West Coast Eagles turn AFL flag success into gold

A huge increase in merchandise sales and membership has helped West Coast to post the biggest net profit in Australian sport.

West Coast Eagles fans arrive at the MCG for the 2018 grand final. Merchandise sales following the club’s victory drove up profits. Picture: Jason Edwards

A huge increase in merchandise sales and membership after their grand final win has helped West Coast Eagles to post the biggest net profit in Australian sport last year.

According to documents lodged with the corporate regulator on Thursday night, the Eagles made a profit of $8m from a record $88m revenue.

The result was up from the $7.6m for the previous year and was boosted by a $2m increase in merchandise sales in the wake of the club’s 2018 grand final win.

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Such is the Eagles’ financial strength that the result came even after paying its regular dividends of about $4m to the West Australian Football Commission.

Eagles chairman Russell Gibbs did warn in the club’s 2019 financial report that it was likely “surpluses in future years will materially reduce” due to costs associated with its new training facility, a new AFLW team and other factors such as a reduction in its investment portfolio.

But the only club to surpass the Eagles in revenue terms is the 2019 premier Richmond, which had $92m from sources including poker machines and its Allied Health facilities management business.

West Coast derives no licensed club income but made almost $27m from membership revenue and $14m from corporate hospitality thanks to a lucrative new stadium deal at the 60,000-capacity Optus Stadium.

The Eagles also have a huge $99m in net assets on their balance sheet, including $58m in property, most of which is their new training facility at Lathlain Park.

The result compares with the $1.6m loss cross-town rival Fremantle posted earlier this week and comes after the AFL itself posted a $50m net profit for the 2019 season.

West Coast’s balance sheet shows their merchandise sales leaping $2m last year to slightly less than $6m, which came after a leap of $1.6m to $3.9m in 2018. It means the Eagles have sold almost about $3.7m more of merchandise than they were selling only two years ago.

The club’s revenue was up across every major category including membership, sponsorship, signage and functions and special events. There is also $35m of financial investments on the balance sheet.