2011 Adelaide Annual Report

201 1
FINANCIAL report
ADELAI DE FOOTBALL CLUB
Page 1
ADELAIDE FOOTBALL CLUB LIMITED

DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2011

Your directors present their report on the Adelaide Football Club Limited (the Company) for the financial year
ended 31 October 2011.

Directors

The names of the directors in office at any time during or since the end of the year are:

R Chapman (Chairman) R L Foord (appointed 16
th
December 2010)
N J Smart (Deputy Chairman) J T Hazel (appointed 2
nd
November 2010)
P J Hurley G R Moulton (appointed 16
th
December 2010)
J S Sutton D L Miller (appointed 16
th
December 2010)
A J Payze
A McEvoy (retired 16
th
December 2010)
A G Sheppard (retired 16
th
December 2010)

Directors have been in office since the start of the financial year to the date of this report unless otherwise
stated.

Company Secretary

The following person held the position of Company Secretary at the end of the financial year:

S G Trigg

PrincipaI Activities

The principal activities of the Adelaide Football club during the financial year were the playing and promotion
of Australian Rules Football.

There were no significant changes in the nature of the principal activities during the financial year.

State of Affairs

No significant changes in the Company's state of affairs occurred during the financial year.

Operating ResuIts

The net profit from ordinary activities before depreciation and amortisation for the year ended 31 October
2011 was $385,686 (2010: $975,601).

Review of Operations

During the year the Company continued to engage in its principal activities, as described above, which also
includes the sale of merchandise from the shop, sponsorships, AFL distributions, membership, match day
and season ticket sales. The results of which are disclosed in the attached financial report.

After BaIance Date Events

No matters or circumstances have arisen since the end of the financial year which significantly affected or
may significantly affect the operations of the Company, the results of those operations or the state of affairs
of the Company in future financial years.

ADELAI DE FOOTBALL CLUB LI MI TED
di rector s report | For tHe YeAr eNded 31 octoBer 2011
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Page 2

DIRECTORS' REPORT

Future DeveIopments

The need to explore further income streams is a major consideration of the Board.

Further information about the likely developments in the operation of the Company and the expected results
of these operations in future financial years have not been included in this report because disclosure of the
information would be likely to result in unreasonable prejudice to the Company.

EnvironmentaI Issues

The directors have considered environmental regulations under the law of the Commonwealth and State.
The Company is unaware of any breaches to these regulations.

Information of Directors

ROBERT CHAPMAN
Appointed 15 December 2006; current term expires 2012

Current Position:
Chairman

Current Committees:
Executive
nvestment

Background:
Chief Executive Officer, St George Bank 2010 current
Managing Director, BankSA 2002 2010
President, Business SA 2005 2007
President, Committee of Economic Development of Australia 2003
2006
Catholic Church Diocesan Finance Council
2005 SA Great Award for Business
"Can do for Kids Ambassador

NIGEL SMART

Current Position:
Deputy Chairman

Current Committees:
Executive
Finance & Audit

Background:
National Sales & Marketing Manager Jobs Statewide / Excel
Recruitment/Rexco People 2008 current
naugural AFC player 1991-2004; played 310 AFL games
All Australian three times 1991, 1993, 1998
AFL & AFC Life Member

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DIRECTORS' REPORT

PETER HURLEY

Current Position:
Director

Current Committees:
Finance & Audit

Background:
Deputy Chairman, ndependent Gaming Corporation 1996 current
Chairman, Hospitality Group Training 1997 - current
Director, Australian Broadcasting Corporation 2006 - current
National President, AHA 1998-2000, 2010 - current
SA President, AHA 1994 current
Owner/Operator 10 hotels in South Australia
AFC Life Member

JOHN SUTTON

Current Position:
Director

Current Committees:
Finance & Audit (Chairman)
nvestment (Chairman)

Background:
Senior Consultant, PKF, Chartered Accountants & Business Advisors
Chairman, Rope & Plastic nternational Group of Companies
Director, Crows Foundation
Director, Accumalux Australia Pty Ltd
AFC Life Member
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DIRECTORS' REPORT
ANDREW PAYZE
Appointed 30 January 2001; current term expires 2012

Current Position:
Director

Current Committees:
List Management (Chairman)

Background:
Regional Sales Manager, HSBC Bank Australia Ltd (SA, WA, Vic)
Played 308 SANFL games
Represented SA on 6 occasions
Captain 1994 State Team
Premiership Player, Woodville West Torrens FC 1993
Life Governor of Woodville West Torrens FC
Vice Captain Woodville West Torrens FC 1994 1998
Vice Captain West Torrens 1988 1990
Played 14 games with Adelaide Football Club 1991 1993
SANFL & AFC Life Member

JAMES HAZEL
Appointed 2 November 2010; current term expires 2011

Current Position:
Director

Current Committees:
nvestment
Finance & Audit

Background:
Director Bendigo and Adelaide Bank Limited (ASX:BEN)
Director Rural Bank Limited
Director mpedimed Limited (ASX:PD)
Director Centrex Metals limited (ASX:CXM)
Director Motor Accident Commission
Chairman Xenome Limited
Chairman Gannon Retirement Fund
Board Member, Council on the Ageing (SA) nc.
Board Member, War Veterans' Homes (Myrtle Bank) nc.
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DIRECTORS' REPORT

ROBERT FOORD

Current Position:
Director

Current Committees:
nvestment
Membership Advisory
Commercial Projects

Background:
Chairman of Proud Australia Group of Companies
Chairman of Travel Auctions Australia Pty Ltd
Chairman of the South Australian Tourism Commission
Chairman of the Adelaide Entertainment Centre
Chairman of the John Fawcett Foundation / ndonesia
Board Member of the Australian Rainforest Foundation
A founding member and past Chairman of the SA chapter of ATEC
Past Board Member SA Travel Agency Licensing Board

DEBORAH MILLER

Current Position:
Director

Current Committees:
Marketing & Promotions
Commercial Projects

Background:
CEO Acuere 1991 current

Board/Committee member of:
Kimdan Finance Corporation
Owen Corporation Pty Ltd
Variety SA, The Childrens Charity
Golf SA
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DIRECTORS' REPORT

GREG MOULTON

Current Position:
Director

Current Committees:
Marketing & Promotions
Commercial Projects

Background:
CEO Brock Harcourts 2004 current
State Manager First National Real Estate 1997-2004
Managing Director Car Care SA 1996-1997
President, Real Estate nstitute of SA

STEVEN TRIGG
Appointed 1 December 2001
Current Position:
Chief Executive Officer

Current Committees:
All

Background:
Chief Executive Officer 2001 current
Membership/Communications Manager 1997 2001
SANFL League Player, Central District FC and North Adelaide FC
Captain Central District FC 1983 and 1984
SANFL League Coach, Sturt Football Club 1991 and 1992
Chairman, Said Housing Group Strategic Advisory Board
Director, Prostate Cancer Foundation Australia SA Chapter
"White Ribbon Ambassador
Sight for All Patron
MBA/BEd
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STATEMENT COMPREHENSIVE INCOME
Note 2011 2010
$ $
Football operations revenue 2 27,108,952 25,847,213
Net merchandise revenue 3 184,706 223,651
Grant revenue 2 824,400 869,257
Other revenue from operations 2 2,428,368 2,697,328
30,546,426 29,637,449
Employee benefits expense (19,307,479) (19,025,895)
Season ticket, AFL membership, and sponsorship expense (4,907,399) (4,728,341)
Football charges 4 (1,068,225) (1,156,734)
Travel and training expenses (490,898) (645,758)
Administration expenses (841,718) (734,448)
Marketing and advertising expense (339,944) (455,752)
Other expenses from ordinary activities (3,205,077) (1,914,920)
Net Profit/(Loss) from operating activities before depreciation
and amortisation 385,686 975,601
Depreciation and amortisation expense (996,628) (988,474)
Net Profit/(Ioss) for the year (610,942) (12,873)
Other comprehensive income - -
TotaI comprehensive income for the year (610,942) (12,873)
The accompanying notes form part of these financiaI statements.
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stAtemeNt oF compreHeNsi ve i Ncome | For tHe YeAr eNded 31 octoBer 2011
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STATEMENT OF FINANCIAL POSITION
AS AT 31 OCTOBER 2011
Note 2011 2010
$ $
CURRENT ASSETS
Cash and cash equivalents 5 464,537 195,812
Trade and other receivables 6 846,151 739,310
nventories 7 391,639 184,453
Other current assets 8 324,318 49,186
TOTAL CURRENT ASSETS 2,026,645 1,168,761
NON-CURRENT ASSETS
Property, plant and equipment 9 21,763,853 22,378,270
TOTAL NON-CURRENT ASSETS 21,763,853 22,378,270
TOTAL ASSETS 23,790,498 23,547,031
CURRENT LIABILITIES
Trade and other payables 10 1,580,269 1,126,621
Unearned income 11 50,771 78,727
Borrowings 12 2,670,724 2,230,724
Short-term provisions 13 755,918 683,866
CURRENT LIABILITIES 5,057,682 4,119,938
NON-CURRENT LIABILITIES
Long-term provisions 13 113,638 196,973
TOTAL NON-CURRENT LIABILITIES 113,638 196,973
TOTAL LIABILITIES 5,171,320 4,316,911
NET ASSETS 18,619,178 19,230,120
EQUITY
ssued capital 14 2 2
Reserves 15 371,615 371,615
Retained earnings 18,247,561 18,858,503
TOTAL EQUITY 18,619,178 19,230,120
The accompanying notes form part of these financiaI statements
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stAtemeNt oF Fi NANci AL posi ti oN | For tHe YeAr eNded 31 octoBer 2011
STATEMENT OF CASH FLOWS
Note 2011 2010
$ $
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts in the course of operations 30,341,469 29,908,675
Payments in the course of operations (29,934,986) (28,672,402)
nterest received 70,160 31,914
nterest paid (53,045) (37,594)
Net cash provided by operating activities 423,598 1,230,593
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment (612,237) (657,069)
Proceeds from the sale of plant and equipment 17,364 -
Net cash used in investing activities (594,873) (657,069)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings 2,500,000 2,000,000
Repayment of borrowings (2,060,000) (2,560,000)
Net cash used in financing activities 440,000 (560,000)
Net increase/(decrease) in cash held 268,725 13,524
Cash at the beginning of the financial year 195,812 182,288
Cash at the end of the financiaI year 5(a) 464,537 195,812
The accompanying notes form part of these financiaI statements.
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stAtemeNt oF cAsH FLoWs | For tHe YeAr eNded 31 octoBer 2011
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STATEMENT OF CHANGES IN EQUITY
Issued Retained
CapitaI Reserves Earnings TotaI
$ $ $ $
BaIance at 1 November 2009 2 371,615 18,871,376 19,242,993
Total comprehensive income for the year - - (12,873) (12,873)
BaIance at 31 October 2010 2 371,615 18,858,503 19,230,120
Total comprehensive income for the year - - (610,942) (610,942)
BaIance at 31 October 2011 2 371,615 18,247,561 18,619,178
The accompanying notes form part of these financiaI statements
Page 12
stAtemeNt oF cHANGes i N eQUi tY | For tHe YeAr eNded 31 octoBer 2011
NOTES TO THE FINANCIAL STATEMENTS
NOTE 1 - STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
The financial report is a general purpose financial report that has been prepared in accordance
with Australian Accounting Standards Reduced Disclosure Requirements (including Australian
Accounting nterpretations), other authoritative pronouncements of the Australian Accounting
Standards Board and the Corporations Act 2001.
Adelaide Football Club Limited is a Company limited by guarantee, incorporated and domiciled in
Australia.
The financial statements were authorised for issue by the directors on 9 December 2011.
Basis of preparation
The financial statements have been prepared on an accruals basis and are based on historical
costs modified by the revaluation of selected non-current assets and financial instruments for which
the fair value basis of accounting has been applied.
The financial report has been prepared on an accruals basis and is based on historical costs,
modified, where applicable, by the measurement at fair value of selected non-current assets,
financial assets and financial liabilities.
Adoption of new and revised accounting standards
n the current year, the Company has adopted all of the new and revised Standards and
nterpretations issued by the Australian Accounting Standards Board that are relevant to its
operations and effective for the current annual reporting period. The 2010 comparatives contained
in these financial statements therefore differ from those published in the financial statements for
the year ended 31 October 2010 as described below.
Significant effects on current, prior or future periods arising from the first-time application of the
standards discussed above in respect of presentation, recognition and measurement of accounts
are described in the following notes:
AASB 2009-5: Further Amendments to Australian Accounting Standards arising from the
Annual Improvements Project [AASB 5, 8, 101, 107, 117, 118, 136 & 139] (applicable for
annual reporting periods commencing from 1 January 2010).
This Standard made amendments to various AASB Standards including AASB 101: Presentation of
Financial Statements and AASB 107: Statement of Cash Flows.
The amendments to some Standards resulted in accounting changes for presentation, recognition
or measurement purposes, while some amendments only related to terminology and editorial
changes.
Adoption of AASB 1053 Application of Tiers of Australian Accounting Standards and AASB
2010-2 Amendment to Australian Accounting Standards arising from Reduced Disclosure
Requirements
Adelaide Football Club Limited has adopted the new Australian Accounting Standard - Reduced
Disclosure Requirements in these financial statements which has resulted in a significant reduction
in disclosures compared to those required under full AASB disclosure requirements applicable in
prior years.
The following is a summary of the material accounting policies adopted by the Company in the
preparation of the financial statements. The accounting policies have been consistently applied,
unless otherwise stated.
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Notes to tHe Fi NANci AL stAtemeNts | For tHe YeAr eNded 31 octoBer 2011
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afc. com. au | 15 ADELAIDE FOOTBALL CLUB LIMITED
NOTE 1 - STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
Accounting PoIicies
(a) Property, pIant and equipment
Each class of property, plant and equipment is measured on the cost basis less any
accumulated depreciation and impairment losses.
PIant and equipment
Plant and equipment is measured on the cost basis less depreciation and impairment losses
The carrying amount of property, plant and equipment is reviewed annually by directors to
ensure it is not in excess of the recoverable amount. The recoverable amount is assessed
on the basis of the expected net cash flows which will be received from the assets
employment and subsequent disposal. The expected net cash flows have been discounted
to their present values in determining recoverable amounts.
Subsequent costs are included in the asset's carrying amount or recognised as a separate
asset, as appropriate, only when it is probable that future economic benefits associated with
the item will flow to the entity and the cost of the item can be measured reliably. All other
repairs and maintenance are charged to the statement of comprehensive income during the
financial period in which they are incurred.
Depreciation
The depreciable amount of all fixed assets including buildings is depreciated using a
combination of straight line and diminishing value methods commencing from the time the
asset is held ready for use. Leasehold improvements are depreciated over the shorter of
either the unexpired period of the lease or the estimated useful lives of the improvements.
The depreciation rates used for each class of depreciable assets are:
Rate
Plant and equipment 20-50%
Buildings on leasehold land 5-6.3%
Buildings 5%
Motor vehicles 20%
Player Facilities 2.5%
The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at
each balance sheet date.
An asset's carrying amount is written down immediately to its recoverable amount if the
asset's carrying amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with the carrying
amount. These gains or losses are included in the statement of comprehensive income.
(b) Inventories
nventories are measured at the lower of cost and net realisable value. nventory held for re-
sale is recognised on a last purchase price.
(c) Income tax
No income tax is payable as the company is an exempt sporting organisation in accordance
with Section 50-45 of the ncome Tax Assessment Act 1997.
Straight line
Basis of
Depreciation
Straight line
Straight line
Straight line
Diminishing value
Page 14
NOTE 1 - STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONT)
(d) FinanciaI instruments
InitiaI recognition and measurement
Financial assets and financial liabilities are recognised when the Company becomes a party
to the contractual provisions to the instrument. For financial assets, this is equivalent to the
date that the Company commits itself to either purchase or sell the asset (ie trade date
accounting is adopted). Financial instruments are initially measured at fair value plus
transactions costs except where the instrument is classified 'at fair value through profit or
loss' in which case transaction costs are expensed to profit or loss immediately.
CIassification and subsequent measurement
Finance instruments are subsequently measured at either fair value, amortised cost using the
effective interest rate method or cost. Fair value represents the amount for which an asset
could be exchanged or a liability settled, between knowledgeable, willing parties. Where
available, quoted prices in an active market are used to determine fair value. n other
circumstances, valuation techniques are adopted.
(i) Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable
payments that are not quoted in an active market and are stated at cost using the effective
interest rate method.
(ii) Financial liabilities
Non-derivative financial liabilities are recognised at amortised cost, comprising original debt
less principal payments and amortisation.
Impairment
At each reporting date, the Company assesses whether there is objective evidence that a
financial instrument has been impaired. mpairment losses are recognised in the statement of
comprehensive income.
Derecognition
Financial assets are derecognised where the contractual rights to receipt of cash flows
expires or the asset is transferred to another party whereby the entity no longer has any
significant continuing involvement in the risks and benefits associated with the asset.
Financial liabilities are derecognised where the related obligations are either discharged,
cancelled or expired. The difference between the carrying value of the financial liability, which
is extinguished or transferred to another party and the fair value of consideration paid, including
the transfer of non-cash assets or liabilities assumed, is recognised in profit or loss.
(e) EmpIoyee benefits
Wages, saIaries and annuaI Ieave
Provision is made for the Company's liability for employee benefits arising from services
rendered by employees to balance sheet date. Employee benefits expected to be settled
within one year together with benefits arising from wages, salaries and annual leave which
may be settled after one year, have been measured at the amounts expected to be paid
when the liability is settled. Other employee benefits payable later than one year have been
measured at the net present value.
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(e) EmpIoyee benefits (Cont)
Long service Ieave
The provision for employee benefits for long service leave represents the present value of
the estimated future cash outflows to be made resulting from employees' services provided
up to reporting date.
The provision is calculated using expected future increases in wage and salary rates
including related on-costs and expected settlement dates based on turnover history and is
discounted using the rates attaching to national government securities at balance date
which most closely match the terms of maturity of the related liabilities. The unwinding of the
discount is treated as long service leave expense.
n 2003 the AFL announced an agreed Player Long Service Leave policy which was ratified
by the AFL Players Association and the ndustrial Relations Commission. AFL Players will
have an annual long service leave entitlement built into the end of season break, based on
the number of years service. An AFL Player with greater than 4 years continuous service,
but less than 8 years will be entitled to 1 week additional entitlement and a player with
greater than 8 years continuous service will be entitled to 2 weeks.
The Company continues to recognise an accrual for long service leave in accordance with
the Long Service Leave Act 1987 (SA) for players with greater than 7 years service prior to
the establishment of the above AFL policy (2 September 2002). Prior to this agreement
players with greater than 7 years service accrued between 5 - 8 days long service leave per
season. The terms of these agreements between the Company and individual players
regarding long service leave entitlements are now superseded by the new AFL policy.
Superannuation
Contributions are made by the Company to an employee superannuation fund and are
charged as expenses when incurred.
(f) Impairment of assets
At each reporting date, the Company reviews the carrying value of its assets to determine
whether there is any indication that those assets have been impaired. f such an indication
exists, the recoverable amount of the asset, being the higher of the asset's fair value less
costs to sell and value in use, is compared to the asset's carrying value. Any excess of the
asset's carrying value over its recoverable amount is expensed to the statement of
comprehensive income.
Where it is not possible to estimate the recoverable amount of an assets class, the
Company estimates the recoverable amount of the cash-generating unit to which the class
of assets belong.
(g) Cash and cash equivaIents
Cash and cash equivalents include cash on hand, deposits held at call with banks, other
short-term highly liquid investments with original maturities of three months or less. Bank
overdrafts are recognised within short-term borrowings on the statement of financial position.
(h) Provisions
Provisions are recognised when the Company has a legal or constructive obligation, as a
result of past events, for which it is probable that an outflow of economic benefits will result
and that outflow can be reliably measured. Provisions recognised represent the best estimate
of the amounts required to settle the obligation at reporting date.
Page 16
(i) Trade and other payabIes
These amounts represent the liability outstanding for goods and services provided to the
Company prior to the end of the financial year which are unpaid. The balance is recognised
as a current liability with the amount being normally paid within 30 days of recognition of the
liability.
(j) Revenue received in advance
Sponsorship revenue received relating to subsequent accounting periods is brought to
account as revenue received in advance.
(k) PIayer acquisition costs
Player acquisition costs are written off in the year they are incurred as uncertainty exists as
to the term over which the benefit will be received.
(I) Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of assets
that necessarily take a substantial period of time to prepare for their intended use or sale, are
added to the cost of those assets, until such time as the assets are substantially ready for
their intended use or sale.
All other borrowing costs are recognised in the statement of comprehensive income in the
period in which they are incurred.
(m) Revenue
Revenue from the sale of goods is recognised at the point of delivery as this corresponds to
the transfer of significant risks and rewards of ownership of the goods and the cessation of all
investment in those goods.
(GST)All revenue is stated net of the amount of goods and services tax.
SaIes revenue
Sales revenue from football activities comprises revenue earned from the sales of
memberships, corporate marketing, sponsorships, the sale of merchandise, gate receipts
and AFL distributions.
AFL distribution and prize money
AFL distribution and prize money income are recognised as they are received.
Membership and match day income
Membership income is recognised throughout the duration of the AFL Home and Away
season. Match day income is recognised at the conclusion of each AFL home game.
Sponsorship income
Sponsorship income is recognised in the statement of comprehensive income in proportion to
the state of completion of the transaction at balance date in accordance with the terms and
conditions of the sponsorship contract.
(n) Government grants
Government grants are recognised at fair value where there is reasonable assurance that the
grant will be received and all grant conditions will be met. Grants relating to expense items
are recognised as income over the periods necessary to match the grant to the costs they
are compensating.
Capital grants relating the construction or acquisition of assets are initially deferred as
unearned revenue and are recognised as revenue in the period in which all grant conditions
are met.
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(o) Goods and services tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the
amount of GST incurred is not recoverable from the Australian Tax Office (ATO). n these
circumstances the GST is recognised as part of the cost of acquisition of the asset or as part
of an item of the expense. Receivables and payables in the balance sheet are shown
inclusive of GST.
Cash flows are presented in the statement of cash flows on a gross basis, except for the
GST component of investing and financing activities, which are disclosed as operating cash
flows.
The net amount of GST recoverable from, or payable to, the ATO is included as a current
asset or liability in the balance sheet.
Cash flows are included in the statement of cash flows on a gross basis. The GST
components of cash flows arising from investing and financing activities which are
recoverable from, or payable to, the ATO are classified as operating cash flows.
(p) Comparative figures
When required by Accounting Standards, comparative figures have been adjusted to
conform to changes in presentation for the current financial year.
When the Company applies an accounting policy retrospectively, makes a retrospective
restatement or relcassifies items in it's financial statements, a statement of financial position
as at the beginning of earliest comparative period will be disclosed.
(q) CriticaI accounting estimates and judgements
The director evaluate estimates and judgements incorporated into the financail report based
on historical knowledge and best available current information. Estimates assume a
reasonable expectation of future events and are based on current trends and economic
data, obtained both from within the Company and externally. Actual results may be different
from these estimates.
(o) New accounting standards for appIication in future periods
AASB 9 Financial Instruments and AASB 2009-11 Amendments to Australian
Accounting Standards arising from AASB 9 (Effective from 1 January 2013)
AASB 9 introduces new requirements for the classification and measurement of financial
assets and liabilities. AASB 9 uses a single approach to determine whether a financial asset
is measured at amortised cost or fair value, replacing the many different rules in AASB 139
and removes the impairment requirement for financial assets held at fair value.
n addition, the majority of requirements from AASB 139 for the classification and
measurement of financial liabilities has been carried forward unchanged, except in relation
to own credit risk where an entity takes the option to measure financial liabilities at fair
value. AASB 9 requires the amount of the change in fair value due to changes in the entity's
own credit risk to be presented in other comprehensive income (OC), unless there is a
accounting mismatch in the profit or loss, in which case all gains or losses are to be
presented in the profit or loss.
The amendment is not expected to have any impact on the Company's financial statements.
AASB 124 Related Party Disclosures and AASB 2009-12 Amendments to Australian
Accounting Standards arising from AASB 124 (Effective from 1 January 2011)
The amendment clarifies and simplifies the definition of a related party and removes the
requirement for government-related entities to disclose details of all transactions with the
government and other government-related entities. The Company will apply the amended
standard from 1 November 2011.
Page 18
(p) Impact of the Carbon Tax LegisIation
On 10 July 2011, the Commonwealth Government announced the "Securing a Clean Energy
Future the Australian Government's Climate Change Plan. Whilst the announcement
provides further details of the framework for a carbon pricing mechanism, uncertainties
continue to exist on the impact of any carbon pricing mechanism on the Company as
legislation must be voted on and passed by both Houses of Parliament. n addition, as the
Company will not fall within the "Top 500 Australian Polluters, the impact of the Carbon
Scheme will be through indirect effects of increased prices on many production inputs and
general business expenses as suppliers subject to the carbon pricing mechanism are likely to
pass on their carbon price burden to their customers in the form of increased prices. Directors
expect that this will not have a significant impact upon the operation costs within the business,
business.
2011 2010
$ $
NOTE 2 - REVENUE
The following significant revenue items are relevant in explaining the financial
performance of the Company:
FootbaII operations revenue
Season ticket sales and AFL membership 7,978,419 6,968,322
Sponsorship and fundraising 9,490,059 9,723,056
AFL sourced revenue 7,382,004 7,129,499
Corporate boxes and reserved seating 1,157,438 968,349
Membership income 1,101,032 1,057,987
TotaI footbaII operations revenue 27,108,952 25,847,213
Grant revenue
Player facility development grants 144,800 269,257
SANFL player facility grant 600,000 600,000
Other grants 79,600 -
TotaI grant revenue 824,400 869,257
Other revenue from operations
nterest income 70,160 31,914
Sundry income 853,751 809,373
Westpac Centre 1,504,457 1,856,041
TotaI other revenue from operations 2,428,368 2,697,328
NOTE 3 - NET MERCHANDISE REVENUE
Revenue from sale of merchandise 846,018 891,266
Cost of goods sold (661,312) (667,615)
Net merchandise revenue 184,706 223,651
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2011 2010
$ $
NOTE 4 - PROFIT/(LOSS) FOR THE PERIOD
Expenses
SANFL licence fee 619,030 600,100
Football levies 449,195 556,634
TotaI footbaII charges 1,068,225 1,156,734
NOTE 5 - CASH AND CASH EQUIVALENTS
Cash on hand 13,000 15,000
Cash at bank 451,537 180,812
464,537 195,812
(a) ReconciIiation of cash:
Cash at the end of the financial year as shown in the Statement of Cash
Flows is reconciled to items in the Statement of Financial Position as follows:
Cash and cash equivalents 464,537 195,812
Bank overdrafts - -
464,537 195,812
NOTE 6 - TRADE AND OTHER RECEIVABLES
CURRENT
Trade receivables 813,646 759,310
Provision for impairment of receivables (20,000) (20,000)
793,646 739,310
GST receivable 52,505 -
846,151 739,310
Page 20
2011 2010
$ $
NOTE 7 - INVENTORIES
Merchandise 391,639 184,453
NOTE 8 - OTHER CURRENT ASSETS
Prepayments 324,318 49,186
NOTE 9 - PROPERTY, PLANT AND EQUIPMENT
Land - -
Buildings on leasehold land - at cost 2,510,442 2,510,442
Less accumulated depreciation (1,330,364) (1,190,246)
1,180,078 1,320,196
Buildings - at cost 429,562 429,562
Less accumulated depreciation (96,651) (75,173)
332,911 354,389
Player facility - at cost 20,061,772 20,061,772
Less accumulated depreciation (1,003,088) (501,544)
19,058,684 19,560,228
Plant and equipment - at cost 2,410,478 2,185,612
Less accumulated depreciation (1,339,680) (1,077,985)
1,070,798 1,107,627
Motor vehicles - at cost 144,544 71,772
Less accumulated depreciation (23,162) (35,942)
121,382 35,830
21,763,853 22,378,270
The Company leases the land on which the Administration Building and Player Facility are situated from
the SANFL (Ultimate Parent Entity). This lease is due to expire in 2048.
Page 21
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NOTE 9 - PROPERTY, PLANT AND EQUIPMENT (CONT)
(a) Movement in carrying amounts
Movement in carrying amounts for each class of property, plant and equipment between the
beginning and the end of the current financial year:
BuiIdings on BuiIdings
Motor BuiIdings LeasehoId PIayer PIant and
Land vehicIes at cost Iand faciIity equipment TotaI
$ $ $ $ $ $ $
Opening balance - 35,830 354,389 1,320,196 19,560,228 1,107,627 22,378,270
Additions - 100,000 - - - 512,237 612,237
Donation of land 265,000 - - - - - 265,000
Disposals (265,000) (3,970) - - - (226,056) (495,026)
Depreciation - (10,478) (21,478) (140,118) (501,544) (323,010) (996,628)
Carrying amount at the
end of the year - 121,382 332,911 1,180,078 19,058,684 1,070,798 21,763,853
2011 2010
$ $
NOTE 10 - TRADE AND OTHER PAYABLES
CURRENT
Trade payables 1,398,097 924,235
Accrued Expenses 182,172 165,004
GST liabilities - 37,382
1,580,269 1,126,621
NOTE 11 - UNEARNED INCOME
Revenue received in advance 50,771 78,727
NOTE 12 - BORROWINGS
(a) CURRENT
Commercial bills (Westpac Bank) 2,500,000 2,000,000
SANFL loan 170,724 230,724
2,670,724 2,230,724
The effective interest rate on short term borrowings was 5.5% (2010: 5.3%).
Bank debt is secured by a registered first mortgage over all the assets and uncalled capital of the
comapny. The covenants imposed by the bank require borrowing costs not to exceed 1.25 times
of profit from ordinary activities before finance costs. The company was not in breach of any loan
agreements permitting to the lender at year end, nor did any breach occur during the year.
Page 22
24 | afc. com. au
2011 2010
$ $
NOTE 12 - BORROWINGS (CONT)
(b) Loan faciIities
Loan facility 2,800,000 3,150,000
Amounts utilised 2,500,000 2,000,000
300,000 1,150,000
The major facilities are summarised as follows:
At 31 October 2011 the Company had a commercial bill facility from Westpac Bank of
$2,800,000 for working capital, secured by a fixed and floating charge over the Company's
assets and uncalled capital.
The commercial bills outstanding as at 31 October 2011 are due for repayment or rollover on
30 November 2011, 28 December 2011 and 11 January 2012.
2011 2010
$ $
NOTE 13 - PROVISIONS
CURRENT
Annual leave 243,281 254,453
Long service leave 512,637 429,413
755,918 683,866
NON-CURRENT
Long service leave 113,638 196,973
NOTE 14 - ISSUED CAPITAL
2 fully paid ordinary shares (2010: 2) 2 2
Ordinary shares do not have any voting rights.
The Company is limited by guarantee. f the Company is wound up, the Articles of Association state
that each member is required to contribute any sums unpaid on shares held towards meeting any
outstanding obligations of the Company. At 31 October 2011 there are two members.
Page 23
afc. com. au | 25
2011 2010
$ $
NOTE 15 - RESERVES
Establishment reserves 371,615 371,615
NOTE 16 - KEY MANAGEMENT PERSONNEL COMPENSATION
The following persons were directors of the Adelaide Football Club Limited at any time during the year:
Chairman Deputy Chairman
R Chapman N J Smart
Directors
P J Hurley
G R Moulton (appointed 16
th
December 2010)
J S Sutton
D L Miller (appointed 16
th
December 2010)
A J Payze
R L Foord (appointed 16
th
December 2010)
A McEvoy (retired 16
th
December 2010) J T Hazel (appointed 2
nd
November 2010)
A G Sheppard (retired 16
th
December 2010)
No director, directly or indirectly, received any remuneration from the Company for services as a director
during the year.
The following persons were key management personel of the Adelaide Football Club Limited at any time
during the year:
S G Trigg - Chief Executive Officer
G Rutherford - G.M. Finance and Administration
P Harper - G.M. Football Operations
C Burton - G.M. People and Communications
D Grenvold - G.M. Sales and Services
Key management personneI compensation
Short-term benefits 1,007,000 1,026,000
Superannuation 90,630 92,340
Total compensation 1,097,630 1,118,340
Page 24
NOTE 17 - RELATED PARTY TRANSACTIONS
Transactions between the Company and related parties are on normal commercial terms no more
favourable than those available to other external parties.
Transactions with reIated parties:
(a) Directors
Mr R Chapman, the Chairman of the Company received an allowance for the reimbursement
of expenses. This allowance is in line with allowances paid to persons holding similar positions
to that of the Chairman.
Mr R Chapman was appointed Chief Executive of St George Banking Group on 1 December
2010 and was exercising the function of the Chief Executive from 1 October 2010. This role
forms part of the Executive Team for the Westpac Group. The Adelaide Football Club Limited
currently holds bank accounts with Westpac Bank and the Westpac Bank is a sponsor of the
Adelaide Football Club. Net interest (received)/paid and fees for the year were $47,180. All
commercial banking transactions are on an arm's length basis.
During the year the directors purchased club membership and coterie packages, finals tickets,
attended Club functions, made donations and contributed towards fundraising auctions. The
terms and conditions of the transactions with the directors and their director related entities
were no more favourable than those available, or which might be reasonably expected to be
available, on similar transactions to non-director related entities on an arm's length basis.
2011 2010
(Income)/Expenses from Director ReIated Entities: $ $
Hurleys Arkaba Hotel Pty Ltd - 340
Port Lincoln Hotel 2,478 4,822
Alma Hotel 286 5,079
BankSA - 38
Excel Recruitment 889 -
Motor Accident Commission (82,500) -
Brock Harcourts (27,651) -
P and J Hurley Pty Ltd (87,450) -
(b) UItimate Parent Entity - South AustraIian NationaI FootbaII
Inc (SANFL)
The Company has entered into the following transactions with the SANFL
Net goods and services* (1,229,956) (2,635,669)
Sub-Licence fee 619,030 601,000
Northern Grandstand Contribution 600,000 600,000
* Represents net income from the SANFL for the purpose of promotion of the game (including
memberships, catering for coiterie guests etc) excluding the sub-licence fee and the Northern
Grandstand contribution.
(c) Net Amounts ReceivabIe From / (PayabIe to) ReIated Entities
Ultimate Parent Company
SANFL nc (452,782) (302,432)
Net receivabIe / (payabIe) (452,782) (302,432)
Page 25
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NOTE 18 - CAPITAL AND LEASING COMMITMENTS
(a) PIayer and coaching remuneration contracts
The Company negotiates individual contracts of varying length and terms for each of the football
players and coaching staff. Certain players are entitled to receive base payments regardless of
their level of performance or number of games played, as well as entitlements should player
employment contracts be terminated before expiry. Selected coaching staff are also entitled to
performance related payments. As contract terms in this regard vary considerably, with some
future payments dependent upon number of matches played, level of performance, whether
players remain on approved lists and early termination, it is not practical to estimate the total
future commitments or contingencies under playing and coaching contracts. However, base
contractual commitments are as follows:
2011 2010
$ $
Payable
- not later than 12 months 7,270,158 6,398,900
- between 12 months and 5 years 4,286,767 3,441,900
11,556,925 9,840,800
(b) SANFL Sub-Licence Fee (i)
The Company has a sub-licence agreement with the SANFL, which
effectively leases the AFL licence to the Company.
Payable
- not later than 12 months 525,000 619,029
- between 12 months and 5 years 1,050,000 -
1,575,000 619,029
The terms of the agreement, including fee arrangements
are under re-negotiations.
(c) AAMI Stadium Grandstand Contribution (i)
Payable
- not later than twelve months - 600,000
- between twelve months and five years - 2,400,000
- 3,000,000
(i) The existing sub-licence expired on the 31 October 2011. As part of the new agreement
for the 2012-2014 seasons, a sub-licence fee of $525,000 per year is payable until the
end of the 2014 financial year. Also as part of the agreement there will be no Northern
Grandstand fee payable to the SANFL.
Page 26
NOTE 19 - CONTINGENT ASSETS AND LIABILITIES
There were no contingencies facing the Company as at the 31 October 2011 that have not been
brought to account in the financial report.
NOTE 20 - EVENTS AFTER BALANCE SHEET DATE
No matters or circumstances have arisen since the end of the financial year which significantly
affected or may significantly affect the operations of the Company, the results of those operations, or
the state of affairs of the Company in future financial years.
NOTE 21 - COMPANY DETAILS
The registered office and principal place of business of the Company is:
Adelaide Football Club Ltd
West Lakes Boulevard
WEST LAKES SA 5021
Page 27
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di rectors decLArAti oN | For tHe YeAr eNded 31 octoBer 2011
30 | afc. com. au
afc. com. au | 31

2011 Adelaide Annual Report

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2011 Adelaide Annual Report

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ADELAIDE FOOTBALL CLUB LIMITED

ADELAIDE FOOTBALL CLUB LIMITED

ADELAIDE FOOTBALL CLUB LIMITED

ADELAIDE FOOTBALL CLUB LIMITED

ADELAIDE FOOTBALL CLUB LIMITED

ADELAIDE FOOTBALL CLUB LIMITED

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