2016 Financial Reports

Last year at this time the financial reports for 2015 were completed for the 3 clubs we were allowed to see the results for. Auditors letters were completed for 2 of them by this time. I posted the financial results for 2015 so we could see them as a reference. When they come out I will post try to post them here

Eskimos

[url=http://d3ham790trbkqy.cloudfront.net/wp-content/uploads/sites/3/2016/05/2015-Eskimos-Report-to-Shareholders.pdf]http://d3ham790trbkqy.cloudfront.net/wp ... olders.pdf[/url]

Bombers

[url=http://d3ham790trbkqy.cloudfront.net/wp-content/uploads/sites/6/2016/04/Annual-Report-2015.pdf]http://d3ham790trbkqy.cloudfront.net/wp ... t-2015.pdf[/url]

Riders

[url=http://d3ham790trbkqy.cloudfront.net/wp-content/uploads/sites/5/2015/11/10960-2015-16-SR-Annual-Report-FA.pdf]http://d3ham790trbkqy.cloudfront.net/wp ... ort-FA.pdf[/url]

taking info from the Riders 2015 financial results and projecting how they will look in 2017, seems like they will approach $45-$50 million in revenue.

Winnipeg press release on 2016 finances:

[url=http://www.bluebombers.com/2017/04/05/winnipeg-football-club-posts-operating-profit-2-8-million-2016/]http://www.bluebombers.com/2017/04/05/w ... lion-2016/[/url]

Good to hear they have met their 4.5 million yearly repayment for the stadium and still have a profit .

Interesting when you break down the financial results. The gate revenue for the Esks was $9 Million but the gate revenue for the Riders was $15.5 Million.
The Riders had the second highest attendance at 31,000 average or roughly $55 per ticket.
The Esks must sell a lot of "cheap seats"
But all teams generate a lot of money from concessions and merchandise, which demonstrates why it is so important to have the "bums in the seats"

What jumps out in the reports is that it's costly to run a CFL team. The 3 most successful teams with the highest attendance make a small profit.

Not true. They posted the profit BEFORE their $4.5M mortgage payment. In reality they lost $1.7Million last year.

Not sure where is says that, Migs.

Anyway, it was a positive year for the 3 public teams. And, let`s be honest, the public teams do NOT run bare bone operations. If they were private, there would be a ton of savings (on expenses) to be had.

You can always count on Jim with a negative spin...

What I see is a bunch of public teams, with the expenses of a public team. If they were privately run, there would be a ton of savings to be had.

Looks positive on the teams and the League. Of course, there will ALWAYS be naysayers.

Not sure your correct as there is a tax applied to tickets etc ... this is the 4.5 million excess of profit and is a stadium management fund that does not show up on the balance sheet as team profit . I could be wrong but that's what it looks like . One of the benefits of community ownership is being non profit so any taxes on an event can be applied to a fund like the financing of the stadium . I believe that is way they can report a 2.8 million operating profit . The rechanneling of the tax on everything recovered by the team is reinvested back directly to pay the costs of the stadium build instead of to the public purse general fund .

:thup:

Either way, as I have said many times, the teams have come a LONG way. Run these 3 teams, on a tighter budget, and the profits would sky-rocket.

  1. Stadium Management Agreement
    On December 15, 2010, the Club entered into a Management Agreement with Triple B
    Stadium Inc. (“Triple B?), a non-share corporation of which the Club is a member, together
    with The City of Winnipeg and The University of Manitoba, and is able to appoint one of four
    directors. Triple B is incorporated under the Canada Corporations Act and is exempt from
    taxes under Subsection 149(1) of the Income Tax Act. Upon dissolution of Triple B, the Club
    has no entitlement or access to any of Triple B’s remaining net assets, including the stadium.
    The Club does not control but rather exercises significant influence over Triple B, and has
    therefore not recorded any value for its membership in Triple B on the Consolidated
    Statement of Financial Position.
    Triple B’s purpose is to develop, construct and own a stadium on leased land at the
    University of Manitoba, for use by the Winnipeg Blue Bomber football team and the University
    of Manitoba Bisons football team and for the use of amateur athletics and other public
    purposes. Under the terms of the Management Agreement, the Club will manage and
    operate the stadium in exchange for primary access to the facilities.
    The Management Agreement requires the Club to establish its own Operating Reserve by
    way of annual allocations of up to $500,000, until the reserve reaches a maximum of
    $5,000,000. The Club maintained an Operating Reserve balance of $2,095,000 (2014:
    $1,595,000) as at December 31, 2015.
    Under the terms of the Management Agreement the Club is also required to use its best
    efforts to generate sufficient Excess Cash and collect entertainment tax and facility fees to
    meet all of the following payments.
    Subject to the existing note payable (Note 5) to the City of Winnipeg, all entertainment tax
    and facility fees collected on regular season and exhibition Blue Bomber football games by
    the Club will be paid to Triple B. In any year that entertainment tax and facility fee payments
    in total exceed $2,000,000, the first $2,000,000 will be applied against the scheduled
    payments noted below and the excess will be applied to a capital fund to be held by Triple B,
    to a maximum of $500,000 per year. Any further excess entertainment tax and facility fee
    payments (over 2,500,000 in a year) will be applied by Triple B to the scheduled payments below. In addition, the Club is to use any Excess Cash generated in a fiscal year, after consideration of the Club’s required working capital levels and allocations to the Operating Reserve, to make a further annual payment to Triple B in accordance with the maximum total scheduled payment, inclusive of the amounts collected and remitted by WFC for entertainment tax and facility fees (except for amounts applied to the Triple B capital fund), as follows: 2015 4,000,000
    2016 4,000,000
    2017 3,000,000
    Thereafter, the maximum annual scheduled payment of Excess Cash will be $3,885,834, until
  2. Any shortfall on the above Excess Cash amounts in any year will be added to the
    amount to be paid by the Club in the following year in which it was originally due. Under the
    terms of the Management Agreement the Club is also required to remain a community owned non profit non share

I can't wait until the next TSN deal. I know the Jims of the world will put a negative spin, but we are a few years away from every team making good money. Nice to see.

Probably why I don't understand why there is so much negativity to expansion thru the same principle as community owned . In Canada especially in the CFL it is the way to go if they want a few more or at least one more team . It appears to be a much easier path for stadium builds if it is seen as non profit . The rechanneling of tax dollar recovery
directly on the infrastructure with a little philanthropy from corporate sponsors is palatable to the every day tax payer to influence in getting any project started and completed like a stadium and a community team .

I know there are a few here who dislike this train of thought but it's the CFL way and with good stewardship of any team they can have a profit or break even with cost certainty like the CFL has right now with a modest salary cap .

The TV/Internet streaming money will only go up with appointment viewing of sports becoming more valuable . The CFL is in a good position to negotiate the next deal .

Amen, Big Joe. I agree. :thup:

"The Bombers' $4.5-million stadium-loan payment led the club to withdraw $1.7 million from its reserves, communications director Darren Cameron said."

[url=http://www.cbc.ca/news/canada/manitoba/bombers-operating-profit-1.4056492]http://www.cbc.ca/news/canada/manitoba/ ... -1.4056492[/url]

How many years are left? Isn't it a lot?

2058 ? ??? at least that's what the agreement says .

With the lack of concerts and events at the stadium they were unable to generate enough to cover the agreed 4.5 million in 2016 they did have the option as to allocating the 1.7 million to next year but with the 7.1 million in Grey Cup money in reserve with whatever they have also put in the pot yearly ; they are still a little flush to make that 1.7 million payment . In 2015 end of year they had 12 million in cash reserve .They need to do a better job of filling the stadium for other events than just football .

Also they put away 500,000 a year for a reserve fund that is to accumulate to 5 million until they can use it as a reserve fund instead of their own cash reserves . Prudent lawyers for the province to force a savings .

Need a few more ac/dc type concerts. Outdoor concerts is a small window of opportunity but done right with the right acts they are in good position to bridge the short falls like the 1.7 million without touching their reserve funds.
Grey Cups are still a good way of putting money away for a rainy day .

Stadium Management Revenues
2015 was a busy year at Investors Group Field. In addition to the
regular football season, Investors Group Field was home to the FIFA
Women’s World Cup Canada 2015, two major concerts; One Direction
and AC/DC, and the 103rd Grey Cup and Festivals. Looking forward, the
2016 Tim Hortons NHL Heritage Classic™ will be held at Investors Group
Field. The Club continues to expand its catering and event operations

They need to do a better job of expanding those event operations .

If the CPL gets launched as rumored (CSA board meeting next month) there's supposed to be a Winnipeg based team so if they use IGF even in a lower bowl setting, that will get a few more events in too to inch it up.

Wow. Long time. Thanks!

:thup: