SYDNEY'S attempt to increase non-football revenue through a joint venture with the Club Swans gaming venue in Kings Cross has had a heavy impact on the club's bottom line, with $500,000 in costs associated with the club contributing to a total operating loss of $797,520 for 2008.
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As reported in the Herald yesterday, the club's core business recorded a loss of almost $300,000 after a season in which corporate support, memberships, attendances at ANZ Stadium and merchandising all declined.
Swans chairman Richard Colless acknowledged this week that Club Swans - formerly the Aussie Rules Club - had not yet proved profitable for the club, citing establishment costs and smoking bans for early short-falls in revenue. But he said the Swans still had "great faith in the product".
Collingwood lost $8 million this season on a failed hotel business, while stockmarket losses contributed to the Brisbane Lions' loss of $2.2m.
"We continue to review our business model," Colless said. "The major issues continue to be that too large an amount of revenue is linked to on-field performance, and too high a percentage of our costs are fixed. While we have consistently looked at a range of variations to the business model, including an investment into gaming and hospitality, the board has no simple solution other than to contain costs."
Colless this week foreshadowed that a significant loss this season - after successive profits of $1.5 million - and impending tough financial times would lead to cuts in football department expenditure. Yesterday, he said that would be an "absolute last resort", although it is believed the club has already initiated across-the-board cuts.
■ A report in the Herald yesterday stated the Swans membership had fallen from about 32,000 in 2007 to 26,000 this year. The Swans' 2008 membership figure, taking into account some categories not recognised by the AFL and included in league figures, was about 30,000.
