AFL growth initiatives result in profit increase

The AFL has announced that its 2018 profit exceeded $50 million, an increase of $1.6 million on the previous 12-month period.

The AFL achieved record commercial revenue of $210 million in 2018, with a profit of $50.4 million, while its consolidated financial result, which includes all of the AFL's controlled state subsidiaries, Champion Data and Marvel Stadium, produced a profit of $25.9 million.

This compares with a profit of $60.3 million in 2017, which included a one-off $41.5 million non-cash gain realised from the acquisition of Marvel Stadium.

Commenting on the positive financial result, AFL Chief Financial Officer, Travis Auld stated “this is a strong result for the AFL industry as we continue to commit long-term to strengthening the game and ensuring AFL clubs are financially secure and competitive.

“The increases in expenditure in 2018 included revenue-related increases, additional marketing investment in New South Wales and Queensland and increased investment in AFLW, female participation and community football expenditure.”

The 2018 financial results take into account the following milestones – the introduction of Optus Stadium in Perth, consolidated profitability of the 18 elite AFL clubs, the broadcast rights agreement, growing support from AFL corporate partners, a successful 2018 finals series and the signing of the new Collective Bargaining Agreement (CBA) with the AFLPA for AFLW players.

Other key AFL financial highlights included:

• Revenue increased by $17.4 million to $668 million, due to the broadcast rights deal and a successful 2018 finals series.
• Operating expenditure increased by $10.3 million to $203.3 million, due to revenue-related increases and investment in strategic priorities including northern markets, AFLW and female participation.
• The operating surplus before grants and distributions increased by two per cent to $467.7 million.

The AFL provided grants and distributions of $417.3 million in 2018, comprised of the following: $307.2 million to AFL clubs; $46.9 million of primarily state-based game development grants; $36.6 million to the AFLPA; $25.3 million to infrastructure comprising of elite and community facilities and contributions to stadia redevelopments; and $1.2 million to corporate and social responsibility initiatives.

Image: Melbourne's Marvel Stadium, now owned by the AFL.