Financial report reveals Netball Australia’s crisis

Following the making public of Netball Australia’s full financial report this week, the details on the governing body’s financial position is fuelling speculation around the future of national sporting organisation and its Super Netball competition.

As widely reported last month, the sport’s governing body has lost $7.2 million in the past two years and is in the process of extending $4.2 million worth of loans until 2025.

The sport’s losses increased by 55% to $4.36 million in 2021 and while revenue for the last financial period was up by 4% to $30 million, this was offset by increases in operating expenses including high-performance programs (up 9% to $2.6 million) and engagement and social impact costs increasing by $1.9 million to $2.4 million.

At the same time, sponsorship revenue for last year fell 6.5% to $12.5 million.

Netball Australia’s balance sheet shows a decline in net assets by 96% to just $158,000. This item was reported at $4.5 million for the 2020 financial year and the sudden decline is mainly attributed to increased long-term debt.

Cash and equivalents were down 25% to 7.5 million with Netball Australia spending part its cash reserves and increased its debt facility by $1.5 million.

The board met this week to discuss proposals to sell all or part of the Suncorp Super Netball League.

Last week a private consortium sought the players’ association blessing to take control of the Super Netball league in a $6.5 million bid consisting of $4.5 million for the league with a $1 million investment annually for two years going to the national team and grassroots.

The consortium is headed up by former Australian cricketer and entrepreneur, Matt Berriman; co-founder of the DAZN global sports streaming service, James Rushton; former elite player Liz Ellis OAM and former ABC Managing Director, Michelle Guthrie.

While the bid reportedly has support from the players’ association, Netball Australia says it will not rush into a commercial deal.

With the governing body is in the process of conducting a review of Super Netball, which includes a full valuation of the business, Netball Australia Chair, Marina Go said it was more concerned with securing the right deal than a quick one.

In a statement released today following a Netball Australia board meeting last night, Go advised “a scheduled board meeting was held yesterday, where we discussed the recent commentary and proposals relating to selling all or part of the Suncorp Super Netball League.

“We appreciate the interest we have had from multiple parties who are looking to align with our sport and our league. This continues to show the strength and power of netball in Australia.

“Netball Australia takes its responsibility to grow the game commercially seriously and will complete all necessary due diligence on any future commercial arrangements. Taking the first commercial offer of support may not be in the best interest of the sport in the near future or the long term.

“Netball is the number one female sport in Australia and neither our sport or Netball Australia are on the brink of financial ruin, but we are committed to exploring financial and commercial opportunities to ensure Netball Australia is positioned for growth.”

Federal Minister for Sport Anika Wells has today also advised that Netball Australia has not asked for Federal Government support.

With mainstream media suggesting that the governing body could face foreclosure, Minister Wells said that following a briefing from her department and the Australian Sports Commission “I have been advised that none of the issues affecting Netball Australia have or will have an impact on community and grassroots sport.”