Club President and CEO annual reports

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PRESIDENT’S REPORT

Gary March

Dear Richmond Club members,

After a period of consolidation in 2005, the 2006 year has been one of growth for the Club, providing a solid platform for the future.

The changes implemented at the end of 2004 are now bearing fruit and we can look forward to continued success, both on and off the field.

FINANCES

As set out in detail in the Treasurer's Report. there has been a marked improvement in the trading activities of the Club during the last two years, particularly over the past 12 months. The Club has recorded a record profit of $948,586 in 2006 and this represents an overall improvement of $3.14 million on our 2004 result.

This significant financial turnaround has come about as a result of better disciplines across all facets of the business, as well as the ability of the Club to increase its revenue base.

It is the Board's view that the financial improvements made during the 2005-06 period are sustainable, and we are projecting continued profits over the next few years.

We are continuing to reduce the debt related to the construction of the administration and swimming-pool building at Punt Road. This repayment is funded through donations made to the Jack Dyer Foundation and distributions from the AFL relating to the sale of Waverley Park. It will be repaid in full by the end of the 2007 season.

The Club continues to address its overall operating debt, and with conservative forecasting, we are expecting to significantly reduce our operating debt over the next five years, while still managing to provide for a fully-funded football department.

FOOTBALL

The 2006 season saw the team continue its steady improvement, to finish in ninth place with 11 wins.

Perhaps the most pleasing aspect was that the Club fielded a competition record of 39 players for the '06 season, and many of our talented youngsters got their first taste of senior league football.

Some of our key team achievements in the '06 season were:

* Round 6: Beat Essendon in the second 'Dreamtime at the G' match with Dean Polo winning the award for best a field in his debut appearance.

* Round 8: Beat Adelaide for the first time since    1999.

*  Round 9: Beat Geelong at Skilled Stadium for the first time since 1990, The Tigers had lost 17 of their previous 20 games at Geelong's home ground. It also was our first victory over the Cats anywhere since 2000.

* Round 11: Beat the Kangaroos for the first time since 2001. That also was our first win in June since 2001,

* Round 14: Beat Port Adelaide in Adelaide for the first time since the Power entered the competition in 1997.

* Kicked 20 goals or more (Rounds 19-211 in three consecutive matches for the first time since 1982.

* Registered victories over arch rivals Carlton, Collingwood and Essendon for the first time in consecutive seasons since 1974-75.

* Went through the season unbeaten against Carlton, Collingwood and Essendon for the first time since 1931.

The foundation has now been set for an exciting future, and under the coaching guidance of Terry Wallace and his assistants, we can look forward to a return to finals football.

APPRECIATION

In dosing, I would like to take this opportunity to thank the many organisations and individuals for the support they have given the Richmond Football Club throughout the past year.

Firstly, to our co-major partners, Motorola and Australian Finance Group [AFGI. many thanks for your strong backing and commitment to the Club. I am delighted that both Motorola and AFG will remain with the Tigers as our co-major sponsors in 2007.
 
To our other partners in Laguna Whitsundays, Foster's Australia, Coca-Cola, Hummel. Connex, Silver Top Taxis, Crazy John's, Host Plus, Bartercard and Tattersalls, we extend our sincere thanks.

To the members of Jack's Club, the Captain's Club, the Richmond Executive, Player and Coaching Link 'Titus Ton-up', Tommy Hafey Club, Tiger Lilies, the Former Players and Officials' Association. Country Supporter Groups and Club 80, thank you very much for your involvement at Tigerland.

To the Richmond Cheer Squad, the support you offer our players is magnificent. There is nothing more inspiring than the Cheer Squad in full voice at the Punt Road end of the MCG. celebrating a great Tiger victory!

To my fellow Board members, our CEO Steven Wright, and the management and staff of the Richmond Football Club, you have all done an outstanding job and the Club has benefited significantly from the hard work, dedication and professionalism shown by each of you in 2006.

To the many volunteers who put in countless hours each week behind the scenes, It never ceases to amaze me the fantastic work that you do for little or no recognition. The Club needs and relies upon you, and for this we are forever grateful.

Finally, but most importantly, to each member of the mighty Tigers - thank you for your commitment. You continue to be the backbone of the Club and without your support we certainly couldn't thrive as we continue on this upward journey.

I wish you all a happy, safe festive season and Look forward to a healthy, successful 2007.

 Gary March
  President

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CEO’s REPORT

Steven Wright

At the start of 2006, the Board and management prepared a detailed business plan for the Richmond Football Club. The implementation of the plan was imperative to not only maintain the ground work that had been laid in 2005, but also to significantly grow and develop the operations of the Club as a whole.

The key objectives of the plan are detailed below. Pleasingly, the Club has achieved each of these aims in '06 . . .

1. IMPROVING ON-FIELD FOOTBALL PERFORMANCE

A detailed review of the football operations is contained in the Football and Coach's Reports. but in summary, the Club achieved its principal objective of winning more games in 2006 than 2005, while at the same time continuing to develop the young players for the future.

Although the team just missed the finals, several positive outcomes were clearly evident during the '06 season. The continued development of players such as Raines, Deledio, Pattison, Tambling. Meyer and Foley was very pleasing, as was the fact we had another six players make their senior league debuts - Polo, Hughes. Oakley-Nicholls, White, McGuane and Howat.

2. INCREASING PROFITABILITY

The Club has generated an all-time record profit of $948,586 in 2006.

This represents an improvement of $907,185 on 2005 and $3.14 million on 2004.

The previous record profit of $918.635 was recorded as part of the Save our Skins campaign in 1990 and included donations of $1,033,000.



The reasons for this record profit in 2006 are numerous and reflect improvements right across the business. It is important to note, however, that this profit is earned on the back of an under-resourced football department and debt of more than $4 million. The Board and management are well aware that as the Club's financial position improves, it will be necessary to increase the funds available to the football department while, at the same time, making sure our underlying debt is reduced.

3. INCREASING TOTAL MEMBERSHIP

Pleasingly, the Club set a membership record in 2006 - both ticketed and non-ticketed.

This year, the total number of ticketed memberships was 29,406, representing an increase of 1,377 over 2005 and the total number of non-ticketed memberships was 7.059, representing an increase of 810.

Ticketed memberships have grown over the past three years as follows:



With Adelaide recording over 50,000 members this year, it is imperative for the future growth of the Club that we break through the 30,000 barrier in 2007 and then advance on 35,000 as soon as possible.

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4. INCREASING CROWD ATTENDANCES

Apart from membership, the best way that a Richmond supporter can assist the Club is by attending home games. The bigger the crowd, the higher the financial return to the Club and the greater the experience the young players gain in playing in 'Blockbuster' matches.
In 2006, the Club achieved a significant increase against the total attendances of the previous two seasons.



Additionally, Richmond was ranked third overall in the AFL for total attendances, behind Collingwood and Essendon.

The completion of the MCG redevelopment. and a 2006 fixture including home games against traditional rivals, Collingwood, Essendon and Carlton, were key contributors to this outcome.

5. INCREASING SPONSORSHIP

In 2006, the Club also set a record for total revenue generated from sponsorship. With the ever-increasing costs associated with running AFL clubs, the need to find corporate sponsors and enter into major commercial partnerships is vital.

With Motorola and AFG renewing in 2006 as our co-major sponsors and Laguna Whitsundays, Hummel, Foster"s Australia, Coca Cola, Connex, Silver Top Taxis and Bartercard remaining on board, it was very pleasing to be able to add a number of new partners to our sponsorship portfolio, including Crazy John's, Host Plus and Tattersall's.

All of these companies a re significant members of the corporate community and it is most beneficial from Richmond's viewpoint to be associated with companies of this standing. The Club is very appreciative of the generous support it receives from its partners.

6. INCREASING TELEVISION VIEWERSHIP

With Richmond being identified as one of the league teams "on the rise", and with the type of attacking football generally played by the team, the Club featured prominently on free-to-airtelevision in 2006. Our total TV viewing audience grew by a staggering 5 million viewers, representing a 50% increase on 2005.



Overall, Richmond attracted the sixth-highest TV viewing audience for home and away games in the League.
A strong TV viewership is extremely important for growing the Richmond brand and exposing our sponsors' brands to the wider community.

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7. DEBT REPAYMENT AND ASSET INVESTMENT

In 2006, the Club began the first stages of its debt repayment plan. As mentioned in the President's report, it is proposing to payoff all building debt and a significant amount of operating debt over the next 5 years.

With annual interest expenses of around $400,000, it is extremely important that this debt be reduced as quickly as possible while, at the same time, ensuring the whole business is properly resourced.

Even with the Club reinvesting about $600,000 in its asset base, and the late release of the 2007 fixture causing delays in membership sales, the Club has not only paid off $500,000 of building debt, it has also started to reduce its operating debt.

It is difficult to make a direct comparison of debt levels through the balance sheet due to difference in timing of sponsor payments and memberships but when all this has been adjusted, the Club is well on its way to not only make significant debt repayment over the next few years but also to start to build a positive asset base creating opportunities for future revenue generation.

One of the major investments in assets this year has been a $500,000 redevelopment and refurbishment of the Wantirna Club. With the financial position of the Wantirna Club improving by approximately $300,000 over the past two years, this refurbishment is designed to continue this improvement. in the face of ever-increasing competition in that particular market.

8. GROWING OUR COMMUNITY INVOLVEMENT

As members are well aware, a key aspect of the Richmond Football Club is that it gives back to the community, in appreciation for the support the community has shown the Club over the past 120 years.

The creation of the 'Tigers In Community Foundation' ("TICF”) under the Chairmanship of Gerry Hand, has been a very effective resource for the Club's community-based activities in providing activities and support to those in need, whether in public housing, in hospital, the homeless, or though charities such as Very Special Kids and the Juvenile Diabetes Foundation.

The TICF has been able to obtain State Government support and funding and it is particularly pleasing that it will be appointing two full-time employees to run the Foundation as it increases its activities and profile in 2007.

Congratulations to all those involved in the Foundation, and to Joel Bowden, who this yearwon both the AFL and Richmond's Community Award for outstanding leadership in community services. Joel is an inspiration to all those who work with him in his community projects.

9. UNDERTAKING SIGNIFICANT PUNT ROAD REDEVELOPMENT

It is the long-term vision of the Board and management that the Club remains at its Punt Road headquarters. While the location of the ground is fantastic, the state of the facilities is far from what is required for an elite sporting club. To remedy this, a great deal of planning has occurred over the past 12 months on various options to upgrade the facilities.

In addition, the Club has undertaken extensive lobbying and negotiations with the State Government, City of Melbourne and AFL, which has resulted in each of them agreeing to co-fund $5.5million towards a significant redevelopment of Punt Road Oval to include:

* An elite football training facility;
* New medical and rehabilitation rooms and facilities;
* New community centre and Social Club; and
* Reinstatement of the Jack Dyer Grandstand.
 
The total cost of this project will be approx $6.5 - 7million. With $5.5million of that already secured, the Club will now begin a fund-raising program to raise the additional proceeds to enable the works to be undertaken during 2008-09. The Club appreciates the support of the State Government, City of Melbourne and the AFL to achieve this extremely positive outcome.

10. CHALLENGES AHEAD

While this report presents a very positive review of Richmond’s year, it is important to recognise that significant work is still required across the entire Club if it is to strongly challenge the interstate clubs, who have had a mortgage on the AFL premiership for the past six years.

To close that gap. the Club needs to continue improving its playing list and fast-track the development of our promising young players, invest further in the football department, undertake the redevelopment of Punt Road Oval, repay debt, and start to build revenue-earning assets. Unless this is done quickly, the gap between the interstate clubs and Richmond will continue to grow.

In many ways, each of the objectives for 2006 will remain in 2007 and it will take all the efforts of the Board, players and the terrific staff that has been assembled at Tigerland to achieve the same outcomes, as well as the continued support and assistance of our loyal members, sponsors and supporters.
Thank you for your continued support.

Steven Wright
Chief Executive Officer

[mightytiges]

A very thorough and well outlayed report once again from Wright  .

Our total TV viewing audience grew by a staggering 5 million viewers, representing a 50% increase on 2005.