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.
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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
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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
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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