Glenelg battles $3m debts, might not field a team in 2017

GLENELG Football Club says it may not be able to field a team in 2017 if it does not turn around its dire finances, which include debts of $3 million.

Glenelg Football Club players LtoR: Christian Howard 24, Ben Edwards 20 and Jake Johansen 19 with Nick Chigwidden (President) at Glenelg Oval. Glenelg Football Club's financial situation is pretty dire and they are calling on supporters to get behind the club this year. 19/02/16 Picture: Stephen Laffer

GLENELG Football Club says it may not be able to field a team in 2017 if it does not turn around its dire finances, which include debts of $3 million.

Tigers president Nick Chigwidden has called on fans to turn out in force and support the club, which this week revealed a $208,850 loss for 2015.

Glenelg is battling debts of $2.2 million owed to Holdfast Bay Council and $1 million to ANZ Bank. Chigwidden said the club needed to take “drastic action” to improve its finances.

Asked if the Tigers would struggle to field a team in 2017 if the situation did not improve, Chigwidden said: “It’s a bit of a what-if ... but the worst-case scenario, you’d say yes.

“Will it get to that? I certainly hope not and wouldn’t think so. But you’ve got to look at reality. If you don’t get revenues in and control things properly ... your creditors will only support you so long. We’re in a very tight position, we’ll be the first to say that, and we’re working through it. Ultimately, we’ve got to get rid of our debt and then we’ll be fine.”

Glenelg’s football operations recorded a $275,803 loss last season, while its off-field activities, including hospitality, made a $66,953 profit.

Chigwidden said the club’s on-field struggles, which included wooden spoons in 2013 and 2014 and a ninth-placed finish last year, had hurt its membership numbers. Home attendances were down about four per cent last year, from a total of 33,211 in 2014 to 31,982.

Chigwidden said the Tigers spent heavily on promotion, marketing and wages in rebranding its venue, the Glenelg Club, to appeal to the wider community.

That led to a spike in patronage and a $374,000 increase in bar and kitchen takings from the previous year.

“Are the doors going to shut next week? No,” Chigwidden said. “But if we don’t address these issues going forward, it’s always going to be a possibility.

“We don’t want to be in that situation. We want to make sure the club is financially stable, sustainable and can reinvest more in the community.

“I’m hoping in 12 months’ time we’re sitting here in a lot better position but I don’t think we will be unless we get people behind us, helping us.”

Chigwidden, a former Tigers captain, said the club’s financial plans included:

IMPLEMENTING a debt demolition strategy.

OPERATING its dining venue more efficiently.

CONVERTING more supporters into members.

CUTTING back the club’s opening hours from 8am-2am to 9am to midnight.

Glenelg will receive $125,000 from the SANFL in October as part of the first instalment of payments from the sale of Football Park, which it will use to reduce debt.

The Tigers will receive $2 million from the sale of Football Park over seven seasons.

New Glenelg chief executive Glenn Elliott denied media reports the club was on the brink of insolvency, saying it was “tracking very well” on revised budgets.

Chigwidden said the club would cut football department costs — possibly in junior development — but would not compromise its chances of success at league level.

“Our No. 1 priority from a football side of things is to win games of football — our members have been starved of that in recent years. We want to keep building those juniors up and they’ve been fantastic for us but can we maintain them at the levels we have been?”

He said the club did not sugar-coat the financial battle it was facing to members at this week’s annual general meeting. Glenelg officials will outline its financial plan to the council next month.

“That $2 million (owed) to the council, we’ve got to work with them and look at strategies to hopefully find some way they can support us with it,” Chigwidden said. He was “very comfortable” the club could make a profit in 2016.

“Glenelg has never really put its hand out to members and the supporter base, asking them to help us,” he said. “We’re a proud club but we absolutely need the support.

“These are tough times but times we can come out of in a lot better position, I’ve got no doubt about that.”