Melbourne posts $560,000 profit with help of AFL equalisation

MELBOURNE has been helped to a $560,000 profit this season by the AFL’s new equalisation measures, the club’s financial report shows.

Melbourne Football Club captain Nathan Jones poses for photos in front of the Club's new logo in Hosier Lane Melbourne on Thursday 12th November, 2015. Picture: Mark Dadswell

MELBOURNE has been helped to a $560,000 profit this season by the AFL’s new equalisation measures, the club’s financial report shows.

The Demons banked a second consecutive profit, after finishing $285,000 to the good in 2014.

The report, released on Monday night, shows revenue grew by almost $2.5 million to $45.5m in the year to October 31.

It also reveals distributions from the AFL increased by $1.25m — $870,000 of which was “following the AFL’s review of competitive balance measures”.

That money “partially funded the additional ($1.7m) investment in the football department, with the balance funded by the improved commercial and gaming activities of the club”.

In total, the Demons received $12.2m from the AFL in 2015 and spent $21.3m on football.

The club’s pair of gaming venues contributed almost $12m of total revenue.

Foundation Heroes, Inner Sanctum and Coterie members poured in $700,000 as Melbourne reduced its bank debt by almost $800,000 to just under $5m.

Chief executive Peter Jackson — who last week inked a deal to stay with the club until at least the end of 2017 — said generating a second consecutive profit reinforced that “we are on the right path”.

“Supporting our on-field operations with off-field financial stability, as well as stability in our board and our senior management team is very important to achieving ultimate on-field success,” Jackson said.

“We are confident that we are well positioned with our playing talent and list management, but we believe it is important to continue our investment in the football department, particularly in player development.

“The increase in AFL distribution funding and equalisation of $1.2m was reinvested entirely back into the football department, which goes to the heart of what the new equalisation measures were created for.

“I hope this will encourage all supporters to get behind the club now going into 2016.”

Despite suffering a $1.3m loss, Essendon has reported paying the AFL a $270,000 “equalisation levy” this year while Hawthorn said it would be coughing up $1.3m in equalisation taxes.

Originally published as Melbourne posts $560,000 profit with help of AFL equalisation