St Kilda, Melbourne latest clubs to announce huge financial loss for 2020 because of COVID-19

Two more AFL clubs have recorded heavy losses during the COVID-hit 2020 season but the damage could have been worse.

Melbourne and St Kilda were also impacted by COVID. Picture: Getty Images via AFL Photos

St Kilda has announced an almost $1 million loss for the last financial year.

The net loss of $963,106 follows the devastating financial impact of COVID-19 and comes despite the Saints’ record-breaking membership of 48,775.

The club’s overall debt increased by about $1.7 million, in part because of the decision to defer the first instalment of 2021 membership subscriptions.

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St Kilda chief executive Matt Finnis thanked the club’s members for their support.

“Thousands pledged their commitment (and) a significant number purchased memberships for those who could no longer afford it,” Finnis said.

“Others donated additional funds to ensure the club survived one of the biggest challenges in its 147-year history.”

Melbourne also announced an operating loss of $2.9 million for the year, but eliminated its debt and retained almost $1.7 million in cash reserves to remain an “unassisted” AFL club.

The financial hit owed to a dramatic $17.9 million decline in revenue as a result of COVID-19.

Demons CEO Gary Pert said the loss wasn’t as bad as they feared at the start of the pandemic.

“The Demon faithful showed unparalleled loyalty during 2020,” Pert said.

“There is no doubt that we are disappointed to be announcing a loss. However, we have made some significant steps in eliminating our debt, and our strong balance sheet enabled us to remain an AFL ‘unassisted club’.”

Melbourne will hold its annual general meeting in February.

AFL clubs reveal $10 million budget shocker

- Simeon Thomas-Wilson

Sydney has recorded a $6.1 million loss because of the COVID-19 pandemic, and Swans chairman Andrew Pridham says it could have been worse.

The Swans have revealed the “severe impact” on the club’s bottom line, citing the absence of home matches at the SCG and crowds for the 2020 season contributing to more than half of the big loss for the financial year.

Sydney wasn’t the only club hit hard, with Collingwood announcing a net operating loss of $1.8 million and Geelong posting a $2.6 million loss.

Earlier this month Richmond revealed it took $10 million in JobKeeper funds before declaring a small profit, well down on the profit of over $4 million in the previous two seasons.

The Swans’ membership of 48,322 was well down from 61,912 the previous year while the club reduced operating expenses by 38 per cent in an attempt to “ensure the club’s survival”.

The Swans had a tough year on and off the field.

Pridham said 98 per cent of the members who stayed with the club elected to keep all or some of their contribution with the club.

“We are immensely grateful to those who were able to contribute to our club. If it wasn’t for the commitment of our members, our financial position would have been much worse,” he said.

“While we have recorded a sizeable loss, we have realised the full burden of the pandemic this year. The club will exit the season with a loan repayable to the AFL of $1.5 million, and while that’s significant, it ensures we can continue to offer important programs such as our QBE Sydney Swans boys and girls Academy, to provide opportunities and pathways for local talent.

“The reality of the Sydney market that we operate in is that despite taking prudent measures throughout the year, there are high costs that are necessary to ensure our team can continue to train and play.”

Pridham said despite the big loss the Swans “remain hopeful of re-enlivening” its project for a new training and administration facility in Sydney.

Geelong played home games at the SCG after leaving Victoria. Picture. Phil Hillyard

The Magpies announced on Wednesday a net operating loss of $1.8 million in the COVID-affected 2020 season.

The club said total club revenues hit $47.5 million and 76,931 members remained loyal through the pandemic.

With gate revenue lost completely and other revenue sources severely diminished, the club’s revenue declined by 35 per cent or $25,894,325.

The club was able to retain cash reserves of over $8 million and has a net asset position of around $43 million.

Geelong’s operating revenue fell by almost 40 per cent to $38.3m, largely due to a 10 per cent drop in memberships, a $2.7m decrease in sponsorship, advertising and fundraising, crowd-free games and being forced to pause its hospitality and fitness businesses.

Cats chief executive Brian Cook said the club had expect bigger losses.

“In April we anticipated a potential loss of $10m,” Mr Cook said. “To finish the year where we have is an incredible achievement.”

Originally published as St Kilda, Melbourne latest clubs to announce huge financial loss for 2020 because of COVID-19