Power chief executive Keith Thomas and president David Koch. Source: News Limited
PORT Adelaide is forecasting its first profit in eight years with the once financially threatened AFL club declaring it again has a "sustainable" business model.
Power president David Koch last night presented his club's record membership at Alberton with budgets revealing Port Adelaide is out of its financial tunnel of doom.
The long-touted $2.5 million loss was confirmed at last night's annual meeting at Alberton, but more relevant were Koch's financial projections for this year – and explanations on how the anticipated profit is a pay-off for big investment packages in the club and Ken Hinkley's football program in the past three years.
"I am delighted to announce that Port Adelaide is budgeting for a profit," Koch said last night.
This optimism is based on membership rising to 60,000, more corporate backing and a new stadium deal at Adelaide Oval.
"We achieved record home crowds but we didn't realise the full return for our investment (at Adelaide Oval)," Koch said. "The good news is the new stadium deal to be finalised soon will allow us to get a fair return from Adelaide this year and onwards."
Power chief executive Keith Thomas last night described his club's turnaround from possible financial collapse to profit in 2015 as a "football-led recovery".
"We've been investing in our club's future – first and foremost with the football program," he said. "We started this campaign (two years ago) wanting to fix footy and to hit Adelaide Oval with full momentum.
"We are unhappy to lose $2.5 million. But we also know the business model is fixed. Now we have a sustainable football club – and this year it will be a profitable football club again."
Port Adelaide's annual report reveals these key numbers:
REVENUE increased by $6 million with the significant growth in corporate backing (by $4 million), merchandise (by $800,000) and membership that was at record levels.
But the $4.3 million bonus from moving to Adelaide Oval - where the Power lifted its average home attendance to 44,364 after managing 26,915 at Football Park – covered the gap created by losing $4 million in grants from the AFL and SANFL.
Thomas noted the Power is primed to reap major gains from its new appeal to the corporate market.
"We have almost doubled corporate support (with corporate backing rising from $5.5 million to $9.5 million), but we were coming off a low base," he said. "And there always is a lag in turning that interest from the corporate sector into sponsorship deals. There is more (corporate dollars) available to us."
SPENDING rose by $7 million - with $1.5 million added to the football program. Even then, the Power ranked 12th in football spend across the 18-team national competition.
"We achieved a top-four result on the field with a bottom-six spend," Thomas said. "It has been modest spending to achieved a top-four finish."
Port Adelaide's administrative spend ranked 14th across the league. Much of the increased spending off the field last year was related to marketing the Power's successful - and much-lauded - game-day experience at Adelaide Oval and servicing 14,000 new members.
The Power's financial forecasting also is boosted by the new Adelaide Oval stadium deal that will deliver $3 million more to Port Adelaide and the Crows this year and meet the club's target of collecting 70 cents in the Oval dollar next year.
"The review of the stadium deal does deliver millions of dollars more to the clubs with the critical change being the incentive we have as clubs to draw big crowds at the Oval," Thomas said.
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