Essendon announces $9.8 million loss from 2016 season

ESSENDON’S disastrous 2016 season has ended with a massive $9.8 million loss as the Bombers pay a huge financial price for the Court of Arbitration for Sport verdict.

Bombers skipper Brendon Goddard. Picture: Tom Huntley

ESSENDON’S disastrous 2016 season has ended with a massive $9.8 million loss.

Almost all of the record deficit is blamed on January’s shock Court of Arbitration for Sport guilty verdict.

VERDICT: AFL HANDS JOBE’S BROWNLOW TO COTCHIN, MITCHELL

But the downturn accounts for all 34 compensation claims from past and present players.

About half of the claims, including a pay out for Bombers skipper Jobe Watson, are yet be agreed.

The loss includes $4.4 million in legal expenses and agreed compo claims, $3.1 million from fallen revenues and $1.5 million for top-up players recruited to cover the 10 suspended stars.

The Bombers’ financial result would have been far worse if insurance company Liberty had not covered the bulk of the players’ legal expenses, including the failed appeal to the Swiss Federal Tribunal.

Essendon finished the season with three wins and 19 losses. Picture: Tom Huntley

Essendon chief executive Xavier Campbell said on Tuesday night: “There are three key areas which significantly impacted our loss, and all are direct results of the CAS decision.

“These included the player compensation claims, the associated costs of the short-term contracted player program, and the reduction in commercial revenues and match receipts.

“We have obviously experienced a unique set of challenges related to the CAS decision, but we ultimately have a sound business underpinned by a loyal and passionate supporter and corporate base, as a well as strong investments and broader cash flows.

“Clearly $9.8 million is a significant debt position, but we have confidence in our business model and key strategies moving forward to pay down the debt sooner rather than later.

“These financial statements include an adequate allowance for settlement of all expected claims made by current and former players.”

The Bombers are confident they have weathered the four-year drugs storm and will return to the black next year.

Record numbers of members have signed on for next year with the Bombers to host a Round 1 blockbuster against Hawthorn at the MCG to kick off their first season since 2013 free from the saga.

The expects falls in sponsorship, crowds and corporate hospitality to bounce back in 2017.

Axed Brisbane Lions forward Josh Green has signed a one-year contract with the Bombers.