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Port Adelaide releases snapshot of financial results from past year, announces $510,000 net profit

Port Adelaide has announced a net profit from continuing operations of $510,000, and paid off $1 million in debt to the AFL. But, is it all smooth sailing financially at Alberton?

Port Adelaide paid $1 million off its big debt to the AFL in 2019.

But the Power were spared from recording a potential $1.3 million loss for 2019 after another “positive revaluation” of the club’s land and buildings helped balance its books.

The club has endured consistent speculation about the state of its finances in 2019 amid attendances at Adelaide Oval taking a hit and a potential mass drop-off in members.

Port is also one of just a handful of clubs that is still on an AFL financial “watchlist”, as 90 per cent of the competition’s other franchises expect to make cash profits.

On Thursday, the Power, in a snapshot of its finances, announced it had made a net profit from continuing operations of $512,092 for the financial year ending on October 31, and had also paid $1 million off its debt to the AFL.

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Port Adelaide chairman David Koch said there were challenges in 2019 financially for Port Adelaide. Picture: AAP Image/Kelly Barnes
Port Adelaide chairman David Koch said there were challenges in 2019 financially for Port Adelaide. Picture: AAP Image/Kelly Barnes

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That debt now stands at just over $7 million, something chairman David Koch said showed that Port was on the right track ahead of its 150th year.

“On one hand our returns from membership and through attendances at Adelaide Oval were down, while from a commercial perspective we welcomed Sanjeev Gupta and the team at GFG as our co-major partner, in the first year of what we see as a generational partnership,” Koch said.

“Significantly, we also continued to increase our returns from our China operations and delivered another quality game experience in year three of our Shanghai venture.

“Importantly, we also paid down one million dollars of debt to the AFL, reducing our debt to just over seven million dollars at the end of the financial year.”

Port Adelaide’s Scott Lycett, chairman David Koch, Trent McKenzie and Cam Sutcliffe with the guernseys the Power will wear in season 2020. Picture: Sarah Reed
Port Adelaide’s Scott Lycett, chairman David Koch, Trent McKenzie and Cam Sutcliffe with the guernseys the Power will wear in season 2020. Picture: Sarah Reed

But after account depreciation and a series of “restructuring costs”, Port incurred a loss of $689,518.

This could have been almost doubled, but the Power said it was “mitigated by a revaluation gain” of $636,004 on its land and buildings and the first stage of the club’s memorabilia catalogue and review process - to the tune of $534,000.

This has allowed the club to report a total comprehensive income of $480,486 - increasing the net asset position of the club to $7.69 million, a rise of nearly $500,000.

This mirrors what happened in 2018 when Port initially incurred a loss of $987,321 - up from $21,389 in 2017 - before a revaluation of $4.16 million on its land and buildings allowed it to record a net profit from continuing operations of $322,013.

This was down from the $999,464 the club recorded in its 2017 financial report.

The full set of accounts will be available to members at Port Adelaide’s Annual General Meeting at Alberton on January 31.

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Original URL: https://www.adelaidenow.com.au/sport/afl/teams/port-adelaide/port-adelaide-releases-snapshot-of-financial-results-from-past-year-announces-510000-net-profit/news-story/ac65359f5c24c12d0b0ec11c70e5486e