CEO Report

CEO REPORT

BEVAN PAUL

“Parramatta Leagues Club made commitments to: maintain budgeted support for the Eels; maintain budgeted support for our community and ClubGRANTS; and maintain communication with staff and Members.”

Dear Members

In previous annual report commentary, I have remarked upon the underlying resilience of the Paramatta Leagues Club business. This capacity was again put to the test in 2020, as it was for many businesses. The financial results were generally impacted in two ways: firstly, the operational impact of COVID-19 and secondly a number of decisions that were taken during this period as a result. Broadly speaking Members will note that revenue and expenditure decreased proportionally in line with the ten-week shutdown period. What the financials don’t tell Members is the stories behind the numbers and how your Club navigated its way through 2020.

The first item to note is the amazing agility of staff at Parra Leagues and Vikings. Whilst operating with a skeleton workforce, they were able to close down venues and establish processes for monitoring the venues by utilising building management systems and security. Whilst all employees were uncertain about the future and how they would adapt to life without work, everyone pulled together and both venues were emptied of cash and perishables, secured and a maintenance schedule put in place within a single day.

At the time of the shutdown announcement, clubs were advised that the shutdown could be in place for six-months. Whilst this period was thankfully much shorter, Parramatta Leagues Club made commitments to: maintain budgeted support for the Eels; maintain budgeted support for our community and ClubGRANTS; and maintain communication with staff and Members.

All perishable food in the Club at the time of the shutdown was donated to long time community partner Parramatta Mission. A few weeks later the Club responded to a request from another long-time community partner Northcott for contributions of hand sanitiser dispensers and gel. Prior to entering the shutdown period, the Club had purchased ample supplies of hand sanitiser and we were pleased to be able to provide this support.

When the JobKeeper scheme was announced, Parramatta Leagues Club moved quickly to ensure all eligible employees accessed the scheme and provided meaningful work for those employees. Staff were employed to contact vulnerable Members and, where needed, delivered basic supplies. The Club quickly developed a home delivery option, and the Club continues to offer our own Jacks Pale Ale online.

With the encouragement of the Board, management took the opportunity to undertake several projects during the shutdown period. Substantial scheduled maintenance work was completed whilst the Club was closed along with several administrative tasks. Whilst somewhat mundane in nature, these kinds of projects can be challenging to undertake whilst the Club is operating and resources are devoted to day-to-day operations. I estimate that a years’ worth of repairs, maintenance, training and administration work was able to be completed during the shutdown period. These projects ensured that staff remained engaged and that the venues were as well prepared for re-opening as they could be. I need to acknowledge the management team for their diligence and efforts in completing these tasks for the successful reopening of our venues in June.

Separate to the operational elements, a number of other items had a material effect upon the annual report results. Australian Accounting Standard AASB16 fundamentally requires businesses to treat long term leases in a different fashion. Rather than lease or rent payments being charged to the income statement over the period of the lease, certain leases are now treated as assets and liabilities and also incur a depreciation charge. Explanation on the impact of this new standard on the Club’s balance sheet is included at note 2.2 and note 13 in the annual report.

Employee Recognition

I cannot speak highly enough of our employees who worked with the Club during shutdown on the items mentioned above. They also embraced a culture of hygiene to protect patrons and in doing so protected the business. In recognition of the efforts of staff as well as their outstanding performance in difficult times, the Board approved a one-off special payment for staff. Staff also undertook training during the shutdown period, including customer service training. This investment has yielded dividends from reopening in June 2020.

Jacks Pale Ale

2020 was the year that our very own Jacks Pale Ale cans co-branded in a joint venture with the Eels went on sale. As part of the launch of this product a portion of sale proceeds will go to the Cobargo District Emergency Hay Fund to help a town devastated by the bushfires in late 2019. The Cobargo District Emergency Hay Fund is 100% volunteer operated with 100% of funds going directly to members of the Cobargo community.

First year with new constitution

In closing it is important to remember that 2020 was also the first year with the operation of a new constitution. As a result of constitutional reform implemented in late 2019 the consolidated Parramatta Leagues Club group now has two separate boards to separately oversee the Football and the Registered Club businesses respectively. I would like to acknowledge both Boards as well as the Eels CEO Jim Sarantinos for their leadership during this extraordinary year.

Bevan Paul Chief Executive Officer Parramatta Leagues Club Limited