201718 - sydney cricket ground trust · 4 sydney cricket & sports ground trust annual report...

Financial Year (1 March 2017 – 28 February 2018)

2017/18ANNUAL REPORT

1

CONTENTS2 LETTEROFSUBMISSION

3 MINISTER’SFOREWORD

4 CHAIRMAN’SREPORT

8 VISIONANDGOALS

10 KEYOBJECTIVES

12 MANAGINGOUREVENTS

18 MANAGINGTHEASSETS

22 STRATEGYANDPROJECTS

24 COMMERCIAL

26 MEMBERSHIPANDMARKETING

32 MEDIAANDCOMMUNICATIONS

34 CORPORATESERVICES

44 HUMANRESOURCES

48 TRUSTEEANDMANAGEMENTPROFILES

60 TRUSTCHARTERANDCONSTITUTION

62 FINANCIALINDICATORS

64 AUDITEDFINANCIALSTATEMENTS

110 CONSUMERRESPONSE

Sydney Cricket & Sports Ground Trust

General Enquiries: (02) 9360 6601

Email: [email protected]

Trust Office: Administration Office, Level 2, Sheridan Building Moore Park Road, Moore Park NSW 2021

Postal Address: GPO Box 150, Sydney NSW 2001

sydneycricketground.com.au

3Sydney Cricket & Sports Ground Trust Annual Report 2017/182

MINISTER’S FOREWORDSport and entertainment events of all kinds were on show at the SCG and Allianz Stadium during the reporting period with the Trust continuing to provide an innovative game day experience.

Sell out crowds for the Ashes Series, Anzac Day Cup and A-League Grand Final were thefeatures of the schedule, whilethe College Football Sydney Cup,AFLX and Sydney Sevens eventsoffered something different forsports fans, who travelled far andwide to the sporting precinct.

Sydney FC completed the best season in Australian football history, winning the Premiers Plate and then the A-League Grand Final in front of a bumper crowd of 41,546. Their thrilling penalty shootout win over Melbourne Victory will go down as one of the club’s greatest ever moments.

The W-League side also competed at Allianz Stadium last summer, alongside the Sydney Sixers WBBL team who played three matches at the SCG and would go on to win their first Big Bash title.

All five women’s sporting codes have now been played in the precinct and a key part of the Allianz Stadium redevelopment will be to ensure the venue serves our best female athletes and fans well into the 21st century.

More than 30,000 fans also came to see an all-female line-up for Sia’s unique live performance in December as the precinct adds to its long list of international singers to play at Moore Park.

The annual New Year’s Test at the SCG was an amazing spectacle, with the event the biggest on the NSW sporting calendar, creating thousands of jobs and bringing cricket fans from all over the globe to the harbour city.

Australia’s 123-run triumph over England to win the series 4-0 was a drama-filled spectacle for the 182,349 fans who attended the Test – the largest five-day crowd aggregate for an Ashes

Series in the ground’s history. A total of $1.4m was raised for the McGrath Foundation as well.

Australia’s One-Day and T20 Internationals against England and New Zealand were equally competitive, while the extended Big Bash competition attracted fans in droves to Sixers games.

The Sydney Swans showed incredible courage after a tough start to the season. They became the first team in AFL history to make the finals after losing five or more games to start the season. They continued to dominate club land in NSW, bringing their membership tally to 60,000.

The NRL Season at Allianz Stadium was one of the most exciting yet. The Sydney Roosters won nine of their 10 matches at the venue in the regular season including a 13-12 golden point triumph to win the Anzac Day Cup in front of 40,864 fans.

It was a difficult season for Australian Super Rugby sides but the Waratahs unearthed some new stars throughout the Test period. The Wallabies played matches against Scotland and the Barbarians in front of healthy crowds.

The international rugby fanfare continued for the Sevens World Series event on the Australia Day Weekend. Our Olympic gold medal winning women’s side blitzed their competition to win the tournament alongside the men, without dropping a single point.

By the time the Trust’s annual report is submitted to Parliament, Allianz Stadium will be preparing to host its final events. The NRL Finals Series beckons, as well as what will be a show-stopping closing concert in October when Michael Bublé visits Sydney for his only Australian show. Come summer

THEHONSTUARTAYRESMPNSWMinisterforWesternSydney,WestConnexandSport

Level 2, Sheridan Building Moore Park Road Moore Park NSW 2021

GPO Box 150 Sydney NSW 2001

T 02 9360 6601 F 02 9360 1319 www.scgt.nsw.gov.au

June 2018

The Hon Stuart Ayres MP Minister for Sport GPO Box 5431 SYDNEY 2001

Dear Minister

Letter of Submission 2017/18 ANNUAL REPORT SYDNEY CRICKET & SPORTS GROUND TRUST

The Trust is pleased to submit the Annual Report of the Sydney Cricket and Sports Ground Trust for the year ended 28 February 2018 for presentation to Parliament.

The Annual Report has been prepared in accordance with requirements of the Annual Reports (Statutory Bodies) Act 1984, Annual Reports (Statutory Bodies) Regulation 2010 and the Public Finance and Audit Act 1983.

Yours sincerely

JAMIE BARKLEY Chief Executive Officer

The Hon Stuart Ayres MP

and the demolition of the stadium will be underway properly, with the new Sydney Football Stadium to be built in its place, celebrating the legacy of its predecessor but also providing the modern experience that our rectangular codes have gone without for too long.

The SFS has served Sydney well and, when it opens in 2022, the new one will be immeasurably better. Better for the many thousands of fans who will visit each year, better for the teams, athletes and codes and better for the residential and business communities that border the SCG precinct. I can’t wait.

I’d also like to congratulate staff at the Sydney Cricket and Sports Ground Trust for their commitment to serving the history of sport and for their ongoing vision for the future of live entertainment.


CHAIRMAN’S REPORTAt 1.45pm on Saturday, October 3, 1903 the State Minister for Works Edward O’Sullivan and then NSW Governor Harry Rawson officially opened Sydney’s newest sporting venue. The Sydney Sports Ground boasted the “finest bicycle track in the world” as well as seating for 6000 spectators and room for 20,000 more on the hill surrounding the playing field.

One of Sydney’s early newspapers, The Newsletter, gushed about the new venue.

“Some two years ago, the ground was a fetid refuse tip that grated upon one’s olfactory nerves if you approached within a mile of it,” the paper’s anonymous correspondent wrote.

“The ground now contains the best bicycle track in the world … nearly 300,000 loads of earth have been put in the ground to form the football and cricket oval, the lawn and hill.

“Great credit is due to the trustees for the work in converting the ground into such a valuable state asset.”

The final line of The Sunday Times’ preview of the opening event has resonance today with the writer advising readers: “Tramway authorities are running special trams to the ground every few minutes”.

From that first day, the Sydney Sports Ground became an immediate sporting focal point of the city, providing the stage for champions from all sports.

Nowhere else in the world could a single venue claim to have seen the likes of Betty Cuthbert, Arthur Beetson, Pele and Jack Brabham display their individual skills on the same patch of ground.

The 1988 opening of the Sydney Football Stadium with an Australia Day gala concert was altogether different.

A crowd of 20,000 turned up drawn by an opening lineup that included legendary US performer John Denver, alongside superstar

Australian bands Air Supply, the Eurogliders and Dragon.

This time, it was then premier Barrie Unsworth who declared the $62m venue ‘open’ and a new era in live sport began - fully funded by the SCG Trust.

The SFS took its name after intense lobbying by then Trustee and Australian Soccer Federation life member Jim Bayutti – a move that foreshadowed the round ball game’s future long before the old soccer/new football transformation led by Frank Lowy.

As good as the new SFS was back in 1988, some flaws were easy to see from day one, with Rugby League Week’s report of the first league match observing: “The driving rain saturated almost half of all the seating, even though the stadium’s architects insisted 75 per cent of spectators would be covered.

Add in today’s concerns of compliance to modern building and safety standards and it is easy to see why we are about to demolish the current SFS and deliver a world class stadium for NSW.

As Trustees with responsibility to our members, patrons and the people of NSW, we had no option but to support and encourage the Government in its plan to rebuild the SFS.

Even though the Trust has spent well over $80m maintaining and upgrading the SFS since it opened, there are some problems that are simply impossible to fix.

In the current structure, there can never be enough seats for wheelchair users, female bathrooms, emergency exit doors and countless other things to make it compliant with modern standards and expectations. To retrofit and keep operating the venue is more expensive than to rebuild and without major capital investment, is irresponsible in the extreme.

The SFS has a conditional certificate of occupancy that expires in 2019 and mandates how it can be operated safely. We intend to do that right up until the final event later this year.

The future holds better outcomes for all users of the stadium, better facilities for the sports including the growing elite women’s teams, more and better facilities and seats for the general public and members.

It must be remembered, and it is a point I labour with all I meet, that the foundation gold members of the Trust funded the construction of the SFS for the people of NSW. Our members continue to be the backbone of the SCG Trust.

Not one dollar from any Government has gone into the SFS, the venue has been funded year after year by the SCG Trust.

The SFS is anything but a private club for the wealthy.

It is the most public of facilities, open to anyone who can get their hands on a ticket and it has been maintained and operated for more than three decades without a single dollar of contribution by the NSW Government – even though it is the property of the people of our state.

We face a little over three years of disruption while the new stadium is built. Most matches will be moved to the SCG and interim member facilities will be provided.

When the new stadium opens in 2022, there will be new state of the art member facilities in the precinct as well – improving markedly on the current offering.

The light rail will be up and running and the SCG precinct will be realising its potential as a sporting, educational and entertainment precinct amid a parkland setting.

As positive as the future is, we do ask for patience during the construction. Change is rarely easy, but it’s something we will all have to deal with until the work is complete. We have had great cooperation from our faithful clubs and codes and will

Anthony Shepherd AO Chairman


transfer whatever games we can to the SCG . Particular thanks goes to the Sydney Swans and the AFL who are the most affected.

The past year has also marked one of considerable change at the SCG itself, with the departure of curator Tom Parker – just the eighth man to fill that role in the ground’s history.

We also farewelled Michael Finch, who had been charged with looking after the SFS field of play for just as long as Tom.

Both men had been in their respective top jobs since 1997, meaning they’d seen cricket Tests to rugby league grand finals, Bledisloe Cups, Sydney Swans blockbusters, concerts and everything in between. We say farewell and thank you to both great men.

With the departure of both curators came the opportunity to revisit the structure of the grounds team, meaning the Trust appointed the first grounds

manager in the history of the Trust.

Justin Groves comes from the most cricketing of families - his grandfather was famed ACB chairman Phil Ridings. He has spent the past 15 years at the Adelaide Oval. Justin is joined by Adam Lewis, former curator at the much-awarded Hurstville Oval, who becomes the ninth curator in the SCG’s history.

It was the biggest of first challenges for both men, with the eyes of the cricketing world on the SCG for the fifth Ashes Test – the single largest sporting event in NSW every four years.

The New Year’s Test was a roaring success, with a record five-day Ashes attendance, outstanding cricket and a wonderful atmosphere at Sydney’s No.1 sporting event.

The summer also marked the first full use of the Trust’s new SCG security control room and upgraded CCTV

system – another significant investment in doing all we can to ensure the safety of our patrons. In the modern age safety and security is the prime consideration of the Trust and a core consideration in the rebuilding of the SFS.

During the football seasons, the SCG hosted its largest AFL crowd ever of 46,323 when the Sydney Swans defeated Essendon in an elimination final during the 2017 season.

Allianz Stadium hosted its fourth A-League grand final, one of the most enthralling in the history of the competition. Sydney FC beat arch-rivals Melbourne Victory on penalties after extra time in front of more than 41,546 people.

The men’s and women’s rugby sevens teams also both won the home tournament when the Sydney Sevens shifted to the Australia Day long weekend – a first for the globetrotting

sevens rugby circuit that provides a wonderful stage for our elite female footballers.

The grounds also hosted all manner of events over the past year, including US College Football, the new AFLX, as well as the regular offerings of the summer and winter seasons.

As always throughout the year, the Trust has supported charities and worthy activities far and wide – often with the help of our sports partners.

They are small and large and spread all over the world, and the Trust’s involvement varies from tickets to suites, tables at charity lunches and donated memorabilia items.

In this financial year I’m proud to report that we played a small part in helping Rwanda establish its first international cricket ground, a venue that doubles as a public health facility for the local community. I

hope that one day an SCG XI will play at the Rwanda Cricket Stadium in Kigali. Cricket has been a wonderful healing agent in Rwanda.

The past year saw several high-profile charity events involving the SCG as well, including a chilly winter’s night when some of Australia’s highest profile CEOs and senior executives slept rough at the SCG and raised money as part of the Vinnies CEO Sleepout.

Jane McGrath Day, of course, remains one of the largest charity events on the national calendar, with a new record amount of $1.4m raised during the 2018 Ashes New Year’s Test.

We were also lucky enough to host a major function for St Vincent’s Hospital’s Curran Foundation, which drew His Royal Highness The Duke of York.

Prince Andrew is the second Duke

of York to visit the SCG after his grandfather, George VI who toured Australia in 1926 in the months after his daughter Elizabeth was born.

Lastly, and most importantly, I am pleased to report that the Trust operated at a surplus – as it has done every year for three decades and counting and every cent is ploughed back into facilities and sport.

Thank you to the Trustees, CEO Jamie Barkley, the Trust’s senior executive and their staff for their efforts throughout the year. Thanks also to the nearly two million patrons who visit the venues, without whose support the Trust would not exist.

ANTHONYSHEPHERDAOChairman


WHO WE AREThe Sydney Cricket and Sports Ground Trust is responsible for managing two of Australia’s most celebrated sports venues – the Sydney Cricket Ground and Allianz Stadium.

The SCG precinct is in the heart of Australia’s most densely populated suburbs and on the doorstep of Sydney’s Central Business District. It is surrounded by Centennial Park, the retail facilities of EQ and the thriving restaurant and hotel strips of Oxford Street, and Surry Hills.

Together, the SCG and Allianz Stadium provide a home for touring concerts, rugby union, rugby league, football,

AFL and cricket, with several major sporting codes and clubs, including a growing number of professional eSports teams and Australia’s first eSports High Performance Centre. There is also a university campus, sports museum and fitness centre.

The venues host nearly 100 events each year, attracting more than 1.8 million visitors from Sydney, NSW and beyond.

THESCGTRUSTVISIONWe celebrate sport, create history, enhance entertainment and constantly innovate to provide an engaging and connected experience for our customers.

SCGTRUSTVALUESCustomer service We will provide superior customer service

Leadership We are leaders in our industry

Innovation We are at the forefront of digital transformation

Integrity and accountability We always act with respect

RelationshipsWe work in partnership with all customers, stakeholders and neighbours


KEY OBJECTIVES

Our cultureOur culture is focused on customer experience. It will enable the Trust to deliver its vision, inspiring and driving our people to commit to and collaborate on our customer service goals.

KEYACHIEVEMENTS

» Recruitment of a Customer Experience Manager

» Commitment to customer service reinforced through interactive presentations for staff

» Department goals designed to drive customer-centric culture

» Customer journey maps matched with event customer satisfaction surveys

» Customer feedback centralised to support improvement to products, services and facilities

Our heritageThe SCG precinct is the foundation stone of Australian sport. We will continue to publicly honour the sporting, cultural and social history that has taken place on Trust lands to conserve, respect and showcase for the benefit of generations to come.

» Continued the task of digitising the Trust’s historical archives

» Unveiled bronze sculptures of Betty Cuthbert and Marlene Mathews

» Secured a number of new items for the SCG Museum, including a loan of the shirt Argentinian fotball superstar Diego Maradon wore against the Socceroos during a FIFA World Cup qualifying match at the SFS in 1993.

» Assisted with the upgrade and repainting of facilities in the Members and Ladies pavilions.

» Restored the Trust’s Wisden collection

» Celebrated several significant anniversaries

Our customersWe will put the customer at the centre of our business.

KEYACHIEVEMENTS

» Commenced a new research program to measure game day customer satisfaction

» Introduced new tailored products and services for all membership categories

» Implemented an annual program of member activities and engagement

» Created a Members Advisory Group to develop ideas, provide input and feedback

» Collaborated with sporting partners to promote and engage customers

» Launched a new merchandise range tailored to our customers and history

» Staff training for proactive customer service at gates and concierge desks

Our precinct

We will strengthen relationships with our neighbours and sporting and commercial partners to maximise the SCG precinct’s unique sporting, cultural, parkland and entertainment offering. We will strategically invest in our grounds and facilities to conserve, refurbish and renew.

KEYACHIEVEMENTS

» Progressed plans to rebuild Allianz Stadium into a new 40 to 45,000-seat venue

» Renovated 21 corporate suites in the O’Reilly Stand

» Appointed Premier Fire as the Trust’s new fire services provider

» Upgraded the precinct’s PA and CCTV system

» Resurfaced the entire SCG field of play

» Installed a synthetic roadway around the perimeter of the SCG

» Oversaw the Trust Advisory Group , which helps on the future direction of the precinct

» Continued to work with our neighbours to celebrate heritage and host major events

» Opened the Rugby Australia Building and UTS education, research and high-performance centre

Our digital transformation Two world-class venues – one powerful, state of the art connected precinct

KEYACHIEVEMENTS

» Procured a new tender for app and digital services

» Worked with Avanade and Steve Waugh to deliver an AR activation at the Test match


AFLSYDNEYSWANS

The Sydney Swans were the talking point of the AFL for the 2017 season finishing with 14 wins and eight losses overall, after beginning the year with six straight losses. They realised their worst start to a campaign in 24 years, Sydney became the first team in history to make the finals after losing five or more games to start the season. An incredible run in to the top eight, and a finals berth, saw them win 14 of their last 16 matches only to lose to Geelong in a semi-final in Melbourne and finish fifth on the ladder. The

Swans beat Essendon by 65 points in front of a record turnout of 46,323 fans at the SCG, which surpassed the crowd that watched the Tony Lockett and Gary Ablett Sr shootout in 1997. A total of 421,839 fans came to the club’s 12 home games at the SCG, an improvement on the 2015/16 result which gives them an average attendance of 35,153.

AFLXThe game’s newest showpiece, AFLX, had its first instalment at Allianz Stadium in February, with six teams competing in a round-robin format. A new and exciting concept thrilled fans in attendance,

MANAGING OUR EVENTSClose to two million fans visited the SCG and Allianz Stadium during the past financial year across AFL, rugby league, rugby union, cricket, football, concerts and many other special events.

showcasing a number of innovative rules. Brisbane put on a classy performance to win the Sydney leg, outrunning the Swans in the final, in front of 9892 fans.

Rugby LeagueSYDNEYROOSTERS

The Sydney Roosters turned Allianz Stadium into a fortress in 2017, winning 10 of their 12 matches at the venue in the regular season. Seven of those victories – as well as their qualifying final win over the Broncos – were by six points or less. A highlight included their thrilling 13-12 golden point triumph in the Anzac Day Cup fixture, which was attended by 40,864 fans. Injuries took their toll and only Luke Keary and Jared Waerea-Hargreaves completed an entire season. A total of 171,145 fans attended home games at Allianz Stadium for an average crowd of 14,262 fans per fixture.

SOUTHSYDNEYRABBITOHS

The South Sydney Rabbitohs played one home game at Allianz Stadium during the reporting period against rivals the Manly Sea Eagles. A total of 10,594 fans watched a flawless performance by the Northern Beaches team who beat Souths 46-8.

STGEORGEILLAWARRADRAGONS

The St George Illawarra Dragons also played a fixture in the precinct, going down 24-26 to South Sydney at the SCG. A crowd of 12,312 came to watch the Saints play at their spiritual home as they continued a longstanding tradition at the ground.

NRLFINALS

Allianz Stadium hosted four NRL Finals across weeks one and three. Brisbane were bundled out by the Roosters 24-22 in front of 21,212 fans to progress to the preliminary final. The opening week of finals also saw the Manly Sea Eagles lose to the Penrith Panthers and the Cronulla Sharks fall to eventual grand finalists the North Queensland Cowboys. Elimination football returned in week three with 28,108

fans turning out to watch the Roosters lose to the Cowboys. More than 80,000 fans attended the 2017 NRL Finals Series at Allianz Stadium.

Rugby UnionNSWWARATAHS

The NSW Waratahs played seven home games at Allianz Stadium last year with 100,622 fans turning out for an average home crowd of 14,375. It proved to be a tough season for the men in blue under coach Daryl Gibson with the young side finishing 16th on the overall Super Rugby ladder. The team did however manage to unearth a number of young stars including Ned Hannigan, Jack Dempsey and halfback Jake Gordon before farewelling long-time clubman Dean Mumm at season’s end.

SYDNEYSEVENS

The Sydney Sevens returned for its third year at Allianz Stadium and the event was another great success. Australia’s men’s and women’s teams defeated the rest of the World Series competitors to be crowned Cup champions together for the first time. Both tournaments were integrated fully at the venue, creating three days of action-packed rugby and fanfare. The

women’s team managed to defeat their competition without dropping a single point, finishing with an incredible points differential of 213-0. A total of 47,218 fans attended the weekend, which culminated in the men’s 29-0 win over South Africa.

WALLABIES

The Wallabies hosted Scotland in June as part of a three Test series which featured matches against Fiji and Italy. Australia lost 24-19 in a close contest among 30,721 fans at Allianz Stadium. The side returned in October to take on the Alan Jones-coached Barbarians outfit, who went down to the Wallabies 31-28 in an entertaining contest in front of a crowd of 17,021. Rugby remained a popular choice for fans in the 2017/18 financial year, complemented by the opening of the game’s new headquarters in the precinct.

FootballSYDNEYFC

Sydney FC played 19 games during the reporting period including 17 A-League matches, two grand finals featuring their men’s and women’s teams, and one Asian Champions League fixture. The club were unstoppable in 2017 and would go


on to win the Premiers Plate and the A-League Grand Final in front of a bumper crowd of 41,546 fans at Allianz Stadium. Sydney’s thrilling penalty shootout win over Melbourne Victory will go down as one of the club’s greatest ever moments during a season that heralded 66 points, 55 goals and just one loss. The 2018 season was much the same, winning every single game they played at home until a 2-1 defeat against Newcastle in March. A total of 301,323 fans turned out for Sydney FC’s season, which included a crowd of 6025 for the club’s inaugural W-League Grand Final. The Sky Blues’ average A-League crowd was 16,997 during the past financial year.

CricketNEWYEAR’STEST

Australia completed their Ashes triumph at the SCG in January, defeating England by an innings and 123 runs to secure a 4-0 series result before the tea break on day five. A total of 182,349 fans attended the New Year’s Test, including 17,174 on the final day as supporters made the most of the gold coin entry to support the McGrath Foundation. This was the highest crowd aggregate for a five-day Ashes Test in the ground’s history. The SCG Trust also donated one dollar for every fan through the gates to help raise more than $1.4m for the placement of breast care nurses around Australia.

SYDNEYSIXERS

The Sydney Sixers hosted five men’s and three women’s fixtures at the SCG as part of an expanded Big Bash competition in 2017/18. A total of 124,399 fans cheered on their heroes throughout the season with the Sixers WBBL side winning their second consecutive title over the Perth Scorchers after two wins from three matches at the SCG. The men got off to a slow start but finished strong with wins against the Thunder, Heat and Stars. A crowd of 36,458 fans turned out for their cross-town derby in January, bringing the Sixers’ average crowd for the SCG summer to 24,878.

ONE-DAY&T20INTERNATIONALS

Australia played England in a One-Day International before a crowd of 35,195 in January at the SCG. The tourists continued their turnaround in the shorter format of the game to take a 3-0 lead in the series. Australia also played a T20 International against New Zealand in front of 25,621 fans at the SCG to close out the summer of cricket.

SHEFFIELDSHIELD

The NSW Blues played three Sheffield Shield matches at the SCG during the reporting period as part of the 2016-17 and 2017-

18 seasons. Their final match to conclude the summer of cricket last year was an eight-wicket win over South Australia. Earlier this year, they played out a close draw with Tasmania and finished with a 36-run loss to Queensland, who would go on to win the title.

Special EventsCOLLEGEFOOTBALL

College Football made its debut at Allianz Stadium with Rice and Stanford making the trip to Australia to put on a show for the 33,181 spectators in attendance. The Sydney Cup injected more than

15,000 overseas and interstate visitors, who traded in sausage rolls for hot dogs and meat pies for doughnuts as part of the unique game day experience. The game was broadcast around the world by ESPN and Fox Sports. Stanford were too strong in the end, beating Rice 62-7.

SIA

Close to 30,000 fans enjoyed a unique live performance by Sia at Allianz Stadium in December, despite rain falling across Sydney on the night. The Australian songwriter delivered a vocal masterclass alongside an interpretative dance experience which lived up to the expectations of her local following. Sia’s big hits ‘Cheap Thrills’, ‘Elastic Heart’, ‘Titanium’ and ‘Chandelier’ were fan favourites, while popular young dancer Maddie Ziegler brought the show to life with her undeniable talent. Her support acts – Amy Shark, MØ and Charli XCX – were equally impressive and

delivered standout performances as part of a stellar all-female line up.

OperationsCATERING:Delaware North are completing the third year of a five-year contract extension and continue to provide quality service and offerings at the SCG and Allianz Stadium. A number of new initiatives have been introduced including a Doyles Seafood outlet in the Victor Trumper Stand as well as competitive deals for fans and members attending events.

SCGEVENTS:SCG Events has become a well-recognised event business associated with the Trust. Stadia facilities are offered for private and corporate functions on non-event days and their financials have continued to grow under Delaware North management.

AZURECATERING:Azure catering continue to offer catering

services to members and those attending the Stadium Club on event and non-event days.

TICKETING:Ticketing services for both venues and the Trust’s sports partners are provided by Ticketek, who signed a five-year deal to continue providing a distribution network to the public. Fortress have secured the rights for the Trust’s corporate and member offerings.

MERCHANDISING:Playbill Pty Ltd hold the merchandising rights at the SCG and Allianz Stadium until 2021. Playbill operate the Stadium Store and event outlets at the grounds and work closely with sports partners to maximise sales.

DISABILITYPLAN:The Trust continues to develop its Disability Action Plan to ensure people with disabilities can participate equally in activities at our grounds.

EVENT ATTENDANCE NUMBERS BY CODE

NUMBERS BY CLUB

Event Attendees

CRICKET One-Day International - Australia v England 35,195

Test Match - Australia v England 182,349

T20 International - Australia v New Zealand 25,621

BBL/WBBL - Sydney Sixers 124,399

Sheffield Shield - NSW Blues 3906

RUGBY International Rugby - Wallabies v Scotland 30,721International Rugby - Wallabies v Barbarians 17,021

Sevens World Series - Sydney Sevens 47,218

Super Rugby - NSW Waratahs 100,622

FOOTBALL A-League - Sydney FC (2017-18) 247,403

A-League Grand Final (2017) 41,546

W-League - Sydney FC (2017) 6025

Asian Champions League (2017) 6349

NRL Sydney Roosters 143,037

South Sydney Rabbitohs 10,594

St George Illawarra Dragons 12,312

NRL Finals Series 80,843

AFL Sydney Swans 365,623

AFL X 9892

Finals Series 46,323

CONCERTS SIA 28,562AMERICANCOLLEGEFOOOTBALL Rice v Stanford 33,181

OTHERVISITATION SCG Tour Experience 14,123

Stadium Stomp 2000

Stadium Club Visits 312,081

SCGANDALLIANZSTADIUMTOTAL 1,598,743

PRECINCTTOTAL 1,926,947

SYDNEY SWANS V ESSENDON NEW CLUB CROWD RECORD

TEST, ODI, T20, BBL, WBBL, SHIELDTOTAL CRICKET ATTENDANCE AT THE SCG

BBL AND WBBL TOTAL ATTENDANCE AT THE SCG

WALLABIES, SEVENS, SUPER RUGBYTOTAL RUGBY ATTENDANCE AT ALLIANZ STADIUM

ANZAC DAY CUPROOSTERS V DRAGONS ATTENDANCE

A-LEAGUE, W-LEAGUE, ACLTOTAL FOOTBALL ATTENDANCE AT ALLIANZ STADIUM

ROOSTERS, SOUTHS, DRAGONS AND FINALSTOTAL NRL ATTENDANCE AT ALLIANZ STADIUM

SYDNEY SWANS AVERAGE HOME GAME ATTENDANCE

SYDNEY FC LARGEST HOME GAME ATTENDANCE

SYDNEY SIXERS AVERAGE HOME GAME ATTENDANCE

KEY STATS OF 2018 INTERNATIONAL SYDNEY SEVENS

SYDNEY ROOSTERS AVERAGE HOME GAME ATTENDANCE

NEW YEAR’S TEST AT THE SYDNEY CRICKET GROUND

LARGEST OF ANY SPORTING TEAM IN SYDNEY

SOLD OUT A-LEAGUE GRAND FINAL

SECOND LARGEST OF ANY SPORTING TEAM IN SYDNEY

AUSTRALIA WON THE MEN’S AND WOMEN’S TOURNAMENTS

LARGEST OF ANY SYDNEY-BASED NRL TEAM

LARGEST ATTENDANCE FOR A FIVE-DAY TEST AT THE SCG

46,323

371,470

124,399

195,582

40,864

301,323

421,838 246,786

35,153

41,546

24,878

79 GAMES 451 TRIES

15,387

182,349

SWANS REGULAR SEASON AND FINALSTOTAL AFL ATTENDANCE AT THE SCG

Sydney Cricket & Sports Ground Trust Annual Report 2017/1816


MANAGING THE ASSETS

OperationsThe Facilities Department managed more than 4200 unscheduled maintenance jobs and over 1500 event-related maintenance works during the reporting period, under a budget of $9 million. Services included painting, electrical, plumbing, carpentry, vertical transport and mechanical orders ensuring the SCG Trust precinct facilities remain in a suitable condition.

Capital WorksFACILITIES

» Renovated 21 corporate suites in the O’Reilly Stand

» Renovated bathrooms on level five of the O’Reilly Stand

» Appointed Premier Fire as new fire services contract provider

» Upgraded Venue Services and Security offices

HERITAGE

» Upgraded Members Pavilion home and away change rooms

» Upgraded Ladies Pavilion bathroom facilities

» Repainted the interior of the Members and Ladies pavilions

Playing Field Maintenance The Trust and its consultants implemented a new turf management plan for the fields of play at both the SCG and Allianz Stadium. During this period, head curators Tom Parker (SCG) and Michael Finch (Allianz Stadium), stepped down after 20 years in their respective roles. The Trust restructured the department to employ Justin Groves as the first Grounds Manager to oversee both venues and appointed Adam Lewis as the ninth curator in history. The SCG underwent its first full re-turf in nearly 20 years in October last year, preparing the ground for a busy summer of cricket which included the five-day Ashes New Year’s Test, BBL, ODI and T20 fixtures.

Environment and Sustainability The Trust continued its commitment to a greener future and worked closely with Quayclean, the precinct’s cleaning and waste management service provider, to further improve environment and sustainability practices.

The total waste processed in the precinct from event and day-to-day business activity was 1045 tonnes, an improvement on the 2016/17 reporting season. The Trust is working towards its resource recovery rate of 75 per cent, with 612 tonnes recovered in the past year.

A number of new initiatives were introduced including the procurement of Method bins, which have helped to colour code waste streams in line with new Australian standards. In addition, the Trust has

implemented improved back of house sorting initiatives in corporate and selected concourse areas at the SCG, with a goal to implement this across the entire precinct.

The Trust has also removed single use seat stickers and replaced them with reusable seat covers. The Rugby Australia Building included solar panels on the rooftop, which generate energy for water heating units throughout the building. The unique building exterior also includes suns shades to minimise temperature increases and achieve internal air conditioning. Water consumption has been a key focus, with subterranean reserves below the precinct’s floor used for irrigation of the playing surfaces at the SCG and Allianz Stadium.

Security and Precint Access In the current security climate the threat of terrorism continues to be the largest influence on stadium operations. The Trust works closely with NSW Police, intelligence agencies and hiring partners to determine appropriate levels of security during major events and daily operations. Investment in physical and electronic security infrastructure including the recent completion of the precinct’s CCTV systems has been a priority. A key achievement in the past year has the been the opening of the SCG’s state-of-the-art Venue Operations Centre which has greatly improved event surveillance and reaction times.

Health and Safety Initiatives Across the reporting period, work continued with the Contractor Management Platform to improve the Trust’s compliance and onsite induction requirements. Wardens received refresher training and practical drills to ensure that the precinct’s emergency arrangements remain robust whilst a coordinated Emergency Management Training plan has been introduced. The Trust’s ‘Lost Time Frequency Rate’ has shown a slight increase per quarter due to long-term manual handling injuries, which required surgical repair.

21

Loss Time Injury Frequency Rate (LTIFR)

Rel

ativ

eFr

eque

ncy

ReportablePeriods

As can be seen in Figure 1. the Trust’s Lost Time Injury Frequency Rate remained at zero for the majority of the reporting period. There was a spike at the beginning of the 2017 year due to two lost time injuries occurring, which coincided with a busy summer of events at the SCG and Allianz Stadium.

10.00

5.00

10.00

15.00

20.00

25.00

2 3 4 5 6 7 8 9 1 0 11 1 2

LTIFR



STRATEGY AND PROJECTSThe role of the Strategy and Projects division is to think about the opportunities for the future of sport and recreation, and what is achievable on the lands managed by the Trust.

Given how many parties come together to create a great sporting experience, the Trust is thinking about the venues it manages in the context of its sporting partners, Government stakeholders, the local residential and business communities and the fans.

Over the past 12 months the Trust has continued on its journey to understand more about its neighbours, the future vision of its sporting partners and how the business can positively influence the local community.

The Trust supports the NSW Government’s stadia strategy and plans to redevelop Allianz Stadium into a world class 40 to 45,000-seat stadium.

The project will build on the legacy of the Sydney Sports Ground and the original SFS, opened as a Bicentennial Project in 1988.

Allianz Stadium is now the oldest top-tier rectangular stadium in Australia, with significant safety, compliance and patron safety issues, together with insufficient female toilets and inadequate provision for disability access.

To address this, the NSW Government will rebuild Allianz Stadium into a world class rectangular stadium with substantially improved sightlines, a roof that covers all patrons, and significantly improved amenity, and food and beverage options.

The Trust is committed to working with all its stakeholders to develop

plans that deliver a revitalized precinct and a world-class stadium for the NSW public to enjoy. Work is expected to commence in late 2018 and be completed by 2022.

The stadium will be built entirely on SCG Trust lands and will complement the CBD and South East Light Rail investment. The project will include new member facilities funded by the Trust.

During the reporting period, the Australian Rugby Development Centre was opened, providing a new home for the country’s top men’s and women’s rugby players as well as University of Technology, Sydney’s sport science and management programs.


COMMERCIALA strong performance in Gold and Platinum membership sales and the wi-fi, IPTV advertising and a sponsorship rights program has seen Trust commercial revenue remain steady at $20 million.

of the year. News Corp also signed a new contract for the next three years. The Trust’s major partner Allianz continues to hold the naming rights sponsorship of Allianz Stadium.

HospitalityIn December 2016, the Trust appointed MatchPoint as its exclusive hospitality partner, trading as SCG Hospitality for all hospitality products. MatchPoint’s agreement will provide the Trust with a comprehensive return, capitalising

on its expertise and commitment to the delivery of a commercially robust, high quality hospitality program.

In November 2017 the Trust extended its partnership with MatchPoint until 2024 to include all casual, seasonal and annual facilities.

Gold and Platinum MembershipCommercial sales for Gold and Platinum reached $5.011 million at the end of the reporting period. The

Trust focused on offering unique opportunities for current members to upgrade their membership status or introduce friend and colleagues to the benefits of the precinct.

Building relationships with strategic commercial partners to provide quality incentives and rewards for new, referring and upgrading members was critical to these campaigns.

Sponsorship, Supply and Advertising RightsThe Trust’s advertising and sponsorship program continues to make a significant contribution. Revenues of $14.3 million were generated via sales as well as supply and product rights.

Our commercial rights partner QMS, provide the Trust with a strong financial return. The Trust has capitalised on their expertise, commercial insight and their understanding of digital assets available as a result of the investment in wi-fi and IPTV technology at Allianz Stadium and the SCG.

Accordingly, the Trust has continued to enjoy success in advertising and

sponsorship partnerships with News Corp, Tabcorp, Qantas, Ticketek, IOOF, Telstra, Harvey Norman, Ingram Micro, Heinz and UTS as well as our supply and product rights partners, CUB, CCA, Diageo, Jim Beam, Tyrrell’s, Samuel Smith and Sons and Treasury Wine Estates.

In the 2017-18 period we extended our agreement with UTS, which will see the university sponsor the Stadium Club for the remainder


MEMBERSHIP AND MARKETING The Membership and Marketing division manage Membership Services, the Stadium Club, the ICT team and the marketing of Allianz Stadium, the SCG and the Trust.

Membership ServicesMEMBERSHIPSUPPORT

The Membership Support division includes a member and customer service team. The offering features a membership call centre and email support, card replacements, waitlist applications, sale of day passes for nominated events, seat reservations and managing reciprocity with interstate and overseas venues.

The division staff the Venue Services Office which is the focal point of the Stadium Club and also assist with

merchandise sales and general enquiries. New membership cards were issued to all financial members in June 2017. A new membership CRM (Phoenix) was completed in June 2017 with further enhancements to the CRM currently in the functional and detailed design phase which is progressing within the scheduled timelines and budget.

SCGMEMBERSHIPELECTIONANDWAITLIST

In January 2018, the Trust offered SCG membership to 1141 applicants who joined the membership waitlist in 2005. The offer was accepted by 397 new members (229 opting for double membership, 78 single and 90 junior) representing a 35 per cent take up and $420,000 in revenue. At the end of February 2018, there were 24,577 applicants on the SCG Waitlist dating back to January 2006.

SUBSCRIPTIONRENEWALSANDNUMBERS

Member numbers have remained stable at 18,842. The membership breakdown rests at 9 per cent Platinum, 33 per cent Gold and 58 per cent SCG, which is consistent with previous reporting periods. The Trust received 95 resignations this year which is up slightly (68 in 2016/17). Communication with these members suggests reasons for non-renewal include old age, ill health, value for money, financial difficulties and not using membership due to travel.

INTERNATIONALCRICKET

Members were offered a program of special off-field events during the New Year’s Test match including:

» Country Member Reception, Noble Terrace (Test match eve)

» The Panel with Tim Gilbert, ICC (all days)

» State of Play with Rodney Hogg and Wayne Phillips, ICC (all days)

» Baker Boys Live Music, Sydney Plaza (all days)

» Lunch by Justin North, Noble Dining Room (all days)

» Steve Waugh AR experience (all days)

» Members Breakfast, Noble Dining (days 1-2)

» Breakfast with the Curator, Field of Play (day 2)

» Sculpture Tours (days 2-3)

» Jane McGrath High Tea, East side Dining Allianz Stadium (day 3)

» Jane McGrath Picnic, Allianz Field of Play (day 3)

» Stumps Sessions with Stephanie Brantz, ICC (days 1-4)

» Kids Cricket Clinics, Allianz Stadium (days 1-4)

Reserved seating was offered to members ($25) for the first four days of the Ashes Test and the One-Day International and T20 fixtures against England and New Zealand. Seating is provided free to members for 50 years or more.

Member Events and Engagement ProgramEvents offered this year:

» New SCG member induction

» Wine tasting evenings with sponsors

» New dining room offerings

» New products including ‘Footy Club’ for Swans matches

» Club XV at the Wallabies v Scotland Test

» Tailored sports tours with partner Keith Prowse Travel

» Village Green, Sydney Live Plaza, Club House and Terrace Bar during Ashes Test


MEMBERSADVISORYGROUP

A Members Advisory Group was formed in June consisting of 11 members across all three categories with the purpose to:

» Allow members input and feedback on current and future Trust decisions that directly or indirectly impact member experience and satisfaction

» To develop ideas for creating advocacy for government investment into the overall Moore Park precinct

» To work collaboratively for broader precinct outcomes whilst recognising that decisions made can only impact actual Trust lands

RESEARCHPROGRAM

Focus groups were held in May for all membership categories to discuss the membership experience and in July to specifically focus on the Stadium Club experience. An online survey was conducted in January to measure the Customer Experience Score for members and the public from day four of the Ashes Test at the SCG.

MEMBERSHIPPRICINGANDPRODUCTREVIEW

A membership product and pricing review was completed by Turnkey consultants. The review provided the Trust with insight into its customer base and short term future development for its products and services.

Stadium ClubINCOMEANDEXPENDITURE

The Stadium Club achieved a 7 per cent increase on income when compared to the budget for internal revenue programs. The total income was $439,948, more than $26,745 over budget and was due to high performing areas including the kids holiday program, internal personal training revenue, group fitness classes and new tennis programs. Azure cafe performed well with a total income of $272,749, approximately $24,795 over budget revenue.

UTSSTADIUMCLUB

University of Technology Sydney (UTS) have partnered with the Trust to sponsor the naming rights for the

Stadium Club for the remainder of this year as part of a long-term commitment to the precinct. The Trust is currently discussing transition plans for interim facilities while Allianz Stadium is rebuilt.

ICT DivisionICTCAPITALWORKSPROGRAM

The ICT capital works program for 2017/18 ($2.14M) included the Server Virtualisation Project, website and further enhancements to the CRM, network convergence and digital payment solutions (cashless).

CORPORATEICT

The Trust completed the following updates:

» Corporate headquarters wi-fi roll-out

» Meeting room technology upgrades

» Windows 10 and Office 365 installed

» Desktop and laptop refresh

» Printer refresh

» ICT policy review

» Cyber security review

» Telecommunications review for long-term mobile device strategy

» 1650 helpdesk requests logged and completed in the last 12 months

» Data strategy and dashboard reporting

» Customer service: developing SLA guidelines for help desk operations

SCGPHASETHREEEXPANSION

The Trust progressed the business case for the expansion of the Wi-Fi and IPTV for the remainder of the SCG.

DIGITALTRANSFORMATIONSTRATEGY

Over the last 12 months, the Trust has:

» Maintained a focus on understanding the customer and enhancing their experience, through analysis of available data streams

» Is in the process of completing the SCG connection solution to become a fully connected multi-venue precinct

» Engaged with key precinct stakeholders to outline future vision and the Trust’s path forward for their digital transformation

InnovationSTEVEWAUGH’SAREXPERIENCE

In a first for Australian sport, the Trust partnered with former Australian captain Steve Waugh and Avanade, to create an augmented reality experience to celebrate 15 years since ‘Steve Waugh’s Perfect Day’ famous last-ball century at the SCG.

The HoloLens experience was available for fans to enjoy during the Sydney Test and was deployed in a custom-fitted shipping container.


The AR-Kit app utilised the smartphone camera to position Steve Waugh within the user’s environment enabling fans to see and hear the ‘perfect day’ from a new perspective and proved an effective way to engage fans with the venue and the Trust brand.

The iPhone experience was ranked number one in Australia in the App Store within hours of its release and

multiple broadcasters were running the story including Channel 7, Channel 9 and ESPN. The activation was nominated as part of the 2018 Stadium Business Awards.

WAITTIME

The Trust engaged WaitTime to develop a solution which will enhance the experience of fans at the SCG regarding foot traffic flows

and wait times at bathrooms and concession stands.

GOOGLESTREETVIEW

The Google Streetview project was completed successfully with the launch of the footage to be advised. The project is part of the broader improvement of the Trust’s digital properties, which includes a redesigned website.

MOBILEAPP

A review of the Stadium App identified key aspects that should be enhanced in line with the Trust’s digital strategy, forming the basis of the Stadium Application and wi-fi captive portal tender.

CONNECTEDSTADIUMPERFORMANCESTATISTICS

» 158,000 wi-fi gateway users

» Over 33,000 app installs

» 58 per cent increase in app registrations (downloading and then creating an account)

» Over 660,000 fan records (33% increase)

DigitalInformationSecurityAnnualAttestationforthe2017/18FinancialYearfortheSydneyCricketandSportsGroundTrust

I, Bernie Lamerton am of the opinion that the Sydney Cricket and Sports Ground Trust (the Trust) is presently reviewing its Information Security Management System (ISMS) and will take steps to address any non-conformance, as may be relevant, to develop the ISMS to be consistent with the Core Requirements set out in the Digital Information Security Policy for the NSW Public Sector.

I, Bernie Lamerton am of the opinion that the Trust will put in place necessary controls to mitigate

identified risks to the digital information and digital information systems of the Trust which will be adequate for the foreseeable future.

Risks to the digital information and digital information systems of the Trust will be assessed in accordance with the NSW Government Digital Information Security Policy.


MEDIA AND COMMUNICATIONS The Trust Communications Division is responsible for communications, government relations, public relations, stakeholder and community engagement, media services and heritage and tours.

MEMBERCOMMUNICATIONS

The Trust places a high importance on communication with its members. Over the past year, the division has produced the following material in collaboration with the membership and marketing team:

» Two editions of the Around the Grounds magazine

» Free interactive iPad and Android tablet editions of the magazine

» Members guide to the summer of cricket

» A Test match statistics booklet

» Daily Innings news sheets during the Test match

» Weekly e-newsletters

» Regular stadium redevelopment updates

» News and information updates via the Trust website

» A members booklet for the Wallabies Test

SOCIALMEDIA

Engagement and followers of the Trust’s social media channels continue to grow. Significant increases were recorded around events such as the New Year’s Test, Sydney Sevens and Big Bash League. A number of competitions were also run to offer fans game day packages and sporting

experiences. Free wi-fi at Allianz Stadium and in the Noble Bradman Messenger stands of the SCG has allowed fans to share photos and comments immediately while at events, which also contributed to a growth in engagement.

Social media numbers continued to increase off the back of a number of campaigns and communications support for major events.

HERITAGEANDTOURS

The Heritage and Tours programs were reassigned to the Communications Division to improve awareness of the Trust’s commitment to honour its sporting, cultural and social history.

HERITAGE

The SCG museum continues to be a key component of the SCG Tour. Heritage staff identified new ways to showcase the Trust’s archive collection by taking the ‘museum beyond borders’. These included:

» Digitalisation of a selection of the museum collection for online display as part of a future Google Cultural Institute project

» Installation of new museum-grade display cabinets in the SCG Trust Suite and creation of an exhibition for the 2018 New Year’s Test match

» Framing and installation of significant scoreboard calicos and scorecards of milestone cricket Tests, thereby improving the experience for players and tour guests

» Restoration and preservatio of the Trust’s Wisden collection

» In addition, the heritage staff conducted regular checks of hazards within the museum, storeroom and archives, and ensured collection standards were maintained.

SCGTOURS

Popularity of the SCG Tour product continues to grow. Tour visitations recorded for the 2017/18 financial year increased by 42 per cent from the previous year. This increase can be attributed to the investment in a product review during the 2016/17 period and implementation of key marketing strategies targeted towards more appropriate demographics.

The Trust collaborated with the Destination NSW (DNSW) product team to increase the SCG Tour presence within the NSW Tourism market. This resulted in the SCG Tour being officially recognised as ‘export ready’ with three-tiered international tourism pricing.

The domestic market business development included increased focus on school excursion and tertiary event management tours, seniors’ tours, and a conference leisure component.

In addition to weekly public tours, the museum was open on SCG event days and attracted over 4000 patrons during the 2018 Test match.

PUBLICRELATIONS

Several Trust initiatives and functions in 2017/18 provided an opportunity for the Trust to promote its heritage, and relevance to the history of sport in NSW, including:

» Unveiling of the Betty Cuthbert and Marlene Mathews bronzed sculptures

» A 50-year reunion of the Australian soccer team’s first overseas tournament win in 1967 in Vietnam

» A plaque to commemorate 35 years since the Sydney Swans’ first game as a home team at the SCG

» A celebration of the 80th anniversary since the 1938 British Empire Games

» A visit by the 2018 Queen’s Baton for the Commonwealth Games

» PR campaigns were also prepared for Trust initiatives including the introduction of Clear Bags at the SCG, and Steve Waugh AR project.

The SCG Trust continued to actively support selected community organisations including St Vincent’s Hospital, Children’s Hospital, the Vinnies CEO Sleepout and Haemophilia Foundation Australia.

MEDIA

SCG Trust staff continued to provide media relations and support for event and non-event day activities, including:

» NRL Women’s Competition launch

» Fox Sports NRL Finals Campaign

» The Australian Golf Digest Player of the Year Awards

» The Australian Cricket Media Association annual dinner

» The Bradman Foundation Gala Dinner

GOVERNMENTRELATIONS

The Trust continued to support the Office of Sport and Infrastructure NSW with communications relating to the redevelopment of Allianz Stadium. Several tours from visiting dignitaries were also held including groups from the Government of Odisha, the Australian Defence Force and the West Australian Government’s standing committee on community development and justice.

AWARDS

The Trust was shortlisted for the Fan Experience award (Ashes 2018 Test match) and Venue Technology award (Venue Operations Centre, website and social media monitoring), at the 2018 Stadium Business Awards. This is excellent recognition and strengthens the Trust’s reputation as a leader in the venue industry on a global scale.


CORPORATE SERVICES

Financial ReportThe Trust is a NSW Government Trading Enterprise constituted under the provisions of the Sydney Cricket and Sports Ground Act, 1978. The Trust is a not for profit entity (profit is not its principle objective). The reporting entity is consolidated as part of the NSW Total State Sector Accounts.

The Trust’s operations for the financial year ended 28 February 2018 and resulted in an operating surplus (before premium on debt restructure) of $1.959m compared to the budget which projected an operating surplus of $1.7m.

The P & L Statement for 2017/18 provides an operating deficiency of $1.666m for the year, after recording a non-cash premium ($3.625m) on the debt restructure conducted in

March 2017. The Trust recorded a positive net result for the year of $22.144m after inclusion of a gain on disposal of land of $23.785m, reflecting the long-term lease of land for the construction of the ARDC building.

The overall net comprehensive deficiency for the financial year was $64.020m, after inclusion of an increment on revaluation of buildings ($123m), together with the write off

of all but one year’s useful life of the asset value of the current Allianz Stadium ($208m).

During the past year the Trust undertook a capital works program valued at $23.4m for renewal and improvements to Trust assets.

Capital debt was increased from $77m to $78m at the close of the year.

Operating Income and ExpenditureThe results for the reporting period show an increase in operating revenue to $99.4m compared to $91.5m in 2016/17; with an increase to operating expenditure of $97.5m compared to $90.4m the previous year.

The Trust’s financial performance for the past year reflected the following aspects of operation:

» Annual event attendance of 1.5m patrons (1.5m in the previous year)

» An event schedule featuring a broad range of sport and entertainment including the Ashes Test match, international cricket, all four major football codes, World Series Sevens and one outdoor concert

» Higher catering revenue than the previous year

» Continued strong membership retention levels resulting in increased annual subscription revenue

» Lower sales of new Gold and Platinum memberships and comparable sales of SCG memberships

» Higher demand for premium seating and corporate box rental

» Lower sale of advertising and sponsorship revenue contracts

» Higher event operating costs and employee related expenses

» Higher ground operation and maintenance costs

» Lower debt interest costs

» Comparable depreciation charges

» Debt restructure to reduce on-going loan interest cost

» Capital works program undertaken – $23.4m

MEMBERSHIP

The Trust offers three major forms of membership – SCG, Gold and Platinum – providing entitlements

to events and facilities at the SCG and Allianz Stadium.

Membership subscription rates were increased during 2017/18. Continued strong membership retention levels reflect the ongoing enhancement of the event calendar at the SCG and Allianz Stadium as well as other services available to members.

In 2017/18, membership annual subscriptions revenue was $22m compared to $20.7m recorded in the previous year.

Entrance fees recorded for new members at the SCG (predominantly sales to the 12-year wait list) during 2017/18 was $669,000 compared to $649,000 in the previous year.

Entrance fees received from the sale of new Gold and Platinum memberships generated sales revenue of $5.011m, compared to $5.1m in the previous year.

VENUE/EVENTHIREFEES

During the past year the total attendance of patrons at events staged at the SCG and Allianz Stadium was 1.5m. Revenue from hire fees was $13.1m, higher than the previous year’s $10.9m.

Highlight events staged during the year included the Australia v England Test Match, a T20 and One-Day International, Sydney Sixers home games, Sydney Swans fixtures, the Anzac Day Cup, NRL semi-finals, World Rugby Sevens, Asian Champions League, the A-League Grand Final and one outdoor concert (SIA).

Long-term contractual arrangements with major sporting bodies provide a broad-based program of sporting events at Trust grounds. Major hirers’ contracts are current at the SCG (Cricket NSW, Sydney Sixers and the Sydney Swans) and at Allianz Stadium (Australian Rugby Union, NSW Rugby, National Rugby League, Sydney Roosters, St George Illawarra Dragons, South Sydney Rabbitohs and Sydney FC).

CATERING

The Trust’s net share of catering sales (including amortised contract premiums) at the SCG and Allianz Stadium was $5.7m (food) and $7.7m (liquor), compared to $5.2m and $6.2m respectively in the previous year.

Under the terms of the current contract, a premium amount was initially paid by the caterer to the


Trust representing catering fees paid in advance. Further, an additional sum was paid by the caterer and applied to various catering outlet refurbishments and purchase of associated equipment.

The total premium amount initially paid under the current contract is being amortised annually over the term of the contract.

ADVERTISINGANDSPONSORSHIP

Stadium advertising signage and sponsorship revenue includes product rights at each venue.

Revenue generated for 2017/18 was $15.1m (including newly contracted arrangements) compared to $15.7m in the previous year. The Trust contracts the sale of advertising in the form of LED, fence, grandstand facades, IPTV/ wi-fi and video scoreboard signage.

Costs incurred in servicing and commission for advertising signage and sponsorship arrangements were $1.9m compared to $2.8m in the previous year.

CORPORATESEATINGSALES

The Trust corporate packages available include annual private suites, corporate boxes and Premier Club membership, as well as a comprehensive range

of seasonal and casual corporate box and dining room packages.

The Trust market the sale of corporate hospitality for events at the SCG and Allianz Stadium within Trust allocated areas for cricket, Sydney Swans, Sydney FC, rugby union, rugby league and concert events. Revenue from rental of private suites and corporate boxes during the year was $2.6m, compared to $3.5m received in the previous year.Sub contracted sale revenue for allocated premium public seating for major events generated revenue of $1.8m compared to $250,000 received in the previous year.

PREMISESRENTALINCOME

The Trust holds long-term tenancy arrangements for office administration and players’ facilities located within its precinct.

The Trust tenancies currently comprise headquarters for Cricket NSW, Sydney Sixers, Sydney Swans, NSW AFL, University of Technology, Rugby Australia, National Rugby League, Sydney Roosters, Sydney FC, Delaware North Catering and the Stadium Sports Medicine Clinic.

Tenancy rental income received in 2017/18 was $4.9m compared to $4.3m in the previous year.

INVESTMENTMANAGEMENTPERFORMANCE

Interest received on investments totalled $100,000 as compared to interest of $168,000 received in the previous year.

During the reporting period available surplus funds were invested with the NSW Treasury Corporation in both the Hourglass facility and on term deposits. The return on the Trust’s invested funds from these facilities represents the rate of 2.16 per cent for the year ended 28 February 2018.

EVENTOPERATINGCOSTS

The Trust incurred direct event costs of $21.2m during the year (compared

to $17.6m in the previous year) in staging all sporting and other events at the SCG and Allianz Stadium.

GROUNDOPERATIONANDMAINTENANCE

Ground operation and maintenance expenditure of $15m was incurred during the past year on grounds, buildings and plant, compared to $12.8m in the previous year.

The Trust employs a permanent trades workforce, service contractors and subcontractors to undertake the annual program of maintenance of grandstands, buildings, plant, grounds and playing arenas at the SCG and Allianz Stadium.

CORPORATESEATINGEXPENSES

Premium seat packages sold to corporate customers for major events incur costs in marketing and servicing these products including direct charges for tickets, catering, merchandising and other costs. Premium seat costs of $1.9m were incurred during 2017/18, in line with $1.8m in costs for the previous year.

MARKETINGEXPENSES

Marketing funds were allocated in 2017/18 by the Trust to promote and market the cricket and football seasons, the major events, available Platinum, Gold and SCG membership places, sale of private suites and corporate boxes, premium seating for major events, guided tours and corporate function room facilities.

Marketing expenditure during 2017/18, including advertising, promotion and publications, was $3.7m, comparable to the previous year.

ADMINISTRATIONANDRELATEDEXPENSES

Administrative and related expenses incurred during the past year included consulting fees ($1m compared to $1.1m in the previous year), communication expenses ($394,000 compared to $345,000), printing and stationery ($1.169m compared to $965,000), postage/

freight ($297,000 compared to $151,000), insurance costs ($453,000 compared to $498,000) and accounting and legal fees ($377,000 compared to $555,000).

EMPLOYEESALARYANDWAGES

Employee salaries and wages incurred during the past year were $15m compared to $14.8m in 2016/17. These costs include direct costs incurred in servicing event contracts.

DEPRECIATION

The completion and opening of the new Noble/Bradman Stand,

together with recent additional capital works projects, has resulted in an increase to the annual depreciation charge for 2017/18 which was $13.7m, compared to the previous years $13.3m.

FINANCECOSTS

Trust borrowings were increased from $77m to $78m as at 28 February 2018 due to a debt restructure. Actual interest paid on capital debt during 2017/18 was lower at $2.8m, as compared to $3.9m recorded in the previous year. The Trust incurred a one off non-cash premium of $3.625m in 2017 which saw an increase in the duration and quantum of


» SCG Churchill Brewongle Stage 3 planning

» SCG Security Room project

» SCG upgrade to precinct’s PA and CCTV system

» Fire hydrant upgrades

» Catering facility upgrades

» IT Network Convergence Program

» IT Virtualisation Project

SUMMARYOFLANDVESTEDINTHETRUST

The Trust was constituted under the Sydney Cricket and Sports Ground Act of 1978. It is charged with the care, control and management of the lands described in Schedule 2 of the Act, those lands dedicated for public recreation.

MAJORASSETS–PROPERTY,PLANT&EQUIPMENT

The Trust’s major assets, other than land holdings, consist of buildings and improvements at the SCG and Allianz Stadium and its surrounds.

The Trust revalues each class of property, plant and equipment at least every three years or with sufficient regularity to ensure that the carrying amount of each asset in the class does not differ materially from its fair value at the reporting date. Interim formal revaluations are carried out in the years between the comprehensive revaluation.

During 2015/16, the Trust received an independent valuation by Knight Frank Valuations of its vested lands, based on an ‘as zoned and used basis’, providing a valuation of $61.5m as at 29 February 2016.

Interim valuations of land were conducted as at 28 February 2017 and 28 February 2018 to determine

if recorded value is not materially different from fair value - with no change made to the recorded value.

During 2017/18 the Trust received an independent valuation by WT Partnership, registered quantity surveyors, of the replacement cost of buildings and improvements at the SCG and Allianz Stadium.

The valuation at replacement cost was converted to written down replacement cost by the determination of the remaining useful life of each building.

The valuation increment of $122.8m recorded since the previous valuation of buildings and improvements was transferred to the Asset Revaluation Reserve as at 28 February 2018.

As a result of the revaluations, an Asset Revaluation Reserve remains established. The balance of this Reserve as at 28 February 2018 stood at $274.5m (28 February 2017: $360.8m).

book debt, offset by lower interest commitments in the forward years.

CONSULTANTS

Consultants were appointed for a range of projects in 2017/18, with payments totalling $1.021m. The major consultancies (above $50,000) were provided by:

» PMY Consulting: Smart Stadium Solution/IPTV & Wifi Solution and Content/Strategy - $201,000

» Populous: Stadium Concept Plan Design - $145,000

» Ernst & Young: Financial Accounting/Audit Services - $118,000

» Intactile: Security services & evacuation drills - $54,000

The balance of consultancy fees incurred was paid by the Trust for minor consultancies for services provided. These included: IT services, masterplan design and planning, CRM planning, Trust website and app, accounting services, ratings review, engineering services, turf inspection, acoustics, catering service, planning advice, claims management, surveys, WHS, employment matters, building and other services.

The number of minor consultancies was 41 and the total was $405,000.

RISKMANAGEMENT,INSURANCEANDAUDIT/RISKCOMMITTEE

The Trust’s major insurance risks are covered through membership of the Treasury Managed Fund. Insurance premium costs in 2017/18 were $453,000.

The Trust insurance placement and coverage is reviewed annually by insurance Brokers, Arthur J Gallagher.

The Trust monitors insurance claims experience on an ongoing basis with a focus on workplace health and safety performance.

Risk management policies and procedures are regularly updated to enhance the Trust’s risk management profile in an effort

to reduce future premiums.

The Trust has in place an internal audit and risk management framework overseen by the establishment of the Trust Audit and Risk Committee in accord with the Government’s Internal Audit and Risk Management Policy for the NSW Pubic Sector, issued by NSW Treasury in 2015.

The committee has prepared an Audit and Risk Committee Charter consistent with the content of the policy’s model charter and developed a high-level enterprise risk management framework.

The Trust’s internal auditor, Ernst & Young, conducts annual audits as part of the Trust’s three-year internal audit plan.

DEBTMANAGEMENT

The Trust’s debt portfolio is managed by NSW Treasury Corporation (TCorp). The RBA kept the cash rate on hold at 1.50% over the year and the 10-year Commonwealth Government Bond yield increased marginally by 0.09% to 2.81% by year end. Over the year, the face value of the Trust’s borrowings increased from $74.5m to $75m, after debt restructure, with the weighted average borrowing rate reducing from 4.11% to 2.89%.

CAPITALWORKS

During 2017/18 the Trust

managed an extensive capital works program totalling $23.36m (compared to $13.7m in the previous year). The major projects undertaken in 2017/18 included:

» Progressed concept plans for new Allianz Stadium

» Renovated 21 corporate suites in the SCG O’Reilly Stand

» Installed a synthetic roadway around the perimeter of the SCG

» Works associated with Rugby Australia House/University of Technology building

» Lighting – Compliance upgrade

» Sydney FC office upgrade

» SCG Members Pavilion home and away dressing rooms renovation

» SCG Members and Ladies Pavilions interior repaint

» SCG Ladies Pavilion ground level female toilet renovation

» SCG field of play synthetic turf

» SCG entire field of play resurfaced

» MP1 car park access system

» Hirers, Trustee and corporate suite upgrades

» SCG air conditioning upgrades


The Trust’s target is to pay 90 per cent of accounts on time. Unavoidable delays in processing accounts occasionally arise due to delays in obtaining goods in proper order and condition, or queries on invoices.

The Trust continues to encourage suppliers to accept electronic funds transfer as the preferred method of payment. No interest has been paid on payments on any accounts where delay in payment has occurred during the year.

A minimal number of complaints were received during the year concerning late payment of invoices, with each matter being resolved satisfactorily.

Time for Payment of AccountsListed below is a schedule of accounts payable performance as at 28 February 2018, 30 November 2017, 31 August 2017 and 31 May 2017.

AGEDANALYSISATTHEENDOFEACHQUARTER

QUARTERCURRENT

$LESSTHAN30

$30-60

$60-90

$90+

$TOTAL

$

May 4,464,090 11,803 - - - 4,475,89399.74% 0.26% 0.00% 0.00% 0.00% 100%

August 3,269,526 4,485 - - - 3,274,01199.86% 0.14% 0.00% 0.00% 0.00% 100%

November 1,532,728 81,269.15 - - - 1,613,99794.96% 5.04% 0.00% 0.00% 0.00% 100%

February 4.995,379 1,733,660 28,717 - 880 6,758,63773.91% 1.91% 0.42% 0.00% 0.01% 100%

ACCOUNTSPAIDONTIMEWITHINEACHQUARTER

QUARTER TARGET% ACTUAL%TOTALACCOUNTS

PAIDONTIMETOTALACCOUNTS

PAID

May 90% 96.55% $32,529,434 $33,412,182August 90% 96.08% $22,353,941 $23,264,884November 90% 92.26% $23,372,954 $24,282,283February 90% 95.63% $39,073,260 $40,856,676

INTERNALANDEXTERNALPERFORMANCEREVIEWS

Ratings agency Moody’s conducted an annual review of the Trust’s financial operations and position as at 28 February 2017.

The report by Moody’s recommended assignment of a financial rating of Ba2 (unchanged from the previous year) which was utilised by NSW Treasury in determining the amount of ratings-based guarantee fees normally payable.

Moody’s acknowledged the assigned rating outlook is stable and primarily reflects the stability of revenue and cash flow generated by the Trust, with limited direct competition. The Trust’s rating is supported by its strong liquidity profile.

The key driver of the rating is the Trust’s proven ability to attract quality sporting events to its facilities and thus ensure that cash flows from memberships and catering sales provide a degree of revenue certainty. This ensures a key rating support, enabling the Trust to generate stable earnings and free cash flow.

The Trust’s business model ensures that its fixed operating costs are generally covered by revenue that is relatively predictable from year-to-year. This protects overall profitability, while allowing the Trust to cover interest payments, capital expenditures and debt reduction from match-day earnings.

Moody’s anticipate that major projects could negatively impact the credit

Sydney Cricket & Sports Ground Trust Annual Report 2017/1842 43

Sydney Cricket & Sports Ground Trust Internal Audit and Risk Management Statement for 2017/18

I, Jamie Barkley, CEO, am of the opinion that the Sydney Cricket and Sports Ground Trust has internal audit and risk management processes in operation that are, in all material respects, compliant with the eight core requirements set out in the Internal Audit and Risk Management Policy for the NSW Public Sector, specifically: Core Requirements Risk Management Framework 1.1 The agency head is ultimately responsible and accountable for

risk management in the agency Compliant

1.2 A risk management framework that is appropriate to the agency has been established and maintained and the framework is consistent with AS/NZS ISO 31000:2009

Compliant

Internal Audit Function 1.1 An internal audit function has been established and maintained Compliant 1.2 The operation of the internal audit function is consistent with the

International Standards for the Professional Practice of Internal Auditing

Compliant

1.3 The agency has an Internal Audit Charter that is consistent with the content of the ‘model charter’

Compliant

Audit and Risk Management Committee 1.1 An independent Audit and Risk Management Committee with

appropriate expertise has been established Compliant

1.2 The Audit and Risk Management Committee is an advisory committee providing assistance to the agency head on the agency’s governance processes, risk management and control frameworks, and its external accountability obligations

Compliant

1.3 The Audit and Risk Management Committee has a Charter that is consistent with the content of the ‘model charter’

Compliant

The Chair and Members of the Audit and Risk Management Committee are: § Maurice Newman AC – Chair, Non-Independent (Term of appointment: 1 January 2015 to 13 July 2019) § Nihal Gupta – Non-Independent (Term of appointment: 22 December 2017 to 4 October 2020) § Phil Waugh – Non-Independent (Term of appointment: 14 July 2018 to 13 July 2022) These processes provide a level of assurance that enables the senior management of the Sydney Cricket and Sports Ground Trust to understand, manage and satisfactorily control risk exposures. As required by the policy, I have submitted an Attestation Statement outlining compliance with the policy to Treasury on behalf of the Treasurer.

JAMIE BARKLEY Chief Executive Officer

profile during development. The Trust has a pipeline of several potential major initiatives to redevelop and improve its facilities, which can cause temporary spikes in leverage or delays in deleveraging. Ultimately, the impacts on the credit profile depend on the size of the project, disruptions to existing operations, expected returns and the final funding structure.

A key major project is the demolition and rebuilding of the current Sydney Football Stadium (Allianz Stadium). The goal is to rebuild a new stadium with a seating capacity of between 40,000 and 45,000 at a cost of more than $700m. The project is anticipated to begin in late 2018, with an expected completion of March 2022.

Moody’s expect the project will reduce the Trust’s earnings relative to our current expectations during the development period. This reflects the potential for some matches currently played at Allianz Stadium to relocated elsewhere, a reduction and/or loss of naming rights revenue and other dislocation costs for venue hirers and lessees of adjacent buildings.

While this may have negative impact on the Trust’s credit profile during the development stage, Moody’s expect that longer term the development would improve the Trust’s already strong competitive position and ability to attract major events, as well as lead to increased earnings following completion.

The Trust’s four main committees (Business, Finance, Stadium Development and Audit & Risk Management) are responsible for continuous internal performance review of Trust activities. Monthly management reports are submitted to these committees for assessment of operational performance.

The Trust’s internal auditor, Ernst & Young, conducts an annual audit program affirmed by the Audit & Risk Management Committee. In conducting the assigned audits, Ernst & Young seek to identify opportunities to further enhance the business and commercial efficiency and cost effectiveness of the Trust’s system of internal control.

The Trust also submits financial reports to the Treasury Commercial Sector Division for review of operating performance and financial position as compared to agreed Statement of Business Intent performance targets established annually.

Moody’s acknowledged that these strengths are tempered by the Trust’s need and willingness to partially debt-fund major capital projects. Leverage has increased over the last couple of years to support major capital works. This has caused leverage, as measured by Debt-to-EBITDA to rise to a level that is more appropriately positioned at the Ba2 rating level.

The Trust’s four main committees (Business, Finance, Development and Audit & Risk Management) are responsible for continuous internal performance review of Trust activities. Monthly management reports are submitted to these committees for assessment of operational performance.

The Trust’s internal auditor, Ernst & Young, conducts an annual audit program affirmed by the Audit & Risk Management Committee. In conducting the assigned audits, Ernst & Young seek to identify opportunities to further enhance the business and commercial efficiency and cost effectiveness of the Trust’s system of internal control.

The Trust also submits financial reports to the Treasury Commercial Sector Division for review of operating performance and financial position as compared to agreed Statement

of Business Intent performance targets established annually.

CREDITCARDUSE

The use of credit cards issued to Trust executive staff is in accordance with Premier’s Memoranda and Treasurer’s Directions.

SYDNEYCRICKETCLUB

In 2007, the Trust joined with the administration of the former UTS-Balmain District Cricket Club in establishing the entity of the Sydney Cricket Club.

The Sydney Cricket Club is an incorporated association under the Associations Incorporation Act 1984. The Trust and the club agreed to enter an association which would involve the provision by the Trust of administrative and other services to the club.

The Trust is represented on the club’s board of directors in accord with the club constitution.

Recoverable operational expenses incurred by the Trust during the past year were recouped from the Sydney Cricket Club through the club’s operational account.

COSTOFPRINTINGREPORTS

The Trust has prepared two annual reports for 2017/18 in hard copy as required for tabling in parliament, which were printed in-house with no external cost.


HUMAN RESOURCESThe Human Resources department focused on providing a strong employee and customer experience at the SCG and Allianz Stadium during the past reporting period.

Building on the Trust’s customer experience strategy, the focus has been to strengthen culture and provide employees with the skills and resources they need to deliver solutions.

To help achieve key objectives the Trust implemented 360 degree reviews of management, recruitment in key roles, team building, customer experience training and event staff initiatives.

CUSTOMEREXPERIENCESTRATEGY

A customer experience strategy, in line with the Trust’s new corporate plan, has been introduced. This strategy identifies our customers, outlines what the Trust does, what success will look like and how the Trust can continue to ensure a strong customer service ethos whilst

constantly improving the experience throughout the SCGT precinct.

The Trust employed a Customer Experience Manager, who is responsible for collaboration with senior management to implement initiatives in advancing an organisational culture centred around our customers.

The following objectives have been met to improve the ‘overall customer experience’ across events at both the SCG and Allianz Stadium:

» Completion of the Voice of the Customer Program which included discussions with stakeholders, executives and staff to identify a solid foundation and baseline for the action plan

» Launch of the online Customer Experience Survey targeted

at patrons of the Ashes Test match, which received an encouraging response rate

» Continuation of Customer Journey Mapping

360DEGREEREVIEWSFORMANAGEMENT

The 360 Degree assessments are designed to increase individual behavioural awareness and performance. Participants obtained feedback from multiple sources, including managers, peers, direct reports and customers. Applicants also rated themselves.

A 360 Degree review proves a valuable development tool to help identify a person’s strengths and weaknesses in the workplace. A policy framework was implemented at the Trust for the

senior management team during the 2016-17 reporting period.

The review was completed with 21 participants in November 2017. The results indicated that managers and executives displayed a great level of self-awareness with individual leadership behaviours. Executive ratings indicated they are reliable in the six key traits and only reported being inconsistent on occasion.

RECRUITMENT

The following roles were recruited during the reporting period:

» General Manager – Events

» Manager – Technical Services (ICT)

» Manager – Customer Experience

» Manager – Grounds

» SCG Curator

» Manager – Work Health and Safety

EMPLOYEEENGAGEMENT

The Trust participated in the People Matter Survey in 2017 and scored an overall engagement index of 72 percent (75 per cent in 2016 and 76 per cent in 2014) compared to the Department of Industry cluster score of 65 per cent and a sector score of 64 percent.

Overall, more than 60 per cent of employees were satisfied with their job, 55 per cent were happy with the opportunities available for career development and 67 per cent were satisfied with the training initiatives provided.

During November last year, all staff were given the opportunity to participate in the Alignment and Engagement Survey facilitated by Insync. The participation rate for the Trust was 77 per cent (99/129) for Trust staff excluding casual event day staff and 38 per cent (235/619) when event day staff are included. The Trust scored an overall engagement of 64 per cent, an increase of five per cent on the previous year’s results in 2016.

Employees showed strong improvements in employee perception, communication goals and engagement with external customers.

TRAINING

The executive team identified emerging leaders and self-leaders within the business who then attended a number of programs to help continue their professional development. Permanent employees were enrolled to complete online workplace bullying and sexual harassment modules available on the Trust’s e-learning platform. The programs helped to model behaviours and identify employee patterns.

The Trust is committed to providing the next generation with a chance to develop themselves and see what opportunities are available in the workforce once they complete school. A work experience program has been in place since 2008 and has seen students from a range of schools in local and rural areas participate in the program. Students are exposed to different areas of business within the Media, Facilities, Events, Finance, IT and Marketing departments.

Over the past twelve months, Human Resources has re-evaluated opportunities into entry level roles for either trainee’s or recent graduates. This led to the Trust’s first Trainee Grounds Person in 2017 who worked alongside four existing apprentices. In 2018, three roles identified as either Traineeships or graduate/entry roles. The Trust will continue to support work experience programs and opportunities for the next generation to enter the workforce.

TEAMBUILDING

The Trust carried out a number of team building exercises to enhance the employee experience and foster a positive working culture.

EVENTDAYSTAFF

The Trust welcomed more than 140 new customer service staff in the past financial year as part of a recruitment drive, which focused on exploring new advertising platforms. All casual event day staff participated in targeted training ahead of the 2018 Ashes Test, with a key focus on customer service and emergency management. A major training exercise with NSW Police in November saw actors, staff and law enforcement personnel take part in live response scenarios.The Trust has also taken steps to adjust shift lengths and allocation, reducing the number of casuals paid overtime. In the reporting period, the Industrial Relations Commission presented a new award for the next three years, which included a 2.5 percent increase per annum in pay rates and allowances.


WORKFORCE PROFILE REPORT

Trends in the Representation of Workforce Diversity Groups

Workforce Diversity Group Benchmark/Target 2015 2016 2017

Women 50% 35.5% 36.8% 36%

Aboriginal People and Torres Strait Islanders 3.3% 0.9% 1.9% 1.8%

People whose First Language Spoken as a Child was not English 23.2% 8.5% 9.7% 10%

People with a Disability N/A 0.9% 1.9% 1.8%

People with a Disability Requiring Work-Related Adjustment N/A 0.9% 1.9% 1.8%

Trends in the Distribution of Workforce Diversity Groups

Workforce Diversity Group Benchmark/Target 2015 2016 2017

Women 100 95 98 98

Aboriginal People and Torres Strait Islanders 100 N/A N/A N/A

People whose First Language Spoken as a Child was not English 100 N/A N/A N/A

People with a Disability 100 N/A N/A N/A

People with a Disability Requiring Work-Related Adjustment 100 N/A N/A N/A

Breakdown of employees by department

2015 Feb 2017 Feb 2018 Feb

FTE Emps FTE Emps FTE Emps

Executive Staff 7.00 7 8.00 8.00 8.90 9.00

Administration 3.38 4 3.35 4.00 3.43 4.00

Event & Operations 20.70 21 20.03 22.00 8.35 12.00

Business Development 0.00 0 0.00 0.00 0.00 0.00

Membership & Marketing 27.07 50.2 34.89 59.00 34.20 55.00

Commercial 7.00 7 2.00 2.00 2.00 2.00

Corporate Services 13.95 15.8 12.89 14.00 10.65 11.00

Strategy & Projects 3.00 3 0.00 0.00 0.00 0.00

Properties / Facilties 27.00 27 26.00 26.00 41.93 47.00

Media & Communications 1.00 1 2.00 2.00 2.00 2.00

Sydney Cricket Club 0.00 0 0.00 0.00 0.00 0.00

Human Resources 3.00 3.00 4.04 5.00

110.10 136 112.16 140.00 115.50 147.00

Breakdown of employees

2015 2017 2018

FULL TIME = 88 90 87.00

PART TIME = 22.8 23 24.00

CASUALS = 25.2 27 36.00

TOTAL EMPS = 136 140 147

FTE = 110.10 FTE = 112.16 FTE = 115.50

Executive Remuneration

Band 2018 2017 2016

Female Male Female Male Female Male

Band 4 (Secretary) 0 1 0 1 0 1

Band 3 (Deputy Secretary) 1 0 1 0 0 0

Band 2 (Executive Director) 0 2 0 2 0 2

Band 1 (Director) 2 3 2 2 2 3

Totals 3 6 3 5 2 6

9 8 8

The Trust values social and cultural diversity and is committed to the principles of multiculturalism and disability action planning in all aspects of our work. The following is a breakdown of workplace diversity groups, employees and executive remuneration.


Anthony Shepherd AO – Chairman COMMITTEES:BUSINESS,STADIUMDEVELOPMENT&FINANCE

Bachelor of Commerce

Chairman: Macquarie Specialised Asset Management Ltd

Chairman: Greater Western Sydney GIANTS AFL Club

Director: Racing NSW

Director: Virgin Australia International Holdings

Director: Menzies Research Centre

External Advisor: ASIC External Advisory

Advisor: Lend Lease

Advisor: Bank of Tokyo-Mitsubishi UFJ

Former President: Business Council of Australia

Former Chairman: Transfield Services Limited

Former Chairman: National Commission of Audit

Former Chairman: WestConnex

Former Chairman: Sydney Motorway Corporation Pty Ltd

Appointed Trustee to 4 October 2020

Rod McGeoch AO LLB – Deputy Chairman; Chairman, Stadium Development CommitteeCOMMITTEES:BUSINESS,STADIUMDEVELOPMENT&FINANCE

Lawyer

Chairman: Vantage Private Equity Growth Limited

Chairman: BGP Holdings Plc

Chairman: BGP Investments S.a.r.l.

Chairman: Advisory Board – American Infrastructure Holdings LLC

Corporacion America Airports S.A.

Director: Vantage Asset Management Pty Ltd

Director: Ramsay Health Care Ltd

Director: Maxwood Pty Ltd

Director: McGeoch Holdings Pty Ltd

Director: Destination NSW

Honorary Consul General of Luxembourg in Australia

Former Director: Sky City Entertainment Group Limited

Former Chairman: Mediaworks Investments Ltd

Appointed Trustee to 13 July 2019

TRUSTEE PROFILES John Hartigan – Chairman, Business CommitteeCOMMITTEES:BUSINESS&STADIUMDEVELOPMENT

Journalist

Chairman: Prime Media Group

Director: Australian Paralympic Committee

Life Member: Bradman Foundation

Former Chairman: Destination NSW

Former Trustee: Anindilyakwa Mining Trust

Former Chairman: News Limited

Former CEO: News Limited

Former Board Member: NSW Export and Investment Advisory Board

Former Chairman and Director: Australian News Channel

Former Director: Foxtel

Former Director & Advisory Board Member: American Australian Association


Alan Jones AOCOMMITTEE:STADIUMDEVELOPMENT

Graduate of Queensland and Oxford universities

Former speech writer and senior advisor to Prime Minister Malcolm Fraser

Queen’s Birthday Honour: Officer of the Order of Australia for the services to the media and sports administration

Former Australian rugby union coach

Former coach of the Balmain and South Sydney rugby league clubs

Elected to the Confederation of Australian Sports Hall of Fame - 1985

Broadcaster: Radio 2GB, Channel 7 Sunrise Program, Sky Channel Jones & Co. Program providing editorial comment and formerly with the Channel 9 Today Show presenting editorial comment daily for 20 years

Awarded Australian Radio Talk Personality of the Year 1990,

1991, 1992, 1993, 1995, 1997, 1998, 1999, 2000, 2001, 2002, 2003, 2004, and 2005

Awarded Australian Radio Best Current Affairs Commentator:

1991, 1992, 1993, 1995, 1996, 1997, 1998, 2000, 2001, 2002, 2003, 2004, and 2005

Advance Australia Award – Services to the Community 1993

Awarded the Inaugural Sir Roden Cutler Medal for Services to the Community - 2003

Deputy Chairman: NSW Institute of Sport

Former Deputy Chairman: Australian Sports Commission (1998-2008)



Stuart MacGillCOMMITTEE:BUSINESS

Consultant

Specialist spin bowling NSW, NZ, ECB

Former Australian Test cricket player

Wine, sport and media commentator


Nihal Gupta COMMITTEES:AUDITANDRISKMANAGEMENT,BUSINESSANDFINANCE

CEO & Managing Director: Principal Electronics Group Pty Ltd

Chairman: Naisda Foundation Limited (Indigenous performing dance and arts)

Member: Asia Society Advisory Board of Australia

Former Chairman: Special Broadcasting Service (SBS)

Former Chairman: NSW Multicultural Business Advisory Panel

Former Member: Judicial Commission of New South Wales

Former Member: NSW Export and Investment Advisory Panel

Former Director: Sydney Sixers T20 Big Bash Cricket

Former Director: Parramasala Limited (International South Asian arts and cultural festival)


Maurice Newman, AC – Chairman, Finance Committee; Chairman, Audit & Risk ManagementCOMMITTEE:FINANCEANDAUDIT&RISKMANAGEMENT

Chairman: M Value Capital Advisory Board Chairman: Prime Minister’s Business Advisory CouncilChairman: Melon Pastoral Pty LtdChairman: NSW Chamber of Australia-India Trade & InvestmentChairman: Bradman FoundationChairman: Taronga FoundationChairman: Australia Father’s Day CouncilSenior Corporate Advisor: MMC Group of CompaniesPatron: Committee for Economic Development of Australia (CEDA)Director: O’Connell Street Associates Pty LtdHonorary Chair: Macquarie University FoundationHonorary Professor: Public Diplomacy, SPARC, Macquarie University (Soft Power Advocacy & Research Centre- SPARC)Former Chairman: Deutsche Bank Australia & New ZealandFormer Chairman: Deutsche Bank Asia Pacific Advisory BoardFormer Chairman: Australian Securities Exchange (ASX Limited)Former Chairman: Sydney Convention & Visitors BureauFormer Chairman: Tourism New South WalesFormer Chairman: Australian Broadcasting CorporationFormer Chairman: Sydney SixersFormer Chairman: Loan RQ Former Chancellor: Macquarie UniversityFormer Director: Queensland Investment Corporation (QIC)Former Director: Tiger Airways Australia LimitedFormer Member: MARQ Services Advisory BoardAppointed Trustee to 13 July 2019

David GilbertCOMMITTEES:BUSINESS,TRUSTADVISORYANDMEMBERSADVISORYGROUPS

President: Western Suburbs District Cricket Club

Patron: NSW Schools Cricket Association

Life Member and Former CEO: Cricket NSW

Vice President and Former CEO: Sussex County Cricket Club

Former Australian Cricketer

Former Director: Bradman Foundation

Former Director: Sydney Business Chamber


Katie Page COMMITTEE:BUSINESS

Chief Executive Officer: Harvey Norman Holdings LimitedExecutive Director: Harvey Norman Holdings LimitedDirector: Pertama Holdings Ltd (Singapore)Director: Space Furniture Pte Ltd (Singapore)Director: The Bradman FoundationMember: NSW Domestic and Family Violence Corporate Leadership GroupMember: UWS Foundation Council Former Member: NSW Council for Women’s Economic OpportunityFormer Member: Retail CouncilFormer Member: NSW Public Service Commission Advisory BoardFormer Director: Museum of Contemporary Art Limited



Phil WaughCOMMITTEES:FINANCE,AUDITANDRISKMANAGEMENT,TRUSTANDMEMBERSADVISORYGROUPS

National Manager Auto Finance St George - Westpac Banking Corporation

Former Australian Wallaby Captain

Former NSW Waratahs Captain

Former British Barbarian Captain

Participant: Sydney to Hobart Race (Line Honours 2011)

Masters of Commerce

Masters of International Business

Graduate Australian Institute of Company Directors


Hon Barry O’Farrell COMMITTEE:STADIUMDEVELOPMENT

CEO, Racing Australia Ltd

Chair, NSWRL Foundation

Deputy Chair: Australia India Council

Board Member: Obesity Australia

Director: Royal Flying Doctor Service South East Section

NSW Government’s Special Envoy for India

Former NSW Premier


Michael CrismaleCOMMITTEE:FINANCE

Fellow Member of Australian Institute of Company DirectorsMember of Chartered Accountants in Australia and New ZealandExecutive Chairman – Matrium Technologies Pty LimitedChairman - Matrium Sports Foundation Inc.Non-Executive Chairman - Matrix Bloodstock Pty LimitedNon-Executive Chairman - Emjay Insurance Brokers Pty LimitedNon-Executive Chairman - JSA Financial Services Pty LimitedBoard member – Sydney Football Club Pty Limited Immediate Past Chairman – Carbine Club of New South Wales Inc.Immediate Past Chairman - Australian Turf ClubFormer board member – Sydney Turf ClubFormer Independent Director – Surf Life Saving Australia


Kerrie MatherCOMMITTEES:BUSINESSANDSTADIUMDEVELOPMENT

Member St Vincent’s Health Advisory Board

Member UNSW School of Business Advisory Board

Former Managing Director and CEO – Sydney Airport

Former CEO – MAp Airports Limited

Former Executive Director – Macquarie Group

Former Board Member and Deputy Chair – Tourism and Transport Forum


Peter Ivany AMCOMMITTEES:FINANCEANDSTADIUMDEVELOPMENT

Chairman – Sydney Swans Foundation and Life MemberChairman of Loftus Peak Advisory Board Executive Chairman – Ivany Investment GroupDirector – IMAX Theatre SydneyBoard Member – Allied CreditBoard Member – Sydney ZooBoard Member – NIDA and Chairman – NIDA Foundation TrustHonorary Life Governor and Foundation Chairman – Jewish Communal AppealAdjunct Professor – University of TechnologyChairman – Advisory Council, Sydney Film Festival Former CEO - Hoyts CinemasFormer Board Member – TAHL, Accor HotelsFormer Board Member - Museum of Contemporary ArtFormer Board Member – Events New South Wales


Stephanie BrantzCOMMITTEE:BUSINESS

Sports and Events Presenter - ABCCommentator/presenter/reporter – ESPN, Fox SportsSpecial Member Carbine Club of NSWFormer Sport Presenter for Channel 9/SBSCorporate Host – SCG Trust Member functions- Sydney FC Chairman’s Club, Waratahs Chairman’s Club, Australian Rugby UnionAmbassador – Australian Indigenous Education Foundation, The Chappell FoundationAppointed Trustee to 4 October 2020


Management organisational chart

TRUST

JAMIEBARKLEY

Chief Executive Officer

Audit & Risk Management Committee

BERNIELAMERTON

General Manager Corporate Services

JANECOLES

General Manager Marketing, Membership

and ICT

DEBORAHKELLY

General Manager Strategy & Projects

JOHNNYNAOFAL

General Manager Facilities

JASONHILL

General Manager Commercial

PHILLIPHEADS

General Manager Heritage Communications &

Govt Relations

STEPHENSAUNDERS

General Manager Events

JACQUELINECUNNINGHAM

General Manager Human Resources

Finance

Membership

Master Plan

Venue & Asset Management

Corporate Hospitality

Heritage

Sports Partner Relationship

Workforce Services

Payroll Services

Stadium Fitness Club

Design & Development

Grounds

Sponsorship

Communications Remuneration & Benefits

Procurement

Marketing

Digital Transformation

Major Building Projects

Capital Works

Gold & Platinum Membership & Sales

Public Relations

Event Management

Event Acquisition

Food and Beverage

Employee Journey

Maintenance

Tenant Management

WH&S and Security

Commercial Rights & Contract Negotiation

Government RelationsInformation &

Communications Technology Recruitment

Talent Management

Right to Information & Public Interest Disclosures

Customer Experience

Finance Committee

Business Committee

Development Committee

TrusteeAttendanceFinanceCommitteeMeetings(4)

BusinessCommitteeMeetings(4)

DevelopmentCommitteeMeetings(7)

Audit&RiskManagementCommitteeMeetings(2)

TrustMeetings(8)

Tony Shepherd, AO 2 1 3 6

Rod McGeoch AO LLB 3 4 3 7

Stephanie Brantz # 1

Richard Colless AM + 1 3

Michael Crismale # 2 1

David Gilbert 4 7

Ron Graham + 1 1 4

Nihal Gupta ## 3 3 1 4

John Hartigan 3 3 7

Peter Ivany AM # 2 1

Alan Jones AO 2 3

Lyn Larsen + 3 3

Stuart MacGill 1 5

Kerrie Mather ## -

Maurice Newman, AC 4 2 7

Barry O’Farrell 3 7

Katie Page 3 6

Phil Waugh 3 6

Steve Waugh AO + 2 3

Trust meetingsFrom 1 March 2017 to 28 February 2018, attendances by Trustees at the Finance Committee, Audit & Risk Management Committee, Business Committee, Development Committee and Trust meetings are set out below.

+ Completion date: 13 July 2017 # Commencement date: 14 July 2017 ## Commencement / Reappointed 22 Dec 2017

FinanceCommittee

BusinessCommittee

StadiumDevelopmentCommittee

Audit&RiskManagementCommittee

Maurice Newman AC John Hartigan Rod McGeoch AM LLB Maurice Newman AC

Rod McGeoch AO LLB Rod McGeoch AO LLB John Hartigan Nihal Gupta

Michael Crismale Stephanie Brantz Peter Ivany AM Phil Waugh

Nihal Gupta David Gilbert Alan Jones AO

Peter Ivany AM Nihal Gupta Kerrie Mather

Phil Waugh Stuart MacGill Barry O’Farrell

Kerrie Mather

Katie Page


CEO AND GENERAL MANAGER PROFILES

Chief Executive OfficerJamie Barkley was appointed Chief Executive Officer of the Sydney Cricket and Sports Ground Trust in February 2001, responsible for the management and operation of the SCG and Allianz Stadium. Jamie was Chief Operating Officer of the Trust from October 1999 and General Manager of the Sydney International Aquatic and Athletic Centres at Sydney Olympic Park from 1994.

Jamie has a Bachelor of Arts and a Master of Business Administration from the Royal Melbourne Institute of Technology. He has more than 30 years’ experience in venue management, delivering major sport and entertainments events.

Jamie is a member of the Australian Institute of Company Directors and a Director of the Sydney Cricket Club. He was a Director of the Bradman Foundation until December 2017 when his eight-year term expired.

General Manager – Corporate ServicesBernie Lamerton joined the Trust in 1984 after 12 years with the Audit Office of NSW. He was appointed to position of General Manager in 1994.

Bernie is qualified in accounting, having CPA status with the Australian Society of Certified Practicing Accountants.

He holds the combined role of Chief Financial Officer and Trust Secretary. He is responsible for preparation of the Trust’s statutory financial statements and is the longest serving employee at the Trust.

General Manager – CommercialJason Hill joined the Trust in October 2000 as Sales and Marketing Manager. Prior to this he held management roles at The Tattersalls Club, NSW Rugby Union and St George Rugby League Club after beginning his career in sport and venue management at South Sydney Rugby League in 1994.

He was appointed General Manager – Business Development in March 2005. This role evolved into his current position as General Manager – Commercial in 2011 following a restructure of Trust divisions. This restructure saw Jason assume responsibility for corporate hospitality and Gold and Platinum membership sales, advertising signage, wi-fi and IPTV opportunities, sponsorship sales, commercial rights and sports partner agreements, such as Cricket Australia, Cricket NSW, Sydney Sixers, Sydney Swans, Waratahs, Wallabies, Sydney Sevens, Sydney FC and Sydney Roosters. He also looks after all the on-site office premises tenancies.

Jason has a Bachelor of Economics degree with Honours in Industrial Relations. He is a board member of the Venue Management Association (Asia and Pacific) Ltd.

General Manager – Membership, Marketing & ICT Jane Coles was appointed General Manager – Membership & Marketing in August 2011. She is responsible for the strategic direction and overall management of a large and diverse team including membership and customer services, marketing, the Stadium Club and Information and Communication Technology (ICT) departments.

Jane joined the Trust in December 1995 at the Sydney Olympic Park Aquatic and Athletic Centres and moved to the SCG and Allianz Stadium in February 2001. She has over 20 years’ experience in marketing and brand, membership and customer experience, segmentation, strategy, digital and stakeholder management. In May 2014, Jane was appointed as the second female Director of SCG Cricket assisting with the future direction and planning of the Sydney Cricket Club and SCG XI membership. In July 2015, Jane assumed responsibility for the ICT portfolio including corporate ICT, the Connected Stadium Solution and overarching digital precinct strategy and transformation.

Jane’s qualifications include a Bachelor of Science in Kinesiology (Honours) and certificates in Marketing, Leadership and Event Management.


General Manager – Communications, Heritage and Government Relations

Phillip Heads started with the Trust in April 2014 after a two-decade career in newspapers. Phillip was most recently the Director of Sport at News Corp NSW, during which he served as a sports editor and assistant editor of The Daily and Sunday Telegraphs.

He has had a long association with the Trust first as a fan and member and then as a sportswriter. One of his first jobs in journalism was to cover the Sydney Swans’ run to the 1996 AFL Grand Final.

General Manager – FacilitiesJohnny Naofal joined the Trust in February 2016 as General Manager- Facilities. He is responsible for the development and implementation of business processes related to strategic facility and operational management of Trust assets including Turf management and the annual capital works program.

Johnny previously was the Director of Building Services with the International Convention Centre Sydney and the Sydney Exhibition Centre. His expertise include strategic, financial and business planning advice for all administrative and operational aspects of a major facility’s assets.

General Manager – Human ResourcesJacqueline Cunningham was appointed General Manager – Human Resources in November 2015.

She is responsible for leading the implementation of strategic objectives, providing counsel and advice to senior stakeholders, developing strategic people plans that address current and future challenges and leading a team of staff to ensure service delivery enables and facilitates the achievement of Human Resources strategic objectives that are aligned to overall business objectives. In 2017 her responsibilities were extended to include Customer Experience to drive initiatives that put the customer at the heart of our business and establishing a rich customer centric culture.

Jacqueline joined the Trust in September 2008 as the Manager – Human Resources and is also responsible for Right to Information and Public Interest Disclosures. She has over 20 years’ experience complimented by appropriate tertiary qualifications in Human Resources disciplines including regional experience in South East Asia.

General Manager – Strategy and Projects Deborah Kelly joined the Sydney Cricket and Sports Ground Trust in April 2016 as General Manager, Strategy and Major Projects.

This role is responsible for developing the Trust’s strategic real estate project pipeline, including project commercialization, and Government and stakeholder engagement.

Deborah has over 15 years’ experience in investment banking, funds management and real estate. Prior to joining the Trust, Deborah held senior executive positions at Mirvac Group, Stonebridge Group and Babcock & Brown. Deborah is a Fellow of the Institute of Chartered Accountants of Australia and New Zealand.

General Manager – Events Stephen Saunders joined the Trust in April 2017 as General Manager- Events. He is responsible for event acquisition, event delivery, and key venue supply agreements including catering services, ticketing, merchandise and Liquor Licensee.

Stephen is familiar with all aspects of major event planning with a very strong network with leading sporting bodies, Governments and international sporting codes. He has a proven track record in thinking strategically and delivering highly creative and commercial successful outcomes.

Stephen holds a Bachelor of Business Management, Marketing and HR from the University of Queensland.


Charter: Sydney Cricket & Sports Ground Act, 1978 No. 72The Trust was constituted under this Act and is charged with the care, control and management of the scheduled lands dedicated for public recreation.

The Trust may allow the scheduled lands or any part thereof to be used by persons, clubs, associations, leagues or unions at such times and on such terms and conditions as the Trust may think fit and proper for cricket, football, athletics, public amusement or any other purpose which the Minister may approve.

The Trust may carry out works for the improvement, development and maintenance of the Trust lands including the redesigning of areas, the construction of any building or structure on the Trust lands, and the provision of stands and other accommodation for spectators frequenting Trust land.

Constitution of the Trust

Under Section 5 (2), the Trust shall have and may exercise and perform the functions conferred or imposed on it by or under the Act, and shall in the exercise or performance of its functions, be subject to the control and direction of the Minister for Sport and Recreation.

The Trust consists of 15 members, 13 appointed by the Governor and two elected by Members. Each Trustee is appointed for a term of up to four years.

Performance Statement

JamieBarkleyChiefExecutiveOfficerAnnualSalary:$571,505 The Chairman reported that the Chief Executive Officer performed to a high level during 2016-17.

The Chief Executive Officer’s major achievements during the year included:

» An operating profit of $1.4 million, exceeding budget of $1.2 million by 16 per cent

» Increased operating revenue by 5.7 per cent - to $91.6 million compared to $86.5 million in the previous year

» Capital debt reduced from $79 million to $77 million

» Maintained high retention of Platinum, Gold and SCG Members with revenue of $26.5 million compared to $25.4 million in 2016

» Successful sporting events: International and domestic cricket including the New Year’s Test, One-Day Internationals, T20 Big Bash League (Sydney Sixers), AFL (Sydney Swans) at the SCG, Super Rugby (NSW Waratahs), NRL (Sydney Roosters, St George Illawarra Dragons, South Sydney Rabbitohs) and A-League football (Sydney FC) at Allianz Stadium

» Successful major events including: Rugby Test (Australia v England), Australia v UAE (football), NRL Finals, Coldplay concerts, World Rugby Sevens (men’s and women’s), Anzac Cup and the A-League Grand Final

» Long term venue hire agreements in place with Australian Rugby Union (Wallabies Tests until 2031 and World Rugby Sevens until 2019), NRL finals (until 2021), NSW Rugby/Waratahs Rugby (Super Rugby until 2031), Cricket Australia (international cricket until 2022/23), Sydney Sixers (until 2022/23), and Sydney FC (until 2027)

» Progress on construction of Australian Rugby Development Centre, home of Australian Rugby Union and University of Technology, Sydney (Opened in 2017)

» Completion of Trust’s Concept Plan including future stages of the SCG redevelopment program, Allianz Stadium project and the surrounding Moore Park precinct

» Reviewed and upgraded security operations at the grounds and precinct including new CCTV systems

The Chief Executive Officer managed a capital works program of $12.9 million, including:

» Upgrade of retail catering outlets at the SCG and Allianz Stadium

» Upgrade to private suites at the SCG and Allianz Stadium

» Refurbishment of Allianz Stadium home and away changerooms

» Upgrade to Stadium Club spa and pool plant room

» Safety and Compliance upgrade for the precinct

» Additional solar powered lighting in the MP1 car park and surrounds


REVENUEOperatingrevenue

OperatingRevenue

On2016/17to

9%

$92m

FINANCIAL INDICATORSThe tables outlined below detail the Trust’s revenue, debt levels, operating surplus, earnings before interest and membership renewal financials.

63

EBITDAInlinewith

budget

FIVE-YEAREBITDA

25

20

15

10

5

0 2013/14 2014/15 2015/16 2016/17 2017/18

1417 19 18 18

$18m

FIVEYEAROPERATINGSURPLUSVBUDGET

OPERATINGSURPLUSExcludinggrantsandallocationofreservesanddebtrestructure

OnBudgetto

6.0

5.0

4.0

3.0

2.0

1.0

0 2013/14 2014/15 2015/16 2016/17 2017/18

15%

$2mActual

Budget

FIVE-YEARREVENUE

100

80

60

40

20

0 2013/14 2014/15 2015/16 2016/17 2017/18

84 86 92 9976

DEBTLEVELS

2013/14 2014/15 2015/16 2016/17 2017/18

90

75

60

45

30

15

0



INDEPENDENT AUDITOR’S REPORT Sydney Cricket and Sports Ground Trust

To Members of the New South Wales Parliament

Opinion I have audited the accompanying financial statements of the Sydney Cricket and Sports Ground Trust (the Trust), which comprise the Statement of Profit or Loss and Other Comprehensive Income for the year ended 28 February 2018, the Statement of Financial Position as at 28 February 2018, the Statement of Changes in Equity and the Statement of Cash Flows, for the year then ended, notes comprising a Statement of Significant Accounting Policies and other explanatory information.

In my opinion the financial statements:

• give a true and fair view of the financial position of the Trust as at 28 February 2018, and of its financial performance and its cash flows for the year then ended in accordance with Australian Accounting Standards

• are in accordance with section 41B of the Public Finance and Audit Act 1983 (PF&A Act) and the Public Finance and Audit Regulation 2015.

My opinion should be read in conjunction with the rest of this report.

Basis for Opinion I conducted my audit in accordance with Australian Auditing Standards. My responsibilities under the standards are described in the ‘Auditor’s Responsibilities for the Audit of the Financial Statements’ section of my report.

I am independent of the Trust in accordance with the requirements of the:

• Australian Auditing Standards • Accounting Professional and Ethical Standards Board’s APES 110 ‘Code of Ethics for

Professional Accountants’ (APES 110).

I have fulfilled my other ethical responsibilities in accordance with APES 110.

Parliament promotes independence by ensuring the Auditor-General and the Audit Office of New South Wales are not compromised in their roles by:

• providing that only Parliament, and not the executive government, can remove an Auditor-General

• mandating the Auditor-General as auditor of public sector agencies • precluding the Auditor-General from providing non-audit services.

I believe the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.

The Trustee’s Responsibilities for the Financial Statements The Trustees are responsible for the preparation and fair presentation of the financial statements in accordance with Australian Accounting Standards and the PF&A Act and for such internal control as the Trustees determine is necessary to enable the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the Trust’s ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting except where the Trust’s operations will cease as a result of an administrative restructure.

Auditor’s Responsibilities for the Audit of the Financial Statements My objectives are to:

• obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error

• issue an Independent Auditor’s Report including my opinion.

Reasonable assurance is a high level of assurance, but does not guarantee an audit conducted in accordance with Australian Auditing Standards will always detect material misstatements. Misstatements can arise from fraud or error. Misstatements are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions users take based on the financial statements.

A description of my responsibilities for the audit of the financial statements is located at the Auditing and Assurance Standards Board website at: www.auasb.gov.au/auditors_responsibilities/ar4.pdf. The description forms part of my auditor’s report.

My opinion does not provide assurance:

• that the Trust carried out its activities effectively, efficiently and economically • about the security and controls over the electronic publication of the audited financial

statements on any website where they may be presented • about any other information which may have been hyperlinked to/from the financial statements.

Aaron Green Director, Financial Audit Services

15 June 2018 SYDNEY


BEGINNING OF AUDITED FINANCIAL STATEMENTSStatement of Profit or Loss and Other Comprehensive Income for the Year Ended 28 February 2018

NOTES2018

$’0002017 $’000

REVENUE

Membership 2a 27,149 26,466Hire Fees 13,120 10,915Catering 2b 27,778 23,297Advertising and Sponsorship 2c 15,153 15,706Corporate Seating sales 2d 4,416 3,805Other Revenue 2e 11,820 11,348

TotalRevenue 99,436 91,537

EXPENDITURE

Operating Expenses 3a 61,708 54,331Employee Related Expense 3b 19,258 18,871Depreciation 6 13,678 13,291Finance Costs 3c 2,833 3,932Finance Costs - Premium on Debt Restructure 2f 3,625 -

TotalExpenditure 101,102 90,425

OPERATING RESULT (1,666) 1,112

Gain/(Loss) on Disposal of Plant & Equipment 2f 25 (8,052)Gain/(Loss) on Disposal of Land – Conversion to Finance Lease 2g 23,785 -

NETRESULT 22,144 (6,940)

OTHERCOMPREHENSIVEINCOMEItems that will not be reclassified subsequently to profit or loss

Net increase/(decrease) in property, plant and equipment revaluation reserve 6 (85,696) -

Actuarial gains/(losses) on defined benefit pension plans 10 (468) 287

TotalOtherComprehensiveIncome (86,164) 287

TOTALCOMPREHENSIVEINCOME (64,020) (6,653)

The accompanying notes form part of these financial statements.


Statement of Financial Position as at 28 February 2018

NOTES2018

$’0002017

$’000

ASSETS

CurrentAssets

Cash and Cash Equivalents 4 3,430 9,657Receivables 5 16,210 17,334Inventories 1,526 1,453

TotalCurrentAssets 21,166 28,444

Non-CurrentAssets

Property, Plant & Equipment 6 695,164 779,670Intangible Assets 7 2,248 -Receivables 5 30,347 6,735

TotalNon-CurrentAssets 727,759 786,405

TotalAssets 748,925 814,849

LIABILITIES

Current LiabilitiesPayables 8a 21,989 21,046Other Liabilities 8b 17,564 18,197Borrowings 9 - 8,838Provisions 10 2,288 2,594

TotalCurrentLiabilities 41,841 50,675

Non-CurrentLiabilities

Payables 8a 2,491 4,811Other Liabilities 8b 2,027 3,332Borrowings 9 78,187 68,128Provisions 10 1,555 1,059

TotalNon-CurrentLiabilities 84,260 77,330

TotalLiabilities 126,101 128,005

NetAssets 622,824 686,844

EQUITY

Reserves 274,453 360,828Accumulated Funds 348,371 326,016

TotalEquity 622,824 686,844


Statement of Changes in Equity for the Year Ended 28 February 2018

Notes

AccumulatedFunds$’000

AssetRevaluation

Reserve$’000

Total$’000

BALANCEAT1MARCH2017 326,016 360,828 686,844

Net Result for the Year 22,144 - 22,144Other Comprehensive Income Net increase/(decrease) in property, plant and equipment revaluation reserve

6 - (85,696) (85,696)

Disposal of Land 6 679 (679) -

Actuarial Gains/(Losses) on defined benefit pension plans 10 (468) - (468)

TotalComprehensiveIncomefortheyear 22,355 (86,375) (64,020)

Transactionswithownersintheircapacityasowners Increase/(decrease) in net assets from equity transfers

- - -

BALANCEAT28FEBRUARY2018 348,371 274,453 622,824

Notes

AccumulatedFunds$’000

AssetRevaluation

Reserve$’000

Total$’000

BALANCEAT1MARCH2016 332,669 360,828 693,497

Net Result for the Year (6,940) - (6,940)Net increase/(decrease) in property, plant and equipment revaluation reserve

6 - - -

Actuarial Gains/(Losses) on defined benefit pension plans 10 287 - 287

TotalComprehensiveIncomefortheyear (6,653) - (6,653)

Transactionswithownersintheircapacityasowners Increase/(decrease) in net assets from equity transfers

- - -

BALANCEAT28FEBRUARY2017 326,016 360,828 686,844



Statement of Cash Flows for the Year Ended 28 February 2018

NOTES 2018$’000

2017 $’000

CASHFLOWSFROMOPERATINGACTIVITIES

Receipts

Receipts from Operations 106,687 99,873Interest Received 100 168Other 1,035 543

TotalReceipts 107,822 100,584

Payments

Suppliers and Employees (83,068) (77,716)Interest Paid (3,480) (4,049)Other (2,667) (2,672)

TotalPayments (89,215) (84,437)

NETCASHFLOWSFROMOPERATINGACTIVITIES 15b 18,607 16,147

CASHFLOWSFROMINVESTINGACTIVITIES

Purchase of Property, Plant and Equipment (23,367) (13,651)Proceeds from Sale of Plant and Equipment 99 193

NETCASHFLOWSFROMINVESTINGACTIVITIES (23,268) (13,458)

CASHFLOWSFROMFINANCINGACTIVITIES

Proceeds from Borrowings - -Repayment of Borrowings (1,566) (1,661)

NETCASHFLOWSFROMFINANCINGACTIVITIES (1,566) (1,661)

NETINCREASE/(DECREASE)INCASHANDCASHEQUIVALENTS (6,227) 1,028

Opening Cash and Cash Equivalents 9,657 8,629

CLOSINGCASHANDCASHEQUIVALENTS 15a 3,430 9,657


1.Summary of Significant Accounting Policies

a) Reporting EntityThe Trust is constituted under the provisions of the Sydney Cricket & Sports Ground Act, 1978. The activities of the Trust concentrate upon its primary role in the care, control and management of the Sydney Cricket Ground and Allianz Stadium which together are lands dedicated for public recreation. The Trust is domiciled in Australia and its principal office is at Moore Park Road, Paddington.

The Sydney Cricket & Sports Ground Trust, as a reporting entity, is a Public Trading Enterprise. The Trust is a not for profit entity (profit is not its principle objective). The reporting entity is consolidated as part of the NSW Total State Sector Accounts.

These financial statements for the year ended 28 February 2018 represent the Trust’s full operations for the year ended 28 February 2018 and reflect the abolition of the Sydney Cricket and Sport Ground Trust Staff Agency (Agency) from 1 April 2017.

The Sydney Cricket and Sports Ground Trust Staff Agency was established on 24 February 2014 under the Government Sector Employment Act 2013 (GSEA) to provide personnel services to the Trust. In previous years the Trust consolidated its Financial Statements to include the activities of this Agency.

On 2 March 2016 the Government Sector Employment Legislation Amendment Act 2017 No 2 was issued. The Act made the following amendments relevant to the Trust:

» reference to the Trust was removed from the GSE Act 2013

» the Sydney Cricket and Sports Ground Trust Act 1978 No 72 was amended to allow the Trust to employ staff.

These amendments remove the requirement for the Trust to comply with the requirements of the GSE Act 2013 and effectively abolish the Sydney Cricket and Sport Ground Trust Staff Agency from 1 April 2017.

These financial statements for the year ended 28 February 2018 have been authorised for issue by the Audit and Risk Committee on 4 June 2018.

b) Basis of Preparation

The Trust’s financial statements are general-purpose financial statements, which have been prepared on an accruals basis and in accordance with:

» applicable Australian Accounting Standards (which include Australian Accounting Interpretations)

» other professional authoritative pronouncements of the Australian Accounting Standards Board.

» the requirements of the Public Finance and Audit Act 1983 and Public Finance and Audit Regulation 2015.

Selected non-current assets, financial assets and financial liabilities are measured at fair value. The other financial statement items are prepared in accordance with the historical cost convention.

Judgements, key assumptions and estimations management as made are disclosed in the relevant notes to the financial statements.

All amounts are rounded to the nearest one thousand dollars and are expressed in Australian currency.

c) Statement of ComplianceThe financial statements and notes comply with Australian Accounting Standards, which include Australian Accounting Interpretations.

d) Borrowing CostsBorrowing costs consist of interest and other costs incurred in connection with the borrowing of funds. Borrowing costs are recognised as expenses in the period in which they are incurred.

e) InsuranceThe Trust’s insurance activities are conducted through the NSW Treasury Managed Fund Scheme of self-insurance for Government entities. The expense (premium) is determined by the Fund Manager based on past claims experience.

f) Accounting for the Goods and Services Tax (GST)

Income, expenses and assets are recognised net of the amount of GST, except that the:

» amount of GST incurred by the Trust as a purchaser that is not recoverable from the Australian Taxation Office is recognised as part of an asset’s cost of acquisition or as part of an item of expense and

» receivables and payables are stated with the amount of GST included.

Cash flows are included in the Statement of Cash Flows on a gross basis. However, the GST components of cash flows arising from investing and financing activities which are recoverable from, or payable to, the Australian Taxation Office are classified as operating cash flows.

g) Revenue Recognition

Revenue is measured at the fair value of the consideration or contribution received or receivable. Additional comments regarding the accounting policies for the recognition of income are discussed below.

Notes to the Financial Statements for the Year Ended 28 February 2018


As a not-for-profit entity, revaluation increments and decrements are offset against one another within a class of non-current assets, but not otherwise.

Where an asset that has previously been revalued is disposed of, any balance remaining in the asset revaluation reserve in respect of that asset is transferred to accumulated funds.

(iv)Impairmentofproperty,plantandequipmentAs a not-for-profit entity, impairment under AASB 136 Impairment of Assets is unlikely to arise. As property, plant and equipment is carried at fair value (or an amount that approximates fair value), impairment can only arise in the rare circumstances where the costs of disposal are material. Specifically, impairment is unlikely for not-for-profit entities given that AASB 136 modifies the recoverable amount test for non-cash generating assets of not-for-profit entities to the higher of fair value less costs of disposal and depreciated replacement cost, where depreciated replacement cost is also fair value.

Depreciationofproperty,plant,equipmentandintangibleassetsProperty, plant and equipment, other than land, are depreciated at rates based on their expected useful lives for the Trust, using the straight-line method.

All material identifiable components of assets are depreciated separately over their useful lives. Land is not a depreciable asset.

Depreciation rates of each class of depreciable assets are:

» Buildings and Improvements 1.1% - 20%

» Plant and Equipment 5% - 33.3%

» Intangible Assets 5% - 10%

(vi)MaintenanceDay-to-day servicing costs or maintenance are charged as expenses as incurred, except where they relate to the replacement of a part or component of an asset, in which case the costs are capitalised and depreciated.

(vii)LeasedassetsA distinction is made between finance leases which effectively transfer from the lessor to the lessee substantially all the risks and benefits incidental to ownership of the leased assets, and operating leases under which the lessor does not transfer substantially all the risks and benefits.

Where a non-current asset is acquired by means of a finance lease, at the commencement of the lease term, the asset is recognised at its fair value or, if lower, the present value of the minimum lease payments, at the inception of the lease. The corresponding liability is established at the same amount. Lease payments are allocated between the principal component and the interest expense.

Property, plant and equipment acquired under finance leases are depreciated over the asset’s useful life. However, if there is no reasonable certainty that the lessee entity will obtain ownership at the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of the asset and the lease term.

Operating lease payments are charged to the statement of comprehensive income in the periods in which they are incurred. Lease payments from operating leases where the Trust is a lessor is recognised in income on a straight-line basis over the lease term. The respective leased assets are included by the lessor entity in the Statement of Financial Position based on their nature.

(viii)LoansandreceivablesLoans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. These financial assets are recognised initially at fair value, usually based on the transaction cost, or face value. Subsequent measurement is at amortised cost using the effective interest method, less an allowance for any impairment of receivables. Any changes are recognised in the net result for the year when impaired, derecognised or through the amortisation process.

Short-term receivables with no stated interest rate are measured at the original invoice amount where the effect of discounting is immaterial.

(ix)InventoriesInventories are stated at the lower of cost and net realisable value. Cost is calculated using the weighted average cost or ‘first in first out’ method.

(x)InvestmentsInvestments are initially recognised at fair value plus, in the case of investments not at fair value through profit or loss, transaction costs. The Trust determines the classification of its financial assets after initial recognition and, when allowed and appropriate, re-evaluates this at each financial year end.

Fair value through profit or loss - The Trust subsequently measures investments classified as ‘held for trading’ or designated upon initial recognition ‘at fair value through profit or loss’ at fair value. Financial assets are classified as ‘held for trading’ if they are acquired for the purpose of selling in the near term. Gains or losses on these assets are recognised in the net result for the year.

The Hour-Glass Investment Facilities are designated at fair value through profit or loss using the second leg of the fair value option under AASB

(i)SaleofgoodsRevenue from the sale of goods is recognised as revenue when the Trust transfers the significant risks and rewards of ownership of the assets.

(ii)RenderingofservicesRevenue is recognised when the service is provided or by reference to the stage of completion (based on labour hours incurred to date).

(iii)InvestmentrevenueInterest revenue is recognised using the effective interest method as set out in AASB 139 Financial Instruments: Recognition and Measurement. Rental revenue from operating leases is recognised in accordance with AASB 117 Leases on a straight-line basis over the lease term.

h) Grants RecognitionGrants are recognised as revenue when the Trust obtains control over the assets comprising the grant. Control is normally obtained upon the receipt of cash.

i) Assets

(i)AcquisitionsofassetsAssets acquired are initially recognised at cost. Cost is the amount of cash or cash equivalents paid or the fair value of the other consideration given to acquire the asset at the time of its acquisition or construction or, where applicable, the amount attributed to that asset when initially recognised in accordance with the requirements of other Australian Accounting Standards.

Assets acquired at no cost, or for nominal consideration, are initially recognised at their fair value at the date of acquisition. Fair value is the price that would be received to sell an asset in an orderly transaction between market participants at measurement date.

(ii)CapitalisationthresholdsProperty, plant and equipment and intangible assets costing $5,000 and above individually (or forming part of a network costing more than $5,000) are capitalised. All items under $5,000 and above $2,000 which are considered at risk of theft are capitalised and recorded in the Trust’s assets register.

(iii)Revaluationofproperty,plantandequipmentPhysical non-current assets are valued in accordance with the ‘Valuation of Physical Non-Current Assets at Fair Value’ Policy and Guidelines Paper (TPP 14-01). This policy adopts fair value in accordance with AASB 13 Fair Value Measurement and AASB 116 Property, Plant and Equipment.

Property, plant and equipment is measured at the highest and best use by market participants that is physically possible, legally permissible and financially feasible. The highest and best use must be available at a period that is not remote and take into account the characteristics of the asset being measured, including any socio-political restrictions imposed by government. In most cases, after taking into account these considerations, the highest and best use is the existing use. In limited circumstances, the highest and best use may be a feasible alternative use, where there are no restrictions on use or where there is a feasible higher restricted alternative use.

Fair value of property, plant and equipment is based on a market participants’ perspective, using valuation techniques (market approach, cost approach, income approach) that maximise relevant observable inputs and minimise unobservable inputs. Also refer Note 6 for further information regarding fair value.

The Trust re-values each class of property, plant and equipment at least every three years or with sufficient regularity to ensure that the

carrying amount of each asset in the class does not differ materially from its fair value at reporting date. Interim formal revaluations are carried out in the years between the comprehensive revaluation. A comprehensive revaluation of buildings was completed on 28 February 2018 based on an independent assessment. A full revaluation of land was last completed on 28 February 2016 and the last interim formal revaluation was completed on 28 February 2018, both based on an independent assessment.

Non-specialised assets with short useful lives are measured at depreciated historical cost, as a surrogate for fair value. The Trust has assessed that any difference between fair value and depreciated historical cost is unlikely to be material.

When revaluing non-current assets using the cost approach, the gross amount and the related accumulated depreciation are separately restated. For other assets valued using other valuation techniques, any balances of accumulated depreciation at the revaluation date in respect of those assets are credited to the asset accounts to which they relate. The net asset accounts are then increased or decreased by the revaluation increments or decrements.

Revaluation increments are credited directly to asset revaluation reserve, except that, to the extent that an increment reverses a revaluation decrement in respect of that class of asset previously recognised as an expense in the net result, the increment is recognised immediately as revenue in the net result.

Revaluation decrements are recognised immediately as expenses in the net result, except that, to the extent that a credit balance exists in the asset revaluation reserve in respect of the same class of assets, they are debited directly to the asset revaluation reserve.

Notes to the Financial Statements for the Year Ended 28 February 2018 Notes to the Financial Statements for the Year Ended 28 February 2018


139.9(b)(ii); i.e. these financial assets are managed and their performance is evaluated on a fair value basis, in accordance with a documented risk management strategy, and information about these assets is provided internally on that basis to the Trust’s key management personnel.

The movement in the fair value of the Hour-Glass Investment Facilities incorporates distributions received as well as unrealised movements in fair value and is reported in the line item ‘investment revenue’.

Purchases or sales of investments under contract that require delivery of the asset within the timeframe established by convention or regulation are recognised on the trade date; i.e. the date the Trust commits to purchase or sell the asset. The fair value of investments that are traded at fair value in an active market is determined by reference to quoted current bid prices at the close of business on the statement of financial position date.

(xi)ImpairmentoffinancialassetsAll financial assets, except those measured at fair value through profit and loss, are subject to an annual review for impairment. An allowance for impairment is established when there is objective evidence that the Trust will not be able to collect all amounts due.

For financial assets carried at amortised cost, the amount of the allowance is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. The amount of the impairment loss is recognised in the net result for the year.

Any reversals of impairment losses are reversed through the net result for the year, where there is objective evidence. Reversals of impairment losses of financial assets carried at amortised cost cannot result in a carrying amount that exceeds what

the carrying amount would have been had there not been an impairment loss.

(xii)De-recognitionoffinancialassetsandfinancialliabilitiesA financial asset is derecognised when the contractual rights to the cash flows from the financial assets expire; or if the Trust transfers the financial asset:

» where substantially all the risks and rewards have been transferred or

» where the Trust has not transferred substantially all the risks and rewards, if the Trust has not retained control.

Where the Trust has neither transferred nor retained substantially all the risks and rewards or transferred control, the asset is recognised to the extent of the Trust’s continuing involvement in the asset.

A financial liability is derecognised when the obligation specified in the contract is discharged or cancelled or expires.

(xiii)IntangibleAssetsThe entity recognises intangible assets only if it is probable that future economic benefits will flow to the entity and the cost of the asset can be measured reliably. Intangible assets are measured initially at cost. Where an asset is acquired at no or nominal cost, the cost is its fair value as at the date of acquisition.

(xiv)OtherAssetsOther assets are recognised on a historic cost basis.

(j) Liabilities

(i)PayablesThese amounts represent liabilities for goods and services provided to the Trust and other amounts. Payables are recognised initially at fair value, usually based on the

transaction cost or face value. Subsequent measurement is at amortised cost using the effective interest method. Short-term payables with no stated interest rate are measured at the original invoice amount where the effect of discounting is immaterial.

(ii)BorrowingsLoans are not held for trading or designated at fair value through profit or loss and are recognised at amortised cost using the effective interest rate method. Gains or losses are recognised in the net result for the year on de-recognition.

The finance lease liability is determined in accordance with AASB 117 Leases.

(iii)Employeebenefitsandotherprovisions

Salaries and Wages, Annual Leave, Long Service Leave, Sick Leave:

Provision is made for annual leave and long service leave estimated to be payable to employees as at reporting date.

Unused non-vesting sick leave does not give rise to a liability, as it is not considered probable that sick leave taken in the future will be greater than the benefits accrued in the future. Benefits for Rostered Days Off (RDOs) have not been accrued, as the Trust policy is not to cash out these balances.

Benefits for long service leave and annual leave have been provided on the basis of emerging entitlements for recognised service for long service leave, and quantum due at reporting date for annual leave.

In accordance with Accounting Standard AASB 119 “Employee Benefits” liabilities arising in respect of salaries and wages, annual leave and other employee benefits expected to be settled within twelve months of the reporting date are measured at their nominal amounts

based on remuneration rate which are expected to be paid when the liability is settled. The Trust has determined that the calculation of projecting and discounting annual leave to be immaterial and as such the liability is classified as a short-term liability in accordance with TC 15/09.

The liability arising in respect of annual leave is recognised and measured by applying the nominal value based on remuneration rates plus the annual leave-on-leave liability. The Trust has determined that the calculation of projecting and discounting annual leave to be immaterial and as such the liability is classified as a short-term liability in accordance with TC 15/09. All other employee benefit liabilities are measured at the present value of the estimated future cash outflows to be made in respect of services provided by employees up to the reporting date. In determining the present value of future cash outflows, the market yield on national government bonds, which have terms to maturity approximating the terms of the related liability are used. The provisions for leave entitlements also include the relevant on-costs.

Superannuation:For defined contribution superannuation schemes, employer contributions are expensed when incurred. A liability is recognised only to the extent of unpaid employer contributions at reporting date.

As per Accounting Standard AASB 119 for defined benefit superannuation schemes, expenses are recognised based on the current service costs and net interest and expected return on fund assets now recognised as other comprehensive income for the reporting period as calculated and advised by Mercer. In accordance with NSW Treasury policy TC 14-05 Accounting for Superannuation and AASB 119 Employee Benefits, the Trust recognises actuarial gains and losses and the actual return on fund assets for defined benefit superannuation schemes outside of the net result in the ‘other comprehensive income’. A net liability

or asset is recognised based on the difference between the present value of the Trust’s defined benefit obligations and the fair value of fund assets as at the reporting date, as adjusted for unrecognised past service costs, unrecognised gains/(losses), and limitations on net assets. The net liability or asset is actuarially determined.

Consequentialcoststoemployment:

Consequential costs to employment are recognised as liabilities and expenses where the employee benefits to which they relate have been recognised. This includes outstanding amounts of payroll tax, workers’ compensation insurance premiums and fringe benefits tax.

(k) Fair Value Management and HierarchyFair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either in the principal market for the asset or liability or in the absence of a principal market, in the most advantageous market for the asset or liability.

A number of the Trust’s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities. When measuring fair value, the valuation technique used maximises the use of relevant observable inputs and minimises the use of unobservable inputs. Under AASB 13, the Trust categorises, for disclosure purposes, the valuation techniques based on the inputs used in the valuation techniques as follows:

» Level1 - quoted prices in active markets for identical assets / liabilities that the Trust can access at the measurement date.

» Level2 – inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly.

» Level3 – inputs that are not based on observable market data (unobservable inputs).

The Trust recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

Refer Note 14 for further disclosures regarding fair value measurements of financial and non-financial assets.

(l) Equity And Reserves

(i)AssetrevaluationreserveThe asset revaluation reserve is used to record increments and decrements on the revaluation of non-current assets. This accords with the Trust’s policy on the revaluation of property, plant and equipment as discussed in note 1(i)(iii).

(ii)AccumulatedfundsThe category ‘Accumulated Funds’ includes all current and prior period retained funds.

(m) Comparative InformationExcept when an Australian Accounting Standard permits or requires otherwise, comparative information is presented in respect of the previous period for all amounts reported in the financial statements.

(n) Changes in Accounting Policies, Including New or Revised Australian Accounting Standards

(i)Effectiveforthefirsttimein2017-18The accounting policies applied in 2017-18 are consistent with those of the previous financial year except for the following new or revised



Australian Accounting Standard that has been applied for the first time in 2017-18.

AASB 124, Related Party Disclosures. The Trust has implemented this Standard, as per the guidelines from Treasury Circular 16-12 and has issued questionnaires to key management personnel.

(ii)Effectiveforthefirsttimein2017-18At reporting date, a number of accounting standards adopted by the AASB had been issued but are not yet effective. At present New South Wales Treasury is mandating not to early adopt any of the new Standards/Interpretations as per Treasury Circular TC 18-01.

The following new Standards/Interpretations have not been early adopted by the Trust and are not yet effective.

» AASB 9 Financial Instruments » AASB 15, AASB 2014-5, AASB

2015-8 and 2016-3 regarding Revenue from Contracts with Customers

» AASB 16 Leases » AASB 17 Insurance Contracts » AASB 1058 Income of Not-for-

profit Entities » AASB 1059 Service Concession

Arrangements: Grantors » AASB 2016-5 Amendments to

Australian Accounting Standards – Classification and Measurement of Share-based Payment Transactions

» AASB 2016-6 Amendments to Australian Accounting Standards – Applying AASB 9 with AASB 4 Insurance Contracts

» AASB 2016-7 Amendments to Australian Accounting Standards

– Deferral of AASB 15 for Not-for-Profit Entities

» AASB 2016-8 Amendments to Australian Accounting Standards – Australian Implementation Guidance for Not-for-Profit Entities

» AASB 2017-1 Amendments to Australian Accounting Standards – Transfer of investment Property, Annual Improvements 2014-2016 Cycle and Other Amendments

» AASB 2017-3 Amendments to Australian Accounting Standards – Clarifications to AASB 4

» AASB 2017-4 Amendments to Australian Accounting Standards – Uncertainty over Income Tax Treatments

» AASB2017-5 Amendments to Australian Accounting Standards – Effective Date of Amendments to AASB 10 and AASB 128 and Editorial Corrections

» AASB2017-6 Amendments to Australian Accounting Standards – Prepayment Features with Negative Compensation

» AASB2017-7 Amendments to Australian Accounting Standards – Long-term Interests in Associates and Joint Ventures

» Interpretation 22 Foreign Currency Transactions and Advance Consideration

» Interpretation 23 Uncertainty over Income Tax Treatment

It is considered that the implementation of these Standards will not have any material impact (or their impact is yet to be determined) on the Trust’s financial results.

(o) Sydney Cricket Club

In 2007 the Trust joined with the administration of the former UTS-Balmain District Cricket Club in establishing the new entity of the Sydney Cricket Club (the Club).

The Club is an Incorporated Association under the Associations Incorporation Act 1984. The Trust and the Club have an association which involves the provision by the Trust of administrative and other services to the Club. The Trust is represented on the Club’s Board of Directors in accord with the Club Constitution. The Club is not considered to be controlled by the Trust. Any expenses that were incurred during the past year through payroll, operational expenditure and management time have been recouped from the Sydney Cricket Club through the Club’s operational account. The Trust has established a Bank Deposit Account as security against the overdraft facility of the Sydney Cricket Club.

(p) Tax Status

The activities of the Sydney Cricket and Sports Ground Trust are exempt from the provisions of the Income Tax Assessment Act and other Federal Government taxation legislation, with the exception of the requirement to pay fringe benefits tax and GST. The Trust also pays payroll tax.

(q) Debt Management StrategyThe NSW Treasury Corporation actively manages the Trust’s portfolio of debt. The Corporation has provided the Trust the facility whereby maturing loans may be rolled over and replaced with new loans whilst maintaining the original capital value of the portfolio. Borrowings and Advances are shown as current and non-current liabilities and include the provision for rollover upon maturity. Borrowing costs are recognised as expenses in the period in which they are incurred.

2. Revenue

2018$’000

2017 $’000

(a) Membership

Membership Annual Subscriptions 21,969 20,693SCG Member Entrance Fees 669 649Platinum/Gold Member Entrance Fees 4,511 5,124

27,149 26,466

(b) CateringIncome received from liquor and food trading for events, functions and non-event days is detailed as follows:

Liquor Sales 22,100 18,133Food Sales Commission 4,684 4,191Contract Premium Amortisation 994 973

27,778 23,297

LIQUORTRADING

The Trust operates through a managing agent for liquor trading in the public, members and corporate areas of the Sydney Cricket Ground and Allianz Stadium. Income from liquor trading represents gross liquor sales at the Sydney Cricket Ground and Allianz Stadium.

FOODTRADING

Income from food trading comprises a share of gross food sales at the Sydney Cricket Ground and Allianz Stadium received by the Trust, together with amortisation of contract premiums received as a licence fee paid in advance under the previous and new catering contract. The Trust’s current catering contract which commenced on 1 November 2015 is due to expire on 31 October 2020. The total premium received under the contract is being amortised annually over the term of the contract.



During 2017/18 the Trust secured a construction lease with Australian Rugby Union and UTS to facilitate construction of a building on a parcel of Trust land and to subsequently enter into a long term lease for occupancy of the site. The then current value of land subject to lease was $892,000 and the fair value of the lease receivable was $24.177m (net present value of the annual lease payments). As such the Trust recorded a one off gain on disposal of land of $23.285m.

3. Expenditure2018

$’0002017 $’000

(a) Operating Expenses

Event Operating Costs 21,244 17,660Ground Operation & Maintenance 10,879 9,137Utilities and Services 3,758 3,103Liquor Cost of Goods Sold 6,642 5,641Liquor Management Fee 7,619 6,248Corporate Seating Expenses 1,869 1,792Marketing Expenses 3,700 3,989Advertising & Sponsorship 1,788 2,826Audit Fees (Audit Office of NSW) 118 115Accounting and Legal Services 377 555Consultant Fees 1,022 1,063Architects Fees - 93Travel 148 98Postage/Freight 297 151Communication Expenses 394 345Printing and Stationery 1,169 965Bad Debts Written off - 19Insurance 453 498Members Seating 231 33

61,708 54,331

The Audit Office of NSW’s fee for auditing the annual financial statements for the year ended 28 February 2018 is $118,000 ($115,000 in 2017).

Reconciliation – Total Maintenance:

Ground Operation & Maintenance expense as above 10,879 9,137Employee related maintenance expense include in Note 3(b) 4,146 3,711Total maintenance expenses included in Note 3(a) + 3(b) 15,025 12,848

(c) Advertising and Sponsorship

2018$’000

2017 $’000

ADVERTISING & SPONSORSHIP 15,153 15,706

Income includes payments under contract with various companies for naming rights, exclusive product rights, sponsorship and advertisements that are displayed on fences, grandstands and video scoreboards at the Sydney Cricket Ground and Allianz Stadium.

(d) Corporate Seating Sales

Premium Seating 1,780 250Private/Corporate Boxes 2,636 3,555

4,416 3,805

Income includes hire/rental of corporate facilities sold on an annual basis and corporate seating sold on a daily and seasonal basis providing dining/viewing for major and other events at the Sydney Cricket Ground and Allianz Stadium.

(e) Other Revenue

Merchandising 620 585Ticketing 1,293 1,198Parking Fees 2,251 2,143Interest Received 100 168Rental Income 4,897 4,307Contributions 1,485 1,961Insurance Recoveries 330 81Sundry 844 905

11,820 11,348

(f) Gain / (Loss) on Disposal of Property, Plant & Equipment

Proceeds from Disposal 99 193Written down value of assets disposed (74) (8,245)

Gain/(Loss) on disposal of Plant & Equipment 25 (8,052)

(g) Gain / (Loss) on Disposal of Land

Proceeds from Disposal 24,677 -Written down value of assets disposed (892) -

Gain on disposal of Land 23,785 -



2018$’000

2017 $’000

(b) Employee Related Expense

Salaries and Wages 14,994 14,872Trustees Remuneration 192 192Annual Leave and Long Service Leave 1,152 1,448Superannuation 1,270 1,239Workers Compensation 223 (240)Payroll Tax 796 808Other Staff Related Expenses 631 552

19,258 18,871

(c) Finance Costs

Interest on Loans 2,671 3,635Other Finance Charges 162 297

2,833 3,932

Premium on Debt Restructure 3,625 -

6,458 3,932

4. Cash and Cash EquivalentsFor the purpose of the Statement of Cash Flows, cash and cash equivalents include cash at bank, cash on hand, short-term deposits and bank overdraft. Cash and cash equivalent assets recognised in the Statement of Financial Position are reconciled at the end of the financial year to the Statement of Cash Flows as follows:

Cash 3,425 9,652NSW Treasury Corporation Hour-Glass 5 5

Cash and cash equivalents per Statement of Financial Position 3,430 9,657

Cash and cash equivalents per Statement of Cash Flows 3,430 9,657

The fair value measurement hierarchy for NSW Treasury Corporation Hour-Glass facility is Level 2. Refer Note 14 for details regarding credit risk, liquidity risk and market risk arising from financial instruments.

5. Receivables

2018$’000

2017 $’000

CURRENT:

Prepayments 3,392 3,036Accrued Income 7,754 8,013Catering Debtors 959 2,326Sundry Debtors 2,327 3,680Allowance for impairment - (21)Finance Lease Receivable 1,286 300GST Receivable 492 -

16,210 17,334

NON-CURRENT:

Finance Lease Receivable 28,140 4,472Prepayments 2,207 2,263

30,347 6,735

MOVEMENTINTHEALLOWANCEFORIMPAIRMENT

Balance at 1 March 21 128Amounts written off during the year - -Amounts recovered during the year - (128)Increase/(decrease) in allowance recognised in surplus or deficit (21) 21

Balanceatreportingdate - 21

FINANCELEASERECEIVABLE

2018$’000

Gross Investment

2018$’000

Present Value

2017 $’000

Gross Investment

2017 $’000

Present Value

< 1 year 1,286 1,286 300 300> 1 year < 5 years 5,144 4,621 1,200 1,035> 5 years 80,003 23,520 11,643 3,437

86,433 29,426 13,143 4,772



The finance lease relates to a 50 year licence granted by the Trust to a hirer to construct and occupy premises on Trust land. Unearned finance income at 28 February 2018 stood at $8.1m (29 February 2017: $8.4m). Contingent rentals relating to CPI adjustment of $54,016 were collected during 2018 ($47,411 in 2017). Details regarding credit risk, liquidity risk and market risk, including financial assets that are either past due or impaired, are disclosed in Note 14.

6. Property, Plant and Equipment2018

$’0002017

$’000

Land at Valuation 60,627 61,519Buildings and Improvements (at fair value) 830,539 887,169Accumulated Depreciation (212,482) (183,355)

618,057 703,814

Plant and Equipment (at fair value) 33,211 29,669Accumulated Depreciation (16,731) (15,332)

16,480 14,337

TotalCarryingAmount 695,164 779,670

The Trust’s current Industrial Special Risks insurance policy as at 28 February 2018 provides a cover on buildings, plant & equipment to the value of $1,172M ($1,108M in 2017).

RECONCILIATIONS

2018LAND$’000

BUILDINGS$’000

PLANTANDEQUIPMENT

$’000TOTAL$’000

Carrying amount as at 1 March 2017 61,519 703,814 14,337 779,670Net Revaluation Increment - 123,163 - 123,163Additions - 11,906 3,877 15,783Reclassification - 76 (76) -Disposals (892) (41) (73) (1,007)Impairment - (208,859) - (208,859)Depreciation Expense - (12,001) (1,585) (13,586)

Carrying amount as at 28 February 2018 60,627 618,057 16,480 695,164

2017

Carrying amount as at 1 March 2016 61,519 712,929 13,380 787,828Net Revaluation Increment - - - -Additions - 10,699 2,690 13,389Reclassification - 75 (75) -Disposals - (8,112) (144) (8,256)Depreciation Expense - (11,777) (1,514) (13,291)

Carryingamountasat28February2017 61,519 703,814 14,337 779,670

6.PROPERTY,PLANTANDEQUIPMENT(CONT’D)VALUATIONOFLAND,BUILDINGSANDIMPROVEMENTS

(a) Fair Value Hierarchy

2018LEVEL 1

$’000LEVEL 2

$’000LEVEL 3

$’000

TOTAL FAIR VALUE

$’000

PropertyLand - - 60,627 60,627Buildings - - 618,057 618,057

- - 678,684 678,684

2017LEVEL 1

$’000LEVEL 2

$’000LEVEL 3

$’000

TOTAL FAIR VALUE

$’000

PropertyLand - - 61,519 61,519Buildings - - 703,814 703,814

- - 765,333 765,333


(b) Valuation Techniques, Inputs and Processes

Valuation techniques used are as follows:

Land – level 3

Land is valued using observable valuation input (market evidence) available to provide a reasonable guide to the value of the land. Valuers have also relied on market evidence of similar assets such as open space, industrial and commercial sales with adjustment for size, condition, location, comparability, zoning to determine its fair values.

During 2015/16, the Trust received an independent valuation by Knight Frank Valuations of its vested lands, based on an “as zoned and used basis,” providing a valuation of $61.5M as at 29 February 2016. Interim valuations of land were conducted as at 28 February 2017 and 28 February 2018 to determine if

recorded value is not materially different from fair value - with no change made the recoded value.

Building – level 3

Buildings are mostly specialised buildings with unobservable input hierarchy due to lack of market evidence. Depreciated replacement cost (DRC) was used to value the assets. When DRC is used, they are classified as level 3 input.

During 2017/18 the Trust received an independent valuation by WT Partnership, registered quantity surveyors, of the replacement cost of buildings and improvements at the Sydney Cricket Ground and Allianz Stadium. The valuation at replacement cost was converted to written down replacement cost by the determination of the remaining useful life of each building. The valuation increment of $122.8M recorded since the previous

valuation of buildings and improvements was transferred to the Asset Revaluation Reserve as at 28 February 2018.

As a result of the revaluations, an Asset Revaluation Reserve remains established. The balance of this Reserve as at 28 February 2018 stood at $274.5M (28 February 2017: $360.8M).

Level 3 – measurement additional disclosure

Due to its uniqueness, specialised nature of building assets, valuers have applied a cost approach using depreciated replacement cost method. These assets do not generally have an active market to determine their fair values. With lack of market evidence, there is not significant changes to unobservable inputs which would allow its classification to change from level 3 to level 1 or 2.


7.INTANGIBLEASSETS(CONT’D)

RECONCILIATIONS

2018SOFTWARE

$’000TOTAL$’000

Carrying amount as at 1 March 2017 - -Additions 2,339 2,339Reclassification - -Disposals - -Impairment - -Depreciation Expense (91) (91)

Carrying amount as at 28 February 2017 2,248 2,248

2017

Carrying amount as at 1 March 2016 - -Additions - -Reclassification - -Disposals - -Depreciation Expense - -

Carryingamountasat28February2017 - -

8. Liabilities

2018$’000

2017 $’000

(a) PayablesCURRENT:

Sundry Creditors 15,208 11,864Accruals 3,300 5,543Finance Lease Payable 2,528 2,457GST Payable - 70Interest Payable 953 1,112

21,989 21,046

NON-CURRENT:

Finance Lease Payable 2,491 4,811

2,491 4,811

Details regarding credit risk, liquidity risk and market risk, including a maturity analysis of the above payables are disclosed in Note 14.

6.PROPERTY,PLANTANDEQUIPMENT(CONT’D)VALUATIONOFLAND,BUILDINGSANDIMPROVEMENTS

(c) Reconciliation of Recurring Level 3 Fair Value Measurements (Land and Buildings)

2018 LEVEL3

LAND $’000

BUILDINGS $’000

TOTAL RECURRING LEVEL 3

FAIR VALUE $’000

Fair Value as at 1 March 2017 61,519 703,814 765,333Additions/Reclassifications (892) 12,708 11,816Revaluation Increments/decrements recognised in other comprehensive income – including in the line item/’Net increase/(decrease) in property, plant and equipment revaluation reserve’

- (86,464) (86,464)

Depreciation - (12,001) (12,001)

Fair Value as at 28 February 2018 60,627 618,057 678,684

2017 LEVEL3

LAND $’000

BUILDINGS $’000

TOTAL RECURRING LEVEL 3

FAIR VALUE $’000

Fair Value as at 1 March 2016 61,519 712,929 774,448Additions/Reclassifications - 10,774 10,774Revaluation Increments/decrements recognised in other comprehensive income – including in the line item/’Net increase/(decrease) in property, plant and equipment revaluation reserve’

- (8,112) (8,112)

Depreciation - (11,777) (11,777)

Fair Value as at 28 February 2018 61,519 703,814 765,333

7. Intangible Assets

2018

$’0002017

$’000

Intangible Assets 2,339 -Accumulated Depreciation (91) -Total Carrying Amount 2,248 -

Notes to the Financial Statements for the Year Ended 28 February 2018Notes to the Financial Statements for the Year Ended 28 February 2018


10. Provisions

(a) Employee Entitlements 2018$’000

2017 $’000

CURRENT:

Provision for Annual Leave and on-costs 1,031 1,202Provision for Long Service Leave and on-costs 1,257 1,392

2,288 2,594

NON-CURRENT:

Provision for Long Service Leave and on-costs 258 278

Defined superannuation liability 1,297 781

1,555 1,059

3,843 3,653

The Trust expects to settle the annual leave entitlements within the next twelve months. The amount of long service leave expected to be taken in the next twelve months is immaterial.

(b) Superannuation – Defined Benefits PlanThe Trust has a $1,296,383 ($780,569 in 2017) net liability for the employer’s obligation to defined benefit superannuation schemes at the Trust.

The funding position at 28 February 2018 in respect of the two defined benefits schemes related to personnel services received, namely the State Authorities Superannuation Scheme (SASS) and the State Authorities Non-Contributory Superannuation Scheme (SANCS) has been advised by Mercer:

FUND ESTIMATEDRESERVEACCOUNTSFUNDS

ACCRUEDLIABILITY

NETLIABILITYATYEAREND

2018$’000

2017 $’000

2018$’000

2017 $’000

2018$’000

2017 $’000

SASS 1,983 2,428 3,183 3,054 1,201 626SANCS 7 127 103 281 95 155

1,990 2,555 3,286 3,335 1,296 781

8.LIABILITIES(CONT’D)

(b) Other Liabilities

2018$’000

2017 $’000

CURRENT:

Subscriptions Paid in Advance 12,714 11,639Rents Paid in Advance 884 1,378Advertising – Fees in Advance 1,814 2,005Catering – Licence Fees in Advance 1,039 1,040Other Deferred Income 1,112 2,135

17,563 18,197

NON-CURRENT:

Catering – Licence Fees in Advance 1,732 2,773Rents Paid in Advance 61 184Other Deferred Income 234 375

2,027 3,332

9. Borrowings

CURRENT:

NSW Treasury Corporation Loans - 8,838

- 8,838

NON-CURRENT:

NSW Treasury Corporation Loans 78,187 68,128

78,187 68,128

Total 78,187 76,966

Significant Terms & Conditions:NSW Treasury Corporation (Bullet) Loans are based upon instalment payments of interest only and repayment or rollover of principal at maturity. All borrowings are secured by Government Guarantee. Details regarding credit risk, liquidity risk and market risk, including a maturity analysis of the above borrowings are disclosed in Note 14.



Reconciliationofthenetdefinedbenefitobligation2018:

SASS2018

$’000

SANCS2018

$’000

Net Defined Benefit Liability/(Asset) at start of year 626 155Current service cost 17 10Net Interest on the net defined benefit liability/(asset) 18 4Past service cost 0 0(Gains)/losses arising from settlements 0 0Actual return on Fund assets less Interest income (175) (7)Actuarial (gains)/losses arising from changes in demographic assumptions 0 0Actuarial (gains)/losses arising from changes in financial assumptions (50) (2)Actuarial (gains)/losses arising from liability experience 720 (20)Adjustment for effect of asset ceiling 0 0Employer contributions 45 (45)Effects of transfers in/out due to business combinations and disposals 0 0

NetDefinedBenefitLiability/(Asset)atendofyear 1,201 95


10.PROVISIONSSUPERANNUATION-DEFINEDBENEFITSPLAN(CONT’D) 10.PROVISIONSSUPERANNUATION-DEFINEDBENEFITSPLAN(CONT’D)


Accountingpolicyforrecognisingactuarialgains/losses

Actuarial gains and losses are recognised immediately in other comprehensive income in the year in which they occur.

Fundinformation

The Pooled Fund holds in trust the investments of the closed NSW public sector superannuation schemes including: the State Authorities Superannuation Scheme (SASS) and the State Authorities Non-contributory Superannuation Scheme (SANCS).

These schemes are defined benefit schemes – at least a component of the final benefit is derived from a multiple of member salary and years of membership. The Schemes are closed to new members.

Descriptionoftheregulatoryframework

The schemes in the Pooled Fund are established and governed by the following NSW legislation, State Authorities Superannuation Act 1987, State Authorities Non-Contributory Superannuation Scheme Act 1987, and their associated regulations.

The schemes in the Pooled Fund are exempt public sector superannuation schemes under the Commonwealth Superannuation Industry (Supervision) Act 1993 (SIS). The SIS Legislation treats exempt public sector superannuation funds as complying funds for concessional taxation and superannuation guarantee purposes.

Under a Heads of Government agreement, the New South Wales Government undertakes to ensure that the Pooled Fund will conform with the principles of the Commonwealth’s retirement incomes policy relating to preservation, vesting and reporting to members and that members’ benefits are adequately protected.

The New South Wales Government prudentially monitors and audits the Pooled Fund and the Trustee Board activities in a manner consistent with the prudential controls of the SIS legislation. These provisions are in addition to other legislative obligations on the Trustee Board and internal processes that monitor the Trustee Board’s adherence to the principles of the Commonwealth’s retirement incomes policy.

An actuarial investigation of the Pooled Fund is performed every three years. The last actuarial investigation was performed as at 30 June 2015.

Descriptionofotherentities’responsibilitiesforthegovernanceofthefund

The Fund’s Trustee is responsible for the governance of the Fund. The Trustee has a legal obligation to act solely in the best interests of fund beneficiaries. The Trustee has the following roles:

» Administration of the fund and payment to the beneficiaries from fund assets when required in accordance with the fund rules

» Management and investment of the fund assets

» Compliance with other applicable regulations

Description of risks

There are a number of risks to which the Fund exposes the Employer. The more significant risks relating to the defined benefits are:

Investment risk - The risk that investment returns will be lower than assumed and the Employer will need to increase contributions to offset this shortfall

Longevity risk – The risk that pensioners live longer than assumed, increasing future pensions

Pension indexation risk – The risk that pensions will increase at a rate greater than assumed, increasing future pensions

Salary growth risk - The risk that wages or salaries (on which future benefit amounts for active members will be based) will rise more rapidly than assumed, increasing defined benefit amounts and thereby requiring additional employer contributions

Legislative risk - The risk is that legislative changes could be made which increase the cost of providing the defined benefits

The defined benefit fund assets are invested with independent fund managers and have a diversified asset mix. The Fund has no significant concentration of investment risk or liquidity risk.

DescriptionofSignificantEvents

There were no fund amendments, curtailments or settlements during the period.

Reconciliationofthefairvalueoffundassets:

Fair value of Fund assets at beginning of the period 2,428 127Interest income 63 3Actual return on Fund assets less Interest income 175 7Employer contributions (45) 45Contributions by participants 24 0Benefits paid (673) (176)Taxes, premiums & expenses paid 11 1Transfers in/out due to business combinations and disposals 0 0Contributions to accumulation section 0 0Settlements 0 0Exchange rate changes 0 0

FairvalueofFundassetsatendoftheperiod 1,983 7


FairValueofFundAssetsAll Pooled Fund assets are invested by STC at arm’s length through independent fund managers. Assets are not separately invested for each entity and it is not possible or appropriate to disaggregate and attribute plan assets to individual

entities. As such, the disclosures below relate to total assets of the Pooled Fund.

Derivatives, including futures and options, can be used by investment managers. However, each manager’s investment mandate clearly states

that derivatives may only be used to facilitate efficient cash flow management or to hedge the portfolio against market movements and cannot be used for speculative purposes or gearing of the portfolio. As such managers make limited use of derivatives.

Asat30November2017(mostrecentavailable)

AssetcategoryTotal

(A$’000)

Quotedpricesinactivemarketsforidentical

assetsLevel1(A$’000)

Significantobservable

inputsLevel2(A$’000)

UnobservableinputsLevel3

(A$’000)

Short Term Securities 3,882,212 1,859,163 2,023,051 0 Australian Fixed Interest 2,824,790 21,937 2,802,853 0

International Fixed Interest 1,477,710 9,233 1,468,477 0

Australian Equities 9,183,595 8,739,598 443,972 25 International Equities 12,135,583 9,159,066 2,975,726 790 Property 3,551,499 867,863 606,475 2,077,161 Alternatives 7,926,781 391,892 3,611,120 3,923,769

Total 40,982,170 21,048,752 13,931,674 6,001,745

Thepercentageinvestedineachassetclassatthereportingdateis:

As at 30-Nov-17Short Term Securities 9.5%Australian Fixed Interest 6.9%International Fixed Interest 3.6%Australian Equities 22.4%International Equities 29.6%Property 8.7%Alternatives 19.3%

Total 100.0%

Level 1 - quoted prices in active markets for identical assets or liabilities. The assets in these levels are listed shares; listed unit trusts.

Level 2 - inputs other than quoted prices observable for the asset or liability, either directly or indirectly. The assets in this level are cash; notes; government, semi-government and corporate bonds; unlisted trusts containing where quoted prices are available in active

markets for identical assets or liabilities.

Level 3 - inputs for the asset or liability that are not based on observable market data. The assets in this level are unlisted property; unlisted shares; unlisted infrastructure; distressed debt; hedge funds.

Derivatives, including futures and options, can be used by investment managers. However, each manager’s

investment mandate clearly states that derivatives may only be used to facilitate efficient cash flow management or to hedge the portfolio against market movements and cannot be used for speculative purposes or gearing of the investment portfolio. As such managers make limited use of derivatives. The fair value of the Pooled Fund Assets as at 31 December 2017 includes $106.9M in NSW government bonds.

10. Provisions

Superannuation – Defined Benefits Plan (cont’d)

Reconciliationofthepresentvalueofthedefinedbenefitobligation2018:

SASS2018

$’000

SANCS2018

$’000

Present value of defined benefit obligations at beginning of the year after contribution tax assumption change 3,054 281

Current service cost 17 10Interest cost 80 7Contributions by participants 23 0Actuarial (gains)/losses arising from changes in demographic assumptions 0 0Actuarial (gains)/losses arising from changes in financial assumptions (50) (1)Actuarial (gains)/losses arising from liability experience 721 (19)Benefits paid (673) (176)Taxes, premiums & expenses paid 11 1Transfers in/out due to business combinations and disposals 0 0Contributions to accumulation section 0 0Past service cost 0 0Settlements 0 0Exchange rate changes 0 0

Presentvalueofdefinedbenefitobligationsatendoftheperiod 3,183 103

ReconciliationoftheeffectoftheAssetCeiling:

Adjustment for effect of asset ceiling at beginning of the period 0 0Change in the effect of asset ceiling 0 0

Adjustmentforeffectofassetceilingatendoftheperiod 0 0

ExpenserecognisedintheProfitorLoss:

Current service cost 17 10Net interest 18 3Past service cost 0 0(Gains)/Loss on settlement 0 0

Expense/(income)recognised 35 13

AmountsrecognisedinOthercomprehensiveincome:

Actuarial (gains) losses on liabilities 671 (20)Actual return on Fund assets less Interest income (175) (8)Adjustment for effect of asset ceiling 0 0

Totalre-measurementinOtherComprehensiveIncome 496 (28)


10.PROVISIONSSUPERANNUATION-DEFINEDBENEFITSPLAN(CONT’D)


Base Case

Scenario G +5% pensioner mortality rates

Scenario H -5% pensioner mortality rates

Defined benefit obligation (A$) 3,286,803 3,330,439 3,266,623

The defined benefit obligation has been calculated by changing the assumptions as outline above, whilst retaining all other assumptions.

Expectedcontributions:

SASS2018

$’000

SANCS2018

$’000

Expected employer contributions to be paid in the next accounting period 0 0

Fundingarrangementsforemployercontributions:Funding arrangements are reviewed every three years following the release of the triennial actuarial review and was last reviewed following completion of the triennial review as at 30 June 2017. Contribution rates are set after discussions between the employer, STC and NSW Treasury.

Funding positions are reviewed annually and funding arrangements are adjusted as required after each annual review.

(a)Surplus/deficitThe following is a summary of the 28 February 2018 financial position of the fund calculated in accordance with AAS 25 ‘Financial Reporting by Superannuation Plans’:

SASS2018

$’000

SANCS2018

$’000

Accrued benefits 2,242 204Net market value of Fund assets (2,549) (7)

Net (surplus)/deficit (307) 197

(b)ContributionrecommendationsRecommended contribution rates for the entity are:

SASS Multiple of member

contributions

SANCS % member

salary

0.00 0.00

VALUATIONMETHODANDPRINCIPALACTUARIALASSUMPTIONSATTHEBALANCEDATE:

(a)SignificantActuarialAssumptionsatreportingdate: 28FEB2018

Salary increase rate (excluding promotional increases)

2.5% 2017/2018 to 2018/2019; 3.50% 2019/2020 and 2020/2021;

3.00% pa 2021/2022 to 2025/2026; 3.50% pa thereafter

Rate of CPI increase 2.25% 2017/2018 to 2019/2020; 2.50% pa thereafter

Discount rate 2.83% pa

Pensioner mortality The pensioner mortality assumptions are as per the 2015 Actuarial Investigation of the Pooled Fund.

MaturityprofileofdefinedbenefitobligationThe weighted average duration of the defined benefit obligation is 17 years.

SensitivityAnalysisThe entity’s total defined benefit obligation as at 28 February 2018 under several scenarios is presented below.Scenarios A to F relate to sensitivity of the total defined benefit obligation to economic assumptions, and scenarios G and H relate to sensitivity to demographic assumptions.

Base CaseScenario A

-1.0% discount rateScenario B

+1.0% discount rate

Discount rate 2.83% 1.83% 3.83%Rate of CPI increase as above as above as aboveSalary inflation rate as above as above as above

3,335,226 3,682,302 3,047,825


Base Case

Scenario C +0.5% rate of CPI increase

Scenario D -0.5% rate of CPI increase

Discount rate as above as above as aboveRate of CPI increase as above above rates plus 0.5% pa above rates less 0.5% paSalary inflation rate as above as above as above

3,335,226 3,431,743 3,246,585


Base Case

Scenario E +0.5% salary increase rate

Scenario F -0.5% salary increase rate

Discount rate as above as above as aboveRate of CPI increase as above as above as aboveSalary inflation rate as above above rates plus 0.5% pa above rates less 0.5% pa






(c)Asset-Liabilitymatchingstrategies

We are not aware of any asset and liability matching strategies currently adopted by the Plan.

(d)EconomicassumptionsThe economic assumptions adopted from the 2017 triennial actuarial review of the fund are:

WeightedAverageAssumptions

Expected rate of return on fund assets backing current pension liabilities 7.4% pa

Expected rate of return on fund assets backing other liabilities 6.4% paExpected salary increase rate 2.7% to 30 June 2019, then 3.2% pa thereafter

Expected rate of CPI increase 2.2% pa

Natureofasset/liabilityIf a surplus existed in the employer’s interest in the fund, the employer may be able to take advantage of it in the form of a reduction in the required contribution rate, depending on the advice of the Fund’s actuary.

Where a deficiency exists, the employer is responsible for any difference between the employer’s share of Fund assets and the defined benefit obligation.

Reconciliationofthenetdefinedbenefitobligation2017:

SASS2017

$’000

SANCS2017

$’000

Net Defined Benefit Liability/(Asset) at start of year 872 168Current service cost 44 10Net Interest on the net defined benefit liability/(asset) 21 4Past service cost 0 0(Gains)/losses arising settlements 0 0Actual return on fund assets less Interest income (176) (9)Actuarial (gains)/losses arising from changes in demographic assumptions 0 0Actuarial (gains)/losses arising from changes in financial assumptions (112) (8)Actuarial (gains)/losses arising from liability experience 15 2Adjustment for effect of asset ceiling 0 0Employer contributions (38) (12)Effects of transfers in/out due to business combinations and disposals 0 0

NetDefinedBenefitLiability/(Asset)atendofyear 626 155

Reconciliationofthefairvalueoffundassets:SASS2017

$’000

SANCS2017

$’000

Fair value of Fund assets at beginning of the period 2,170 105Interest income 51 2Actual return on Fund assets less Interest income 176 9Employer contributions 38 12Contributions by participants 25 0Benefits paid (32) 0Taxes, premiums & expenses paid 0 (1)Transfers in/out due to business combinations and disposals 0 0Contributions to accumulation section 0 0Settlements 0 0Exchange rate changes 0 0

FairvalueofFundassetsatendoftheperiod 2,428 127

Reconciliationofthepresentvalueofthedefinedbenefitobligation2017:

Present value of defined benefit obligations at beginning of the year before contribution tax assumption change 3,042 273

Current service cost 44 10Interest cost 72 6Contributions by participants 25 0Actuarial (gains)/losses arising from changes in demographic assumptions 0 0Actuarial (gains)/losses arising from changes in financial assumptions (111) (8)Actuarial (gains)/losses arising from liability experience 15 2Benefits paid (32) 0Taxes, premiums & expenses paid (1) (2)Transfers in/out due to business combinations and disposals 0 0Contributions to accumulation section 0 0Past service cost 0 0Settlements 0 0Exchange rate changes 0 0

Presentvalueofdefinedbenefitobligationsatendoftheperiod 3,054 281





Asat30November2016(mostrecentavailable)

Assetcategory Total(A$’000)

Quotedpricesinactivemarketsfor

identicalassetsLevel1(A$’000)

Significantobservable

inputsLevel2(A$’000)

Unobservableinputs

Level3(A$’000)

Short Term Securities 2,229,550 1,900,292 329,259 -Australian Fixed Interest 2,166,440 -22,099 2,188,538 -International Fixed Interest 734,274 28 734,246 -

Australian Equities 9,637,534 9,158,485 479,025 24 International Equities 12,111,060 8,529,666 2,556,169 1,025,225 Property 3,517,904 926,206 592,387 1,999,311 Alternatives 8,600,716 347,149 4,487,130 3,766,437

Total 38,997,478 20,839,727 11,366,754 6,790,997

Thepercentageinvestedineachassetclassatthereportingdateis:

ASAT 30-NOV-16

Short Term Securities 5.7%Australian Fixed Interest 5.6%International Fixed Interest 1.9%Australian Equities 24.7%International Equities 31.1%Property 9.0%Alternatives 22.0%

Total 100.0%

ReconciliationoftheeffectoftheAssetCeiling:

SASS2017

$’000

SANCS2017

$’000

Adjustment for effect of asset ceiling at beginning of the period 0 0Change in the effect of asset ceiling 0 0

Adjustmentforeffectofassetceilingatendoftheperiod 0 0

ExpenserecognisedintheProfitorLoss:

Current service cost 43 10Net interest 21 4Past service cost 0 0(Gains)/Loss on settlement 0 0

Expense/(income)recognised 64 14

AmountsrecognisedinOthercomprehensiveincome:

Actuarial (gains) losses on liabilities (96) (6)Actual return on Fund assets less Interest income (176) (9)Adjustment for effect of asset ceiling 0 0

Totalre-measurementinOtherComprehensiveIncome (272) (15)

FairValueofFundAssets

All Pooled Fund assets are invested by STC at arm’s length through independent fund managers. Assets are not separately invested for each entity and it is not possible or appropriate to disaggregate and attribute plan assets to individual entities. As such, the disclosures below relate to total assets of the Pooled Fund.

Derivatives, including futures and options, can be used by investment managers. However, each manager’s investment mandate clearly states that derivatives may only be used to facilitate efficient cash flow management or to hedge the portfolio against market movements and cannot be used for speculative purposes or gearing of the portfolio. As such managers make limited use of derivatives.




Level 1 - quoted prices in active markets for identical assets or liabilities. The assets in these levels are listed shares; listed unit trusts.

Level 2 - inputs other than quoted prices observable for the asset or liability, either directly or indirectly. The assets in this level are cash; notes; government, semi-government and corporate bonds; unlisted trusts containing where quoted prices are available in active

markets for identical assets or liabilities.

Level 3 - inputs for the asset or liability that are not based on observable market data. The assets in this level are unlisted property; unlisted shares; unlisted infrastructure; distressed debt; hedge funds.

Derivatives, including futures and options, can be used by investment

managers. However, each manager’s investment mandate clearly states that derivatives may only be used to facilitate efficient cash flow management or to hedge the portfolio against market movements and cannot be used for speculative purposes or gearing of the investment portfolio. As such managers make limited use of derivatives. The fair value of the Pooled Fund Assets as at 30 November 2016 includes $103.7M in NSW government bonds.


Valuationmethodandprincipalactuarialassumptionsatthebalancedate:

(a)SignificantActuarialAssumptionsatreportingdate: 28FEB2017

Salary increase rate (excluding promotional increases)

2.5% 2017/2018 to 2018/2019; 3.50% 2019/2020 and 2020/2021;

3.00% pa 2021/2022 to 2025/2026; 3.50% pa thereafter

Rate of CPI increase 1.75% 2017/2018; 2.25% 2018/2019; 2.50% pa thereafter

Discount rate 2.74% pa

Pensioner mortality The pensioner mortality assumptions are as per the 2015 Actuarial Investigation of the Pooled Fund.

Maturityprofileofdefinedbenefitobligation

The weighted average duration of the defined benefit obligation is 11.3 years.

SensitivityAnalysisThe entity’s total defined benefit obligation as at 28 February 2017 under several scenarios is presented below.

Scenarios A to F relate to sensitivity of the total defined benefit obligation to economic assumptions, and scenarios G and H relate to sensitivity to demographic assumptions.

Base CaseScenario A

-1.0% discount rateScenario B

+1.0% discount rate

Discount rate 2.74% 1.74% 3.74%Rate of CPI increase as above as above as aboveSalary inflation rate as above as above as above


Base Case

Scenario C +0.5% rate of CPI increase

Scenario D -0.5% rate of CPI increase

Discount rate as above as above as above

Rate of CPI increase as above above rates plus 0.5% pa

above rates less 0.5% pa

Salary inflation rate as above as above as above


Base Case

Scenario E +0.5% salary increase rate

Scenario F -0.5% salary increase rate

Discount rate as above as above as aboveRate of CPI increase as above as above as above

Salary inflation rate as above above rates plus 0.5% pa

above rates less 0.5% pa


Base Case

Scenario G +0.5% pensioner

mortality rates

Scenario H -0.5% pensioner

mortality rates

Definedbenefitobligation(A$) 3,335,226 3,314,833 3,378,325

The defined benefit obligation has been calculated by changing the assumptions as outline above, whilst retaining all other assumptions.

Expectedcontributions:

SASS2017

$’000

SANCS2017

$’000

Expected employer contributions to be paid in the next accounting period 38 12

Fundingarrangementsforemployercontributions:Funding arrangements are reviewed every three years following the release of the triennial actuarial review and was last reviewed following completion of the triennial review as at 30 June 2017. Contribution rates are set after discussions between the employer, STC and NSW Treasury. Funding positions are reviewed annually and funding arrangements are adjusted as required after each annual review.

(a)Surplus/deficitThe following is a summary of the 28 February 2017 financial position of the fund calculated in accordance with AAS 25 ‘Financial Reporting by Superannuation Plans’:

SASS2017

$’000

SANCS20167$’000

Accrued benefits 2,223 220Net market value of Fund assets (2,428) (126)

Net (surplus)/deficit (205) 94

(b)ContributionrecommendationsRecommended contribution rates for the entity are:

SASSMULTIPLE

OFMEMBERCONTRIBUTIONS

SANCS%MEMBER

SALARY

0.00 0.00

(c)Asset-LiabilitymatchingstrategiesWe are not aware of any asset and liability matching strategies currently adopted by the Plan.

(d)EconomicassumptionsThe economic assumptions adopted from the 2017 triennial actuarial review of the fund are:

WeightedAverageAssumptions

Expected rate of return on fund assets backing current pension liabilities 7.4% paExpected rate of return on fund assets backing other liabilities 6.4% pa

Expected salary increase rate 2.7% to 30 June 2019, then 3.2% pa thereafter

Expected rate of CPI increase 2.2% pa





Non-CashCommitments:The Trust receives contributions of goods and services from certain sponsors. In return, the Trust provides advertising space and/or use of Trust facilities. The Trust does not consider the value of facilities and advertising space provided in 2018 to be material (2017 – nil).

Natureofasset/liabilityIf a surplus existed in the employer’s interest in the fund, the employer may be able to take advantage of it in the form of a reduction in the required contribution rate, depending on the advice of the Fund’s actuary.

Where a deficiency exists, the employer is responsible for any difference between the employer’s share of Fund assets and the defined benefit obligation.

11. Capital And Other Expenditure Commitments2018

$’0002017

$’000

CapitalCommitments:

The total capital expenditure contracted at reporting date but not provided for in the Financial Statements:

- Not later than 1 year - 1,611- Later than 1 year but not later than 5 years - -

Total(includingGST) - 1611

FinanceLeaseCommitments:Future non-cancellable finance lease not provided for and payable:

PrincipalCommitments

- Not later than 1 year 2,528 2,457- Later than 1 year but not later than 5 years 2,491 4,811 - Later than 5 years - -

Total(includingGST) 5,019 7,268

Futurenon-cancellablefinanceleaserentalspayable:- Not later than 1 year 2,646 2,646- Later than 1 year but not later than 5 years 2,534 4,960

- Later than 5 years - -

Total(includingGST) 5,180 7,606

OperatingLeaseCommitments:Future non-cancellable operating lease rentals not provided for and payable:

- Not later than 1 year 263 315- Later than 1 year but not later than 5 years - 263

- Later than 5 years - -

Total(includingGST) 263 578

The total operating leases contracted at 28 February 2018 but not provided for in the financial statements.


12. Trustees RemunerationThe Trust is classified as an Advisory Board thereby enabling the payment of fees to Trust members.

Fees totalling $192,000 ($192,000 in 2017) were paid to the Trustees in accordance with rates determined by

the Department of Premier and Cabinet.

13. Contingent Liabilities and Contingent Assets

Contingent LiabilitiesThe Trust is not aware of any significant or material contingent liability in existence at balance date or which has emerged subsequent to balance date which would materially impact on the financial position of the Trust as shown in the Financial Statements.

In 2007 the Trust joined with the administration of the former UTS-Balmain District Cricket Club in establishing the new entity of the Sydney Cricket Club. The Trust has established a Bank Deposit Account holding $40,000 as security against the overdraft facility of the Sydney Cricket Club.

Contingent AssetsThe Trust is not aware of any significant or material contingent asset in existence at balance date or which has emerged subsequent to balance date which would materially impact on the financial position of the Trust as shown in the Financial Statements.

14. Financial Instruments DisclosuresThe Trust’s main risks arising from financial instruments are outlined below, together with the Trust’s objectives, policies and processes for measuring and managing risk. Further quantitative and qualitative disclosures are included throughout this financial report.

The Trust has responsibility for the establishment and oversight of risk management and reviews and agrees policies for managing each of these risks. Risk management policies are established to identify and analyse the

risks faced by the Trust, to set risk limits and controls and to monitor risks. Compliance with policies is reviewed by the Audit Committee and Internal Audit on a continuous basis.

The Trust’s principal financial instruments comprise receivables, payables, cash, short-term deposits and fixed rate debts. The Trust manages its exposure to key financial risks, including interest rate in accordance with the Trust’s financial risk management policy.

The main risks arising from the Trust’s financial instruments are interest rate risk, credit risk and liquidity risk. The Trust uses different methods to measure and manage different types of risks. These methods include ageing analysis and monitoring of specific credit allowances which are undertaken to manage credit risk.

The Trust reviews and agrees policies for managing each of the risks identified below, including the interest rate risk and credit allowances.


11.CAPITALANDOTHEREXPENDITURECOMMITMENTS(CONT’D)


CONSOLIDATED $‘000 -0.25% 0.25%

CARRYINGAMOUNT PROFIT EQUITY PROFIT EQUITY

2018FinancialAssetsCash and Cash Equivalents 3,425 (8.6) (8.6) 8.6 8.6

2017FinancialAssets

Cash and Cash Equivalents 9,652 (24.1) (24.1) 24.1 24.1

ManagedDebtPortfolio

The Trust’s policy is to manage its finance costs using a mix of fixed and variable rate debt.

At 28 February 2018 100% of the Trust’s borrowings were at a fixed rate of interest (2017: 100%).

To manage this mix in a cost-efficient manner the Trust contracts with the NSW Treasury Corporation (TCorp) to actively manage the Trust’s portfolio of debt. The Corporation has provided the Trust the facility whereby maturing loans may be rolled over and replaced with new

loans whilst maintaining the original capital value of the portfolio.

TCorp manages interest rate risk exposures applicable to specific borrowings of the Trust in accordance with a debt portfolio mandate agreed between the two parties.

TCorp receives a fee for this service, which may include a performance component where TCorp is able to add value by achieving a reduction in the Trust‘s debt costs against an agreed benchmark. TCorp may use derivatives, primarily interest rate futures, to establish short-term

(tactical) positions within agreed tolerance limits to manage portfolio duration and maturity profiles.

The following sensitivity analysis is based on the interest rate risk exposures in existence at the Statement of Financial Position date:

At 28 February 2018, if interest rates had moved, as illustrated in the table below, with all other variables held constant, NSW TCorp have estimated that post tax surplus and equity would have been affected as follows:

OPERATINGRESULTIMPACT

EQUITYIMPACT

2018$’000

2017 $’000

2018$’000

2017 $’000

Consolidated Increase/DecreaseinbasispointsAUD 100 (1%) 4,289 3,313 4,289 3,313

(a) Financial Instrument Categories

CLASS NOTES CATEGORY 2018$’000

2017 $’000

FinancialAssetsCash and Cash Equivalents 4 N/A 3,430 9,657

Receivables (1) 5 Loans and Receivables (at amortised cost) 40,466 18,770

Total 43,896 28,427

FinancialLiabilities

Payables (2) 8(a) Financial Liabilities (at amortised cost) 24,480 25,788

Borrowings 9 Financial Liabilities (at amortised cost) 78,187 76,966

Total 102,667 102,754

Notes1. Excludes statutory receivables and prepayments (i.e. not within scope of AASB 7). 2. Excludes statutory payables and unearned revenue (i.e. not within scope of AASB 7).

(b) Market RiskMarket risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. The Trust’s exposures to market risk are primarily through price risks associated with the movement in interest rate risk on the Trust’s borrowings and other price risks associated with the movement in the unit price of the Hour Glass Investment Facilities. The Trust has no exposure to foreign currency risk and does not enter into commodity contracts.The effect on profit and equity due to a reasonably possible

change in risk variable is outlined in the information below, for interest rate risk and other price risk. A reasonably possible change in risk variable has been determined after taking into account the economic environment in which the Trust operates and the time frame for the assessment (i.e. until the end of the next annual reporting period). The sensitivity analysis is based on risk exposures in existence at the statement of financial position date. The analysis is performed on the same basis as for 2017. The analysis assumes that all other variables remain constant.

Interest Rate Risk

The Trust’s exposure to market interest rates relates primarily to the Trust’s long term debt obligations and cash and cash equivalents.

CashandCashEquivalents

A reasonably possible change of +/- 0.25% is used, consistent with current trends in interest rates. The basis will be reviewed annually and amended where there is a structural change in the level of interest rate volatility. The Trust’s exposure to interest rate risk is set out below.


14.FINANCIALINSTRUMENTSDISCLOSURES(CONT’D) 14.FINANCIALINSTRUMENTSDISCLOSURES(CONT’D)


(v) All trade debtors are recognised as amounts receivable at balance date. Collectability of trade debtors is reviewed on an ongoing basis. Procedures as established are followed to recover outstanding amounts, including letters of demand. Debts which are known to be uncollectible are written off. An allowance for impairment is

raised when there is objective evidence that the Trust will not be able to collect all amounts due. This evidence includes past experience, and current and expected changes in economic conditions and debtor credit ratings. No interest is earned on trade debtors.

The Trust is not materially exposed to concentrations of credit risk to a single trade debtor or group of debtors.

(vi) Receivable balances are monitored on an ongoing basis with Trust’s exposure to bad debts not being significant.

(vii) Receivables which are past due but not considered impaired are aged as follows:

0-30DAYSOVERDUE

$’000

31-60DAYSOVERDUE

$’000

61-90DAYSOVERDUE

$’000

90+DAYSOVERDUE

$’000

Asat28February2018 631 99 - 190As at 28 February 2017 2,082 13 107 313

Each column in the table reports gross receivables.

The ageing analysis excludes statutory receivables, as these are not within the scope of AASB 7 and excludes receivables that are not past due and not impaired

(viii) There were no impaired receivables at reporting date. ($19,000 in 2017).

(d) Liquidity Risk Liquidity risk is the risk that the Trust will be unable to meet its payment obligations when they fall due. The Trust continuously manages risk through monitoring future cash flows

and maturities planning to ensure adequate holding of high quality liquid assets.

The liabilities are recognised for amounts due to be paid in the future for goods or services received, whether or not invoiced. Amounts owing to suppliers (which are unsecured) are settled in accordance with policy set out in Treasury Circular TC11-12. If trade terms are not specified, payment is made no later than the end of the month following the month in which an invoice or a statement is received. For small business suppliers payments must generally be made within 30 days of receipt of the invoice. No interest was paid for late payment during the year.

The Trust’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, NSW Treasury Corporation Hour-Glass Investments and NSW Treasury Corporation loans.

The table below summarises the maturity profile of the Trust’s financial liabilities together with the interest rate exposure.

During the current and prior year there were no breaches on any loans payable. No assets have been pledged as collateral. The Trust’s exposure to liquidity risk is deemed insignificant based on prior period’s data and current assessment of risk.

Other Price Risks

Hour-GlassInvestmentFacilitiesExposure to ‘other price risk’ primarily arises through the investment in the TCorp Hour-Glass Investment facilities, which are held for strategic rather than trading purposes. The Trust has no direct equity investments. The Trust holds units in the following Hour-Glass investment trust:

FACILITY INVESTMENTSECTORS INVESTMENTHORIZON 2018$000

2017 $000

Cash Facility Cash, Money market instruments Up to 2 years 5 5

The unit price is equal to the total fair value of the net assets held by the facility divided by the total number of units on issue. Unit prices are calculated and published daily.

NSW Treasury Corporation (TCorp) as trustee for the above facility is required to act in the best interest of the unit holders and to administer the trusts in accordance with the trust deeds. As trustee, TCorp has appointed external managers to manage the performance and risks of each facility in accordance with a mandate agreed by the parties. From April 2007 TCorp commenced acting as a manager for part of the Cash Facility. A significant portion of the administration of the facility is outsourced to an external custodian.

Investments in the Hour-Glass facilities limits the Trust’s exposure to risk, as it allows diversification across a pool of funds with different investment horizons and a mix of investments.

The TCorp Hour-Glass Investment Facilities are designated at fair value through profit/loss and therefore any change in unit price impacts directly on net result (rather than equity).


TCorp provides sensitivity analysis for the Hour-Glass Investment Facilities using historically based volatility information collected over a 10 year period.

CHANGEINUNITPRICE IMPACTONSURPLUS/DEFICIT

2018$’000

2017 $’000

Hour-Glass Cash Facility +/- 1% - -

A reasonably possible change is based on the percentage change in unit price multiplied by the redemption value as at 28 February 2018.

(c) Credit Risk(i) Credit risk arises from the

financial assets of the Trust, which comprise cash and cash equivalents, trade and other receivables. The Trust’s exposure to credit risk arises from potential default of the counter party, with a maximum exposure equal to the carrying amount.

(ii) The Trust trades only with recognised, creditworthy third parties, and as such collateral is not requested nor is it the Trust’s policy to securitise its trade and other receivables. There are no trade and other receivable that are past due or impaired whose terms have been renegotiated.

(iii) All financial assets are unsecured.

(iv) TCorp/NSW State does not guarantee investments in the Hour-glass, TCorp acts as Trustee of the Hour-Glass.

SCG invest in units in the Hour-Glass Cash Facility (HGCF). The HGCF invest in financial instruments with a high quality credit rating - with an average short credit rating of A1+ and long term rating of AA- , most of the investments would be with the big 4 banks.

14.FINANCIALINSTRUMENTSDISCLOSURES(CONT’D) 14.FINANCIALINSTRUMENTSDISCLOSURES(CONT’D)


2018$’000

2017 $’000

Cash 3,425 9,652NSW Treasury Corporation Hour-Glass 5 5

3,430 9,657

(b) Reconciliation From the Surplus/ (Deficit) to the Net Cash Flows From Operations

Surplus/(deficit) for the year (1,666) 1,112

Depreciation 13,678 13,291Increase (Decrease) in Debt Transactions 2,786 (354)Actuarial gains/(losses) on defined benefit pension plans (468) 287

Increase (Decrease) in Creditors 1,709 4,457Decrease (Increase) in Inventories 74 (546)Decrease (Increase) in Debtors 2,304 (2,047)Increase (Decrease) in Provisions 190 (53)

NetCashFromOperatingActivities 18,607 16,147

Firmly committed long-term financing facilities of $95M were available to the Trust at 28 February 2018. As at that date, $78.187M ($76.966M in 2017) of these facilities was in use.

16. Related Party Disclosure(a) Key Management Personnel Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly. This comprises the Minister for Sport, Chief Executive Officer and Trustees.

(b) Key Management Personnel Compensation Key management personnel compensation are as follows:

2018$’000

Short Term Employee Benefits 1,019Total remuneration 1,019

The above disclosures are based on actual payments made for employee benefits during the reporting period.

The Trustees have access to the Trust Suite during major event days at the Sydney Cricket Ground and Allianz Stadium. On occasion expenses for travel by Trustees on Trust business are reimbursed by the Trust. There are no other benefits paid to the Trustees.

Maturity analysis of financial liabilities is based on management’s expectation. MATURITYANALYSISANDINTERESTRATEEXPOSURE

INTERESTRATEEXPOSURE MATURITYDATES

Weighted Average Effective Int. Rate

Nominal Amount

Fixed Interest

Rate

Variable Interest

Rate

Non-interest bearing < 1 yr 1-5 yrs > 5 yrs

2018 $‘000 $‘000 $‘000 $‘000 $‘000 $‘000 $‘000

Payables 3.49% 24,480 5,019 - 19,461 21,989 2,491 -Borrowings: TCorp borrowings 4.11% 78,187 78,187 - - - 31,684 46,503

2017

Payables 3.42% 25,788 7,268 - 18,520 20,977 4,811 -Borrowings: TCorp borrowings 4.74% 76,966 76,966 - - 8,838 29,812 38,316

Notes:The amounts disclosed are the contractual undiscounted cash flows of each class of financial liabilities based on the earliest date on which the Trust can be required to pay. The tables include both interest and principal cash flows and therefore will not reconcile to the statement of financial position.

The Trust monitors rolling forecasts of liquidity reserves on the basis of expected cash flow.

Credit Standby Arrangements: – The Trust maintains an available standby

credit facility through an approved $100,000 bank overdraft arrangement.

The Trust holds a $33K security deposit guarantee (Sydney Water).The Trust holds a bank guarantee facility of $2.3M, with $30,651 in use (2017: $2.3M) (T Greenway & J Banks Pty Ltd

(e) Fair Value

Financial instruments are generally recognised at cost, with the exception of the TCorp Hour-Glass facilities, which are measured at fair value. As discussed, the value of the

Hour-Glass Investments is based on the Trust’s share of the value of the underlying assets of the facility, based on the market value. All of the Hour Glass facilities are valued using ‘redemption’ pricing. The TCorp Hour-Glass facility is recognised at Level 2 of the fair value hierarchy.

The amortised cost of financial instruments recognised in the statement of financial position approximates the fair value, because of the short-term nature of many of the financial instruments. There were no financial instruments where the fair value differs from the carrying amount.


14.FINANCIALINSTRUMENTSDISCLOSURES(CONT’D)(D)LIQUIDITYRISK(CONT’D)

15.CASHFLOWINFORMATION(CONT’D)(A)RECONCILIATIONOFCASH(CONT’D)

15. Cash Flow Information

(a) Reconciliation of CashFor the purpose of the statement of cash flows, cash includes: cash on hand, and in banks, and investments in NSW Treasury Corporation Hour-Glass Facility. Cash at 28 February 2018 as shown in the statement of cash flows is reconciled to the related items in the Statement of Financial Position and accompanying notes as follows:



(c) Other transactions with key management personnel and related entities From time to time, key management personnel may purchase goods or services from the Trust. These purchases are on the same terms and conditions as those entered into by other customers and are immaterial in nature. There have been no material transactions other than remuneration reported for key management personnel.

During 2017-18, the Trust had related party transactions with the following entities:

» Treasury Managed Fund – Payments for Insurance Coverage (refer to Note 3(a))

» Treasury Corporation (TCorp) - Borrowings (refer to Note 9) and investment interest (refer to Note 2(e))

» Treasury Banking System – Interest income on banking balances.

» University of Technology – Lease of Premises.

These transactions were conducted at arm’s length.

17. Post Balance Date EventsNo post balance date events have occurred which would materially affect the financial statements.

The Minister for Sport, Mr Stuart Ayres wrote to the Trust on 6 June 2018 regarding the new Sydney Football Stadium redevelopment and noted the NSW Government has now approved the following:

The transfer of the SFS and its functions, assets and liabilities to INSW, with the exact timing of the transfer and announcement to be agreed by the Premier, Treasurer and Minister for Sport following consultation with the Sydney Cricket and Sports Ground Trust (the Trust) and INSW. Responsibility for managing all contracts with Members, sports partners, service providers, advertisers and commercial rights holders at the SFS will remain with the Trust.

END OF AUDITED FINANCIAL STATEMENTS

16.RELATEDPARTYDISCLOSURE


CONSUMER RESPONSEThe Trust’s venues and member facilities, such as the Stadium Fitness Centre and SCG Museum, catered for close to 1.9 million visitors during the reporting period. Feedback is closely monitored to ensure our patrons continue to receive the best possible service.

The Trust responds to consumer feedback from members, corporate guests, sports partners and the general public. Staff are trained to follow a set of procedures to resolve complaints immediately if possible or at least ensure prompt action for more complex issues.

Feedback ReceivedGENERALPUBLIC

Positive and negative feedback was received from event

attendees, including more than 150 complaints about facilities and services. The majority of comments were managed by the Events and Operations department and responded to individually.

The Trust raises feedback relating to food and beverages, concerned queuing times and pricing with its contracted catering partner to ensure continued improvement.

Parking, traffic, access and security issues were handled in consultation

with Transport NSW, Police NSW and other government agencies to ensure traffic flow, ingress and egress, and other operations continue to run as smoothly as possible.

Seating complaints are usually related to infrequent ticketing errors and are resolved on the day with staff finding alternative seats for affected patrons. These incidents are reported to our ticketing agency to identify causes, and we run regular seating audits at both grounds to minimise incidents.

MEMBERFEEDBACK

Member feedback was focused on dress regulations, car parking, catering, member behaviour and subscription fees. Dress standards are a condition of membership for attending our grounds as a member or guest. These requirements will continue to be monitored and adapted as necessary.

The Trust also conducted surveys regarding reserved seating arrangements and facilities and held focus group sessions to discuss the future plans for membership and the Stadium Club.

CORPORATEGUESTS

During 2017-18, the Trust received minimal complaints from corporate guests, relating to the quality of food and in-seat service offered in these areas. This is a significant improvement on last year with the offering improved through a new deal with hospitality provider MatchPoint. Annual clients continued to make the most of the game day experience at the SCG and Allianz Stadium.

STADIUMCLUB

The Stadium Club deals with members on a daily basis and remains the focal point for members feedback. Overall, the facility received similar complaints to previous years relating to car parking, gym maintenance, equipment, space and closures.

SPORTINGPARTNERS

The Trust meets with all partners before and after events to discuss operations, identify issues and work on resolutions. Senior management from all parties also meet bi-monthly to discuss high-level and long-term planning. The Trust schedules post-season debriefs with each hiring partner as regular management practice to ensure learnings are acted upon for future seasons.

MUSEUMANDTOURS

Positive feedback was received from tour patrons on the knowledge and professional manner that the tour guides provide.

This year, the Tours department broadened its reach with a number of high school and university groups engaging in activities at our grounds. Bespoke stadium tours are also popular with disability patrons

and our tour guides adapt the tour to suit the client’s requirements and abilities. Stadium Tours are rated well by users on Trip Advisor with few complaints received.


INDEX

18 Asset management

16 Attendances

64 Audited financial statements (Trust)

64 Auditor’s report (Trust)

67 Budget of revenue and expenditure

19 Capital works program

15 Catering

56 CEO and General Manager profiles

4 Chairman’s report

24 Commercial

15 Concert

24 Corporate hospitality

34 Corporate services

19 Environment and sustainability

12 Event management

62 Financial indicators

44 Human resources

2 Letter of submission

26 Membership and marketing

3 Minister’s forward

33 Museum and tours

54 Organisational chart

60 Performance statement

24 Sponsorship

28 Stadium Club

22 Strategy and projects

48 Trustee profiles

55 Trust meetings

8 Vision and goals

RIGHT TO INFORMATIONOn 1 July 2010, the Freedom of Information Act 1989 was replaced by the Government Information (Public Access) Act 2009.

The objectives of GIPA are:

» Authorising and encouraging the proactive public release of government information by agencies » Giving members of the public an enforceable right to access government information » Providing that access to government information is restricted only when there is an overriding public interest

against disclosure

RequestsDuring the reporting period, the Trust received four public information requests from the Sydney Morning Herald, the Shadow Minister for Sport and the Nine Network relating to the NSW Government’s stadium investment and the pending upgrade of Allianz Stadium.

The Right to Information Officer can be contacted at:

Level 2, Sheridan Building, Moore Park Road, NSW 2021

Phone: (02) 9360 6601

Fax: (02) 9360 1319

GPO Box 150, Sydney NSW 2001

Feesandchargesareasfollows:

» Subject to 50 per cent reduction for financial hardship and public interest reasons » No application fees may be charged for internal reviews in relation to amendment of records » Refunds may apply as a result of successful internal reviews and applications for amendment of records

NatureofApplication ApplicationFee ProcessingCharge

Access to records by people about their personal affairs $30 $30/hour after

first 20 hours*

All other requests $30* $30/hour

Internal reviews $40** Nil

Amendment of records Nil*** Nil

General Enquiries: (02) 9360 6601

Email: [email protected]

Trust Office: Administration Office, Level 2, Sheridan Building Moore Park Road, Moore Park NSW 2021

Postal Address: GPO Box 150, Sydney NSW 2001

sydneycricketground.com.au

201718 - sydney cricket ground trust · 4 sydney cricket & sports ground trust annual report...

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