2023 Fremantle Dockers Financial Report

2023 FINANCIAL REPORT

/ FFC 2023 FINANCIAL REPORT / 1

FREMANTLE FOOTBALL CLUB LIMITED INDEX TO FINANCIAL REPORT YEAR ENDED 31 OCTOBER 2023

1-2 President’s Report 3-4 CEO’s Report 5-10 Directors’ Report 11 Directors’ Declaration FREMANTLE FOOTBALL CLUB LIMITED ABN 83 066 055 249 FINANCIAL REPORT YEAR ENDED 31 OCTOBER 2023

2 / FFC 2023 FINANCIAL REPORT /

13 Auditor’s Independence Declaration 15-17 Independent Audit Report

21 Statement of Comprehensive Income 22 Statement of Financial Position 23 Statement of Changes in Equity 24 Statement of Cash Flows 25-40 Notes to and forming part of the Financial Statements

/ FFC 2023 FINANCIAL REPORT / 3

FROM THE PRESIDENT DALE ALCOCK This result will be our third consecutive operating profit above one million dollars and keeps us firmly on track to achieve our 2025 Strategic Plan KPI of $6 million in net cash reserves by the end of the 2025. We have proudly achieved these results after our royalty contribution to WA football, and knowing that we continue to represent one the AFL’s healthier and financially independent clubs.

The financial result was again supported by strong revenue growth, with record revenue recorded across several of our Consumer and Commercial departments, enabling us to fully maximise our investment in football as well as other Club strategic priorities.

We continued our on-going support of WA Football and the community with a WAFC Royalty payment of $1.84m, as well as the continued investment into our community programs, Next Generation Academies and the Purple Hands Foundation.

The alignment between the Board and the Executive team has never been stronger. We have worked as one, with a shared vision The past year has been a testament to the Club’s enduring spirit,

and a collective goal — to ensure the Fremantle Dockers are not

marked by milestones and memories that will forever be part of

just a team, but an institution that inspires and leads.

our storied legacy.

To our players, the men and women who don the purple with 2023 marked my final year as President for my beloved football

pride, 2023 was about laying the foundation for a future that is

Club. From the outset, our mission was clear — to continue

‘formidable’ in every sense of the word. With Chris Sutherland set

building a Club that not only competes but sets the standard

to take the lead as president in 2024, supported by a passionate

for excellence in the AFL. Each decision, each strategic move,

Board of Directors, the path to greatness is clearly laid out before

was made with the future of the Club in mind, ensuring that our

us.

trajectory was ever upward.

Being formidable is about cultivating a reputation that Our CEO Simon Garlick has been a guiding force, leading a

commands respect. It’s about embodying the spirit of strength

dedicated Executive, Management and Staff who have worked

and capability that makes teams like Geelong or Sydney revered

tirelessly across all facets of the Club, from the AFL to AFLW

opponents.

divisions. Their efforts behind the scenes have not gone unnoticed, forming the backbone of our day-to-day operations,

My message for the season was to be formidable. It was a call to

and setting the stage for our athletes to shine.

action, an ethos to embrace with every challenge we faced. As I step down from my official duties, I do so knowing that the path

My time as President has been replete with milestones that

we’ve carved is filled with potential and promise.

have fortified the very essence of the Fremantle Dockers. The completion of our state-of-the-art Cockburn facility has provided

Thank you, Fremantle Dockers, for the journey, the lessons, and

us with a home that rivals the best in the world. We have made

the relentless pursuit of excellence. The legacy of the Club is in

strategic executive appointments, reset our core values, and

capable hands, and I am confident that the future is bright with

publicly released our Strategic Plan for the first time — all

the promise of continued success.

milestones that have laid a foundation for sustained success.

Our operating result for the 2023 financial year is an operating profit of $1.64m, which compares to a profit of $2.43m for 2022.

1 / FFC 2023 FINANCIAL REPORT / president's report

President's report / FFC 2023 FINANCIAL REPORT / 2

FROM THE CEO SIMON GARLICK both teams.

Dale Alcock, who has wrapped up his official duties as our Club Under the Climate Action goal, the Club was proud to engage

President.

We have a critical mass of driven, competitive, hungry, and

Carbon Neutral to conduct a Greenhouse Gas (GHG) Inventory

talented players - now it’s time for implementation.

report this year, to measure the Club’s carbon footprint for

After six years of service on the board, Dale took the reins as

Season 2022. This measurement will be pivotal in the Club

President in 2017. In that time, we have moved to a new facility,

Our depth was only highlighted by Peel Thunder’s push to the

continuing to innovate its practices to assist in reducing its

a new stadium, won the licence for our women’s team in the

WAFL Grand Final, and I congratulate Geoff Valentine and the

carbon footprint year on year.

inaugural season, withstood the stormy seas of a pandemic, and

players for their efforts.

oversaw the appointment of our two current senior coaches.

As we embark on our sustainability journey, we are constantly

Premierships have regularly been built off strong, ruthless, and

learning and looking to improve the way we do things. With this

We have established the Purple Hands Foundation to make a

successful campaigns at the second-tier level and our Peel

in mind, we will be updating our plan in 2024 as we commit to

meaningful and lasting impact in the community. Our community

partnership is in the kind of shape to allow that to occur.

leaving a powerful legacy in our community and look to reduce

outreach has never been stronger and greater, hitting not just

the impact that the Club has on the environment.

schools, organisations, and footy clubs in the metro area but the

Similar to our men’s program, our women’s team solidified its foundation with what is a non-negotiable approach at our Club.

An approach based on an uncompromising aim of finding and/or

far northern remote regions of our state.

In conclusion, I’d like to share something I discovered when I was going through the process that eventuated in me joining the Club

As well as breaking membership records with strong attendance,

in late 2019.

we have also never had greater and more connected commercial

retaining the right people and putting them in the right spots to

support.

build, foster and maintain the culture that will deliver sustained

During that process I had noted that in 2010, the Fremantle

success for our teams and Club.

Football Club had some 39,850 members while at the same

Thank you, Dale and thank you to your irrepressible and brilliant

time Richmond had 35,960 members. We had an average crowd

partner in crime in Jan. Combined, your impact is immeasurable.

Whilst 2023 was a disappointing year with 10 wins for the men

While we are placed strong on-field, we have made significant

attendance of 36,570 compared to that of West Coast who

and 4 wins for the women and both missing finals, we saw

steps off the field as we continue to enhance our sustainability

averaged 34,930 to their games that year.

significant growth in both playing groups.

practices since the launch of our Anchoring a Sustainable Future

Finally, my most important thanks go to our Members. The Purple Army is already a passionate and powerful force. We are

framework back in July 2022. The sustainability framework

A decade later and both of these Clubs have membership

honoured to administer, coach, and play for your Club on your

It was the first season into a new era in our women’s program

has driven the Club’s desire to embrace the implementation

bases of more than 100,000 and set the benchmark from an

behalf and we, more than anyone, know what the Club means to

under our new coach in Lisa Webb and we saw some great

of sustainability initiatives, by staff and players along with our

off-field support and strength perspective. Along with Geelong,

you, and you to it.

results, particularly in the RAC Derby and an away to Richmond

partners, across the Club.

Hawthorn, and Sydney, they provide examples of what is possible once you build a program that contends for and or wins

off a five-day break.

In 2023, we had a year of highlights that were delivered across

premierships over an extended period.

In our men’s team, Jye Amiss, Josh Treacy and Luke Jackson

the six United Nations Sustainable Development Goals (UN

were 19, 20 and 21 when they combined in our away win against

SDGs), our people are our priority, so we developed and

We’ve still enjoyed significant growth since 2010. This year, we

Sydney in just their second AFL game together as a trio.

implemented a number of initiatives within our well-being

broke our membership record, going past 62,000 members for

framework starting with the appointment of a full-time

the first time in our Club’s history, and we ranked behind only

To these three add Brayshaw, Sturt, Frederick, Clark, Serong,

employee in Angie Bain as the Head of Wellbeing (Good Health

Collingwood, Richmond, Carlton, Essendon and Melbourne for

Young, Chapman, Walker, Erasmus, O’Driscoll and Johnson to our

and Wellbeing).

home game attendance with an average of more than 44,000 members and fans coming to our games this year.

group of players aged 23 and under.

The implementation of our Diversity Inclusion Action Plan This is a compelling tale when you add Cox and Darcy as

(Gender Equality) enabled the Club to introduce an industry

We will make further investments into our Cockburn base that

sprightly 25-year-olds.

leading secondary carers scheme and paid parental leave policy.

will look to enhance our training facilities with new women’s and community changerooms and provide elevated seating for 250

Both Caleb Serong and Emma O’Driscoll received All-Australian

As we continue to enhance our footprint in the Kimberley, the

honours for the first time and in the women’s, we saw the rise of

Club delivered the Kimberley Connected education program to

Dana East in the midfield, while Mim Strom is starting to prove

777 students in regional WA (Quality Education).

spectators to watch training or matches at the venue.

Both our growth on-field and our efforts off-field make it clear that we have the capability to be a genuine force in both leagues,

she is the best ruck in the league.

Within our own training facility and operations, we looked at

a superpower if you will and no-one - other than those part of

This cohort of young up and coming stars, along with our select

reducing our landfill waste with 3000 containers and 750 plastic

the Freo family – will see us coming.

group of experienced champions added in for good measure,

water bottles recycled through the Container’s for Change

has the opportunity to now own and drive a Premiership push for

scheme (Responsible Consumption and Production).

3 / FFC 2023 FINANCIAL REPORT / ceo's report

When that day comes, it wouldn’t be without the contribution of

CEO's report / FFC 2023 FINANCIAL REPORT / 4

directors for the financial year

DALE ALCOCK

CRAIG CARTER

JAMES CLEMENT

ANDREA HALL

TONY GRIST

COLLEEN HAYWARD

PRESIDENT, NON-EXECUTIVE CHAIRMAN

VICE PRESIDENT

DIRECTOR

DIRECTOR

DIRECTOR

DIRECTOR

Dale Alcock, a registered builder, commenced

Craig Carter is a former investment banker, and

Master of Business Administration, Bachelor

Bachelor of Commerce (Accounting/Finance),

Bachelor of Commerce from the University of

Bachelor of Education, Bachelor of Applied

his career as an apprentice bricklayer in 1979 in

a Member of the ASX Ltd, who spent 15 years at

of Science, Graduate Diploma in Agribusiness,

Masters in Applied Finance, Fellow of the

Western Australia, Associate of the Financial

Science, Post Graduate Certificate in Cross

Kellerberrin.

Macquarie Group. Craig has been a FFC member

Graduate of the Australian Institute of Company

Chartered Accountants Australia New Zealand,

Services Institute of Australasia and a Fellow of

Sector Partnerships from Cambridge University.

since 1995. He is a foundation member of one of

Directors.

Graduate member of the Institute of Company

the Australian Institute of Company Directors.

Directors.

Dale created the ABN Group, which is Australia’s

the Club’s key coterie groups – the AJ Diamond

leading construction, property and finance

Club – grew up in Fremantle and attended

James Clement is a former Fremantle and

company. The ABN Group operates in Western

South Fremantle High School before attending

Collingwood player.

Australia and Victoria and has built more than

university.

90,000 homes across the two States. As a

A Fremantle member since 2004, emeritus Company director Tony Grist is the founder of

professor Colleen Hayward is a senior Noongar

Andrea Hall is an experienced non-executive

Perth-based private investment group Albion

woman with extensive family links throughout

director and sits on the boards of: Evolution

Capital Partners. Tony was the Co-Founder

WA’s South-West.

He is the managing director and CEO of Vysarn

Mining Ltd; Perenti Group Ltd (Barminco/

and Chairman of Amcom Telecommunications,

For more than 35 years, Colleen has provided

group, it comprises 20 businesses, with more

After a 35-year career in financial markets,

Ltd, an ASX listed company that provides

Ausdrill), Core Lithium Ltd, Commonwealth

which subsequently merged with Vocus

significant input to policies and programs on

than 1800 employees, over 100 apprentices and

specialising in equity capital markets and

water services and solutions to the resources,

Superannuation Commission and Western

Communications to become an ASX 100

a wide range of issues, reflecting the needs

more than 2000 contractors.

corporate advice, Craig now sits on the Board of

construction and utilities industries. He was

Power.

company.

of minority groups at community, state and

Australian Finance Group Ltd and is a member

previously managing director and CEO of ASX

Dale remains an avid believer in the social

of the Australian Advisory Board of Bank of

listed agribusiness Mareterram Ltd.

Andrea is a former KPMG Risk Consulting

He is currently Deputy Chairman of Swoop

She has a wealth of previous board experience

responsibility of his companies. Since

America.

partner, with over 20 years’ experience in:

Telecom. Tony has held directorships in Canada,

and an extensive background in a range of areas

James played 230 AFL games with Fremantle

corporate, operational and board governance;

the United Kingdom and Australia in the

including health, education, leadership and

healthcare, mining and energy industries.

governance.

establishing his own dedicated apprenticeship

national levels.

training program in 2004, the ABN Group

Through his family office Craig manages diverse

and Collingwood between 1996 and 2007,

strategic, operation and financial risk

continues to manage Australia’s largest private

investment interests across a portfolio of

during which time he was a multiple best and

management; human resource management;

construction training group, with over 1200

equities, agriculture, and commercial property.

fairest winner and All Australian representative.

financial management; internal audit and

He is a Director of the Minderoo Foundation, and

Her work has been recognised through a

external audit.

founder of the Albion Foundation.

number of awards including the 2006 Premier’s

apprentices graduating. Through his Alcock Family Foundation, Dale has also donated

TENURE

TENURE

more than $9 million during the past 15 years

Fremantle Football Club Vice President since

Fremantle Football Club Director since

She was previously on the Senate of Murdoch

TENURE

National NAIDOC Aboriginal Person of the Year

to worthy causes, including medical research,

November 2016. Director since December 2015.

November 2019.

University and a former Chair and member of

Fremantle Football Club Director since

Award.

the WA Council for the Chartered Accountants

November 2016.

Professor Colleen Hayward was inducted into

humanitarian relief work and the environment.

OTHER RESPONSIBILITIES

OTHER RESPONSIBILITIES

TENURE

Chair of the Finance Committee,

Chair of the Football, Innovation and

Fremantle Football Club President since

Chair of the Integrity Committee,

Performance Committee.

November 2016. Director since December 2011.

Member of the Risk Committee.

Multicultural Ambassador’s prize and the 2008

Australia New Zealand.

the Aboriginal Education Hall of Fame in 2009 OTHER RESPONSIBILITIES

and the WA Women’s Hall of Fame in 2012

TENURE

Chair of the Remuneration and Nominations

when she was also recognised as a Member in

Fremantle Football Club Director since March

Committee.

the General Division of the Order of Australia.

2016.

OTHER RESPONSIBILITIES

2015 saw Colleen awarded one of Murdoch University’s Distinguished Alumni. She was

Member of the Finance Committee,

OTHER RESPONSIBILITIES

named as one of WA’s 100 most influential West

Member of the Football, Innovation and

Chair of the Risk Committee.

Australians in both 2015 and 2016.

Performance Committee,

Member of the Finance Committee.

Member of the Integrity Committee,

TENURE

Member of the Remuneration and Nominations

Fremantle Football Club Director since

Committee

September 2017.

OTHER RESPONSIBILITIES Member of the Remuneration and Nominations Committee.

5 / FFC 2023 FINANCIAL REPORT / directors for the financial year

directors for the financial year / FFC 2023 FINANCIAL REPORT / 6

directors for the financial year

CHRIS SUTHERLAND

SASHA PENDAL

DIRECTOR

DIRECTOR

B.Engineering (Civil) UWA (Hons) 1985

An executive with the Fortescue Group, Sasha

Advanced Management Program Harvard

Pendal was appointed to the board in August

Business School 2001

2023.

Chris is an experienced executive and director

With more than 25 years’ experience in

with strong leadership, board, management

operations, strategy, commercial and corporate

and operational experience. He has developed

development, and stakeholder relationships

a strategy and successfully built a business

Sasha Pendal was previously the Chief Executive

that is one of the leading services companies in

Officer at Early Start Australia. She has also held

Australia and New Zealand.

Executive General Manager roles at Woodside Energy, Synergy and private health fund HBF.

For 20 years, Chris was in various engineering and management roles with leading engineering

Sasha holds a Master of Business Administration

companies including Clough and WorleyParsons.

from the Australian Graduate School of

Chris was appointed Managing Director and

Management, UNSW and a Bachelor of Arts

Group CEO of Programmed from January

(Honours) degree from The University of

2008 until his retirement September 2019.

Western Australia. She is a Graduate of the

Programmed is a major staffing, maintenance

Australian Institute of Company Directors and

and facility management company with over

has ten years experience in non-executive roles,

25,000 employees and was listed on the ASX

including as the Chair of LifelineWA.

until October 2017 when it was acquired for an enterprise value of $1 billion.

TENURE Fremantle Football Club Director since August

Chris is currently Chair of Fremantle Port

2023.

Authority and non executive director of Matrix Engineering & Composites Ltd (advanced composite materials), Copper Search Ltd, (mineral exploration) and Remsense Technology Ltd (virtual technology).

TENURE Fremantle Football Club Director since November 2021.

OTHER RESPONSIBILITIES Member of the Risk Committee.

7 / FFC 2023 FINANCIAL REPORT / directors for the financial year

directors for the financial year / FFC 2023 FINANCIAL REPORT / 8

directors report

Fremantle Football Club Limited.

DIRECTORS’ INDEMNIFICATION

Commission Incorporated.

31 Veterans Parade COCKBURN CENTRAL WA 6164

EMPLOYEES

ended 31 October 2023.

DIRECTORS

EMPLOYEES AS AT 31 OCTOBER 2023

The names of the directors in office during the financial year and until the date of this report are as follows. All directors are otherwise stated:

holding Company, West Australian Football Commission Inc.

189

Your directors submit their financial statements for the year

non-executive and were in office for this entire period unless

Signed in accordance with a resolution of directors.

The directors have received an undertaking from the ultimate

(2022: 177 employees).

EMPLOYEE NUMBER INCLUDES AFL AND AFLW PLAYERS

CHANGES IN THE STATE OF AFFAIRS

(WAFC), to indemnify the directors of the Fremantle Football Club Limited (FFC) provided the following conditions are satisfied: FFC and directors with its obligations under the FFC Limited

C Sutherland Director

Constitution, including but not restricted to Article 45 – Financial

Fremantle, Western Australia, 24th January 2024

1. In addition to AFL duties and obligations, compliance by

and Operational Governance.

2. FFC complying with a predetermined list of Management Protocols as set by the WAFC.

There have been no significant changes in the state of the C Sutherland (non-executive chairman)

Company’s affairs during the financial year.

D Alcock (retired 30 November 2023)

The undertaking by the WAFC will remain in place providing the FFC complies with the above conditions.

P Mann (retired 30 November 2022)

EVENTS SUBSEQUENT TO BALANCE DATE

C Carter

There were no events which occurred subsequent to year end

INDEMNIFICATION OF AUDITORS

A Hall

that would have a material impact on the financial statements.

To the extent permitted by law, the Company has agreed to

T Grist

indemnify its auditors, Ernst & Young Australia, as part of the

C Hayward

FUTURE DEVELOPMENTS AND RESULTS

terms of its audit engagement agreement against claims by third

J Clement

At the time of this report, the Directors are not aware of any

parties arising from the audit (for an unspecified amount). No

S Pendal (commenced 1 August 2023)

developments likely to have a significant effect upon the

payment has been made to indemnify Ernst & Young during or

Company’s operations.

since the financial year.

The principal activity of the Company during the year was to

AUDITORS INDEPENDENCE DECLARATION

DIRECTORS’ MEETINGS

participate in the Australian Football League and the Australian

Section 307C of the Corporations Act 2001 requires our auditors,

The number of meetings of directors held during the year and the

Football League Women’s competition.

Ernst & Young, to provide the directors of Fremantle Football

number of meetings attended by each director were as follows:

PRINCIPAL ACTIVITIES

Club Limited with an Independence Declaration in relation to the RESULTS

audit of the financial report for the year ended 31 October 2023.

The result of the Company for the year ended 31 October 2023

This Independence Declaration can be found on page 13.

was a statutory profit of $1,636,348 (2022 statutory profit:

TOTAL BOARD MEETINGS HELD

8

DIRECTORS’ BENEFITS

Chris Sutherland

8

During or since the financial year no director of the Company has

Dale Alcock

8

DIVIDENDS

received or become entitled to receive any benefit, other than

James Clement

7

No dividend has been paid or recommended by the directors

a benefit included in the aggregate amounts of emoluments

Peter Mann

-

since the commencement of the financial year.

received or due and receivable by the directors shown in the

Craig Carter

6

financial statements and any benefit disclosed in Note 16,

Andrea Hall

7

Tony Grist

7

Colleen Hayward

8

Sasha Pendal

3

$2,428,248).

REVIEW OF OPERATIONS

by reason of a contract entered into by the Company or body

The Company has continued to field teams in the Australian

corporate that was related to the Company when the contract

Football League and Australian Football League Women’s

was made or when the director received, or became entitled to

competitions.

receive, the benefit with: • a director; or

CORPORATE STRUCTURE

• a firm of which a director is a member; or

All directors were eligible to attend all meetings held since their

The Fremantle Football Club Limited is a Company limited

• an entity in which a director has a substantial financial interest.

date of appointment, during the current period.

by shares that is incorporated and domiciled in Australia. Its ultimate parent Company is the Western Australian Football

9 / FFC 2023 FINANCIAL REPORT / directors report

directors report / FFC 2023 FINANCIAL REPORT / 10

directors declaration

In accordance with a resolution of the directors of Fremantle Football Club Limited, I state that: 1. In the opinion of the directors: (a) the financial statements and notes of the Company for the financial year ended 31 October 2023 are in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the Company’s financial position as at 31 October 2023 and its performance for the year ended on that date; and (ii) complying with Accounting Standards – Simplified Disclosures and the Corporation Regulations 2001. (b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

2. This declaration has been made after receiving the declarations required to be made to the directors by the chief executive officer and chief financial officer in accordance with section 295A of the Corporations Act 2001 for the financial year ended 31 October 2023.

On behalf of the Board.

C Sutherland Director Fremantle, Western Australia, 24th January 2024

11 / FFC 2023 FINANCIAL REPORT / directors declaration

directors declaration / FFC 2023 FINANCIAL REPORT / 12

Ernst & Young 11 Mounts Bay Road Perth WA 6000 Australia GPO Box M939 Perth WA 6843

Tel: +61 8 9429 2222 Fax: +61 8 9429 2436 ey.com/au

13

Auditor’s independence declaration to the directors of Fremantle Football Club Limited As lead auditor for the audit of the financial report of Fremantle Football Club Limited for the financial year ended 31 October 2023, I declare to the best of my knowledge and belief, there have been: a.

No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit;

b.

No contraventions of any applicable code of professional conduct in relation to the audit; and

c.

No non-audit services provided that contravene any applicable code of professional conduct in relation to the audit.

Ernst & Young

Gavin Buckingham Partner 24 January 2024

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation 13 / FFC 2023 FINANCIAL REPORT / auditor's independence declaration

Auditor's independence declaration / FFC 2023 FINANCIAL REPORT / 14

Ernst & Young 11 Mounts Bay Road Perth WA 6000 Australia GPO Box M939 Perth WA 6843

Independent auditor’s report to the members of Fremantle Football Club Limited Opinion We have audited the financial report of Fremantle Football Club Limited (the Company), which comprises the statement of financial position as at 31 October 2023, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes to the financial statements, including a summary of significant accounting policies, and the directors’ declaration.

In our opinion, the accompanying financial report of the Company is in accordance with the Corporations Act 2001, including: a.

b.

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Tel: +61 8 9429 2222 Fax: +61 8 9429 2436 ey.com/au

Giving a true and fair view of the Company’s financial position as at 31 October 2023 and of its financial performance for the year ended on that date; and Complying with Australian Accounting Standards – Simplified Disclosures and the Corporations Regulations 2001.

Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial report section of our report. We are independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the directors for the financial report The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards – Simplified Disclosures and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgment and maintain professional scepticism throughout the audit. We also: ►

Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

►

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.

►

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Information other than the financial report and auditor’s report thereon The directors are responsible for the other information. The other information is the president’s report, CEO’s report and directors’ report accompanying the financial report.

Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon.

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

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation 15 / FFC 2023 FINANCIAL REPORT / independent audit report

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation independent audit report / FFC 2023 FINANCIAL REPORT / 16

3

►

Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

►

Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Ernst & Young

Gavin Buckingham Partner Perth 24 January 2024

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation 17 / FFC 2023 FINANCIAL REPORT / independent audit report

independent audit report / FFC 2023 FINANCIAL REPORT / 18

$71.59M

$1.64M

TURNOVER

OPERATING PROFIT (POST WAFC ROYALTY)

CLUB RECORD

THIRD CONSECUTIVE YEAR ABOVE $1M (2022: 2.43M)

62,245

44,097

MEMBERS

AVERAGE HOME CROWD ATTENDANCE

CLUB RECORD

CLUB RECORD & TOP 6 (AFL)

$1.84M

2 x all austrAlians

WAFC ROYALTY

CALEB SERONG AND EMMA O’DRISCOLL

(2022: $2.25M)

19 / FFC 2023 FINANCIAL REPORT / independent audit report

independent audit report / FFC 2023 FINANCIAL REPORT / 20

STATEMENT OF COMPREHENSIVE INCOME

2023 $

2022 $

2

71,593,264

66,188,562

CURRENT ASSETS

3(a)

(19,792,544)

(17,599,821)

Cash and cash equivalents

51,800,720

48,588,741

NOTES REVENUE Cost of goods sold

STATEMENT OF financial position

GROSS PROFIT

NOTES

2023 $

2022 $

19(b)

4,141,477

7,009,971

Receivables

4

1,274,294

1,729,476

Inventories

5

348,567

149,006

Other Financial Assets

6

5,000,000

-

10,764,338

8,888,453

Football Expenses

30,913,042

29,417,079

Administration Expenses

10,961,806

8,846,060

1,835,387

2,254,292

Marketing Expenses

1,873,009

1,416,914

NON-CURRENT ASSETS

Corporate Expenses

835,525

842,155

Property, plant and equipment

7

14,661,179

15,113,594

Community Expenses

1,404,678

1,298,429

Intangible assets

8

4,000,000

4,000,000

Communication and Corporate Affairs

2,340,926

2,085,564

TOTAL NON-CURRENT ASSETS

18,661,179

19,113,594

PROFIT/(LOSS) FROM ORDINARY ACTIVITIES

1,636,348

2,428,248

TOTAL ASSETS

29,425,517

28,002,047

1,636,348

2,428,248

CURRENT LIABILITIES 6,206,484

6,526,215

2,947,824

2,791,515

1,314,253

1,380,567

10,468,561

10,698,297

Royalty Expense

PROFIT/(LOSS) ATTRIBUTABLE TO MEMBERS OF

3(a)

13

FREMANTLE FOOTBALL CLUB LIMITED

TOTAL CURRENT ASSETS

Payables

9(a)

Contract Liabilities Other comprehensive income TOTAL COMPREHENSIVE PROFIT/ (LOSS)

-

-

1,636,348

2,428,248

Provisions

10

TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES

The Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

Contract liabilities

9(b)

328,070

357,942

Provisions

10

415,088

368,358

TOTAL NON-CURRENT LIABILITIES

743,158

726,300

TOTAL LIABILITIES

11,211,719

11,424,597

18,213,798

16,577,450

NET ASSETS

EQUITY Contributed equity

11

1

1

Reserves

12

1,882,707

1,882,707

Retained earnings

13

16,331,090

14,694,742

18,213,798

16,577,450

TOTAL EQUITY

The Statement of Financial Position should be read in conjunction with the accompanying notes.

21 / FFC 2023 FINANCIAL REPORT / STATEMENT OF COMPREHENSIVE INCOME

STATEMENT OF financial position / FFC 2023 FINANCIAL REPORT / 22

STATEMENT OF changes in equity

Contributed STATEMENT OF CHANGES IN EQUITY

Equity

Reserves $

$

STATEMENT OF cash flows

Retained Earnings $

2023

2022

$

$

75,211,523

68,436,330

(72,466,031)

(64,847,300)

391,073

67,472

3,136,565

3,656,502

(Purchase)/Redemption of term deposits

(5,000,000)

-

Purchase of property, plant and equipment

(1,005,059)

(465,078)

(6,005,059)

(465,078)

(2,868,494)

3,191,424

7,009,971

3,818,547

4,141,477

7,009,971

Total

Notes

$ CASH FLOWS FROM OPERATING ACTIVITIES

Opening balance as at 1 November 2022

1

1,882,707

14,694,742

16,577,450

Receipts from customers

Net profit for the year ended 31 October 2023

-

-

1,636,348

1,636,348

Payments to suppliers and employees

Closing balance as at 31 October 2023

1

1,882,707

16,331,090

18,213,798

Interest received

Opening balance as at 1 November 2021

1

1,882,707

12,266,494

14,149,202

NET CASH FLOW FROM OPERATING ACTIVITIES

Net loss for the year ended 31 October 2022

-

-

2,428,248

2,428,248

Closing balance as at 31 October 2022

1

1,882,707

14,694,742

16,577,450

The Statement of Changes in Equity should be read in conjunction with the accompanying notes.

19 (a)

CASH FLOWS FROM INVESTING ACTIVITIES

NET CASH FLOW (USED IN) INVESTING ACTIVITIES NET INCREASE/(DECREASE) IN CASH IN CASH AND CASH EQUIVALENTS Cash and cash equivalents at beginning of year CASH AND CASH EQUIVALENTS AT END OF YEAR

19 (b)

The Statement of Cash Flows should be read in conjunction with the accompanying notes.

23 / FFC 2023 FINANCIAL REPORT / STATEMENT OF changes in equity

STATEMENT OF cash flows / FFC 2023 FINANCIAL REPORT / 24

NOTES TO FINANCIAL STATEMENTS lease of low-value assets recognition exemption to leases that

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

amount less a provision for any expected credit losses (ECLs). In calculating the ECL a simplified approach is applied, with a loss

COMPANY AS A LESSEE

are considered to be low value. Lease payments on short-term

(I) RIGHT-OF-USE ASSETS

leases and leases of low-value assets are recognised as an expense on a straight-line basis over the lease term.

The Company recognises right-of-use assets at the

The financial report of Fremantle Football Club Limited for

allowance recognised based on lifetime ECLs at each reporting

the year ended 31 October 2023 was authorised for issue in

date.

commencement date of the lease (i.e., the date the underlying

Operating leases

asset is available for use). Right-of-use assets are measured at

The minimum lease payments of operating leases, where the

The principal activity of the Company during the year was to

Receivables from related parties are recognised and carried at

cost, less any accumulated depreciation and impairment losses,

lessor effectively retains substantially all of the risks and benefits

participate in the Australian Football League and the Australian

the nominal amount due.

and adjusted for any remeasurement of lease liabilities. The cost

of ownership of the leased item, are recognised as an expense on

of right-of-use assets includes the amount of lease liabilities

a straight-line basis.

(E) INVENTORIES

recognised, initial direct costs incurred, and lease payments

limited by shares that is incorporated and domiciled in Australia.

Inventories are valued at the lower of cost and net realisable

incentives received. Right-of-use assets are depreciated on a

Its ultimate parent Company is the Western Australian Football

value.

straight-line basis over the lease term.

(F) PROPERTY, PLANT AND EQUIPMENT

(II) LEASE LIABILITIES

for goods and services received, whether or not billed to the entity.

All classes of property, plant and equipment are measured at

At the commencement date of the lease, the Company

Payables to related parties are carried at the principal amount.

cost.

recognises lease liabilities measured at the present value of lease

Interest, when charged by the lender, is recognised as an expense

payments to be made over the lease term. The lease payments

on an accruals basis.

Corporations Act 2001 and Australian Accounting Standards

All assets are depreciated on a straight-line basis at rates based

include fixed payments (including in-substance fixed payments)

– Simplified Disclosures. The financial report has also been

upon their expected useful economic lives. Major depreciation

prepared on a historical cost basis.

rates are:

that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also

All loans are measured at the principal amount less directly

The Club is a not-for-profit, private sector entity which is not

As required by accounting standards the company reassesses

include the exercise price of a purchase option reasonably certain

attributable transaction costs. After initial recognition, interest-

publicly accountable. Therefore, the financial statements for the

the useful lives of its depreciable assets on a regular basis.

to be exercised by the Company and payments of penalties for

bearing liabilities are subsequently measured at amortised cost

terminating the lease, if the lease term reflects the Company

using the effective interest method. Borrowing costs directly

(G) RECOVERABLE AMOUNT

exercising the option to terminate.

attributable to the acquisition or construction of a qualifying

values are rounded to the nearest whole dollar unless otherwise

Non-current assets are not carried at an amount above their

Variable lease payments that do not depend on an index or a rate

stated.

recoverable amount and where carrying values exceed this

accordance with a resolution of the directors on 24 January 2024.

Football League Women’s competition.

made at or before the commencement date less any lease

The Fremantle Football Club Limited is a not for profit Company

(A) BASIS OF PREPARATION

has been prepared in compliance with the requirements of the

Company are tier 2 general purpose financial statements.

recoverable amount assets are written down. The recoverable amount of property, plant and equipment is the higher of fair value less costs to sell and value in use. In assessing value in use, the The financial statements have been prepared on a going concern

estimated future cash flows are discounted to their present value

basis.

using a discount rate that reflects current market assessments of

Trade receivables are recognised and carried at original invoice

25 / FFC 2023 FINANCIAL REPORT / NOTES TO FINANCIAL STATEMENTS

uses its incremental borrowing rate at the lease commencement

Ordinary share capital is recognised at the fair value of the

date because the interest rate implicit in the lease is not readily

consideration received by the Company.

(H) LEASES

recognised directly in equity as a reduction of the share proceeds

amount of lease liabilities is remeasured if there is a modification,

received.

The Company assesses at contract inception whether a contract

a change in the lease term, a change in the lease payments (e.g.,

is, or contains, a lease. That is, if the contract conveys the right exchange for consideration.

Office Equipment

(D) TRADE AND OTHER RECEIVABLES

(K) CONTRIBUTED EQUITY

In calculating the present value of lease payments, the Company

Any transaction costs arising on the issue of ordinary shares are

are subject to an insignificant risk of changes in value.

equivalents includes cash on hand and in banks.

triggers the payment occurs.

reduced for the lease payments made. In addition, the carrying

term deposits with original maturities of 3 months or less, which

For the purposes of the Statement of Cash Flows, cash and cash

inventories) in the period in which the event or condition that

lease liabilities is increased to reflect the accretion of interest and

to control the use of an identified asset for a period of time in Cash and cash equivalents comprise cash balances and short-

borrowing costs are expensed in the period they occur.

are recognised as expenses (unless they are incurred to produce

determinable. After the commencement date, the amount of

holding of licences issued by the Australian Football League.

(C) CASH AND CASH EQUIVALENTS

(J) INTEREST-BEARING LIABILITIES

the time value of money and the risks specific to the asset.

Economic Dependence A significant portion of the income of the Club is derived from the

less any lease incentives receivable, variable lease payments

asset are capitalised as part of the cost of that asset. All other

The financial report is presented in Australian dollars and all

(B) GOING CONCERN

Liabilities for trade creditors and other amounts are carried at cost which is the fair value of the consideration to be paid in the future

Commission Incorporated.

The financial report is a general purpose financial report, which

(I) PAYABLES

changes to future payments resulting from a change in an index

(L) REVENUE RECOGNITION

or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset.

Revenue from contracts with customers, including the Australian Football League, members, sponsors, and other parties

2023

2022

14%-20%

14%-20%

Computer Equipment

27%

27%

Motor Vehicles

30%

30%

ETAF

6.4%

(III) SHORT-TERM LEASES AND LEASES OF LOW-VALUE

Revenue is recognised at an amount that reflects the

ASSETS

consideration to which the Company is expected to be entitled in exchange for transferring goods or services to members and

The Company applies the short-term lease recognition

customers. For each contract with a customer, the Company:

2.4-6.4%

exemption to its short-term leases (i.e., those leases that have

identifies the contract with a member/customer; identifies

a lease term of 12 months or less from the commencement

the performance obligations in the contract; determines the

date and do not contain a purchase option). It also applies the

transaction price which takes into account estimates of variable

Gym Equipment

17%

17%

Multimedia Equipment

27%

27%

NOTES TO FINANCIAL STATEMENTS / FFC 2023 FINANCIAL REPORT / 26

consideration and the time value of money; allocates the

is not recoverable from the taxation authority, in which case

that reflects current market assessments of the time value of

transaction price to the separate performance obligations on

the GST is recognised as part of the cost of acquisition of the

money and the risks specific to the asset.

the basis of the relative stand-alone selling price of each distinct

asset or as part of the expense item as applicable; and (O) EMPLOYEE BENEFITS

good or service to be delivered; and recognises revenue when or as each performance obligation is satisfied in a manner that depicts the transfer to the member/customer of the goods or

•

Receivables and payables are stated with the amount of GST included.

services promised.

Provision is made for employee benefits accumulated as a result of employees rendering services up to the reporting date. These

The net amount of GST recoverable from, or payable to, the

benefits include wages and salaries, annual leave, sick leave and

SALE OF GOODS

taxation authority is included as part of receivables or payables

long service leave.

Revenue from the sale of goods is recognised at a point in time

in the Statement of Financial Position.

when control of the goods is transferred to the customer.

Liabilities arising in respect of wages and salaries, annual leave, Cash flows are included in the Statement of Cash Flows on a

sick leave and any other employee benefits expected to be

DONATIONS

gross basis and the GST component of cash flows arising from

settled within twelve months of the reporting date are measured

Revenue from donations is recognised when received.

investing and financing activities, which is recoverable from, or

at their nominal amounts based on the remuneration rates

payable to, the taxation authority are classified as operating cash

which are expected to be paid when the liability is settled. All

flows.

other employee benefit liabilities are measured at the present

GOVERNMENT – SUBSIDY Government grants related to government subsidy payments

value of the estimate future cash outflow to be made in respect

are recognised as a receivable and income when the Company

Commitments and contingencies are disclosed net of the

of services provided by employees up to the reporting date. In

obtains control over the funding and when the Company

amount of GST recoverable from, or payable to, the taxation

determining the present value of future cash

becomes eligible to receive the subsidy in accordance with AASB

authority.

outflows, the interest rates attaching to commercial bond

1058 Income of Not-For-Profit Entities.

securities which have terms to maturity approximating the terms (N) AFL SUB-LICENCE

of the related liability are used.

Revenue is recognised in the year to which it relates at the fair

Intangible assets acquired are measured on initial recognition at

Employee benefit expenses arising in respect of the following

value of consideration received. A contract liability is recognised

cost. Following initial recognition intangible assets are carried at

categories:

at the time of receipt to recognise the income unearned. The

cost less any accumulated amortisation and any accumulated

•

revenue is recognised in equal installments over the AFL season.

impairment losses. The useful lives of intangible assets are

The contract liability at year end represents income received

assessed to be either finite or indefinite. The AFL sub-licence has

•

other types of employee benefits

in advance of the recognition of the specific performance

been assessed as having an indefinite useful life.

•

are recognised against profits on a net basis in their respective

SPONSORSHIP AND MEMBERSHIP

obligation to the sponsor/member.

wages and salaries, non-monetary benefits, annual leave, long service leave, sick leave, and other leave benefits; and

categories.

The assessment of indefinite life is reviewed annually

INTEREST

to determine whether the indefinite life continues to be

(P) COMPARATIVE AMOUNTS

Interest revenue is recognised on control of the right to receive

supportable. If not, the change in useful life from indefinite to

the interest payment.

finite is made on a prospective basis.

GRANT INCOME

Intangible assets with indefinite useful lives are tested for

Grant income, including contributions of assets, is recognised

impairment annually as at 31 October, as appropriate, and

when the club controls the contribution or right to receive the

when circumstances indicate that the carrying value may be

(Q) NEW ACCOUNTING STANDARDS, AND UIG

contribution, and it is probable that the economic benefits

impaired. When the carrying amount of an asset or CGU exceeds

INTERPRETATIONS

Prior year comparatives have been reclassified, where necessary, to achieve consistency in disclosure and conform with presentation in the current financial period.

its recoverable amount, the asset is considered impaired and is (M) TAXES

written down to its recoverable amount.

Income Taxes

A CGU’s recoverable amount is the higher of its fair value

Board (‘AASB’) that are mandatory for the current reporting

The Company has gained a tax exempt status under section

less costs to sell and its value in use and is determined for an

period. The adoption of these Accounting Standards and

50-45 of the Income Tax Assessment Act (1997) and accordingly

individual asset, unless the asset does not generate cash inflows

Interpretations did not have a significant impact on the financial

is not subject to income tax. As such there is no provision in the

that are largely independent of those from other assets or

performance or position of the Company.

financial statements for income tax payable.

groups of assets and the assets value in use cannot be estimated

The Company applied for the first-time certain standards and amendments issued by the Australian Accounting Standards

Goods and Services Tax

to be close to its fair value. In such cases the asset is tested

No new, revised or amended Accounting Standards or

for impairment as part of the cash generating unit to which it

Interpretations that are not yet mandatory have been early

belongs.

adopted.

Revenues, expenses and assets are recognised net of the amount of GST except:

In assessing value in use, the estimated future cash flows are

•

discounted to their present value using a pretax discount rate

Where the GST incurred on a purchase of goods and services

27 / FFC 2023 FINANCIAL REPORT / NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS / FFC 2023 FINANCIAL REPORT / 28

2. REVENUE 2023

2022

$

$

AFL Distributions

13,338,144

12,449,976

AFL Other Income

3,598,474

2,987,773

Membership

20,193,678

18,220,646

Match Revenue

8,267,095

8,020,937

Signage and Advertising Revenue

4,046,872

3,762,320

Corporate Hospitality Revenue

6,569,418

5,831,880

Dining Room Revenue

2,580,563

2,301,929

Functions and Events Revenue

1,243,240

1,032,751

Sponsorship Revenue

7,763,808

8,192,514

Merchandise Revenue

2,267,000

2,504,797

Interest Received

391,073

67,472

Other Revenue

1,333,899

815,567

71,593,264

66,188,562

2023

2022

$

$

Match expenses

5,830,171

4,542,094

Stadium hiring fee

4,812,726

4,204,231

Membership expenses

3,379,016

3,187,414

Sponsorship expenses

262,868

227,090

Corporate expenses

513,898

578,618

Dining room expenses

1,480,900

1,141,202

Merchandise expenses

1,638,395

1,886,878

Functions and special events

1,874,570

1,424,457

19,792,544

17,599,821

Depreciation of plant and equipment

534,370

666,709

Amortisation of lease benefit

923,104

558,469

1,457,474

1,225,178

1,457,474

1,225,178

34,749,643

32,535,863

1,835,387

2,254,292

(29,551)

320,196

Notes Revenue

3. EXPENSES AND LOSSES Notes (a) Expenses Cost of goods sold

Total cost of goods sold Depreciation of non-current assets

Total depreciation of non-current assets Total depreciation and amortisation expense included in administration expenses Employee Benefit Expenses Royalty paid/payable to WAFC Expected credit losses of trade receivables Expected Credit Loss / (Reversal)

29 / FFC 2023 FINANCIAL REPORT / NOTES TO FINANCIAL STATEMENTS

15(a)

NOTES TO FINANCIAL STATEMENTS / FFC 2023 FINANCIAL REPORT / 30

4. RECEIVABLES

7. PROPERTY, PLANT AND EQUIPMENT Notes

2023

2022

$

$

Notes

2022

$

$

9,565,313

9,211,434

(8,392,797)

(7,858,427)

1,172,516

1,353,007

17,091,212

16,558,340

(3,720,857)

(2,797,753)

13,370,355

13,760,587

118,308

-

14,661,179

15,113,594

NON-CURRENT

Current Trade debtors (a)

952,719

1,856,916

PLANT AND EQUIPMENT – AT COST

Less: Allowance for expected credit losses

(7,459)

(364,601)

Less: Accumulated depreciation

945,260

1,492,315

Other debtors and prepayments (b)

153,892

129,177

Buildings on leasehold land – at cost

Accrued interest

115,267

6,579

Less: Accumulated amortisation

Related party- WAFC

59,875

101,405

1,274,294

1,729,476 Work in Progress

(a)

2023

Terms and conditions for all trade debtors are payable within 30 days unless otherwise specified. Details of the terms and

conditions of related party receivables are set out in note 15.

Total property, plant and equipment

At 31 October, the ageing analysis of trade receivables and related party receivables is as follows:

Work in progress relates to the gym refurbishment project, anticipated to be completed in 2024.

TOTAL

NOT DUE

0-6 MONTHS

6-12 MONTHS

+12 MONTHS

2023 $

1,012,594

656,454

356,140

-

-

2022 $

1,958,321

1,186,540

634,779

137,002

-

5. INVENTORIES Current Finished goods at cost

355,198

190,175

Provision for stock write down

(6,631)

(41,169)

348,567

149,006

Reconciliations Reconciliations of the carrying amounts of buildings and plant and equipment at the beginning and end of the current and previous financial year: Plant and Equipment Opening balance

1,353,007

1,554,638

Additions

353,879

465,078

Disposals

-

-

Depreciation

(534,370)

(666,709)

Closing balance

1,172,516

1,353,007

13,760,587

14,707,152

532,872

-

Amortisation

(923,104)

(558,469)

Closing balance

13,370,355

13,760,587

-

-

Additions

118,308

-

Closing Balance

118,308

-

4,000,000

4,000,000

4,000,000

4,000,000

Buildings on leasehold land 6. OTHER FINANCIAL ASSETS

Opening balance

Current

Additions

Term Deposits

5,000,000

-

Buildings on leasehold land Opening balance

8. INTANGIBLES AFL sub-licence - at cost

31 / FFC 2023 FINANCIAL REPORT / NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS / FFC 2023 FINANCIAL REPORT / 32

9. PAYABLES

10. PROVISIONS 2023 $

2022 $

Current

2023

2022

$

$

22

1,314,253

1,380,567

22

415,088

368,358

1

1

1,882,707

1,882,707

Notes Current

Trade creditors and accruals

4,932,408

4,638,589

Employee benefits

Related party - WAFC

1,274,076

1,887,626

Non-current

6,206,484

6,526,215

Employee benefits

(a)

At 31 October, the ageing analysis of trade payables is as follows:

11. CONTRIBUTED EQUITY

TOTAL

CURRENT

0-6 MONTHS

6-12 MONTHS

+12 MONTHS

2023 $

6,206,484

2,675,551

3,530,933

-

-

2022 $

6,526,215

3,084,623

3,441,592

-

-

Issued and paid up capital 1 ordinary share

12. RESERVES Capital reserve

Due to the short term nature of these payables, their carrying value is assumed to approximate their fair value. (a) Unless specified, all trade creditors and payables are paid within 30 days of the invoice. Details of the terms and conditions of

Nature and purpose of reserve

related party payables are set out in note 15.

The capital reserve relates to initial contributions from foundation members during the year ended 31 October 1994.

Non-current: Contract liabilities

(b)

328,070

357,942

328,070

357,942

13. RETAINED EARNINGS Retained earnings at the beginning of the financial year Net (loss)/profit attributable to members of the Fremantle

Contract liabilities represents the non-current portion of the Curtin University alliance agreement, as well as Partnerships relating to the 2025 season.

33 / FFC 2023 FINANCIAL REPORT / NOTES TO FINANCIAL STATEMENTS

Football Club Limited Retained earnings at the end of the financial year

14,694,742

12,266,494

1,636,348

2,428,248

16,331,090

14,694,742

NOTES TO FINANCIAL STATEMENTS / FFC 2023 FINANCIAL REPORT / 34

14. SEGMENT INFORMATION

17. REMUNERATION OF DIRECTORS

The Company operates solely within the sporting industry in Australia.

No income was paid or payable, or otherwise made available, in respect of the financial year, or the previous financial year, to any director of the Company, directly or indirectly, from the Company or any related party. Each Director received four category two

15. EXPENDITURE COMMITMENTS

memberships for the 2023 and 2022 AFL Premiership Seasons with a market value of $3,196 for each season.

(a) The Company is required, under the terms of agreements with the WAFC, to pay an amount to the WAFC as an annual fee for use of the AFL licence. The amount paid or payable in relation to Season 2023 is $1,835,387 representing the royalty fee for the use

18. AUDITORS’ REMUNERATION 2023

2022

$

$

Auditing the financial report of the entity

67,000

62,417

Player Payments Audit

10,000

9,290

Assessable revenue agreed procedures

3,800

3,568

80,800

75,275

of the AFL licence (2022: $2,254,292). The commitment from 2023 to 2024 was agreed between the WAFC and the club on 16 February 2022, and is for the use of the AFL licence only.

Amounts receivable or due and receivable by the auditors: (b) The Company has lease agreements with TM Reality for the Melbourne Office. The rent commencement date was 1 August 2023, with a commencing annual rent of $26,626 and $30,000 per lease. Total lease payments for FY23 were $76,543 (FY22: $75,298).

The lease term expires on 31 July 2026. This lease agreement was not recognised as a lease liability in accordance with AASB 16 Leases, due to it not being considered material. (c) The Company acknowledges the contractual obligations of player contracts and the commitment to player expenditure. Due to contract terms varying considerably amongst players, it is not practical to estimate the future contingency under player contracts.

The Company’s minimum commitment is to pay 95% of the AFL imposed salary cap. The AFL imposed salary cap for 2024 is $15,788,222.

16. RELATED PARTY DISCLOSURES (a) The directors of Fremantle Football Club Limited (“FFCL”) during the financial year were: D Alcock (non-executive chairman) P Mann (retired 30 November 2022) C Carter A Hall T Grist C Hayward J Clement C Sutherland S Pendal (commenced 1 August 2023) b) The following related party transactions occurred during the financial year.

Transactions with other related party transactions (i) The WAFC is the ultimate controlling entity of the Company. (ii) Included in current trade debtors is an amount of $59,875 (2022: $101,405) owing from the WAFC. This amount is interest free with 30 day repayment terms. (iii) Included in accruals is $1,274,076 (2022: $1,887,626) owing to the WAFC. This amount is interest free. $617,442 of this amount is due and payable on 30 November 2023, with the balance due and payable no later than 7 February 2024

35 / FFC 2023 FINANCIAL REPORT / NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS / FFC 2023 FINANCIAL REPORT / 36

20. FINANCIAL INSTRUMENTS

19. STATEMENT OF CASH FLOWS 2023

2022

$

$

1,636,348

2,428,248

instrument, both recognised and unrecognised at the balance date, are as follows:

1,457,474

1,225,178

Recognised

Statement of

320,196

Financial

Financial Position

Instruments

Notes

Reconciliation of the net profit to the net cash flows from operations Net profit

(a) Terms, conditions and accounting policies

The Company’s accounting policies, including terms and conditions of each class of financial asset, financial liability and equity

Non-cash items: Depreciation and amortisation - Property, plant and equipment Expected credit loss / (reversal)

(29,551)

Terms and Conditions

Accounting Policies

(i) Financial assets Changes in assets and liabilities:

Trade debtors are carried at nominal

(Increase)/decrease in trade debtors

593,421

(546,905)

(Increase)/decrease in accrued interest

(108,689)

(6,578)

(Increase)/decrease in inventory

(199,561)

(26,051)

(Decrease)/increase in employee benefits

(19,583)

246,928

(Decrease)/increase in trade creditors and payables

(319,731)

951,038

applies the AASB 9 simplified approach to

Increase/(decrease) in contract liabilities

126,437

(935,552)

measuring expected credit losses which

Net cash flow from operating activities

3,136,565

3,656,502

amounts due less any provision for expected credit losses. Due to the short term nature of trade debtors, their Trade debtors

4

on 30 day terms.

for all trade receivables.

Amounts (other than trade debts) receivable from related parties are carried Receivables – related parties

Cash and cash equivalents balance comprises:

Cash on hand - Cash on hand

Debtors are normally settled

same as their fair value. The Company

uses a lifetime expected loss allowance

(b) Reconciliation of cash and cash equivalents

Cash at bank

carrying amount is considered to be the

4,140,627

7,009,121

850

850

4,141,477

7,009,971

4

at nominal amounts due. Interest (when charged) is taken up as income on an

conditions are set out in note 16.

accrual basis.

Other financial assets are carried at fair value since inception. The fair value of term deposits with credit institutions is

(c) Non-cash financing and operating activities

Details of the terms and

Other

6

(i) The company received total income of $1,301,538 (2022: $1,374,438) through contra arrangements with sponsors of the

their carrying value. The carrying value represents the cost of the term deposit.

Accrued interest applicable to the

company. The total contra expenses incurred during the financial year were $1,438,359 (2022: $1,395,467).

Other financial assets have a maturity date greater than 3 months at their inception.

term deposits has been recognised in receivables. (ii) Financial Liabilities Liabilities are recognised for amounts Trade creditors and accruals

9

to be paid in the future for goods and

Trade liabilities are normally

services received, whether or not billed to

settled on 30 day terms.

the Company.

Amounts (other than trade creditors) 9

payable to related parties are carried at nominal amounts payable. Interest (when charged) is taken up when due.

Details of the terms and conditions are set out in notes 9 and 16.

(iii) Equity Ordinary shares

37 / FFC 2023 FINANCIAL REPORT / NOTES TO FINANCIAL STATEMENTS

11

Ordinary share capital is recognised at the

Details of shares issued are

value of the amount paid up.

set out in Note 11.

NOTES TO FINANCIAL STATEMENTS / FFC 2023 FINANCIAL REPORT / 38

20. FINANCIAL INSTRUMENTS (CONT)

21. EVENTS SUBSEQUENT TO BALANCE DATE

(b) Interest rate risk

There were no events which occurred subsequent to year end that would have a material impact on the financial statements

The Company’s exposure to market risk for changes to interest rate risk relates primarily to its earnings on cash and term deposits, both recognised and unrecognised at the balance date, are as follows: 22. COMPENSATION OF KEY MANAGEMENT PERSONNEL 2023

2022

$

$

19(b)

4,141,477

7,009,971

6

5,000,000

-

9,141,477

7,009,971

Notes Cash and cash equivalents Term Deposits

2023

2022

$

$

2,409,583

2,148,933

181,551

162,337

Termination benefits

-

-

Total compensation

2,591,134

2,311,270

14

14

Short–term employee benefits Post-employment benefits

Interest Rate Sensitivity The following table demonstrates the sensitivity of the Company’s statement of comprehensive income to a reasonably possible NUMBER OF KEY MANAGEMENT PERSONNEL

change in interest rates, with all other variables constant.

The number of key management personnel includes directors and executive management. Key management personnel are those Judgements of reasonably possible movements

Effect on Profit ($)

persons having authority and responsibility for planning, directing and controlling the activities of the Club. Compensation amounts disclosed in 2020 are inclusive of top up payments made from leave entitlements.

Increase /(decrease) 2023

2022

Increase 100 basis points

91,415

70,100

Decrease 100 basis points

(91,415)

(70,100)

Executive management comprises: S Garlick

Chief Executive Officer

C Tuohy

Chief Financial Officer

D Bicer

Chief Commercial Officer

J Brierty

Chief Operating Officer

A sensitivity of 100 basis points has been used as this is considered reasonable given the current level of both short term and long

P Bell

General Manager, Football

term interest rates. The change in basis points is derived from a review of historical movements and management’s judgment of

K Passmore

General Manager, Communications, Marketing & Community

future trends. The analysis was performed on the same basis in 2022.

c) Credit Risk Exposures The Company’s maximum exposures to credit risk at balance date in relation to each class of recognised financial asset is the carrying value of those assets as indicated in the Statement of Financial Position.

Concentrations of Credit Risk The Company minimises concentrations of credit risk in relation to trade accounts receivable by undertaking transactions with a number of low risk customers through sponsorship and members’ fees. Credit risk from balances with banks and financial institutions is managed by management in accordance with the Company’s policy. Investments of surplus funds are made only with approved counterparties.

39 / FFC 2023 FINANCIAL REPORT / NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS / FFC 2023 FINANCIAL REPORT / 40

41 / FFC 2023 FINANCIAL REPORT / NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS / FFC 2023 FINANCIAL REPORT / 42

Proud Major Partners

43 / FFC 2023 FINANCIAL REPORT / NOTES TO FINANCIAL STATEMENTS