sponsorͲledfanactivationshasbeenatthecentreofthematchͲdayprograms. Inaddition,theBulldogsthisyeartooktheleadindevelopingnewfanexperiencesattwooftheAFL’s themedrounds.WorkingwithMelbourneFootballClubtheWesternBulldogsproudlyparticipatedinthe firsteverAFLwomen’sgame,drafting,hostingandmanagingtheteamoffemaleparticipantsthatadorned