Bombers post profit despite ASADA probeOn 01/31/2019 by admin
Essendon’s bill for their involvement in 2012 AFL supplements scandal has topped $5 million.
While the striking figure has been revealed for the first time, perhaps more staggering is the Bombers remain a healthy business.
Essendon are again a club in the black, reporting a net profit of $721,517 compared with last season’s $2.15 million windfall.
The powerful club showed their off-field muscle in the pages of their 2014 financial report, released on Wednesday.
A record 60,716 members, with the club’s highest renewal rate, a new major sponsor and more than half-a-million fans at home games have carried the Bombers to higher ground.
It seems the club’s ability to make money has withstood even the most challenging of sporting scandals.
The club’s finance director, Paul Brasher, reports Essendon spent $1,071,438 on legal and consulting fees during the year on the club’s response to the probe.
In the 2013 financial year, the Bombers spent almost $3.94 million – including AFL-imposed fines.
Brasher said those costs would temporarily stop the club paying off the $5 million debt remaining on their Tullamarine training base.
“The costs relating to the ASADA investigation are likely to cause a delay of two or three years in the repayment of our debt, but we still expect all borrowings to be repaid within a reasonable timeframe,” he said.
Essendon chief executive Xavier Campbell said record sponsorship profits contributed to the result.
“Taking into account the legal costs associated with the ASADA investigation, the club is extremely pleased to record a profit of close to three-quarters-of-a-million dollars,” he said.
Chairman Paul Little praised Campbell.
“Xavier took over as our CEO at a critical time for the club and has done an exemplary job guiding the ship through a very complex and difficult set of circumstances,” he said.
“It has been a baptism of fire, to say the least, but one that will hold him and the club in good stead in the years to come.”
The ASADA probe could reach a climax next month with an AFL tribunal gathering to hear initial claims of supplements misuse at the club during the 2012 season.
Infraction notices have been issued by anti-doping authority ASADA to 34 Essendon players from that season, with a potential hearing date of December 15 set.