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And that was when they were at subi, now they are at optus they earn even more!West Coast Eagles - the most profitable sports club in AustraliaJohn Stensholt Former Rich EditorMar 11, 2018 – 11.45pmWest Coast Eagles are the most profitable sports club in Australia, an analysis of the financial reports of the teams in the big codes reveals.The financial accounts the club recently lodged with the corporate regulator for the year to October 2017 show the club Eagles made an operating surplus of almost $5.4 million last year from $64 million revenue.Though that surplus was down from $6 million in the previous year, the Eagles balance sheet is surely the strongest in the AFL and across any sports code.The only AFL club to get near the Eagles in the profit stakes was Essendon. The Bombers recorded a profit of slightly more than $5 million but their revenue included about $3.97 million in donations from supporters via the Australian Sports Foundation.AFL clubs combined for $24.5 million from slightly more than $1 billion revenue, the annual reports show. The club profits included a $5.27 million profit for St Kilda, though that included $8 million in revenue for its Moorabbin training ground revamp.Most NRL clubs recorded losses last year, with the notable exception of the ASX-listed Brisbane Broncos, which made a $2.75 million net profit from $46.5 million revenue. In rugby union, the ACT Brumbies made a small $14,361 profit in 2017 and the Queensland Reds a $22,263 surplus.Market controlThe financial statements of the 18 AFL clubs reveal all sorts of interesting morsels, such as 2017 grand final winner Richmond having a cash balance of almost $10 million and derived $8.6 million from its Aligned Leisure community health and fitness centre management business.Meanwhile, the combined $48 million the GWS Giants and Gold Coast Suns received in AFL distributions last year is almost equal the $50 million administrators say having the two expansion teams in the competition is worth in additional broadcast revenue annually.Operating in a football-mad market in Perth, and with only cross-town rivals Fremantle to compete with locally, is clearly an advantage for West Coast. But the club still has made big profits year after year while paying $137 million in the West Australian Football Commission in dividends and rent since being founded in 1987.So strong has the financial performance of the Eagles been that the club has accumulated $21.8 million in cash on its balance sheet and another $42 million of fixed interest and equity investments.The twist compared with most other clubs, though, is that the Eagles are about to spend a chunk of their money on the big move into their new training and administration facilities this time next year.West Coast is shifting its headquarters to a $61.5 new facility at Lathlain Park, seven kilometres south-east of the Perth CBD, which will include training facilities, a community hub and space for the Wirrpanda Foundation, founded by former Eagles player David Wirrpanda, and the local Perth football club.Long-term securityEagles chief executive Trevor Nisbett says the club is contributing $35 million to the project, believed to be the biggest spend by a sports club given many clubs' facilities are usually built with government money in conjunction with community and other sports organisations."It's a project that we've probably been working on for a good 20 years," Nisbett says. "It will certainly secure the club for the long term and we're very grateful for state and federal government and other support for it. So the next thing for us will be looking for some support of the benefactors out there that are supporters of the club."The Eagles have launched a fundraising campaign for about $8 million via the sports foundation, donations for which are tax-deductible. Nisbett believes raising the sum will ensure the Eagles are "future-proofed" in a financial sense after their $35 million Lathlain spend.In the nearer term, though, is the move this season to the new 60,000 capacity Perth Stadium (Optus has the naming rights to the venue) along with Fremantle.An agreement for the move was only struck in October and protracted negotiations with the state government and the venue operators.The Eagles have about 50,000 seated members at the stadium and there is another 1385 stadium members aligned with the club, leaving about 8000 tickets for general sale each home game Nisbet says."It's an exciting period for our members, corporate supporters and sponsors and the like. But it's been frustrating and we're still getting in touch with prospective members. We didn't have much time to be organised and we're still dealing with things such as restricted views in some seats. But it should end up being significantly better off there in the future."That means, according to Nisbett, the Eagles should be – after a likely dip this season due to some up-front moving costs – at least no worse off from the move. Which should mean those huge profits continue to flow to the Eagles for many years to come yet.John Stensholt is a former editor of the BRW Rich 200 and Young Rich Lists.
West Coast Eagles - the most profitable sports club in Australia
West Coast Eagles are spending $35 million of their own money on a new training and administration centre.www.afr.com
2019 they had $88mill revenue from football operations and made an $8mill profit after giving the grassroots $1.8mill. $100mill in net assets. all without pokies.
