Winnipeg Football Club Posts Operating Profit of $2.6 Million in 2018
WINNIPEG, MB., April 16, 2019 – The Winnipeg Football Club today released its 2018 annual report and announced an overall operating profit of $2.6 million.
“We are pleased with our overall financial results for 2018,” said Winnipeg Football Club President & CEO, Wade Miller. “These results are a testament to the strong support from our fans, season ticket members, and corporate partners. Our team should be proud of our financial results.”
Total operating profit was down from 2017 as Investors Group Field saw a much quieter year in 2018 with no concerts or other major events other than the Manitoba Marathon.
Total operating revenue reached $33.4 million (an increase of $970,000 over 2017) and is attributable to the Club’s decision to internalize food and beverage operations at Investors Group Field in 2018, thus not only improving the game day experience but also earning 100% of the revenues, less the associated expenses. This was offset by decreases in game revenue which was down $1.4 million (10.5%) as the Club did not host a home playoff game in 2018, and stadium management revenue which was down $1.8M in comparison to 2017.
Operating expenses totaled $30.8 million, an increase of $3.4 million over 2017. While the Club continues to invest in its on-field product, overall football operations expenses increased in 2018 by $470,000 as a result of the Club’s success in playing in both the Western Semi-Final and Western Final playoff games. There were expected increases in expenditures in marketing, administration and game day expenses associated with bringing food and beverage into the Club’s internal operations. There was also a decrease in overall stadium occupancy costs of $830,000 as a result of fewer non-football events at Investors Group Field.
Consistent with prior years and since the Club moved to Investors Group Field in 2013, the Club alone continues to fund the public transportation program for transit and park and ride services to and from Investors Group Field. The Club has operated the public transportation program since 2013 and has paid for all expenditures related to the program, totalling over $4.6 million. In 2017, Triple B Stadium Inc. formally acknowledged their legal obligation to fund a portion of the public transportation program, retroactive to 2013 and onward. The Club will continue its efforts to recover the payments due from Triple B.
The Club recorded a payment to Triple B of $2.7 million based on the Club’s available Excess Cash at December 31, 2018, as defined in and required by the Club’s Management Agreement with Triple B. This is the fifth scheduled annual payment the Club has made to Triple B, fulfilling the Club’s ongoing obligations. Payments will continue over the next four decades based on the Club’s Management Agreement with Triple B that requires the Club to use its best efforts to generate sufficient Excess Cash through the collection of entertainment tax and facility fees to be applied to the annual payments. “Meeting our financial obligations continues to be one of the top priorities of the Winnipeg Football Club.” said Miller.
