Jobe loses Brownlow, Bombers lose nearly $10 million

By News / Wire

Essendon’s supplements debacle has cost the AFL club nearly $10 million over the last year.

On the same day that the AFL officially stripped Bombers star Jobe Watson of his 2012 Brownlow Medal, the club announced an operating loss of $9.8 million.

In January, the Court of Arbitration for Sport ruled against 34 current and past Essendon players, including Watson, over doping offences related to the club’s disastrous 2012 supplements regime.

The Bombers said that CAS finding had several direct and indirect impacts on their bottom line.

The doping bans severely weakened their AFL side and Essendon finished last.

Essendon chief executive Xavier Campbell said they had a unique set of challenges this season.

“While we’ve been stringent in our financial operations, a number of one-off costs severely impacted the financial result,” he added.

“Shortly after the CAS decision, the board and administration implemented serious measures to respond to these challenges, including a range of cost cutting measures and identifying greater efficiencies across the business.

“With the abnormal costs to our business now largely behind us, we are confident that our underlying business model, debt reduction plan and strategic priorities, will return Essendon to a position of strength in the coming years.”

Essendon said the net additional cost of player compensation claims and legal fees was $4.5 million.

Additionally, they had to fork out $1.5 million for short-term player contracts so they could field an AFL team.

They also lost $3.1 million in reduced gate takings and other revenue.

Essendon took another hit of $806,000 as they wrote off assets at their old Windy Hill ground.

Campbell said their current debt was just over $9 million.

“We expect debt levels to peak during 2017 and our strong cash flows from normal operations will then allow us to begin paying down the debt,” Campbell added.

“Despite these issues, we have taken a number of important steps to ensure a positive future for our club both on and off the field and I am confident we can now transition into a new era with a strong sense of optimism and purpose.”

Essendon will welcome back most of their banned players next season, including Watson.

They will hold their annual general meeting on December 19.

The Crowd Says:

2016-11-18T10:56:31+00:00

Cat

Roar Guru


So explain this: If the program was legal and it produced results, how did the club expect to do it again, when they allegedly kept no records, had no knowledge of what was given, nor dosages, nor frequency? I mean surely the club didn't hire all these 'sports scientists' and pay to shuttle players to off site locations for injections to protect the secrecy of the program just as a once off science experiment, right? Surely the club expected results and once those results happened, they'd want it to be repeated again the next year. The whole 'there was never any records kept' story is so full of BS. There had to be records, the facts that there are none now leads to one conclusion only. Cover up.

2016-11-18T08:32:17+00:00

northerner

Guest


No, actually, the most shameful event was a major club taking a guy who wasn't a doctor on board. letting him run a program they had no control over, letting him inject players with who knows what, making sure there were no records, making sure the players didn't discuss the program with their own club doctor never mind mention all those supplements on their doping forms, and then throwing their hands up and saying, how can we be guilty when we didn't know? Due diligence is required of everyone from the players on up the chain - and none was done for any of this. That is the true shame.

2016-11-18T04:40:48+00:00

Casper

Guest


Well at least the club is standing on its own two feet. Not going cap in hand to the AFL for assistance like a lot of other clubs would. Or having to go down the path of having to sell home games interstate.

2016-11-17T21:02:03+00:00

AR

Guest


"The truth is coming out slowly and surely"... Yeah. It is. And it looks like a $10milliin loss.

2016-11-17T04:52:29+00:00

rtp

Guest


"Not asking/knowing what substances were being injected – yes. Not disclosing those injections on ASADA forms – yes (which is lying to ASADA). Not disclosing substances to club doctor – yes. " Funny because 100 per cent of AFL clubs would have a plethora of players who have been guilty of such things. Of course, both of your first two were wrong anyway. But you believe in a flawed process because it gave you the outcome you wanted. You refused to accept the process which found them not guilty in the first place. The simple fact is that ASADA only charged those players who admitted they received any sort of injections. It was their "confessions" and their "confessions" alone that saw any of them guilty (any player who said they received nothing was not charged). And yet, ASADA/WADA then turned around and then claimed that all the players tried to conceal their cheating! The finding was a logical contradiction. In other words there is a precisely zero per cent probability it could possibly have been legitimate. The tribunal are an utter disgrace as are WADA and ASADA. Luckily for ASADA, both sides of parliament had a vested interest in the final outcome. Why don't you explain that Lamby? How could the players simultaneously be convicted of covering up their cheating but at the same time the only players who were charged were those who admitted to receiving injections? (Note that none of them admitted to receiving TB-4 - that was just wishful thinking on the part of ASADA). And the most extraordinary part is that everybody seems to have forgotten that ASADA never actually cared about TB-4. They were concerned about AOD-9604. They needed convictions on anything they could to avoid the embarrassment of charging the players for a drug that they themselves told the Club was legitimate. The 34 players were used as pawns for ASADA to save face. It is one of the most shameful events in the history of sport.

2016-11-16T23:12:11+00:00

Lamby

Roar Rookie


Not asking/knowing what substances were being injected - yes. Not disclosing those injections on ASADA forms - yes (which is lying to ASADA). Not disclosing substances to club doctor - yes. So even if Esendon had put too much trust in Dank, it could have all been stopped if the players themselves showed any level of due diligence like asking: - what am I being injected with now? - Does that substance have clearance with ASADA? - Can I see your ASADA query receipt number that proves the substance is legal? - Have you checked with the club doctor that I am able to take that substance? - What effect do you think this substance will have? - Does it have any side effects? - What method are you using to determine if this substance is improving/fixing/recovering me? If ANY ONE of the players had asked ANY ONE of those 'due diligence' questions above the program could have been stopped. The players did not follow the process that the AFL (and the club) requires for the use of supplements/drugs so I cannot see how the payouts will be big (if any).

2016-11-16T22:31:05+00:00

Penster

Roar Guru


Liam D - if the players were tested within the 7 day period of an injection or supplement, what would they have answered? Could they have answered with any degree of certainty?

2016-11-16T22:10:03+00:00

Birdman

Guest


.......individually and personally culpable of breaching the WADA code. on that basis, I can't see why any compo payment wouldn't be heavily discounted - after all the AFL is ultimately underwriting these payments and that money that could be better used to fund grass roots footy or a better deal for the women's league.

2016-11-16T11:39:58+00:00

Hansie

Guest


It's one of the great quotes. How delusional can one person be? Hird completely stuffed Essendon.

2016-11-16T01:58:08+00:00

harry houdini

Roar Rookie


What are they culpable of ? Lying to ASADA - no Positive test - no Asking for WADA compliant forms to sign for the program - yes

2016-11-16T01:20:52+00:00

Birdman

Guest


BTW surely the compo payments to the current Essendon players (as opposed to former players at other clubs) should have a component included in next year's salary cap as they overpaid most players to re-sign them? In my opinion, Essendon owe the players little as they were personally cuplable

2016-11-16T00:38:40+00:00

Birdman

Guest


lay off the kool-aid, Liam. It's over and you just sound deluded and pathetic.

2016-11-15T22:59:08+00:00

Liam D

Guest


What if McVeigh had won the Brownlow and then lost it via this. para 129 (viii) of the CAS award (judgement) reads in part - "....Players such as Mr. McVeigh, who said that he was told he was receiving Melatonan, did not, on his own vehement admission, experience any tanning effect from it, although that is one of its well known properties." Wrong. Melatonan helps the body to sleep (McVeigh had a newborn and was sleep deprived). It does not have tanning side effects. Melanotan, a different drug, not what McVeigh said he was having, has tanning side effects. McVeigh was disbelieved by CAS because they didn't know the difference. But it couldn't be challenged on appeal. Oh no. Only procedural matters. McVeigh has to live with his conviction despite CAS completely stuffing up its interpretation of his evidence. So CAS assumed because he did not have tanning side effects he was getting TB4

2016-11-15T22:56:47+00:00

mdso

Guest


This is fact and being checked out by Senator's above, also Bruce Francis. ASADA have chosen not to release that information and the Australian Government can't or won't make them do it. ASADA, DO NOT answer to any Australia Government body or department and no Government body/department will take responsibility for ASADA. The Minister for Sport, Susan Ley, has refused to answer questions about this. I think everyone completely under estimated Ben McDevitt, he and his team have found loopholes and jumped right through the middle of them and that's my opinion.

2016-11-15T22:06:56+00:00

Liam D

Guest


Fact.

2016-11-15T22:06:04+00:00

Liam D

Guest


The truth is coming out slowly and surely but Hird is wrong about Essendon being in a good position, but accordingly they will bounce back financially eventually. See my link below, the very corner stone of CAS judgement about banning the players has been proven bunk, the fact that the players could not appeal against the findings of CAS is wrong. The process only allows for appeal to the Swiss Federal Court on procedural grounds. It does not allow an appeal to be upheld on the grounds that CAS made an error of judgement.

2016-11-15T22:03:13+00:00

Joe

Guest


Is that fact or someone's opinion?

2016-11-15T21:45:42+00:00

Liam D

Guest


Yet the very cornerstone of CAS findings that the players collude and lied, does not stack up one bit. https://www.change.org/p/senator-richard-di-natale-senator-john-madigan-senator-nick-xenophon-inquiry-into-ethics-practices-of-asada-afl-wada-antidoping-case-against-the-34-efc-players/u/17791820 29 of the 34 players filled the form out correctly. ASDA will not release any info regarding the other 5 despite a FOI request being made.

2016-11-15T21:42:25+00:00

MG

Roar Rookie


The tale of two managements; Essendon: Wooden spoon, $4.5 million wasted on legal fees to satisfy the egos, $10 million loss. Cronulla Sharks: Premiers, haven't put out their financials yet, fans still driving around with their Sharks flags on their cars (looking tattered but makes me smile).

2016-11-15T21:27:47+00:00

Mike

Guest


Haha Jimmy Hird, what a man!!!!!!!!!

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