Eels CEO Report

EELS CEO REPORT

JIM SARANTINOS

“The support we have received from our Members, Corporate partners and fans throughout 2020 was overwhelming and showed the strong connection our Football Club has with key stakeholders.”

I am pleased to present my report for the 2020 financial year for the Parramatta Eels Rugby League Club (“Eels or Football Club”). 2020 was an unprecedented year not only for our Football Club but for our community overall. I am immensely proud of how our staff, coaches and players met the enormous challenges that the COVID-19 pandemic has presented us. The support we have received from our Members, Corporate partners and fans throughout 2020 was overwhelming and showed the strong connection our Football Club has with key stakeholders. A key contributor to the Eels’ positive performance in 2020 was the support of the new Parramatta Leagues Club (PLC) Board and their management team. Despite the significant disruption to PLC’s business, the support the Eels received throughout the year across a range of different areas showed the importance of a strong and well coordinated working relationship between the two organisations. I would like to make mention of some of the major highlights for 2020 starting with our football program.

Football Program

The suspension of the NRL competition in March 2020 was incredibly disruptive to our Club, our people and the game as a whole. Credit must be given to the Australian Rugby League Commission (ALRC) and the NRL through the leadership of Peter V’Landys and Andrew Abdo in working hard to ensure the resumption of the game was achieved promptly and safely. The weeks and months that followed the resumption took a great personal toll on all involved, particularly for our football staff, players and their families who made a number of sacrifices to ensure they complied with the NRL ‘bubble’ requirements. The way Brad, our staff and players responded when the competition resumed was a testament to their character and the resilience the Football Club has developed when faced with adversity. It’s important to also acknowledge the impact on our Canterbury Cup and elite pathways teams who’s competitions were cancelled in 2020. Our staff, players and volunteers handled this disruption with a Club first mentality and a fierce commitment to ensure that our programs are prepared for success in 2021. The NRL team built on its performances in 2019 with some great achievements in 2020 including: • Improving our ladder position from 5th to 3rd and recording our highest regular season finish since 2005; • Spending eight weeks at the top of the ladder and having a 75 per cent win / loss ratio; • Playing finals football in three of the last four years and in consecutive years for the first time since 2006 and 2007; and

• Having four players in the 2020 NSW State of Origin squad which is the highest Eels representation since the 2002 season We placed ourselves in a position to win both games in the finals series but unfortunately, we fell short. As a Football Club, we see the 2020 season as one of continued growth, but also missed opportunity. As a Football Club we strive to be the best and everyone, from the playing group, our football staff, our front office staff, and our board, is committed to learning from the experiences of 2020 and delivering success for all our stakeholders. The substantial steps we have made in our football program, and the commitment to continuous improvement has us well placed for the years ahead.

Financial and Football Administration

The Football Club recorded a profit of $1.358 million for the year ended 31 October 2020, a continuation of the positive trend in business performance in recent years. This result was achieved through the tremendous support of our Members who pledged their support for the Eels and our Corporate Partners who not only remain committed to the Eels but in many instances increased and extended their partnership with us. In what has been a long and challenging year for us all, we are humbled by the way our Members and Corporate Partners passionately support the Eels. The challenges of 2020 also necessitated a significant reduction in operating costs across all areas of the business as part of the Football Club’s response to the COVID-19 impact. These factors combined with the commitment of our staff and the economic policy initiatives from State and Federal governments contributed to the positive financial result for the Football Club in 2020. We have a lot to be proud of that demonstrates not only how far the Eels have come in recent years, but how bright our future is. This includes: • The Football Club and PLC supporting the Sapphire

Coast region impacted by the bushfires, with significant funds raised and valuable time spent by our players and staff connecting with those devastated communities; • Our successful relocation to Kellyville Park and the completion of a long-term licence agreement for the site with The Hills Council; • Our Junior League working tirelessly to bring together a COVID safe competition that provided an outlet for so many players in our Parramatta and

Western Sydney community; • Breaking our membership record for the 7th consecutive year, with the Eels now ranked 2nd in the NRL with over 29,000 Members. Our growth of 15% was well ahead of the next best club in the NRL; • Securing and extending many of our key partnerships including Actron Air and Lending Association and securing new partnerships with Subaru, Macron and Gatorade; • Achieving a cumulative live TV audience of over 13.3 million, which ranked 2nd in the NRL; and • Just under 10 million aggregate views across the

Football Club’s social media channels, which ranked 1st in the NRL. On most key metrics, the Football Club is performing strongly and is well position to grow in coming years. The Football Club is in a healthy financial position, however like all businesses we are approaching 2021 with cautious optimism and with a commitment to creating a financially sustainable business and reduce its reliance on funding from PLC. The new Board of the PLC alongside their management team, have worked through the challenges of this year exceptionally well and we want to ensure they can invest in their key strategic initiatives that will ultimately help grow our group in the coming years. While we are focused on delivering on-field and offfield success in 2021, securing the long-term future of the Football Club is equally important. We have continued to make progress on our Centre of Excellence project, with construction of Stage 2 planned to commence in 2021. This will see the delivery of a Community Centre at Kellyville Park which will include a boutique style grandstand to allow the Eels to host 2nd tier, elite pathway and community rugby league matches, together with entertainment and education spaces for the community. It is the next step in what will ultimately be the premier rugby league facility in Australia. I’d like to acknowledge the support of PLC both financially and through the strong working relationship we have with President Greg Monaghan and his management team. The stability at Board and management level of each organisation is critical to our future success. Finally, I would like to thank our Members and Corporate Partners for a tremendous year and acknowledge how important your support is to the Eels. We now have a level of financial stability which has not been experienced for many years and provides the Football Club with a strong platform for growth and a future that looks bright. It is a great privilege to lead the Parramatta Eels and we are passionate about seeing the Eels reach its potential, both on and off the field. We truly believe our best days are ahead of us and look forward to sharing those together with you.

Best regards,

Jim Sarantinos Chief Executive Officer Parramatta National Rugby League Club Pty Limited