Winning the 2019 Grey Cup is still paying off for the Winnipeg Football Club.
The club released its 2019 annual report on Wednesday and announced an operating profit of $3.5 million for the past 12 months. That’s $870,000 more than its operating profit of $2.6 million for the 2018 calendar year.
After all expenses were paid, it finished the year with an actual profit of $588,860 after losing $104,000 in 2018.
Total revenue increased by $2.9 million to $36.3 million, which is an increase of 8.6 per cent. Total operating expenses also increased, though, with the team spending $32.8 million in 2019, an increase of $2 million.
Merchandise sales after the team’s victory in the 107th Grey Cup largely contributed to the increase in profits.
“Financially, 2019 was a strong year for the Winnipeg Football Club,” president and CEO Wade Miller said in a statement. “Credit goes to our season ticket members, corporate partners, and fans for the important role they play in the success of our Club, both on and off the field. Our team should be proud of our financial results and winning the 107th Grey Cup Championship.”
Gate receipts were down slightly last season, but merchandise and concessions grew by over $2 million.
“We adjusted the way we account for our gate receipts,” said Miller. “So that’s ticket revenue, entertainment tax, and facility fee now. So the comparison to that – the decrease is approximately three per cent. So it’s pretty flat actually. The attendance was almost the same as the year before.”
The club also made almost $900,000 by hosting an NFL pre-season game in August.
The Winnipeg Football club noted a $657,600 expense for league ownership of the Montreal Alouettes last season.
“The team’s across the league stepped up and made sure that we were able to get to the point where we were able to bring in great new ownership in Montreal,” Miller said. “Well worth the investment by all the teams.”
Playoff expenses also increased by $800,000 after the club played three road games in the post-season.
The team also made a $2.2-million payment to Triple B Stadium Inc. as part of its sixth scheduled annual installment in the loan for IG Field. The club also paid down $580,000 in debt in a separate loan that was required to complete and begin operating IG Field, and spent $1.1 million on capital expenditures.
As of the end of 2019, the football club had an operating reserve of $4.1 million in the bank.
The profit is much needed with big losses expected for 2020 because of the coronavirus pandemic. Financial results are expected to be severe if the season is shortened or cancelled altogether.
“The Club continues to monitor the situation in conjunction with the CFL and is reducing, deferring, and eliminating expenditures where possible, and at the same time exploring all possible alternate sources of revenue during these difficult times,” Miller said. “The support that our season ticket members and corporate partners have shown us throughout has been overwhelming and encouraging.”
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