Fremantle Dockers 2021 Financial Report

2021 FINANCIAL REPORT

FREMANTLE FOOTBALL CLUB LIMITED ABN 83 066 055 249 FINANCIAL STATEMENTS YEAR ENDED 31 OCTOBER 2021

FREMANTLE FOOTBALL CLUB LIMITED INDEX TO FINANCIAL STATEMENTS YEAR ENDED 31 OCTOBER 2021

1-8 Directors’ Report

20 Statement of Financial Position

9 Directors’ Declaration

21 Statement of Changes in Equity

11 Auditor’s Independence Declaration

22 Statement of Cash Flows

13-15 Independent Audit Report 19 Statement of Comprehensive Income

23-38 Notes to and forming part of the Financial Statements

“ WE’VE MADE HARD DECISIONS, WE’VE MADE CRITICAL APPOINTMENTS, WE’VE DONE A MOUNTAIN OF WORK AND BUILT A SOLID BASE ”

president's report

In recent years, our narrative has been around building and

In a world that has been turned upside down, we have seen

growth, and it is a credit to our coaches, staff and players that we

everyone work with and live with the consequences of the

are now prepared for that to shift.

pandemic – enabling Fremantle to continue to grow on the field and remain strong financially.

We’ve made hard decisions, we’ve made critical appointments, we’ve done a mountain of work and built a solid base, now it’s

Our operating result for 2021 is a profit of $1.55m, which

about franking those investments through an unapologetic level

compares to a loss of $1.07m for 2020. With the continued

of drive to commence what we hope will be a period of sustained

generous support of our partners, members and supporters, we

success.

were able to mitigate the significant financial impact of playing our Round 6 Len Hall game to an empty Optus Stadium and our

For our AFL program, we once again looked critically at the draft,

Round 16 “home” game being moved to the MCG.

and recruited quality players of great character as we have done in recent seasons.

This support, together with that of our co-major sponsors Woodside and Programmed, and the assistance of the Federal

The focus this pre-season has been on building a healthy list with

and State Governments, has ensured we remain debt free and

full fitness and availability.

unassisted by the AFL following the past two Covid-impacted seasons, with cash reserves of $3.82 million.

Though bad luck certainly played a factor in 2021, injuries continued to hurt us, and we are looking to ensure that, as much

Whilst these reserves do include membership credits relating to

as we can, we have a list that is fit, healthy and available for

our two lost home games which will impact our 2022 cash flow,

season 2022.

it is a vastly better position than we were initially forecasting and gives us a strong financial base to build upon for future years.

As a Board of Directors, we are committed to empowering our AFL and AFLW teams to reach these lofty goals. These are

Revenue for the year of $52.4m increased 42 per cent on 2020,

volunteer roles that require a lot of hard work, and I am thankful

which included revenue generated from the historic occasion of

that we have an aligned board with a broad and significant

the AFL Grand Final being played at Optus Stadium. Despite still

contribution from all directors.

being below pre-pandemic revenue levels, it was a solid increase on 2020 given the 2021 Season was still heavily disrupted.

I am proud to see the environment that has been created by the many wonderful people we have inside the Club. It is what has

We continued our on-going support of the WA football

helped us stand up to the challenges of the past two seasons,

ecosystem and broader community, with a WA Football

and I want to thank everyone at the Club once again, especially

Commission royalty payment of $1.91m, a financial contribution

the football staff and players, for their sacrifices to ensure we

to our recently launched Purple Hands Foundation, and

could continue the season with a relative sense of normalcy.

continued support of other community programs and

In the AFLW, it has been working through the constant

partnerships.

uncertainty while juggling being a part-time professional footballer with their fulltime work, study, and family

Whilst 2022 will present further challenges as we navigate our

commitments.

way through the pandemic, through on-field improvement, continued revenue growth and prudent financial management,

In the AFL, our players and football staff have endured many

we believe our Club is strongly placed for the future.

months away from home and in quarantine. The continued effects of the pandemic have meant that they are having to

Our aspiration in 2022 is that both our Men’s and Women’s teams

travel at short notice while handling the pressures this puts on

play finals, and we should all be excited about that prospect. We

partners and families.

have been building and growing our talented lists, attracting, and retaining the right people to develop our players.

We also need to pay tribute to our members, supporters, and stakeholders, who have continued to give unwavering support –whether it is in the stadium or, unfortunately, if they have been forced to cheer us on from home.

1 / FFC 2021 FINANCIAL REPORT / president's report

And with that in mind I just can’t wait for 2022.

President's report / FFC 2021 FINANCIAL REPORT / 2

directors for the financial year

DALE ALCOCK

CRAIG CARTER

PRESIDENT, NON-EXECUTIVE CHAIRMAN

VICE PRESIDENT

Dale Alcock, a registered builder, commenced his career as an

Craig Carter, a former investment banker, an FFC member

apprentice bricklayer in 1979 in Kellerberrin.

since 1995 and a foundation member of one of the Club’s key coterie groups – the AJ Diamond Club – grew up in Fremantle

Dale has created the ABN Group, which is Australia’s leading

and attended South Fremantle High School before attending

construction, property and finance company. The ABN Group

university ahead of a move to stockbroking.

operates in Western Australia and Victoria and has built more than 90,000 homes across the two States. As a Group, it

After a 35-year career in financial markets specialising in equity

comprises 20 businesses, with more than 1800 employees, over

capital markets and corporate advice, Craig now sits on the

100 apprentices and more than 2000 contractors.

Board of Australian Finance Group Ltd, and maintains diverse investment interests across a portfolio of equities, agriculture

Dale remains an avid believer in the social responsibility of his

and commercial property. Craig is a keen offshore sailor, having

companies. Since establishing his own dedicated apprenticeship

campaigned his yacht in many races, including several Sydney to

training program in 2004, the ABN Group continues to manage

Hobart yacht races.

Australia’s largest private construction training group, with over 1200 apprentices graduated. Through his Alcock Family

TENURE

Foundation, Dale has also donated more than $9 million during

Fremantle Football Club Vice President since November 2016.

the past 15 years to worthy causes including medical research,

Director since December 2014.

humanitarian relief work and the environment.

OTHER RESPONSIBILITIES TENURE

Chair of the Finance Committee,

Fremantle Football Club President since November 2016.

Chair of the Integrity Committee,

Director since December 2011.

Member of the Risk, Insurance and Compliance Committee.

OTHER RESPONSIBILITIES Member of the Finance Committee, Member of the Football, Innovation and Performance Committee, Member of the Integrity Committee, Member of the Remuneration and Nominations Committee and Member of the Risk, Insurance and Compliance Committee.

3 / FFC 2021 FINANCIAL REPORT / directors for the financial year

JAMES CLEMENT

TONY GRIST

DIRECTOR

DIRECTOR

Master of Business Administration, Bachelor of Science,

Bachelor of Commerce from the University of Western Australia,

Graduate Diploma in Agribusiness, Graduate of the Australian

Associate of the Financial Services Institute of Australasia and a

Institute of Company Directors.

Fellow of the Australian Institute of Company Directors.

James Clement is a former Fremantle and Collingwood player.

Company director Tony Grist is the founder of Perth-based private investment group Albion Capital Partners. Tony was the

He is the managing director and CEO of Vysarn Ltd, an ASX

Co-Founder and Chairman of Amcom Telecommunications,

listed company that provides water services and solutions to

which subsequently merged with Vocus Communications to

the resources, construction and utilities industries. He was

become an ASX 100 company.

previously managing director and CEO of ASX listed agribusiness Mareterram Ltd.

He is currently Deputy Chairman of Swoop Telecom.

Tony has held directorships in Canada, the United Kingdom and

James played 230 AFL games with Fremantle and Collingwood

Australia in the healthcare, mining and energy industries.

between 1996 and 2007, during which time he was a multiple best and fairest winner and All Australian representative.

He is a Director of the Minderoo Foundation, and founder of the Albion Foundation.

TENURE Fremantle Football Club Director since November 2019.

TENURE Fremantle Football Club Director since November 2016.

OTHER RESPONSIBILITIES Chair of the Football, Innovation and Performance Committee.

OTHER RESPONSIBILITIES Member of the Remuneration and Nominations Committee.

directors for the financial year / FFC 2021 FINANCIAL REPORT / 4

directors for the financial year

ANDREA HALL

COLLEEN HAYWARD

DIRECTOR

DIRECTOR

Bachelor of Commerce (Accounting/Finance), Masters in

Bachelor of Education, Bachelor of Applied Science, Post

Applied Finance, Fellow of the Chartered Accountants Australia

Graduate Certificate in Cross Sector Partnerships from

New Zealand, Graduate member of the Institute of Company

Cambridge University.

Directors.

A Fremantle member since 2004, emeritus professor Hayward is Andrea is an experienced non-executive director and sits on the

a senior Noongar woman with extensive family links throughout

boards of: Evolution Mining Ltd; Perenti Group Ltd (Barminco/

WA’s South-West.

Ausdrill), Pioneer Credit Ltd; and the Insurance Commission of

For more than 35 years, Colleen has provided significant input to

WA.

policies and programs on a wide range of issues, reflecting the needs of minority groups at community, state and national levels.

Andrea is a former KPMG Risk Consulting partner, with over

She has a wealth of previous board experience and an extensive

20 years’ experience in: corporate, operational and board

background in a range of areas including health, education,

governance; strategic, operation and financial risk management;

leadership and governance.

human resource management; financial management; internal audit and external audit.

Her work has been recognised through a number of awards including the 2006 Premier’s Multicultural Ambassador’s prize

She was previously on the Senate of Murdoch University and a

and the 2008 National NAIDOC Aboriginal Person of the Year

former Chair and member of the WA Council for the Chartered

Award.

Accountants Australia New Zealand.

Colleen was inducted into the Aboriginal Education Hall of Fame in 2009 and the WA Women’s Hall of Fame in 2012 when she

TENURE

was also recognised as a Member in the General Division of the

Fremantle Football Club Director since March 2016.

Order of Australia. 2015 saw Colleen awarded one of Murdoch University’s Distinguished Alumni. She was named as one of

OTHER RESPONSIBILITIES

WA’s 100 most influential West Australians in both 2015 and

Chair of the Risk, Insurance and Compliance Committee.

2016.

Member of the Finance Committee.

TENURE Fremantle Football Club Director since September 2017.

OTHER RESPONSIBILITIES Member of the Remuneration and Nominations Committee.

5 / FFC 2021 FINANCIAL REPORT / directors for the financial year

PETER MANN

SUE MURPHY

DIRECTOR

DIRECTOR

Peter is the Energy and Emissions lead for Partners in

Bachelor of Civil Engineering

Performance. Peter has 25-plus years of strategic advisory and

Sue Murphy AO was CEO of the WA Water Corporation from

operational experience in the infrastructure, mining, oil & gas,

2008 to 2018 after a distinguished 25-year career at Clough Ltd

renewable energy and sporting sectors. Peter has previously

in construction, management and as a Director.

worked for Boston Consulting Group, Advisian, Worley Parsons, Patterson, Ord Minnett and Macquarie Bank (VIC).

Sue is currently a non-executive Director on a number of listed and not for profit Company Boards including Monadelphous Ltd,

Peter played 116 AFL games for Fremantle (77) and North

WA Treasury Corporation, MMA Offshore Ltd, and the University

Melbourne (39). An inaugural Docker, Peter made his debut for

of Western Australia.

Fremantle in round one 1995 and went on to win the Doig Medal in the Club’s first season in the AFL. He also captained Fremantle

Sue was listed in the top 100 most influential engineers in

in 1997 and 1998.

Australia every year from 2009 to 2018 and is active in mentoring and development of women in the STEM arena. She provides

TENURE

consulting services internationally on water and climate issues.

Fremantle Football Club Director since December 2012.

Sue retired from her position as director on 30 November 2021.

OTHER RESPONSIBILITIES Member of the Football, Innovation and Performance

TENURE

Committee.

Fremantle Football Club Director from November 2016 to 30 November 2021.

OTHER RESPONSIBILITIES Chair of the Remuneration and Nominations Committee.

Member of the Integrity Committee, and Risk, Insurance and Compliance Committee.

directors for the financial year / FFC 2021 FINANCIAL REPORT / 6

director's report

Fremantle Football Club Limited.

REVIEW OF OPERATIONS

31 Veterans Parade

The Company has continued to field teams in the Australian

COCKBURN CENTRAL WA 6164

Football League and Australian Football League Women’s competitions.

Your directors submit their financial statements for the year ended 31 October 2021.

CORPORATE STRUCTURE The Fremantle Football Club Limited is a Company limited

DIRECTORS

by shares that is incorporated and domiciled in Australia. Its

The names of the directors in office during the financial year

ultimate parent Company is the Western Australian Football

and until the date of this report are as follows. All directors are

Commission Incorporated.

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

EMPLOYEES

D Alcock (non-executive chairman)

143

P Mann C Carter A Hall

EMPLOYEES AS AT 31 OCTOBER 2021

T Grist S Murphy (retired 30 November 2021) C Hayward

(2020: 123 employees).

J Clement

CHANGES IN THE STATE OF AFFAIRS

C Sutherland (commenced 1 December 2021)

The COVID-19 pandemic had a continued impact on the AFL industry and the Company in the 2021 financial year. In particular,

PRINCIPAL ACTIVITIES

the lost home match in Round 16 and crowd capacity restrictions

The principal activity of the Company during the year was to

in Round 6, impacted the Company’s revenues significantly. As

participate in the Australian Football League and the Australian

such, the Company developed a revenue retention strategy and

Football League Women’s competition.

continued to be prudent in its management of operating and capital expenditure.

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

EVENTS SUBSEQUENT TO BALANCE DATE

2021 was a statutory profit of $1,554,571 (2020 statutory loss:

There were no events which occurred subsequent to year end

$1,065,110). Following the second successive year impacted by

that would have a material impact on the financial statements.

the COVID-19 pandemic, the Club remained debt free, meeting our royalty obligations via our WAFC Royalty payment and

FUTURE DEVELOPMENTS AND RESULTS

finishing the financial year with $3,818,547 in cash and cash

Looking ahead, there remains uncertainty for the 2022 season

equivalents. The Club is very grateful for the continued support

and financial year, including any potential further outbreak of

of our members, sponsors, the AFL and other key stakeholders

COVID-19, uncertainty as to stadium crowd capacities at games

through a disrupted season which saw only nine out of our

and the impact of possible border closures between states.

eleven fixtured home games at Optus Stadium accessible to our

Accordingly, there remains uncertainty as to the impact COVID-19

members and fans.

will have on the AFL and AFLW in general and on the Company’s earnings, cashflow and financial position over the next 12

DIVIDENDS

months. Outside of these ongoing disruptions, the Directors are

No dividend has been paid or recommended by the directors

not aware of any developments likely to have a significant effect

since the commencement of the financial year.

upon the Company’s operations.

7 / FFC 2021 FINANCIAL REPORT / director's report

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

DIRECTORS’ MEETINGS

Ernst & Young, to provide the directors of Fremantle Football

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

Club Limited with an Independence Declaration in relation to the

number of meeting attended by each director were as follows:

audit of the financial report for the year ended 31 October 2021.

All directors were eligible to attend all meetings held since their

This Independence Declaration can be found on page 11.

date of appointment, during the current period.

DIRECTORS’ BENEFITS

9

TOTAL BOARD MEETINGS HELD

During or since the financial year no director of the Company has received or become entitled to receive any benefit, other than a benefit included in the aggregate amounts of emoluments

DALE ALCOCK

JAMES CLEMENT

PETER MANN

CRAIG CARTER

ANDREA HALL

TONY GRIST

SUE MURPHY

COLLEEN HAYWARD

received or due and receivable by the directors shown in the

9

8

9

9

9

8

9

7

financial statements and any benefit disclosed in Note 17, by reason of a contract entered into by the Company or body corporate that was related to the Company when the contract was made or when the director received, or became entitled to receive, the benefit with: • a director; or • a firm of which a director is a member; or • an entity in which a director has a substantial financial interest.

Signed in accordance with a resolution of directors.

DIRECTORS’ INDEMNIFICATION The directors have received an undertaking from the ultimate holding Company, West Australian Football Commission Inc. (WAFC), to indemnify the directors of the Fremantle Football Club Limited (FFC) provided the following conditions are 1. In addition to AFL duties and obligations, compliance by

D Alcock Director

FFC and directors with its obligations under the FFC Limited

Fremantle, Western Australia, 28th January 2022

satisfied:

Constitution, including but not restricted to Article 45 – Financial and Operational Governance.

2. FFC complying with a predetermined list of Management Protocols as set by the WAFC. The undertaking by the WAFC will remain in place providing the FFC complies with the above conditions.

INDEMNIFICATION OF AUDITORS To the extent permitted by law, the Company has agreed to indemnify its auditors, Ernst & Young Australia, as part of the terms of its audit engagement agreement against claims by third parties arising from the audit (for an unspecified amount). No payment has been made to indemnify Ernst & Young during or since the financial year.

director's report / FFC 2021 FINANCIAL REPORT / 8

director's report

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 2021 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 2021 and its performance for the year ended on that date; and (ii) complying with Accounting Standards and Corporation Regulations 2001; and (b) subject to the achievement of the matters set out in Note 1(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 2021.

On behalf of the Board.

D Alcock Director Fremantle, Western Australia, 28th January 2022

9 / FFC 2021 FINANCIAL REPORT / director's report

director's report / FFC 2021 FINANCIAL REPORT / 10

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

auditor's independence declaration

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 2021, 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 28 January 2022

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation 11 / FFC 2021 FINANCIAL REPORT / auditor's independence declaration

Auditor's independence declaration / FFC 2021 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

independent audit report

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 2021, 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.

Giving a true and fair view of the Company’s financial position as at 31 October 2021 and of its financial performance for the year ended on that date; and

b.

Complying with Australian Accounting Standards – Reduced Disclosure Requirements 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.

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

Material Uncertainty related to going concern We draw attention to Note 1(b) in the financial report, which describes the principal conditions that raise doubt about the Company’s ability to continue as a going concern. These events or conditions indicate that a material uncertainty exists that may cast significant doubt on the Company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation 13 / FFC 2021 FINANCIAL REPORT / independent audit report

2

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

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 – Reduced Disclosure Requirements 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.

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3

independent audit report

►

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 28 January 2022

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation 15 / FFC 2021 FINANCIAL REPORT / independent audit report

independent audit report / FFC 2021 FINANCIAL REPORT / 16

17 / FFC 2021 FINANCIAL REPORT / independent audit report

independent audit report / FFC 2021 FINANCIAL REPORT / 18

STATEMENT OF COMPREHENSIVE INCOME

2021 $

2020 $

52,411,368

37,023,637

(12,170,738)

(8,043,805)

40,240,630

28,979,832

25,044,396

21,047,119

8,867,278

7,862,180

1,912,847

750,000

Marketing Expenses

882,841

1,052,331

Corporate Expenses

793,479

679,293

998,964

542,536

1,623,304

1,499,983

117,521

(4,453,610)

1,437,050

3,388,500

1,554,571

(1,065,110)

-

-

1,554,571

(1,065,110)

NOTES REVENUE FROM CONTRACTS WITH CUSTOMERS Cost of goods sold

2 3(a)

GROSS PROFIT

Football Expenses Administration Expenses Royalty Expense

3(a)

Community Expenses Communication and Corporate Affairs PROFIT/(LOSS) FROM ORDINARY ACTIVITIES

OTHER INCOME Government Subsidy

PROFIT/(LOSS) ATTRIBUTABLE TO MEMBERS OF

13

FREMANTLE FOOTBALL CLUB LIMITED

Other comprehensive income TOTAL COMPREHENSIVE PROFIT/ (LOSS)

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

19 / FFC 2021 FINANCIAL REPORT / STATEMENT OF COMPREHENSIVE INCOME

STATEMENT OF financial position

2021 $

2020 $

19(b)

3,818,547

3,923,295

Receivables

4

1,496,188

3,200,047

Inventories

5

122,955

188,867

Other financial assets

6

-

55,000

5,437,690

7,367,209

NOTES CURRENT ASSETS Cash and cash equivalents

TOTAL CURRENT ASSETS

NON-CURRENT ASSETS Property, plant and equipment

7

15,873,694

16,740,641

Intangible assets

8

4,000,000

4,000,000

TOTAL NON-CURRENT ASSETS

19,873,694

20,740,641

TOTAL ASSETS

25,311,384

28,107,850

5,575,177

5,953,152

3,582,859

7,214,629

1,199,750

991,598

10,357,786

14,159,379

9(b)

502,150

1,051,124

10

302,246

302,716

TOTAL NON-CURRENT LIABILITIES

804,396

1,353,840

TOTAL LIABILITIES

11,162,182

15,513,219

14,149,202

12,594,631

CURRENT LIABILITIES Payables

9(a)

Contract Liabilities Provisions

10

TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Payables and contract liabilities Provisions

NET ASSETS

EQUITY Contributed equity

11

1

1

Reserves

12

1,882,707

1,882,707

Retained earnings

13

12,266,494

10,711,923

14,149,202

12,594,631

TOTAL EQUITY

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

STATEMENT OF financial position / FFC 2021 FINANCIAL REPORT / 20

STATEMENT OF changes in equity

Contributed STATEMENT OF CHANGES IN EQUITY

Equity

Reserves $

$

Retained Earnings $

Total $

Opening balance as at 1 November 2020

1

1,882,707

10,711,923

12,594,631

Net profit for the year ended 31 October 2021

-

-

1,554,571

1,554,571

Closing balance as at 31 October 2021

1

1,882,707

12,266,494

14,149,202

Opening balance as at 1 November 2019

1

1,882,707

11,777,033

13,659,741

Net loss for the year ended 31 October 2020

-

-

(1,065,110)

(1,065,110)

Closing balance as at 31 October 2020

1

1,882,707

10,711,923

12,594,631

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

21 / FFC 2021 FINANCIAL REPORT / STATEMENT OF changes in equity

STATEMENT OF cash flows

2021

2020

$

$

Receipts from customers

51,717,237

41,030,649

Receipts of Government subsidy

1,744,550

3,081,000

(53,359,418)

(41,419,537)

11,117

23,999

113,486

2,716,111

55,000

-

(273,234)

(327,190)

(218,234)

(327,190)

EQUIVALENTS

(104,748)

2,388,921

Cash and cash equivalents at beginning of year

3,923,295

1,534,374

3,818,547

3,923,295

Notes CASH FLOWS FROM OPERATING ACTIVITIES

Payments to suppliers and employees Interest received NET CASH FLOW FROM OPERATING ACTIVITIES

19 (a)

CASH FLOWS FROM INVESTING ACTIVITIES (Purchase)/Redemption of term deposits Purchase of property, plant and equipment NET CASH FLOW (USED IN) INVESTING ACTIVITIES NET INCREASE/(DECREASE) IN CASH IN CASH AND CASH

CASH AND CASH EQUIVALENTS AT END OF YEAR

19 (b)

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

STATEMENT OF cash flows / FFC 2021 FINANCIAL REPORT / 22

NOTES TO FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The statement of financial position of the company reflects total current assets of $5,437,690 (2020: $7,367,209) and current

The financial report of Fremantle Football Club Limited for

liabilities of $10,357,786 (2020: $14,159,379). The net current

the year ended 31 October 2021 was authorised for issue in

liability position of $4,920,096 (2020: $6,792,170) arises as a

accordance with a resolution of the directors on 28 January

result of the following:

2022. The principal activity of the Company during the year was

• Annual leave and long service leave balances of $1,199,750

to participate in the Australian Football League. The Fremantle

(2020: $991,598) classified as current but expected to be

Football Club Limited is a not for profit Company limited by

replaced by similar amounts next year;

shares that is incorporated and domiciled in Australia. Its

• Contract liabilities of $3,582,859 (2020: $7,214,629) relating

ultimate parent Company is the Western Australian Football

to membership, corporate and sponsorship sales for the 2022

Commission Incorporated.

football season which are not required to be repaid; • Trade payables to related parties of $1,549,348 (2020:

(A) BASIS OF PREPARATION

$1,117,170) with payment terms which the directors are satisfied could be extended, if required.

The financial report is a general purpose financial report, which has been prepared in accordance with the requirements of

The Company has again operated as an unassisted AFL Club

the Corporations Act 2001, Australian Accounting Standards

in the 2021 year, however it is important to note that the AFL

– Reduced Disclosure Requirements and other authoritative

continues to support all Clubs and at the start of the COVID

pronouncements of the Australian Accounting Standards Board.

pandemic provided letters of financial support which makes

The financial report has also been prepared on a historical cost

available funding that can be used to assist the company to

basis.

meet its obligations, if required. This letter of support (which is not a guarantee) from the AFL has been updated to cover the

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

period ending 31 October 2022.

publicly accountable. Therefore, the consolidated financial statements for the Group are tier 2 general purpose financial

The letter of financial support was provided on the basis that the

statements which have been prepared in accordance with

AFL will not require repayment of the AFL funding, except at such

Australian Accounting Standards – Reduced Disclosure

time as the Board of the Company determines that the Company

Requirements (AASB – RDRs).

is able to make that repayment and continue to pay its other Debts as and when they fall due for payment.

The financial report is presented in Australian dollars and all values are rounded to the nearest whole dollar unless otherwise stated.

The Directors have considered the cash flow forecasts of the Company for the twelve months from the date of approval

(B) GOING CONCERN

of these financial statements taking into consideration the estimation of the continued business impacts of COVID-19.

The COVID-19 pandemic continued to impact the AFL during the

These forecasts indicate that, taking account of reasonable

2021 season and in turn had a material impact on the Company’s

possible downsides, the Company is expected to continue to

earnings, cash flow and financial position. In particular, the

operate within available cash levels.

resulting restrictions saw only nine out of our eleven fixtured home games at Optus Stadium accessible to our members and

Based on the above considerations the Directors consider they

fans.

have a reasonable basis to prepare the financial statements on a going concern basis.

Looking ahead, there remains some uncertainty for the 2022 season and financial year, including any potential COVID-19

COVID-19 has in the past and does in the future create a number

outbreaks, border restrictions between States and crowd

of uncertainties and accordingly in the event that the Company

capacity restrictions at Optus Stadium. Accordingly, there

is unable to obtain sufficient funding for ongoing operating and

remains uncertainty as to the impact COVID-19 will have on the

capital requirements, there is a material uncertainty whether

AFL in general and on the Company’s earnings, cashflow and

it will continue as a going concern and therefore whether it

financial position over the next 12 months.

will realise its assets and discharge its liabilities in the normal course of business and at the amounts stated in the financial statements.

23 / FFC 2021 FINANCIAL REPORT / NOTES TO FINANCIAL STATEMENTS

The financial statements do not include any adjustment relating

(G) RECOVERABLE AMOUNT

to the recoverability or classification of recorded asset amounts or to the amounts or classification of liabilities that may be

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

necessary should the Company not be able to continue as a

recoverable amount and where carrying values exceed this

going concern.

recoverable amount assets are written down. The recoverable amount of property, plant and equipment is the higher of fair

Economic Dependence

value less costs to sell and value in use. In assessing value in

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

use, the estimated future cash flows are discounted to their

holding of licences issued by the Australian Football League.

present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to

(C) CASH AND CASH EQUIVALENTS

the asset.

Cash and cash equivalents comprise cash balances and short-

(H) LEASES

term deposits with original maturities of 3 months or less, which are subject to an insignificant risk of changes in value.

The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right

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

to control the use of an identified asset for a period of time in

equivalents includes cash on hand and in banks.

exchange for consideration.

(D) TRADE AND OTHER RECEIVABLES

COMPANY AS A LESSEE (I) RIGHT-OF-USE ASSETS

Trade receivables are recognised and carried at original invoice amount less a provision for any expected credit losses (ECLs). In

The Company recognises right-of-use assets at the

calculating the ECL a simplified approach is applied, with a loss

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

allowance recognised based on lifetime ECLs at each reporting

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

date.

cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost

Receivables from related parties are recognised and carried at

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

the nominal amount due.

recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease

(E) INVENTORIES

incentives received. Right-of-use assets are depreciated on a straight-line basis over the lease term.

Inventories are valued at the lower of cost and net realisable value.

(II) LEASE LIABILITIES

(F) PROPERTY, PLANT AND EQUIPMENT

At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease

All classes of property, plant and equipment are measured at

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

cost.

include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments 2021

2020

that depend on an index or a rate, and amounts expected to be

Office Equipment

14%-20%

14%-20%

paid under residual value guarantees. The lease payments also

Computer Equipment

27%

27%

Motor Vehicles

17%

17%

ETAF

2.4%

2.4%

Gym Equipment

17%

17%

Multimedia Equipment

27%

27%

include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease, if the lease term reflects the Company exercising the option to terminate.

Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are incurred to produce inventories) in the period in which the event or condition that

All assets except for freehold land are depreciated on a straight-

triggers the payment occurs.

line basis at rates based upon their expected useful economic lives. Major depreciation rates are:

In calculating the present value of lease payments, the Company

NOTES TO FINANCIAL STATEMENTS / FFC 2021 FINANCIAL REPORT / 24

uses its incremental borrowing rate at the lease commencement

attributable transaction costs. After initial recognition, interest-

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

bearing liabilities are subsequently measured at amortised cost

determinable. After the commencement date, the amount of

using the effective interest method. Borrowing costs directly

lease liabilities is increased to reflect the accretion of interest and

attributable to the acquisition or construction of a qualifying

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

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

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

borrowing costs are expensed in the period they occur.

a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index

(K) CONTRIBUTED EQUITY

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

Ordinary share capital is recognised at the fair value of the consideration received by the Company.

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

Any transaction costs arising on the issue of ordinary shares are

ASSETS

recognised directly in equity as a reduction of the share proceeds received.

The Company applies the short-term lease recognition exemption to its short-term leases (i.e., those leases that have

(L) REVENUE RECOGNITION

a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the

Revenue from contracts with customers, including the Australian

lease of low-value assets recognition exemption to leases that

Football League, members, sponsors, and other parties

are considered to be low value. Lease payments on short-term leases and leases of low-value assets are recognised as an

Revenue is recognised at an amount that reflects the

expense on a straight-line basis over the lease term.

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

COMPANY AS A LESSOR

customers. For each contract with a customer, the Company: identifies the contract with a member/customer; identifies

Leases in which the Company does not transfer substantially

the performance obligations in the contract; determines the

all the risks and rewards incidental to ownership of an asset are

transaction price which takes into account estimates of variable

classified as operating leases. Rental income arising is accounted

consideration and the time value of money; allocates the

for on a straight-line basis over the lease terms. Initial direct

transaction price to the separate performance obligations on

costs incurred in negotiating and arranging an operating lease are

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

added to the carrying amount of the leased asset and recognised

good or service to be delivered; and recognises revenue when

over the lease term on the same basis as rental income.

or as each performance obligation is satisfied in a manner that depicts the transfer to the member/customer of the goods or

Operating leases

services promised.

The minimum lease payments of operating leases, where the lessor effectively retains substantially all of the risks and benefits

SALE OF GOODS

of ownership of the leased item, are recognised as an expense on a straight-line basis.

Revenue from the sale of goods is recognised at a point in time when control of the goods is transferred to the customer.

(I) PAYABLES DONATIONS Liabilities for trade creditors and other amounts are carried at cost which is the fair value of the consideration to be paid in the

Revenue from donations is recognised when received.

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

GOVERNMENT – SUBSIDY

Payables to related parties are carried at the principal amount.

Government grants related to government subsidy payments

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

are recognised as a receivable and income when the Company

on an accruals basis.

obtains control over the funding and when the Company

(J) INTEREST-BEARING LIABILITIES

becomes eligible to receive the subsidy in accordance with AASB 1058 Income of Not-For-Profit Entities. During the year

All loans are measured at the principal amount less directly

25 / FFC 2021 FINANCIAL REPORT / NOTES TO FINANCIAL STATEMENTS

ended 31 October 2021, the company received subsidies from

the Australian government related to the JobKeeper programs.

Commitments and contingencies are disclosed net of the

This government grant income received, or receivable has been

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

recognised as Other Income.

authority.

SPONSORSHIP AND MEMBERSHIP

(N) NEW PLAYER COSTS

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

The Company has taken the view that all new player costs will

value of consideration received. A liability is recognised at the

be expensed in the year incurred given the uncertain nature of a

time of receipt to recognise the income unearned. The revenue is

players’ future with the AFL draft system.

recognised in equal installments over the AFL season.

(O) AFL SUB-LICENCE INTEREST Intangible assets acquired are measured on initial recognition at Interest revenue is recognised on control of the right to receive

cost. Following initial recognition intangible assets are carried at

the interest payment.

cost less any accumulated amortisation and any accumulated impairment losses. The useful lives of intangible assets are

GRANT INCOME

assessed to be either finite or indefinite. The AFL sub-licence has been assessed as having an indefinite useful life.

Grant income, including contributions of assets, is recognised when the club controls the contribution or right to receive the

The assessment of indefinite life is reviewed annually

contribution, and it is probable that the economic benefits

to determine whether the indefinite life continues to be

comprising the contributions will flow to the club, and the

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

amount of contribution can be measured reliably

finite is made on a prospective basis.

(M) TAXES

Intangible assets with indefinite useful lives are tested for impairment annually as at 31 October, as appropriate, and when

INCOME TAXES

circumstances indicate that the carrying value may be impaired.

The recoverable amount is determined for an individual asset,

The Company has gained a tax exempt status under section

unless the asset does not generate cash inflows that are largely

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

independent of those from other assets or groups of assets.

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

When the carrying amount of an asset or CGU exceeds its

financial statements for income tax payable.

recoverable amount, the asset is considered impaired and is written down to its recoverable amount. A CGU’s recoverable

GOODS AND SERVICES TAX

amount is the higher of its fair value less costs to sell and its value in use and is determined for an individual asset, unless

Revenues, expenses and assets are recognised net of the

the asset does not generate cash inflows that are largely

amount of GST except:

independent of those from other assets or groups of assets and the assets value in use cannot be estimated to be close to its fair

Where the GST incurred on a purchase of goods and services is

value. In such cases the asset is tested for impairment as part of

not recoverable from the taxation authority, in which case the

the cash generating unit to which it belongs.

GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and Receivables

When the carrying amount of an asset or cash generating unit

and payables are stated with the amount of GST included.

exceeds its recoverable amount, the asset or cash-generating unit is considered impaired and is written down to its recoverable

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

amount.

taxation authority is included as part of receivables or payables in the Statement of Financial Position.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pretax discount rate

Cash flows are included in the Statement of Cash Flows on a

that reflects current market assessments of the time value of

gross basis and the GST component of cash flows arising from

money and the risks specific to the asset. Impairment losses

investing and financing activities, which is recoverable from, or

relating to continuing operations are recognised in those expense

payable to, the taxation authority are classified as operating cash

categories consistent with the function of the impaired asset

flows.

unless the asset is carried at revalued amount.

NOTES TO FINANCIAL STATEMENTS / FFC 2021 FINANCIAL REPORT / 26

(P) EMPLOYEE BENEFITS Provision is made for employee benefits accumulated as a result of employees rendering services up to the reporting date. These benefits include wages and salaries, annual leave, sick leave and long service leave.

Liabilities arising in respect of wages and salaries, annual leave, sick leave and any other employee benefits expected to be settled within twelve months of the reporting date are measured at their nominal amounts based on the remuneration rates which are expected to be paid when the liability is settled. All other employee benefit liabilities are measured at the present value of the estimate future cash outflow to be made in respect of services provided by employees up to the reporting date. In determining the present value of future cash outflows, the interest rates attaching to commercial bond securities which have terms to maturity approximating the terms of the related liability are used.

Employee benefit expenses and revenues arising in respect of the following categories: - wages and salaries, non-monetary benefits, annual leave, long service leave, sick leave, and other leave benefits; and - other types of employee benefits are recognised against profits on a net basis in their respective categories.

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

(R) NEW ACCOUNTING STANDARDS, AND UIG INTERPRETATIONS The Company applied for the first-time certain standards and amendments issued by the Australian Accounting Standards Board (‘AASB’) that are mandatory for the current reporting period. The adoption of these Accounting Standards and Interpretations did not have a significant impact on the financial performance or position of the Company.

No new, revised or amended Accounting Standards or Interpretations that are not yet mandatory have been early adopted.

27 / FFC 2021 FINANCIAL REPORT / NOTES TO FINANCIAL STATEMENTS

2. REVENUE 2021

2020

$

$

AFL Distributions

10,976,432

9,543,338

Membership

16,703,297

11,147,371

Match Revenue

4,280,588

2,044,549

3,301,652

2,450,638

5,187,214

2,776,349

1,833,673

877,608

687,909

414,384

Sponsorship Revenue

5,663,438

5,400,904

Merchandise Revenue

1,671,562

1,126,252

11,117

23,999

2,094,488

1,218,245

52,411,368

37,023,637

2021

2020

$

$

Match expenses

2,996,053

1,381,305

Stadium hiring fee

2,383,325

425,491

Membership expenses

2,612,072

3,588,518

Sponsorship expenses

148,231

66,419

98,712

85,934

Corporate expenses

359,796

237,232

Dining room expenses

832,743

444,402

Merchandise expenses

1,315,349

984,022

Functions and special events

1,424,457

830,482

12,170,738

8,043,805

744,275

1,064,112

Amortisation of lease benefit

388,096

388,096

Total depreciation of non-current assets

1,132,371

1,452,208

1,132,371

1,452,208

26,334,224

23,220,710

1,912,847

750,000

-

30,400

Notes Revenue from Contracts with Customers

Signage Revenue Corporate Revenue Dining Room Revenue Functions and Events Revenue

Interest Received Other Revenue

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

Arena advertising expenses

Total cost of goods sold Depreciation of non-current assets Depreciation of plant and equipment

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)

15(a)

NOTES TO FINANCIAL STATEMENTS / FFC 2021 FINANCIAL REPORT / 28

4. RECEIVABLES 2021

2020

$

$

Trade debtors (a)

1,399,173

2,755,045

Less: Allowance for expected credit losses

(44,955)

(86,927)

1,354,218

2,668,118

137,647

487,269

-

440

4,323

44,220

1,496,188

3,200,047

Notes Current

Other debtors and prepayments (b) Accrued interest Related party- WAFC

(a) 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 16. (b) Amount in 2020 included a $307,500 JobKeeper accrual. Amount was subsequently received on 19 November 2020.

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

NOT DUE

0-6 MONTHS

6-12 MONTHS

+12 MONTHS

2021

1,403,496

1,065,795

325,243

12,458

-

2020

2,799,265

1,487,510

661,272

608,540

41,943

Finished goods at cost

144,864

201,485

Provision for stock write down

(21,909)

(12,618)

122,955

188,867

-

55,000

5. INVENTORIES Current

6. OTHER FINANCIAL ASSETS Short term deposits

29 / FFC 2021 FINANCIAL REPORT / NOTES TO FINANCIAL STATEMENTS

7. PROPERTY, PLANT AND EQUIPMENT 2021

2020

$

$

PLANT AND EQUIPMENT – AT COST

8,746,357

8,496,583

Less: Accumulated depreciation

(7,191,719)

(6,463,094)

1,554,638

2,033,489

439,911

439,911

(438,068)

(433,744)

1,843

6,167

16,118,429

16,118,429

(1,801,216)

(1,417,444)

14,317,213

14,700,985

15,873,694

16,740,641

Notes NON-CURRENT

Buildings on leasehold land – at cost Less: Accumulated amortisation

Buildings on leasehold land – at fair value Less: Accumulated amortisation

Total property, plant and equipment

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

2,033,489

2,770,411

Additions

273,234

327,190

Disposals

(7,810)

-

Depreciation

(744,275)

(1,064,112)

Closing balance

1,554,638

2,033,489

14,707,152

15,095,248

Amortisation

(388,096)

(388,096)

Closing balance

14,319,056

14,707,152

2021

2020

$

$

4,000,000

4,000,000

4,000,000

4,000,000

Buildings Opening balance

Notes 8. INTANGIBLES AFL sub-licence - at cost

NOTES TO FINANCIAL STATEMENTS / FFC 2021 FINANCIAL REPORT / 30

9. PAYABLES 2021 $

2020 $

Trade creditors and accruals

4,025,829

4,835,982

Related party - WAFC

1,549,348

1,117,170

5,575,177

5,953,152

Current

(a)

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

CURRENT

0-6 MONTHS

6-12 MONTHS

+12 MONTHS

2021

5,575,177

3,620,863

1,911,592

42,722

-

2020

5,953,152

3,618,889

2,334,263

-

-

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 related party payables are set out in note 16.

Non-current: Contract liabilities

(b)

502,150

1,051,124

502,150

1,051,124

(b) Contract liabilities represents the non-current portion of the Curtin University alliance agreement, as well as Corporate Sales and Partnerships relating to the 2023 season.

31 / FFC 2021 FINANCIAL REPORT / NOTES TO FINANCIAL STATEMENTS

10. PROVISIONS 2021

2020

$

$

22

1,199,750

991,598

22

302,246

302,716

1

1

1,882,707

1,882,707

Notes Current Employee benefits Non-current Employee benefits

11. CONTRIBUTED EQUITY Issued and paid up capital 1 ordinary share

12. RESERVES Capital reserve

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

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

10,711,923

11,777,033

1,554,571

(1,065,110)

12,266,494

10,711,923

NOTES TO FINANCIAL STATEMENTS / FFC 2021 FINANCIAL REPORT / 32

14. SEGMENT INFORMATION The Company operates solely within the sporting industry in Australia.

15. EXPENDITURE COMMITMENTS

(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 2021 is $1,912,847 representing the royalty fee for the use of the AFL licence (2020: $750,000). The commitment from 2019 to 2022 was agreed between the WAFC and the club on 17 December 2019, and due to the transition to Optus Stadium, is for the use of the AFL licence only. (b) The Company has lease agreements with TM Reality for the Melbourne Office. The rent commencement date was 1 August 2018, with a commencing annual rent of $23,657 and $27,177 per lease. The rent expenditure is adjusted at a fixed rate of 3% annually.

(2021 actual: $78,097). The lease term expires on 31 July 2023. 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. Whilst yet to be finalised, the AFL imposed salary cap for 2022 is expected to be $13,538,993.

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 C Carter A Hall T Grist S Murphy (retired 30 November 2021) C Hayward J Clement 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 $4,323 (2020: $44,250) owing from the WAFC. This amount is interest free with 30 day repayment terms. (iii) Included in trade creditors is an amount of $3,168 (2020: $17,170) owing to the WAFC. This amount is interest free with 30 day repayment terms. (iv) Included in accruals is $1,546,180 (2020: $1,100,000) owing to the WAFC. This amount is interest free. $366,667 of this amount is due and payable on 30 November 2021, with the balance due and payable on 30 April 2022. (v) Included in current contract liabilities is an amount of $250,000 (2020: $250,000) relating to a sponsorship agreement with Dale Alcock Homes. There is no non-current portion of this agreement (FY2020: $250,000). The agreement has a term of 15 May 2020 to termination date of 31 October 2022, with all benefits provided in years 2 and 3 of the agreement.

33 / FFC 2021 FINANCIAL REPORT / NOTES TO FINANCIAL STATEMENTS

17. REMUNERATION OF DIRECTORS 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 memberships for the 2021 and 2020 AFL Premiership Seasons with a market value of $3,196 for each season.

18. AUDITORS’ REMUNERATION 2021

2020

$

$

65,743

55,630

Player Payments Audit

8,446

8,280

Assessable revenue agreed procedures

3,244

3,180

72,933

67,090

Amounts receivable or due and receivable by the auditors: Auditing the financial report of the entity

NOTES TO FINANCIAL STATEMENTS / FFC 2021 FINANCIAL REPORT / 34

19. STATEMENT OF CASH FLOWS 2021

2020

$

$

1,554,571

(1,065,110)

1,132,371

1,452,208

7,810

-

88,290

(32,990)

1,615,129

2,053,633

440

415

65,912

64,542

207,682

(272,584)

(377,975)

(522,712)

Increase/(decrease) in contract liabilities

(4,180,744)

1,038,709

Net cash flow from operating activities

113,486

2,716,111

3,817,697

3,921,945

850

1,350

3,818,547

3,923,295

Reconciliation of the net (loss)/profit to the net cash flows from operations Net profit/(loss) Non-cash items: Depreciation and amortisation - Property, plant and equipment Disposal of property, plant and equipment Contra movement

Changes in assets and liabilities: (Increase)/decrease in trade debtors (Increase)/decrease in accrued interest (Increase)/decrease in inventory (Decrease)/increase in employee benefits (Decrease)/increase in trade creditors and payables

(b) Reconciliation of cash and cash equivalents Cash and cash equivalents balance comprises: Cash at bank Cash on hand - Cash on hand

(c) Non-cash financing and operating activities (i) The company received total income of $1,416,687 (2020: $1,497,258) through contra arrangements with sponsors of the company. The total contra expenses incurred during the financial year were $1,496,951 (2020: $1,384,689).

35 / FFC 2021 FINANCIAL REPORT / NOTES TO FINANCIAL STATEMENTS

20. FINANCIAL INSTRUMENTS

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

Recognised

Statement of

Financial

Financial Position

Instruments

Notes

Terms and Conditions

Accounting Policies

(i) Financial assets Trade debtors are carried at nominal amounts due less any provision for expected credit losses. Due to the short term nature of trade debtors, their Trade debtors

4

carrying amount is considered to be the

Debtors are normally settled

same as their fair value. The Company

on 30 day terms.

applies the AASB 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables.

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

4

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

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

accrual basis.

Other financial assets are carried at fair value since inception. The fair value of Other

6

term deposits with credit institutions

Other financial assets have a

is their carrying value. The carrying

maturity date greater than 3

value represents the cost of the term

months of their inception.

deposit and accrued interest charged at commercial rates. (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 from 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

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 2021 FINANCIAL REPORT / 36

20. FINANCIAL INSTRUMENTS (CONT) (b) Interest rate risk 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:

Notes CASH AND CASH EQUIVALENTS Short term deposits

19(b) 6

2021

2020

$

$

3,818,547

3,923,295

-

55,000

3,818,547

3,978,295

Interest rate sensitivity The following table demonstrates the sensitivity of the Company’s statement of comprehensive income to a reasonably possible change in interest rates, with all other variables constant.

Judgements of reasonably possible movements

Effect on Profit ($) Increase /(decrease)

Increase 100 basis points Decrease 100 basis points

2021

2020

38,185

39,787

(38,185)

(39,787)

A sensitivity of 100 basis points has been used as this is considered reasonable given the current level of both short term and long term interest rates. The change in basis points is derived from a review of historical movements and management’s judgment of future trends. The analysis was performed on the same basis in 2019.

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.

37 / FFC 2021 FINANCIAL REPORT / NOTES TO FINANCIAL STATEMENTS

21. EVENTS SUBSEQUENT TO BALANCE DATE There were no events which occurred subsequent to year end that would have a material impact on the financial statements

22. COMPENSATION OF KEY MANAGEMENT PERSONNEL 2021

2020

$

$

2,148,149

1,953,305

116,723

130,872

Termination benefits

349,880

257,602

Total compensation

2,614,752

2,341,779

14

14

Short–term employee benefits Post-employment benefits

NUMBER OF KEY MANAGEMENT PERSONNEL

The number of key management personnel includes directors and executive management. Key management personnel are those 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.

Executive management comprises: S Garlick

Chief Executive Officer

G Parker

Chief Operating Officer

C Tuohy

Chief Financial Officer

P Bell

General Manager, Football

J Brierty

General Manager, Football Operations & Performance

K Passmore

General Manager, Marketing & Communications

NOTES TO FINANCIAL STATEMENTS / FFC 2021 FINANCIAL REPORT / 38

39 / FFC 2021 FINANCIAL REPORT / NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS / FFC 2021 FINANCIAL REPORT / 40

41 / FFC 2021 FINANCIAL REPORT / NOTES TO FINANCIAL STATEMENTS