Some Richmond members and supporters have sought an explanation as to the operating surplus reported by Richmond in comparison to some other clubs.
As noted in the Treasurer’s report, the decrease in profit year-on-year was largely due to increased investments in the football department.
The fact Carlton opted out of a gate share agreement in round one, along with increased equalisation payments, also impacted the result.
Beyond that, the different ways in which clubs report their operating results can create questions in the minds of supporters.
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“The way different clubs report results can create confusion but the bottom line for Richmond supporters is that the true operating performance of our club is rock solid,” Richmond CEO Brendon Gale said.
“Richmond includes depreciation and amortisation costs when announcing its operating profit because - in our opinion - we think it provides an accurate reflection of the performance of the business. Other clubs choose not to include those costs when reporting their operating profit.
“By way of example, Collingwood reported an operating surplus of $1.88 million, before depreciation and amortisation. If Richmond had accounted for its result the same way, we would report an operating surplus of $1.9 million as opposed to $459K.
“There is no right or wrong way, we just thought it was worth clarifying the difference for our fans and to give them a level of comfort that the board is delivering our fans a very sound business.”