Richmond win $5 million leisure centre tenderJohn Stensholt
The Age
March 23, 2016Richmond have struck a lucrative deal to manage a string of leisure centres on Melbourne's south-east fringe, transforming the club's business plan and making it one of the most diversified in the AFL.
The deal, which will see the Tigers take the management rights of eight leisure centres in the Cardinia Shire for up to nine years, will add about 15 per cent revenue to Richmond's finances or about $5 million annually via a wholly owned subsidiary, Aligned Leisure.
Richmond has been proactive in the Cardinia region, 50 kilometres south-east of the Melbourne CBD, in recent years, having worked with a demographer to predict where Richmond fans would move as Melbourne's outer fringes expand. "In the last four years our membership database has averaged 9 per cent growth overall, and 26 per cent growth in Cardinia," Richmond's general manager of consumer business, Cain Liddle, said.
Aligned Leisure will be announced as the winning tender on Wednesday and on July 1 assume the management of eight facilities in the shire employing 140 people, including a large aquatic and recreation centre, tennis courts and other swimming pools and facilities under construction. While Richmond won't have its branding on the facilities, it will provide health and fitness and mentoring services and anti-bullying courses free to schools in the shire.
The leisure centres will be a profitable venture from day one, according to club chief executive Brendan Gale. "Across the football industry, there is a flattening of non-broadcast income. We're one of the few clubs in the competition to basically support our entire football department via traditional football revenue, broadcast, sponsorship and membership, so it is critical we identify opportunities and grow our business where it makes strategic sense."
Gale said the move could be the first of many in the leisure sector for the club, and could mean Richmond in the future became just the second Victorian side, after North Melbourne, to shed its po-ker machines. "This is a scalable business, and there are a lot of opportunities. And while we have one relatively small gaming facility you could see a day when our reliance on it substantially lessens."
He said the club, which made a $459,000 net profit from $46.7 million revenue in 2015, has already signed about 70,000 members ahead of the first match of the AFL season on Thursday night against Carlton.
http://www.theage.com.au/afl/afl-news/richmond-win-5-million-leisure-centre-tender-20160322-gno83p.html