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.
2
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