CEO Update: January 2020

CEO Update: January 2020
Author
Justin Pascoe
Chief Executive Officer
Timestamp
Sun 2 Feb 2020, 02:16 PM

On behalf of all at Wests Tigers, a very Happy New Year.

As we enter a new decade a new calendar year at Wests Tigers, I wanted to share an update with you on the progress we are making both on and off the field.

There can be a lot of external noise at times with rugby league, and it is important to share that the Board, players, coaches and staff of this club are solely focused on delivering success in 2020.

Since the completion of last season, we have welcomed several representative players in our new signings for 2020 with Adam Doueihi, Joey Leilua, Luciano Leilua, Zane Musgrove and Billy Walters, while also re-signing sought-after talent in Tommy Talau, Luke Garner and Alex Twal.

We have welcomed a new Chair in passionate and long-standing Wests Tigers contributor Lee Hagipantelis, and work is about to begin on our new Centre of Excellence.

However, what I felt was most pressing for this update was not just to talk, but rather show the progress being made by all in the organisation.

CEO Justin Pascoe talks latest recruitment signingsCEO Justin Pascoe talks latest recruitment signings
CEO Justin Pascoe talks latest recruitment signings
The below graphs are a series of images that were recently shown to all staff at Wests Tigers — highlighting the strides forward that this club has taken in the past few seasons. While our success on field has not been what we had aimed for, the proud Members of this great club can certainly take great confidence in the fact that Wests Tigers are continuing to move forward.

It’s important to note that the current sports landscape has changed dramatically in recent years with increased competitive tension. The emergence of domestic T20 cricket, the NBL and netball competitions increasing their presence and the continued success of all female sport at the elite level has seen an already competitive environment go to new heights.

In recognising that, this club has continued to strive towards creating a sustainable environment that generates a stable financial future.

As a club, we pride ourselves on thinking innovatively in everything that we do — continually searching for best practice across all global businesses.

We have been able to significantly improve our capabilities and capacities by increasing our investment back in to the club, and you’ll note that key strategic focus in the below graphs.

Sponsorship, Hospitality and Events

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Gross revenue in income generated through sponsorship, hospitality and events has improved greatly. The graph below indicates that we have been able to deliver better value to our corporate partners in a more efficient manner — enabling us to execute contracts that generate better margins.

Membership

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Gross revenue has also risen greatly in Membership over the past four years while the net gain has also improved — indicating better yield and pricing of Membership packages. In addition to this, we have been able to be more aggressive with our suppliers due to the economies of scale on a higher volume of Members.

The key developments throughout this have been in the establishment of a more structured tier approach to our membership packages as well as improvements across ticketed memberships.

As always, we sincerely appreciate and thank all our Members for their continued support and contribution.

Merchandise

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Gross revenue and net income have remained stable since 2016 — a strong result given our on-field performances where finals football traditionally generates a strong surge in merchandise spend. Our stability in this space also goes against a downward overall consumer trend.

Stock management has also improved with write-offs substantially down on previous years and remains a key focus going forward.

Game Day

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We have seen heavy fluctuations in the gross revenue and net income from game day due to changes in agreements and stadia locations since 2016. These results are heavily impacted on the time of game, location, opposition and also weather — a lot of which is obviously out of control.

Total Commercial Operations

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Commercial operations have improved drastically, allowing significant investments across the front office — especially within digital automation and human resources— and football departments, with an increase in support and technique coaches, women’s programs, food and travel.

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Other income has also significantly increased — driven largely by the establishment and success of the Wests Tigers Foundation — as well as other grants and donations.

Total Football and Front Office Operations

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Football expenditure continues to rise with costs split between earnings from grants and commercial performance. Front office expenditure has also increased, driven by enlarged support areas and tools as well as increases in programs associated with government grants.

Net Profit/Loss

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The net profit of Wests Tigers has improved significantly over the last four years with multi-million-dollar losses turned in to profit performances in 2018.

In 2019, the club made its most substantial investment back into the business in a four-year period and have set another aggressive budget for 2020.

While the numbers from these graphs have been omitted for confidentiality, I trust that this transparency and information-sharing is valuable and resonates well with your belief and confidence in what we are achieving at Wests Tigers.

It is important to stress that although these graphs demonstrate a lot of improvement across the club, there is not a single person from the Board down that believes we have reached our pinnacle.

We all acknowledge that we have a long way to go, and we are all committed to working tirelessly to ensuring this club becomes sustainable and a strong performer on and off the field. From our players and coaches through all the staff, everyone at Wests Tigers remains determined to deliver success each and every day in 2020 and, with your support, we are extremely confident that our best is still yet to come.

Regards,

Justin Pascoe
Wests Tigers CEO

I thought this was brilliant and respect to Just and the club for sending it out. Also results look really good and all heading in the right direction which is great.

I would of liked to see profit and loss graphs for game days at each ground broken down… The broad statement of these figures fluctuate because of various reasons is not really an honest evaluation of the situation for multi grounds ! All in all a better summary than the normal cut and paste !

So we ran at a loss last year, but spending more on the football dept is the reason and more important than showing a profit. Plus WA still just write a cheque to cover it. Not sure why $ have to be kept confidential.

@gallagher said in CEO Update: January 2020:

So we ran at a loss last year, but spending more on the football dept is the reason and more important than showing a profit. Plus WA still just write a cheque to cover it. Not sure why $ have to be kept confidential.

Probable there are areas that the club are running up big losses ! This is draining the financial situation hence the secrecy were not taking multi nationals here , just hiding the facts ! and covering ones butt…

@Snake said in CEO Update: January 2020:

@gallagher said in CEO Update: January 2020:

So we ran at a loss last year, but spending more on the football dept is the reason and more important than showing a profit. Plus WA still just write a cheque to cover it. Not sure why $ have to be kept confidential.

Probable there are areas that the club are running up big losses ! This is draining the financial situation hence the secrecy were not taking multi nationals here , just hiding the facts ! and covering ones butt…

As long as WA cover the losses.

Good results…moving forward…

Pascoe does well in the business side of things. On field success will make off field success even greater

I.wpuld like.to.know.the real update relatingtp.the new teaining facilities

When do we get back the money Toddie stole from us for not signing Farrah post playing?

@sheer64 said in CEO Update: January 2020:

When do we get back the money Toddie stole from us for not signing Farrah post playing?

Good luck with that

Pascoe confirmed on twitter that the NRL’s yearly grant given to clubs is not included in the numbers.

Pop our P And L statement as well as our G/L on thanks JP and let Happy tell you the facts Jack

@Spartan117 said in CEO Update: January 2020:

I.wpuld like.to.know.the real update relatingtp.the new teaining facilities

Did you have a stroke? are you ok mate?

@Snake said in CEO Update: January 2020:

I would of liked to see profit and loss graphs for game days at each ground broken down… The broad statement of these figures fluctuate because of various reasons is not really an honest evaluation of the situation for multi grounds ! All in all a better summary than the normal cut and paste !

Yes, interesting point to get info on how each of the grounds compare to one another. Apart from that I’m glad our team is headed in the right direction and backed by what seems to finally be a competent back room CEO and support staff. Much appreciated.

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