Penrith Panthers pocket $9m in subsidies

The Penrith Panthers have pocketed millions in government subsidies, despite recording a massive 2020 profit windfall.

Panthers fans celebrate at full-time during the round 12 NRL match between the Penrith Panthers and the Canterbury Bulldogs. Picture: Getty Images

The Penrith Panthers, one of the country's largest NRL clubs, received more than $9 million in Covid-19 pandemic subsidies despite recording its biggest profit in recent history.

Despite losing more than $5 million in 2017 and 2018 — and posting a $98,000 profit in 2019 — documents lodged with the Australian Securities & Investment Commission show the Penrith Rugby League Club posted a $14.9 million profit in 2020.

That was aided by $9.2 million in JobSeeker payments, the accounts for the 12 months to October 31 show.

The club did not respond to requests for comment or questions about whether any of the JobSeeker subsidy would be repaid.

The Australian has previously reported another prominent Sydney institution — the exclusive Australian Club — trousered $2 million in JobKeeper payments, more than doubling its profit to $1.8 million.

JobKeeper payments, which have now ended, were intended to keep people employed by allowing companies and organisations to pay them instead of making them redundant.

The payments were not intended to benefit the organisation’s bottom line.

But Penrith, in commentary included in the financial statements, said the money benefited 650 employees after Covid-19 significantly impacted operations including “earnings, cashflow and financial conditions”.

“The impact of Covid-19 included government-mandated restrictions on crowds at games for members, general public and corporate hospitality as well as the team’s ability to play matches at the home ground, Panthers Stadium, impacting sponsorship revenue,” the document reads.

The club’s revenues fell from $119.9 million to $93.5 million largely due to a sharp drop in gaming and food and beverage revenues. Takings from gate receipts and sponsorships also fell.

The documents also show three of Penrith’s seven directors had interests in companies that won lucrative work with the club worth more than $1.1 million.

ABCOE Distributions, whose largest shareholder is Penrith chairman David O’Neill, received work totalling $249,839 in the year ending October 2020 — down from $396,949 in 2019.

The Hix Group, owned by Penrith director Ian Hicks and his family, had transactions with the club valued at $336,679. In 2019, that figure was $704,059.

A company linked to Greg Alexander, another director, also transacted with Penrith.

All the transactions were at arm’s length under “normal commercial terms” and completed “in an open and transparent tender”, the club said.