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Sydney Cricket & Sports Ground Trust

2016/17 ANNUAL REPORTFinancial Year (1 March 2016 – 28 February 2017)

1

CONTENTS2 LETTEROFSUBMISSION

3 MINISTER’SFOREWORD

4 CHAIRMAN’SREPORT

6 VISIONANDVALUES

8 KEYOUTCOMESANDPROGRESS

10 MANAGINGTHEEVENTS

16 MANAGINGTHEASSETS

20 STRATEGYANDPROJECTS

22 COMMERCIAL

24 MEMBERSHIPANDMARKETING

30 MEDIAANDCOMMUNICATIONS

32 CORPORATESERVICES

42 HUMANRESOURCES

46 TRUSTEEANDMANAGEMENTPROFILES

58 TRUSTCHARTERANDCONSTITUTION

60 FINANCIALINDICATORS

62 AUDITEDFINANCIALSTATEMENTS(TRUST)

107 AUDITEDFINANCIALSTATEMENTS(TRUSTSTAFFAGENCY)

134 CONSUMERRESPONSE

136 RIGHTTOINFORMATION

137 INDEX

Sydney Cricket & Sports Ground Trust

General Enquiries: (02) 9360 6601

Fax: (02) 9360 1319

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 20172

MINISTER’S FOREWORDIt has been a groundbreaking year of sport for NSW and the SCG and Allianz Stadium have continued to provide a world class experience for spectators and competitors alike.

Watching sport and entertainment at Moore Park is a weekly ritual for thousands of fans across the State, with supporters turning out in droves to some of the biggest events of the year including Coldplay’s two sold-out concerts, the annual New Year’s Test and the Wallabies-England blockbuster.

Plenty of work has been done to capitalise on the rise of women’s sport as well. Between the SCG and Allianz Stadium, all five women’s codes have now been hosted.

We saw the fruits of this journey during the second year of the WBBL, and at the Sydney Sevens tournament in February, which saw Olympic gold medallists, the Australian Women’s Sevens Team, compete alongside the men in three days of action-packed rugby.

Then there was the incredible run by the Sydney Swans to the AFL grand final. The supporter base that turns up to the SCG for every home game has made them the biggest sporting club in NSW.

Sydney FC took the A-League competition by storm with their record-breaking season, winning more games than any other team in history. Their penalty shootout effort in front of 41,546 fans to beat Melbourne Victory in the grand final will go down as one of the code’s greatest moments to date.

The Wallabies have made Allianz Stadium their own and while the Cook Cup was lost in 2016, the support for rugby continues to build. A total of 44,063 fans turned out for the third and final Test in June – the biggest crowd in the venue’s 29-year history.

It even surpassed the day that the Socceroos took Diego Maradona and Argentina to a 1-1 draw in their historic 1993 World Cup Qualifier at the Sydney Football Stadium.

The NSW Waratahs and Sydney Roosters did it tough last year but have bounced back with a renewed purpose in 2017, as they look to make their mark on the competition.

The tricolours may not have been at the centre of the NRL Finals but it didn’t stop the crowds, with 59,384 fans turning out for two phenomenal spectacles. The Cronulla Sharks kept their premiership dream alive at Allianz Stadium, beating the North Queensland Cowboys by 12 points in front of a jubilant crowd from the Sutherland Shire in week three.

Let’s not forget the ongoing success of the Sydney Sixers in the BBL, Australia’s One-Day Internationals, Sheffield Shield action and the biggest of them all, the New Year’s Test at the SCG. Australia completed a clean sweep of Pakistan in front of the largest ever crowd against the touring country, bringing thousands of interstate and overseas travellers to the five-day event.

The SCG has been a sentinel overlooking more than 160 years of sport but never before has the ground seen a batsman score a century before lunch - David Warner did just that with an incredible knock on the opening day of the Test this year.

It’s one of the most exciting times to be a part of sport in this country and I’m looking forward to another busy year of events at Moore Park, and of course, the Ashes in 2018.

I congratulate the staff of the Sydney Cricket and Sports Ground Trust on their achievements over the past 12 months and their continuing vision for the future of sport and entertainment in NSW.

THEHONSTUARTAYRESMPMinisterforSport,MinisterforTrade,TourismandEvents

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 2017 The Hon Stuart Ayres MP Minister for Sport GPO Box 5431 SYDNEY 2001 Dear Minister Letter of Submission 2016/17 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 2017 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


CHAIRMAN’S REPORTThe Sydney Cricket and Sports Ground Trust enjoyed a hugely successful year with more than 1.8 million people from all over Sydney, regional NSW and overseas visiting the SCG precinct during 2016/17. There was plenty of sport to choose from. Some fans made the annual trip to the SCG for the New Year’s Test, while others got their fix by watching Buddy Franklin and the Swans work their magic during winter.

A standout moment was the all-time venue record crowd at Allianz Stadium when more than 44,000 fans watch the Wallabies take on England. It was the largest crowd since 1993 when Diego Maradona led an all-star Argentinian side against the Socceroos in a FIFA World Cup qualifier.

The Trust hosted an abundance of major sporting events and delivered on its mandate to make a modest surplus in Sydney’s highly competitive sporting landscape. Of course, all surplus funds were invested back into facilities.

Our sports partners have excelled on and off the field, drawing strong crowds, creating history and surprising many along the way during a remarkable year of sport in the Harbour City. I congratulate and thank all our sports partners on their hard work and success.

It may not have fallen in the reporting period but Sydney FC took the A-League competition by storm with a record number of regular season wins, points and clean sheets during a stunning campaign. Across 27 games, they were head and shoulders above the rest – 17 points to be exact.

Milos Ninkovic’s strike in their penalty shootout win over Melbourne Victory in front of 41,546 fans will go down as one of the greatest moments in the 29-year history of the Stadium.

It marked the beginning of a new era for Sydney FC with the A-League supremos announcing that they will call Allianz Stadium home for at least another 10 years.

The Swans were also impressive, winning 17 regular season games and the minor premiership. Their season finished unfortunately with a loss to the Western Bulldogs in the grand-final. Their success was clear with close to 35,000 fans turning out for every home game at the SCG – making them the biggest team of any code or any season in Sydney.

In rugby league, the Sydney Roosters had a number of senior players leave the squad at the start of the year and struggled to continue their dominance from previous seasons.

Two finals matches were played at the Stadium with 36,717 fans watching the Cronulla Sharks dismantle the North Queensland Cowboys on the way to their first premiership.

Then there was the 15th instalment of the traditional Anzac Day clash between the Sydney Roosters and St George Illawarra Dragons, the most special day on the NRL calendar.

The SCG hosted a heritage round match between the Rabbitohs and Dragons as rugby league returned to its spiritual home.

The NSW Waratahs played eight home Super Rugby games, attracting an average crowd of 18,813. They impressed against the Stormers, Cheetahs, Bulls and Chiefs but strong performances by New Zealand outfits cruelled them of a finals campaign in 2016.

International sport was also on show at Allianz Stadium, with the Wallabies hosting England in the final Test of the Cook Cup series. The event attracted the largest sporting crowd in the venue’s history with 44,063 fans watching England prevail in a gripping contest.

Then there was the continued success of the Sydney Sevens, which saw Olympic gold medallists, the Australian Women’s Sevens Team, compete alongside the men in the expanded three-day international tournament. In all 75,412 fans got their money’s worth, with 20 countries facing off

Tony Shepherd AO – Chairman

in 80 games of rugby sevens across an action-packed weekend of fanfare. It was a great weekend enjoyed by all ages.

The Socceroos put on a thrilling performance for their home crowd, continuing their 10-year undefeated run at the stadium. The Australian side beat Jordan 5-1 in their all-important World Cup Qualifier with superstar Tim Cahill scoring two goals to help the team through to the next stage of qualifying.

The winter codes made way for the cricket season in December, with fans getting an early taste of what was to come when Australia and New Zealand faced off in a One-Day International. Captain Steve Smith led the way, scoring 154 runs from 157 balls to beat AB de Villiers’ record for the fastest 50-over ton at the SCG.

In January, cricket lovers from all over the world made their annual sporting homage to the grand old ground for the New Year’s Test between Australia and Pakistan. Fans were treated to an incredible opening day with David Warner becoming the first batsmen to score a century before lunch on home soil. His efforts set Australia up for an emphatic 220-run victory which drew the largest crowd between the two countries at the SCG. There is no doubt David owns the SCG.

Test-goers donated generously to the McGrath Foundation as the SCG again turned pink on the day three to raise funds for the placement of breast cancer nurses in Australia – one of the many charity initiatives the Trust supported across the year. This year is the 10th anniversary of this wonderful charity and I am sure we can rely on your continuing strong support.

The Sydney Sixers continued their rise in Australian sport with 121,473 fans attending their four BBL games at the SCG. However, it was the women’s team who made headlines after winning the WBBL competition in just their second year.

The white ball returned at the end of December with David Warner continuing his impressive summer by scoring 130 runs and taking two catches in the deep to seal victory over Pakistan in front of a crowd of 31,979. Add to that Sheffield Shield action and it was truly a complete summer of cricket at Sydney’s home of cricket.

The year had plenty of sporting highlights but nothing quite matched the excitement of Coldplay’s back-to-back concerts at Allianz Stadium. More than 97,000 fans snapped up tickets to watch the world’s biggest band perform live, with Chris Martin orchestrating a stellar performance that included fireworks and a light show.

Derby day at Moore Park was another great success, with the precinct hosting two sold out events side-by-side for the first time on January 14. Close to 80,000 fans attended the Sixers-Thunder and Sydney FC-Wanderers derbies at the SCG and Allianz Stadium.

The two games place the night alongside some of the biggest events in history, including the 1965 NSW Rugby

League grand final where fans lined the rooftops of the SCG and the adjoining showground. The A-League’s Sydney Derby sold out for a sixth straight time, while the Big Bash event set a women’s attendance record. Double-headers are common but Moore Park may not see the likes of this for years to come. We are undoubtedly NSW‘s favourite sporting venue.

There was plenty to celebrate off the field as well with the Trust marking the 120-year anniversary of the Ladies Pavilion alongside Moore Park’s 150th birthday celebrations. I had the pleasure of unveiling a plaque at the SCG in October alongside the Duchess of York Sarah Ferguson and her sister Jane, in the exact location that their great grandmother had laid the pavilion’s foundation stone in 1896.

History was also duly recognised with a lifesize bronze sculpture of Johnny Warren unveiled outside Allianz Stadium in tribute to the Australian football legend. It was fitting also that current Socceroo champions Tim Cahill and Matt McKay were on hand to unveil the latest addition to the Sports Sculpture project sponsored by Basil Sellers.

The SCG Trust’s thriving membership base, that includes more than 40,000 signed up or on the waiting list, is vital to our existence and we thank them for their ongoing support of the SCG and Allianz Stadium. Without our loyal members, we would not be here.

Within our limited resources, capital works were undertaken to improve existing facilities including a refurbishment of the Trust’s popular Stadium Club, used by hundreds of members and guests every day.

We have upgraded our security and surveillance systems to adapt to the current climate and ensure that our stadiums remain safe during major events. Investments have also been made in the precinct’s technology as we aim to be the country’s most digitally advanced stadiums for the benefit of our clubs and their fans.

To strengthen our relationship with all stakeholders the Trust has created the Trust Advisory Group to discuss future developments and operations that impact fans, members, residents and the wider community. Great progress has been made and we look forward to continuing to work with key stakeholders. I thank the members of the advisory group for their insights and the two elected Trustees David Gilbert and Phil Waugh who so ably represent the Trust.

The Trust’s staff, led by Chief Executive Jamie Barkley, have worked tirelessly to ensure the SCG precinct remains the number one destination for sport in our city and a meeting place for all the people of NSW.

TONYSHEPHERDAOChairman


OUR VISION AND VALUES

Who We Are

The 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 Moore Park 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 Entertainment Quarter 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 based at Moore Park. There is also a university campus, sports museum, fitness centre and membership club facilities.

The grounds host nearly 100 sport and entertainment events and attract more than 1.8 million visitors each year from Sydney, NSW and beyond.

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

VALUESCustomer serviceWe will provide superior customer service

LeadershipWe are leaders in our industry

*The vision and values are consistent with the Trust’s new Corporate Plan developed for 2017-2020

InnovationWe 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 OUTCOMES & PROGRESS ACHIEVED The following actions planned in the Trust’s Corporate Plan were achieved during the past year.

Heritage GoalSTRATEGY

» Be an effective custodian of our heritage and traditions

» Implement museum and archive plans

» Investigate opportunities for developing targeted publications for all stakeholders

KEYACHIEVEMENTS

» Completed conservation on the 1892 panorama currently displayed in the SCG Museum

» Commissioned a new sports sculpture to be unveiled in 2017/18

» Recorded two new oral histories documenting memories of our grounds

» Commemorated 120 years of the Ladies Pavilion in December 2016

» Commenced a partnership with Google Cultural Institute to deliver up to five online exhibitions and a gallery of 150 collection items for launch in 2017

» Updated museum’s loan and acquisition documentation

» Formalised the Volunteer Digitisation Program

» Achieved $100K in sponsorship for the museum and tour program to support heritage activities

Facilities GoalSTRATEGY

» Strategically invest in grounds and facilities through the annual capital works program and the Trust masterplan

» Increase cooperation and collaboration between the Trust, sports partners and key stakeholders

KEYACHIEVEMENTS

» Engaging industry experts to provide innovative turf management solutions

» Review of waste management processes to segregate key waste streams for improved resource recovery

» Renovation and upgrade of 12 corporate suites at the SCG and Allianz Stadium

» Project management of the Australian Rugby Development Centre and University of Technology facilities onsite

» Finalising tender plans for the precinct’s CCTV Upgrade – Stage 1 complete

» Allianz Stadium home and away change room refurbishment

» Upgrade to the Stadium Club’s spa and pool plant room

» Completed style and equipment renewal of the Stadium Club

Service Goal STRATEGY

» Strengthen ability to identify, understand and respond to member, staff, partner and customer needs

» Use traditional, digital and social media channels to communicate with our patrons in a respectful and open manner

» Create fulfilling and memorable experiences for our partners and patrons

KEYACHIEVEMENTS

» The Mystery Shopper program was introduced to better understand and track patron and customer needs on event days

» Regular and systematic training for staff to help identify and react to issues that have been identified

» Actioning an event day staff performance management framework to ensure staff receive regular customer service shifts

» Collaborating with the sports partners to design staff training sessions specific to their needs and goals

» Collaborating with customer service supervisors at formal quarterly meetings to define and set patron experience expectations

» Recruitment drives to uncover and induct experienced customer service staff to add to existing event staff pool

» Completed quarterly upgrades to the SCG and Allianz Stadium mobile application to provide improved sign-on process, data integrity, integrated Mailchimp platform, mobile ordering enhancement, fan alerts and geofence messaging

Commercial GoalSTRATEGY

» Increase and diversify the Trust’s revenue base

» Negotiate strong long-term hiring deals with sports partners and tenants

» Review, enhance and grow key supplies and sponsorship deals

» Review the optimal membership category mix and investigate other membership opportunities

» Continue to develop and improve record management

» Review, enhance and grow the corporate hospitality, Gold and Platinum membership sales programs

KEYACHIEVEMENTS

» Extended an agreement with a dedicated corporate hospitality sales agency (MatchPoint)

» Improved quality of customer marketing data to increase hospitality sales success rate

» Prepared a five-year asset development plan in line with commercial growth expectations in corporate sales

» Reviewed corporate hospitality products and potential to achieve sales growth

» Reached agreement with Sydney FC for a 10-year extension to their venue hire and office premise agreement until 2025-26

» Secured new partnerships with HWBE, Ingram Micro, Heinz and Qantas


AFLSYDNEYSWANS

The Sydney Swans enjoyed another spectacular year, winning 17 regular season games and the minor premiership under the leadership of co-captains Jarrad McVeigh and Kieren Jack. Their season finished with a loss to the Western Bulldogs in the grand final, with thousands of fans watching the game from the SCG turf on the big screen. The Swans played 12 of their home fixtures at the venue after commencing their 30-year contract a year early with attendances totalling 405,818 at an average of 33,818 fans per game. Highlights included a crowd of 42,314 for a Thursday night blockbuster against Hawthorn as well as a 36-point win over the Adelaide Crows in their semi-final encounter. Good news sees John Longmire stay on as head coach until the end of the 2020 season.

MANAGING THE EVENTSA total of 1.85 million fans attended events at the SCG and Allianz Stadium during the past financial year across AFL, rugby league, rugby union, cricket, football and concerts. See the table at the end of the section for a detailed breakdown.

Rugby LeagueSYDNEYROOSTERS

The Sydney Roosters had a tough 2016 season and finished in 15th position on the NRL ladder. They won six of their 18 games, all of which came at Allianz Stadium, where 112,707 fans turned out throughout the year. The absence of James Maloney, Roger Tuivasa-Sheck and Michael Jennings, along with injuries to Boyd Cordner and Jared Waerea-Hargreaves proved costly in the end. They played 11 home games at an average attendance of 10,246 fans per fixture. Three players managed to successfully complete 24 season games – Latrell Mitchell, Jake Friend and Sam Moa. The Roosters won the Auckland Nines in February, beating the Penrith Panthers 10-8 in the final to kick off a new season for the franchise.

SOUTHSYDNEYRABBITOHS

The South Sydney Rabbitohs played one home game at Allianz Stadium in 2016 against the Manly Sea Eagles. In a thrilling contest, the Northern Beaches side ended the Rabbitohs’ finals hopes with a 20-12 win in front of a Monday night crowd of 8,273.

STGEORGEILLAWARRADRAGONS

The St George Illawarra Dragons returned to their spiritual home, the SCG, in March to take on old enemies the South Sydney Rabbitohs. The fixture coincided with the 50-year anniversary of the Dragons’ 11th consecutive premiership at the ground in 1966. The Saints prevailed in a brutal clash in front of 17,824 fans on a rainy Sydney day. In April, they hosted the Sydney Roosters for the annual Anzac Day clash, which was attended by 34,483 fans. Gareth Widdop led the Dragons to a 20-18 triumph to retain the cup for a second straight year.

NRL FinalsA total of 59,348 fans attended the two NRL Finals matches played at Allianz Stadium in September. The Penrith Panthers defeated the Canterbury-Bankstown Bulldogs 28-12 in the opening clash before the eventual premiers took centre stage in week three. The Cronulla

Sharks went on to make it to their first grand final since 1978 with a 12-point win over Johnathan Thurston and the North Queensland Cowboys. A total of 36,717 rugby league fans attended the match, including a large contingent from the Sutherland Shire.


Rugby UnionNSWWARATAHS

The NSW Waratahs played eight home games at Allianz Stadium last year with 150,501 fans attending throughout the season for an average crowd of 18,813. They beat the Stormers, Cheetahs, Bulls and Chiefs during the regular season but losses to the Brumbies, Blues and Hurricanes cruelled them of a finals campaign in 2016. The Waratahs finished in 10th place overall and second in the Australian conference under new head coach Daryl Gibson.

SYDNEYSEVENS

Olympic gold medallists, the Australian women’s sevens team, competed alongside the men at the Sydney Sevens in February. The expanded three-day tournament was a success, with 75,412 fans turning out across the weekend. In total, 80 games of rugby were played at Allianz Stadium and Kippax Oval with teams from 20 countries featuring in the event. Canada took out the women’s World Series title and South Africa were victorious on the men’s side of the draw, beating England 29-14 in the Cup final. Australia’s men’s and women’s sides finished in fourth place after losing in their respective semi-finals.

WALLABIES

The Wallabies hosted England in June in the final Test of the Cook Cup series, attracting the largest crowd for a sporting event in the 28-year history of Allianz Stadium. In all, 44,063 fans turned out for the occasion, which saw England prevail by four points in a gripping contest to record their first clean sweep of the Wallabies on Australian soil. England centre Owen Farrell kicked 24 of his 66 series points to complete a remarkable turnaround from the Rugby World Cup.

FOOTBALLSYDNEYFC

Sydney FC played 11 games during the 2016-17 reporting period and enjoyed a remarkable undefeated run to start their season. During

those fixtures, a total of 165,792 fans cheered on the Sky Blues at Allianz Stadium. Sydney FC hosted a Sydney Derby against the Western Sydney Wanderers in January which was attended by 40,143 supporters as part of a double-header at Moore Park. The club went 21 games without a loss to set a new A-League record. Head coach Graham Arnold has re-signed for a further two seasons after leading Sydney FC to the grand final, where they defeated Melbourne Victory in a penalty shootout at Allianz Stadium.

ASIANSCHAMPIONSLEAGUE

Four Asian Champions League matches were staged at Allianz Stadium with Sydney FC taking on the Pohang Steelers, Guangzhou

Evergrande, Urawa Red Diamonds and Shandong Luneng. A total of 42,045 fans attended across the four matches, including a crowd of 18,149 for Sydney FC’s 2-1 triumph over Chinese powerhouse Evergrande, which saw them clinch top spot in their league group.

SOCCEROOS

The Socceroos defeated Jordan 5-1 in a World Cup Qualifier in front of 24,975 fans at Allianz Stadium in March. The win saw them progress to the next stage of qualifying, with Tim Cahill scoring two goals to bring his international tally to 47. Australia salvaged their 2-0 loss to Jordan earlier in the year and continued their success at Moore Park, where they haven’t lost in more than 10 years.

CricketNEWYEAR’STEST

The 2017 New Year’s Test attracted the highest crowd total between Australia and Pakistan at the SCG. In all, 112,029 fans attended the match, including 30,305 on the opening day of play, surpassing the previous aggregate of 105,692 set during the 2005 Test. Rain washed out the morning session on days two and three but that didn’t stop Australia from claiming a 220-run victory to remain unbeaten against Pakistan at the ground. Fans and members donated generously to the McGrath Foundation, which raised more than $500,000 for the placement of breast care nurses around the country. Police donated their day three wages to the cause and a gold coin provided entry on the final day, bringing 17,583 fans through the gates to watch Australia win after lunch. It was the 105th Test match played at the SCG.

SYDNEYSIXERS

The Sydney Sixers performed on and off the field this season with a record 121,473 fans attending their four BBL games at the SCG during the 2016-17 season. The men’s team lost to the Perth Scorchers by nine wickets in the final, while the women were victorious in the second instalment of the WBBL against the West Australian side. The crowd aggregate bettered last year’s total by 10,000 and saw the Sixers attract an average of 30,368 fans per game.

ONE-DAYINTERNATIONALS

Australia played two One-Day Internationals at the SCG in the last reporting period. Captain Steve Smith led the way against New Zealand in December, scoring 154 off 157 balls to beat AB de Villiers’ record for the fastest 50-over ton at the ground. A total of 22,502 fans attended the match. Then in January, Australia hosted Pakistan with David Warner scoring an unbeaten 130 runs and taking two diving catches to help seal victory in front of a crowd of 31,979.

SHEFFIELDSHIELD

The NSW Blues hosted four matches at the SCG as part of the 2016-17 Sheffield Shield season. They enjoyed wins against Western Australia and South Australia and drew their match against Queensland, with one loss coming against Victoria at home. The Blues fell short of qualifying for the final but had a successful season with a number of players elevated to the Test squad for Australia’s tour of India including Stephen O’Keefe and Pat Cummins.

CONCERTSCOLDPLAY

Coldplay sold out two concerts at Allianz Stadium in December with a total of 97,822 fans making the most of the opportunity to see one of the world’s biggest bands in action. The performances included fireworks and a light show, with concert-goers given illuminated multi-coloured wristbands upon entry. Their back-to-back shows at Moore Park was the finale of their Australian tour, with Coldplay travelling to more than 90 countries and selling 3.5 million albums since its release in December last year.

OPERATIONSCATERING:Delaware North are completing the second year of a five-year contract extension. They continue to provide quality service and offerings at the SCG and Allianz Stadium.

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 provide a strong distribution network and innovative feature.

MERCHANDISING:Playbill hold the merchandising rights at the SCG and Allianz Stadium until 2021. They 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. Recent developments by the committee included installing additional signage, amenities and portable ramps. Specially tailored tours of the SCG and Allianz Stadium have also been implemented, and a wheelchair area was sectioned off near the stage for recent Coldplay concerts.

Sydney Cricket & Sports Ground Trust Annual Report 201614

EVENT ATTENDANCE NUMBERS BY CODE

NUMBERS BY CLUB

15

Event Attendees

One-DayInternational Australia v New Zealand 22,502

Australia v Pakistan 31,979

NewYear’sTest Australia v Pakistan 112,029

BBL/WBBL Sydney Sixers 121,473

DomesticCricket Sheffield Shield 6,298

ARU Sydney Sevens 75,412

Wallabies v England Test 44,063

SuperRugby NSW Waratahs 150,501

A-League Sydney FC 165,792

FFA Asian Champions League Australia v Jordan

42,045 24,975

NRL Sydney Roosters 112,707

St George Illawarra Dragons 52,307

South Sydney Rabbitohs 8,273

Finals 59,348

AFL Sydney Swans 367,682

AFL semi-final 38,136

Concerts Coldplay 97,822

StadiumStomp Stair climbing challenge 1,480

SCG&ALLIANZSTADIUMTOTAL 1,534,824

STADIUMCLUBVISITS 306,727

SCGTOUREXPERIENCE 11,271

TOTAL 1,852,822

NEW CROWD RECORD AT ALLIANZ STADIUMWALLABIES V ENGLAND TEST MATCH

TOTAL RUGBY ATTENDANCESYDNEY SEVENS, WALLABIES, WARATAHS

BIGGEST CROWD AT THE SCGSWANS V HAWTHORN

TOTAL FOOTBALL ATTENDANCESYDNEY FC, ASIAN CHAMPIONS LEAGUE, SOCCEROOS

TOTAL CRICKET ATTENDANCEBBL, WBBL, ODI, TEST, SHIELD

TOTAL RUGBY LEAGUE ATTENDANCEROOSTERS, DRAGONS, RABBITOHS, NRL FINALS

TOTAL AFL ATTENDANCESYDNEY SWANS, AFL FINALS

NSW WARATAHS AVERAGE ATTENDANCEEIGHT HOME GAMES

SYDNEY FC AVERAGE ATTENDANCE 11 HOME GAMES

SYDNEY SWANS AVERAGE ATTENDANCE12 HOME GAMES

SYDNEY SIXERS AVERAGE ATTENDANCEFOUR HOME GAMES

SYDNEY ROOSTERS AVERAGE ATTENDANCE11 HOME GAMES

ST GEORGE ILLAWARRA DRAGONS AVERAGE ATTENDANCETWO HOME GAMES

44,063

269,976

42,314

232,812

294,281

232,635405,818

18,813

15,072

33,818

30,368

10,246

26,153


MANAGING THE ASSETS

Operations

The Facilities Department managed more than 5000 unscheduled maintenance jobs during the reporting period under a budget of $9 million. Services included painting, electrical work and mechanical orders to ensure the SCG, Allianz Stadium and surrounding facilities remain in first class condition.

Major achievements include upgrading retail and corporate areas at the SCG and Allianz Stadium as well as Stadium Club refurbishments and the management of Australian Rugby Development Centre construction.

Capital Works ProgramCOMPLETEDWORKSINCLUDED:

» Upgrade of retail catering outlets at SCG and Allianz Stadium

» Upgrade to private suites at both venues

» A refurbishment of Allianz Stadium home and away changerooms

» Upgrade to Stadium Club spa and pool plant room

» Upgrade to Sydney Swans air conditioning systems

» Safety and compliance upgrade for the precinct

» Additional solar powered lighting in the members car park and surroundings

Playing Field Maintenance The Trust engaged experienced turf consultants in the past financial year who offered specialist advice and assisted with field maintenance techniques during challenging weather conditions in Sydney. Procurement and installation of an onsite weather station also took place, to better monitor and record localised temperature, rainfall and humidity data. The Trust also led the way across the industry to transition to virtual logo technology, eliminating unnecessary turf damage. More than 80 major sporting and corporate events were held on Trust grounds during the reporting period. Head curators Tom Parker (SCG) and Michael Finch (Allianz Stadium) celebrated 20 years in charge of the two venues.

ALLIANZSTADIUM

The Allianz Stadium surface was maintained at a high level despite a busy schedule of rugby league, union and football. The Wallabies-England rugby Test match in June, which was attended by a record crowd, was played in excellent conditions with the surface praised by team management. The NRL finals series and the beginning of Sydney FC’s A-League season were also played on a world class pitch. The surface recovered well from Coldplay’s two concerts in December with a new flooring system installed, complete with improved airflow mechanisms. The ground also hosted 70 games of rugby during the three-day Sydney Sevens event in February as well. Proactive and selective turf replacement was scheduled through the financial year which had no impact on the match schedule.

SCG

The SCG surface was in pristine condition during the reporting period, hosting 12 Sydney Swans matches including a semi-final. Transitioning the field from AFL to

cricket mode was successful with excellent coverage on the wicket square. The cricket pitch provided a great contest between bat and ball during scheduled Sheffield Shield, One-Day International and Sydney Sixers matches as well as the New Year’s Test between Australia and Pakistan. A fair and balanced outfield was also noted and groundstaff worked hard to protect the surface during unpredictable weather at the Test match in January. Throughout heavy rainfall which prevented play on mornings of days two and three, SCG head curator provided insights for fans in attendance via an interview on the big screen

Environment and Sustainability The Trust made groundbreaking progress to further improve environment and sustainability practices by working closely with Quayclean, the precinct’s cleaning and waste management service provider. Volumes, recovery and recycling rates were monitored with monthly reports generated to measure performance. As a result of this data, the Trust installed internal and external bin systems that encourage the segregation of key waste streams using colour coding and signage. Intelligent solar powered units were also installed in select member and corporate areas, which are able to reduce handling and service frequency by compression. Plans are in place to expand this service throughout the precinct.

The precinct generates approximately 1,100 tonnes of waste annually and a target of 75 per cent of resource recovery has been set. A new management plan is currently being developed to help implement systems, enhance continual improvement and reach recovery targets. In addition, the SCG, Allianz Stadium and surrounding precinct has been audited for water flow, with a report provided by the City of Sydney to help reduce day-to-day water consumption and wastage. Similarly, LED low power consumption lighting has been the first choice for areas identified for lighting upgrades.

Security and Precint Access The safety and security of people inside the precinct is a high priority. In the current security climate the threat of terrorism continues to be the largest influence on stadium operations. Places of mass gathering such as the SCG and Allianz Stadium are potential targets and the Trust works closely with NSW Police, intelligence agencies and hiring partners to determine appropriate levels of security during major events and daily operations.

The Trust continues to invest in physical and electronic security infrastructure including a precinct wide upgrade of CCTV systems, electronic access control, video analytics packages and a best in class security operations centre. It is anticipated that these projects will be completed in 2017.

Treasury Managed Fund and third party claim representatives Proclaim Management Services and Arthur J Gallagher provided risk management advice for insurance claims. The program continues to be reviewed with sports partners, onsite tenants and contractors to ensure that health, safety and compliance is of a high standard at Trust venues.

HEALTHANDSAFETY

SafetySystemUpdate

The Trust has made progress to align its health and safety system with ISO45001 and ISO18001, which now sits under a new program called ‘Trust in Safety’. This update is progressing through the consultative process and will then be readily available to staff. Live training sessions will be planned for staff to introduce the new system and its goals. SafetyInitiatives

The Trust introduced a range of safety initiatives in the past financial year, which continued to promote safety as the first consideration and highest priority. These included:

» A safety week which included CPR/AED training, health checks, flu vaccinations and hazard identification and control activities

» A height safety system was installed in the Members Pavilion, Ladies Pavilion and SCG light towers to reduce the risk of falls when working in these areas

» A site audit was conducted to ensure the Trust was ready for the Global Harmonisation System of goods which came into effect in January 2017

» A new contractor management system called Browz was introduced to ensure all staff complete the WHS induction requirements


LostTimeInjuryFrequencyRate(LTIFR)

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0Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2

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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.


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, neighbours, Government stakeholders, the local community and the fans.

Over the last 12 months the Trust has been on a journey to understand more about its neighbours, its sporting partners’ plans for the future, how Trust business effects the local community and what people enjoy about Moore Park.

The Trust will apply these insights in producing a concept plan for its precinct that seeks to meet the vision of the Trust, namely that; “We celebrate sport, create history, enhance entertainment and constantly innovate to provide an

engaging and connected experience for our customers”.

The Trust’s neighbours, Centennial Park & Moore Park Trust, have recently released the first ever masterplan for Moore Park. The Trust and the Centennial Park Trust have worked together over the past 12 months to ensure that the respective trusts’ goals for the greater Moore Park precinct align.

More park for Moore Park is one goal. Another is to make it as easy as possible for people who visit Centennial Park and Moore Park, the Entertainment Quarter, and the SCG and Allianz Stadium, to access and egress the precinct as easily as possible. The trusts are also working together on a long-term transport plan that leverages the NSW Government investment in the CBD and South East Light Rail.

The Trust is committed to working with all its stakeholders to develop plans that deliver a revitalized precinct and a world-leading sporting campus for the benefit and enjoyment of the NSW sporting public.

Construction continues on the Australian Rugby Development Centre, which will be 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.

In an Australian first the ARDC will bring together elite athletes, a high-performance training facility, sector-leading sports scientists, UTS students and the community within Australia’s leading sports and entertainment precinct.

The ARDC will include:

» Purpose-built UTS research and teaching laboratories for sport and exercise science and management courses

» A high-performance facility for the Wallabies, Wallaroos, national men’s and women’s Sevens teams, junior development squads and Indigenous rugby

» A café which can be utilised by the community and visitors to the ARDC

» Facilities for the use of community groups and grassroots teams

» An indoor training hall and rooftop running track

Construction is set to finish in September 2017 with students, administrators and athletes to move in from the beginning of next year.


COMMERCIALA strong performance in Gold and Platinum membership sales and the wi-fi, IPTV advertising and a sponsorship rights program at Allianz Stadium has seen Trust commercial revenue remain steady at $23.1 million.

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

MatchPoint have entertained corporate clients at some of the world’s biggest events and venues, placing Allianz Stadium and the SCG alongside the Rugby World Cup at Twickenham, the Australian Open Tennis at Melbourne Park and the NFL at Wembley Stadium. In keeping with our desire to establish long-term partnerships, the Trust is conscious of continuing to offer the market valuable opportunities.

Gold and Platinum Membership SalesThe Trust again focused on offering members’ opportunities to upgrade their existing membership status, or to introduce friends and colleagues to the benefits of Gold and Platinum membership. Building relationships with strategic commercial partners to provide quality incentives and rewards for new, referring and upgrading members was critical to the success of these campaigns. This support, plus some excellent work by the entire commercial team saw sales reach $5.011 million.

Long-Term Hiring AgreementsThe 2016-17 financial year was an excellent period for the Trust as it consolidated substantial event content. Last year’s efforts saw the NSW Waratahs, Sydney Swans and Sydney Sixers agree to play all home games at Moore Park, while the Wallabies and Australian Rugby’s Sydney Sevens event extended terms until 2031. Sydney FC also agreed to play home games at Allianz Stadium for the next 10 years through to the end of the 2025-26 season. The precinct is now home to more than 65 events each year across five codes including cricket, AFL, football, rugby league and rugby union.

KEYACHIEVEMENTS

» 2014/15: Sydney Swans agreement until 2047 » 2015/16: NSW Waratahs, Wallabies, Sydney Sevens and Cricket agreements » 2016/17: Sydney FC terms of agreement until 2026

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 the sale of sponsorship, advertising, supply and product rights.

Out and About Marketing and Media (OAMM), our commercial rights partner, provide the Trust with an outstanding 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 enjoyed successful 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 August of 2015, Allianz Australia committed to a five-year extension as the naming rights partner of Allianz Stadium. This extension will take the partnership through until February 2022 and promises to be a long and successful one for both organisations. We thank them for the faith and belief they have shown in the Trust, our special and unique precinct, and most importantly, in Allianz Stadium.


MEMBERSHIP AND MARKETING The Membership and Marketing Division manages ICT, membership services, the Stadium Club and the marketing of Allianz Stadium, the SCG and the Trust.

MEMBERSHIPSUPPORT

The division features a member and customer services team for the benefit of members and their guests. Services include a membership call centre and email support to facilitate card replacements, waitlist applications, day pass sales, seat reservations and managing reciprocity with interstate and overseas venues.

The team staffs the Venue Services Office, which is the focal point for access control, tours and fitness centre and court bookings. Staff also assist with merchandise sales and general enquiries.

SCGMEMBERSHIPELECTIONANDWAITLIST

In January 2017, the Trust offered SCG membership to 1,035 applicants who joined the membership waitlist in 2004. The offer was accepted by 487 new members (285 opting for double membership, 57 for single and 145 for junior) representing a 47 per cent uptake and $518,000 in revenue. At the end of February 2017, there were 22,934 applicants on the SCG waitlist dating back to January 2005.

SUBSCRIPTIONRENEWALSANDMEMBERNUMBERS

Member numbers have remained relatively stable at 18,763 (up by 351 on the previous year). The increase is largely due to a 47 per cent uptake on the 2004 SCG waitlist election. The membership category breakdown is nine per cent Platinum, 33 per cent Gold and 58 per cent SCG, which is consistent with previous reporting periods.

In total, 98 resignations were received this year, which is up slightly compared to previous years (43 resignations in 2015/16 and 68 resignations in 2014/15). 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.

The high retention rate can be attributed to a strong event schedule at both grounds and enhancements to member facilities and services. Members who paid their annual subscription prior to 1 October received a complimentary 2017 Sports Diary.

SPECIALARRANGEMENTSFORCRICKET

The Trust provided members with an expanded program of off-field activities at the New Year’s Test, recognising that the social aspect of the event is an integral part of the overall patron experience. Additional amenities and food and beverage facilities were set up along with big screens on the Sydney Live Plaza.

Other activities included:

» Members Breakfast, Day 1 » Curators Breakfast, Day 2 » Jane McGrath High Tea, Day 3 » Stumps Sessions, Days 1-3 » Kids Cricket Clinics, Days 1-3 » Village Green, Days 1-3 » Sydney Live Plaza, Days 1-3

Reserved seating was again offered to members for the first four days of the Test and the two One-Day Internationals at the SCG. The cost was $25 per seat each day (the same price since 2015) and was provided free of charge to those who have held membership for 50 years or more.

Marketing and Digital CommunicationsMEMBERCOMMUNICATIONS

The Trust transitioned to MailChimp software to provide a better communication offering for members. This program was used to prepare and distribute emails regarding upcoming events, offers and precinct news on a weekly basis. Data was also collated from the Trust’s wi-fi and app database, with targeted email campaigns organised to promote special events. In addition, The Trust placed regular advertising in major newspapers and circulated exclusive offers to SCG members and waitlist members for events at Allianz Stadium.


CONNECTEDSTADIUMSOLUTION

The Connected Stadium Solution (IPTV, wi-fi, superscreens, LED and mobile app) has undergone several enhancements to ensure the Trust is innovating its digital platforms. This includes creating different zoning to assist with fan engagement pieces, introducing HTML software and making several operational changes. The Marketing team continues to develop strong relationships with sporting partners to deliver engaging, branded and informative content.

The SCG and Allianz Stadium app is well positioned as the game day companion, offering competitions, match entertainment via Q&A trivia games, fan cam and express food and beverage ordering.

The app has undergone a major design refresh which has seen the introduction of a bottom menu navigation bar. ‘Digital experts’ (promotional staff) are visible at a range of events and their primary focus is to inform and demonstrate how digital innovations can enhance the game day experience.

EVENTADVERTISING

The Trust created and scheduled numerous advertisements during the year in support of its sports partners ahead of major events. Key venue messaging, including transport and game day information, were the main focus of advertisements.

The Trust also invested in social media advertisements, which allows for direct communication with fans in the lead up to key promotional activities in the precinct.

WEBSITE

The Marketing team oversaw a minor refresh of the current website, making the events and login portal more prominent and easier to navigate for members. A new website is being designed and developed after a tender process, with a rollout expected in late 2017.

CUSTOMERRESEARCH

The Trust conducted several focus groups with members to gain feedback and insights on the facilities and services provided, including member dress regulations, activity on game days and Stadium Club operations.

The Stadium ClubUSAGE

Visits from members and guests to the Stadium Club totalled 306,727 during the past financial year, an average of more than 25,000 attendees each month.

REVENUETARGETS

The Stadium Club has exceeded its overall revenue targets. Programs that contributed to this success include:

» Kids holiday camp: Exceeded budget, largely due to an additional program during the January school holidays as well as improving the value and offering of the program itself.

» Tennis: The tennis coaching program also exceeded budget due to the introduction of new instructors and an additional kids clinic.

» Group fitness: Pilates and Yoga classes continued to thrive as a popular offering for members.

Overall revenue was also boosted by the addition of new programs such as six-week boot camp and an outdoor sunrise Yogalates class.

MEMBEROFFERINGS

Three successful business networking events were held during the past financial year. Guest speakers included Peter Nevill, Trent Robinson, Bryan Fletcher and Phil Waugh. The Stadium Club’s most recent networking event raised $20,400 for the Black Dog Charity Foundation through Neville and Hourn Legal.

Complimentary cricket clinics were offered to Gold and Platinum members prior to Sydney Sixers and One-Day International events. This was coordinated in conjunction with the Sydney Cricket Club and SCG XI.

FOCUSGROUPRESULTS

The Stadium Club conducted research over the past 12 months with members and their guests. Major findings included a strong support for expansion of facilities to transform the area into a world class fitness club as well as ongoing improvements to the pool and member and guest etiquette.

UPGRADES

The last 12 months has seen the facility experience some major changes in line with our member research. The Stadium Fitness Centre has been transformed into the ‘Stadium Club’ with the space receiving a complete equipment and style upgrade.

The upgrade included new weights and cardio machines, additional rowers, and dumbbells up to 50kg, two ski ergs, new pin coded lockers, squash court refurbishments, painting across the whole facility and additional signage.

CAPITALWORKS

The Stadium Club completed a capital works program over the past 12 months to upgrade facilities. This included major overhauls to

both the pool and spa plant rooms in late August and September. This significantly improved water filtration, quality, useability, chemical and water usage.

The spa, steam and sauna rooms also received a complete refurbishment which included new panels, fresh lighting and tiled floors.

The Trust has examined three options for Stadium Club expansion to address the growing need for additional space, which had been highlighted in member research projects.

Museum, Tours and Heritage ActivitiesHERITAGE

Museum staff have preserved the cupboard doors in the Members Pavilion, which detail signatures and scores from some of the world’s best touring cricketers. The doors have been moved to the SCG Museum and replaced with a new one to continue the tradition. Other conservation works included treatment of the 1892 panorama from the Members Pavilion Long Bar and conservation of the Doug Walters Stand sign.

TOURS

In line with the SCG Museum business plan, a three-year marketing plan for the SCG Experience (museum and tour) has been completed. The key objectives of the marketing plan are to:

» Increase SCG Experience brand recognition in the tourism market

» Increase the unique offering of the SCG Museum

» Increase tour visitation and revenue by approximately 30 per cent over three years

The SCG Experience partnered with the St George Illawarra Dragons to deliver the ultimate tour ahead of the 2016 NRL heritage match. The tour included dressing room jersey presentations, player talks and a visit to the SCG Museum.

In April, a program of monthly tours tailored for people with special needs and limited mobility was launched. A tour route was designed to host guests and marketing collateral was produced to promote the new initiative. Kids holiday tours were also run in April.


The Trust celebrated the 120-year anniversary of the Ladies Pavilion in conjunction with Moore Park’s 150th birthday celebrations. A special exhibition was held in the museum along with a plaque unveiling and program of activities in December.

In addition to weekly public tours, the museum was open throughout the summer of cricket and during the Sydney Swans’ season. The tours program attracted 11,271 visitors in the 2016-17 financial year.

PROGRAMS

The Trust has partnered with the Google Cultural Institute to deliver five online exhibitions and a gallery of 150 collection items for the proposed launch in 2017.

The partnership offers an opportunity to use broader technologies such as Google Street View, Google Cardboard, high definition filming and web hosting platforms to place the museum’s collection online for greater audience reach.

INFORMATIONANDCOMMUNICATIONSTECHNOLOGY

The information and communications technology (ICT) operations section made significant advancements in the past financial year to continue the precinct’s digital transformation.

The Trust created a fan engagement strategy in line with corporate goals and vision to deliver an innovative

experience for patrons at our grounds.

Key achievements during the reporting period include:

» Venue Technology Award for fan engagement strategy

» Improved navigation and user interaction on the SCG and Allianz Stadium app

» Integrated MailChimp email platform to provide a better communication offering

» Upgraded mobile payment offering for express food and beverage ordering

» Over 1.4 million wi-fi sessions recorded

» More than 20,000 app downloads

» A 69 per cent increase in fan data records » Targeted team and fan zoning of IPTV content at

events » Developed a business case for the expansion of the

Connected Stadium Solution at the SCG

The Trust prioritised and invested $1.5 million in capital ICT projects this year including:

» ICT infrastructure including network convergence (corporate and CCTV networks)

» CRM system for membership and corporate administration

» Scoping for digital payment solutions at the SCG and Allianz Stadium

» Ongoing works for a new website and CMS platform

» Review of backup/disaster recovery plans

DigitalInformationSecurityAnnualAttestationforthe2016/17FinancialYearfortheSydneyCricketandSportsGroundTrustI, 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.

Bernie Lamerton General Manager, Corporate Services June 2017


MEDIA AND COMMUNICATIONS

Communications

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

HERITAGEANDTOURS

The Communications Division assumed responsibility for the Heritage program in February from the Membership and Marketing Department. This will provide a new opportunity for the heritage and communications team to work together to identify promotional opportunities to celebrate the rich history of the SCG and Allianz Stadium. The restructure also includes assuming responsibility for the precinct’s museum and tours program.

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 » News and information updates via

the Trust website » A members booklet for the

Sydney Sevens and 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 are as follows:

SCG Facebook Twitter Instagram

2016/17 100,615 20,900 16,000

2015/16 82,267 17,900 9,553

2014/15 42,219 12,400 4,595

AllianzStadium Facebook Twitter Instagram

2016/17 15,438 7,390 3,984

2015/16 11,940 6,599 3,330

2014/15 8,885 6,310 2,118

PUBLICRELATIONS

Strong emphasis was placed on the promotion of the history of Trust venues across all communication channels throughout the year. The following key events were staged:

» A plaque unveiling to commemorate the 120-year anniversary of the SCG Ladies Pavilion. The Duchess of York, Sarah Ferguson and her sister Jane were invited to unveil the plaque in the same position their great-great grandmother laid the foundation stone in 1896.

» An exclusive reunion luncheon was held to celebrate the 30-year anniversary of the Parramatta Eels’ 1986 premiership win. For many of the players, it was the first time they had stepped onto the SCG since grand final day.

A wide range of organisations held their events onsite which were supported by the Trust and generated further media exposure:

» McGrath Foundation – Sydney Test High Tea

» Carbine Club events

» Bradman Foundation Gala Dinner

» St Vincent’s Hospital Gala Dinner

AUSTRALIANRUGBYDEVELOPMENTCENTRE

The SCG Trust continues to take the lead role in actioning a communications and engagement plan related to the joint development of the Australian Rugby Development Centre by the ARU, University of Technology Sydney and the Trust. This includes sending regular letters and construction updates to local residents and key stakeholders.

MEDIA

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

» NRL Final series launch

» A Guinness World Record attempt with Cricket Australia

» A Vogue feature for women’s sport

» The Australian Golf Digest Player of the Year Awards

» The Australian Cricket Media Association annual dinner

» The Bradman Foundation Gala Dinner

AWARDS

The Trust Communications team was awarded the 2016 Australasian Leisure Management Crisis Communication Award for its efforts following the tragic accident to Phillip Hughes at the SCG and during the coronial inquest.


CORPORATE SERVICES

Financial Report

The 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 2017, resulted in an operating surplus of $1.4 million compared to the budget which projected an operating surplus of $1.2 million.

In 2014/15 and 2015/16 the Trust received grants from the NSW Government as part of its Rebuilding NSW strategy to undertake a concept design process for a new rectangular stadium to be built at Moore Park. This grant funded a significant amount of project design and associated consultancy works. In April 2016, the NSW Premier announced a re-ordering of capital investment in NSW stadia infrastructure. Allianz Stadium would now be refurbished and this would begin during the next term

of Government, post 2019. As a result, the Trust believes it is prudent financial management to expense the related $8.1 million in project design and associated consultancy costs. This resulted in a net comprehensive deficit of $6.7 million being recorded and transferred to accumulated funds, which stood at $326 million as at 28 February 2017.

During the past year, the Trust undertook a capital works program valued at $13.7 million for renewal and improvements to Trust assets.

Capital debt was reduced from $79 million to $77 million at the close of the year.

Operating Income and ExpenditureThe results for the reporting period show an increase in operating revenue before grants for $91.5 million compared to 2015/16 $86.5 million, and an increase to operating expenditure, $90.4 million compared to $84.1 million the previous year.

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

» Annual event attendance of 1.5 million patrons (1.4 million in the previous year)

» An event schedule featuring a broad range of sport and entertainment including the Cricket World Cup, 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.

» Lower demand for premium seating and corporate box rental

» Higher sale of advertising and sponsorship revenue contracts

» Higher event operating costs and employee related expenses

» Higher ground operation and maintenance costs

» Lower debt finance costs - interest paid following reduction to capital debt

» Comparable depreciation charges following completion of the Noble Bradman Messenger stands construction in 2014

» Debt repayments of $1.7 million » Capital works program

undertaken - $13.7 million

See below a detailed comment on the main aspects of the Trust’s financial performance during the past year.

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 2016/17. 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 2016/17, membership annual subscriptions revenue was $20.7 million compared to $19.1 million recorded in the previous year.

Entrance fees recorded for new members at the SCG (predominantly sales to the 12-year wait list) during 2016/17 was $649,000 compared to $586,000 in the previous year.

Entrance fees received from the sale of new Gold and Platinum memberships generated sales revenue of $5.1 million, compared to $5.7 million 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 1.5 million. Revenue from hire fees was $10.9 million, higher than the previous year $10.5 million.

Major events staged during the year included the Australia-Pakistan Test Match, two One-Day Internationals, Sydney Sixers home games, Sydney Swans fixtures, the Anzac Day Cup, NRL semi-finals, World Rugby Sevens, Asian Champions League and two outdoor concerts (Coldplay).

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 $5.2 million (food) and $6.2 million (liquor) - compared to $4.8 million and $6.2 million 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 2016/17 was $15.7 million (including newly contracted arrangements) compared to $14.8 million 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 $2.8 million compared to $2.6 million 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 box and dining room packages. The Trust markets the sale of corporate hospitality for events at the SCG and Allianz Stadium for Trust allocated areas for cricket, Sydney Swans, Sydney FC, rugby union, rugby league and concert events. Revenue from rental of private suites/corporate boxes during the year was $3.6 million, compared to $3.8 million received in

the previous year. Sale revenue for allocated premium public seating for major events generated revenue of $250,000 compared to $310,000 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, NSW Rugby, National Rugby League, Sydney Roosters, Sydney FC, Delaware North Catering and the Stadium Sports Medicine Clinic. Tenancy rental income received in 2016/17 was $4.3 million compared to $3.8 million in the previous year.

INVESTMENTMANAGEMENTPERFORMANCE

Interest received on investments totalled $168,000 as compared to interest of $142,000 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 2.34 per cent for the year ended 28 February 2017.

EVENTOPERATINGCOSTS

The Trust incurred direct event costs of $17.7 million during the year (compared to $14.3 million in the previous year) in staging all sporting and other events at the SCG and Allianz Stadium.

GROUNDOPERATIONANDMAINTENANCE

Ground operation and maintenance expenditure of $12.2 million was incurred during the past year on grounds, buildings and plant, compared to $11.9 million 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 $1.8 million were incurred during 2016/17, reflecting a reduction in sales, as compared to $1.3 million in costs for the previous year.

MARKETINGEXPENSES

Marketing funds were allocated in 2016/17 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/corporate boxes, premium seating for major events, guided tours and corporate function room facilities. Marketing expenditure during 2016/17, including advertising, promotion and publications, was $4.0 million compared to $3.7 million in the previous year.

ADMINISTRATIONANDRELATEDEXPENSES

Administrative and related expenses incurred during the past year included consulting fees ($1.1

million compared to $1.3 million in the previous year), communication expenses ($345,000 compared to $428,000), printing and stationery ($965,000 compared to $706,000), postage/freight ($151,000 compared to $155,000), insurance costs ($498,000 compared to $574,000) and accounting and legal fees ($555,000 compared to $402,000).

EMPLOYEESALARYANDWAGES

Employee salaries and wages incurred during the past year were $14.9 million compared to $14.2 million in 2015/16. 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 2016/17 which was $13.3 million, compared to the previous year, $13.1 million.

FINANCECOSTS

Trust borrowings were reduced from $79 million to $77 million as at 28 February 2017. Interest paid on capital debt during 2016/17 was lower at $3.9 million, as compared to $4.2 million recorded in the previous year.


CONSULTANTS

Consultants were appointed for a range of projects in 2016/17, with payments totalling $1.063 million. The major consultancies (above $50,000) were provided by:

» PMY Consulting: Monthly IT Services & Strategy Development - $235,000

» Turnkey Management Group: Tender Panel Assistance, Masterplan Works & Membership Strategic Plan - $212,000

» Enrich Business Consulting: SCG Experience Marketing Plan Rollout - $80,000

» S&GO Pty Ltd: Stakeholder strategy - $67,000

» Cox Architecture Pty Ltd: Masterplan Design - $58,000

» Ernst & Young: Financial Accounting/Audit Services - $57,000

» Asset Technologies: - Review and Preparation of TAM Plan $52,000

The balance of consultants 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 & app, social media planning and management, accounting services, ratings review, engineering services, turf inspection, acoustics, communications, catering service, planning advice, claims management, surveys, WHS, employment matters, building and other services.

The number of minor consultancies was 37 and the total was $302,000.

RISKMANAGEMENT,INSURANCEANDAUDIT/RISKCOMMITTEE

The Trust’s major insurance risks are covered through membership of the Treasury Managed Fund. Insurance premium costs in 2016/17 were $498,000.

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 Public 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 continued slowing of the Australian economy saw RBA reduce cash rates by 0.50 per cent to 1.50 per cent and the 10-year Commonwealth Government Bond yield increased by 0.32 per cent to

2.72 per cent by year end. Over the year, the face value of the Trust’s borrowings reduced from $77 million to $75 million, with the weighted average borrowing rate reducing to 4.74 per cent.

CAPITALWORKS

During 2016/17 the Trust managed an extensive capital works program totalling $13.7 million (compared to $19.1 million in the previous year). The major projects undertaken in 2016/17 included:

» Completion of beer system upgrade

» Completion of Sydney Swans air conditioning upgrade

» Upgrade to corporate suites » Fitness Centre spa and

pool room upgrade » Noble Bradman Stand gas

infrastructure upgrade » Allianz Stadium design works » Works associated with

ARDC/UTS Building » Catering facility upgrades » ICT network convergence

program » Trust Concept Plan design » Allianz Stadium safety and

compliance upgrade

SUMMARYOFLANDVESTEDINTHETRUST

The Trust was constituted under the Sydney Cricket and Sports

Ground Act, 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 $61.5 million as at 29 February 2016. The valuation increment recorded since the previous valuation of land, $18.5 million, was transferred to the Asset Revaluation Reserve.

During 2014/15 the Trust received an independent valuation by registered quantity surveyors, WT Partnership, regarding the replacement cost of buildings and improvements at the SCG and Allianz Stadium. The valuation was converted to a written down replacement cost by the determination of the remaining useful life of each building. The valuation increment of $14.3 million recorded since the previous valuation of buildings and improvements was transferred to the Asset Revaluation Reserve as at 28 February 2015.

As a result of the revaluations, an Asset Revaluation Reserve remains established. The balance of this Reserve as at 28 February 2017 stood at $360.8 million.


Time for Payment of AccountsListed below is a schedule of accounts payable performance as at 28 February 2017, 30 November 2016, 31 August 2016 and 31 May 2016.

AGEDANALYSISATTHEENDOFEACHQUARTER

QUARTERCURRENT

$LESSTHAN30

$30-60

$60-90

$90+

$TOTAL

$

May 1,996,367 13,559 6,811 - 50 2,016,78798.99% 0.67% 0.34% 0.00% 0.00% 100%

August 2,470,003 231,943 48,910 14,891 - 2,765,74789.30% 8.39% 1.77% 0.54% 0% 100%

November 1,646,952 605,775 9,912 - - 2,261,91972.81% 26.78% 0.41% 0% 0% 100%

February 6,728,980 131,381 818 - - 6,681,17998.08% 1.91% 0.01% 0% 0% 100%

ACCOUNTSPAIDONTIMEWITHINEACHQUARTER

QUARTER TARGET% ACTUAL%TOTALACCOUNTS

PAIDONTIMETOTALACCOUNTS

PAID

May 90% 94.46% $31,972,176 $33,847,318August 90% 97.65% $19,621,486 $20,094,712November 90% 97.89% $19,305,146 $19,722,136February 90% 98.42% $43,292,679 $43,985,634

Our 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.

INTERNALANDEXTERNALPERFORMANCEREVIEWS

Ratings agency Moody’s conducted an annual review of the Trust’s financial operations and position as at 29 February 2016. 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 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 2016/17 in hard copy as required for tabling in parliament, which were printed in-house with no external cost.

Sydney Cricket & Sports Ground Trust Annual Report 201740 41


HUMAN RESOURCESThe Human Resources department focused on a customer service strategy in the past financial year to better serve patron needs at the SCG and Allianz Stadium.

The approach has been driven by two perspectives; understanding customers and strengthening culture and processes. The strategy will ensure the right customer service behaviours aligned with Trust values are communicated, managed and embedded in the everyday decision-making of employees.

The following initiatives were implemented in the past financial year.

REVIEWSFORMANAGEMENT

The Trust has a ‘fit for purpose’ structure designed to meet corporate and strategic objectives that are reviewed on a regular basis. To ensure the structure has a simple connection with business priorities and leadership, the Trust has implemented 360 reviews for senior management. The objective is to develop a consensus from peers, direct reports and customers about the leadership needed for the management team, which included career development and building effective working relationships.

EMPLOYEEENGAGEMENT

Insync Survey Framework implemented the Trust’s employee engagement survey during the reporting period, with the process designed to align day-to-day operations with the strategic goals of the business. The survey measured eight factors that fall under the headings; energise, execute and engage. Each factor measures the extent to which the employees perceive the Trust as a best in practice business in their relevant area.

The participation rate was 84 per cent for permanent staff and 47 per cent for event day staff, which led to the following measures being put in place:

» Communication forums: Direct reports of General Managers are invited to attend a communication forum once a month to share information, ideas and encourage the direct reports to share authorised information with their colleagues.

» Keeping in touch days: A policy and procedure has been established to allow employees to attend the workplace for up to 10 keeping in touch days while they are taking unpaid parental leave of twelve months.

» Remuneration seminar: The survey raised some issues regarding the level of transparency, the management of remuneration, the link between performance and remuneration and the competitiveness of remuneration. To address this, we worked with Mercer to develop a high-level communication plan for line managers.

RECRUITMENT

The Trust appointed a new General Manager of Strategy and Projects. This role is responsible for a range of projects including the precinct masterplan and the management of consultants, government officials, sports partners and other stakeholders associated with the Trust’s development plans. Several other new roles dedicated to safety, security and presentation of our venues were also introduced.

GOVERNMENTSECTOREMPLOYMENTACT

The Trust secured changes to the act that governs our operation to allow us to directly employ all staff from 1 April 2017. Previously, while part of the broad NSW public sector, Trust staff were not employed as public servants as part of a ‘non-public service staff agency’ of the NSW Government.

This had no change to the day-to-day management of staff or their employment conditions. The shift to the private sector better suits the Trust’s commercial sporting environment and will help to secure major events for Sydney moving forward.

The Trust remains subject to the control and direction of the Minister and continues its statutory obligation to care, control and manage crown land dedicated to public recreation. The existing conditions of employment, contracts and awards, continue to apply to all employees.

TRAINING

Disability Awareness conducted by the anti-discrimination board of NSW provided training programs in the past financial year. Further e-learning modules provided to staff included:

» Fraud awareness » Electronic communication

and social media

CASUALEVENTDAYEMPLOYEES

Event day staff are a valuable part of Trust operations and progress has been made to provide a better working environment for casual employees at our venues.

Regular feedback and engagement meetings were held to understand their concerns, challenges and experiences on event days. Recruitment sessions were held in October and March where 78 customer services staff were inducted into the event day team.

The new employees attended two interactive training sessions alongside existing event day staff that addressed customer service, venue knowledge and patron safety. The new structure has delivered an overall participation rate of 74 per cent, which includes 259 customer service and 106 crowd

safety staff. Further training has been provided around emergency management and security protocol.

A structured performance review system has been implemented on event days that determines the allocation of casual shifts based on performance. An ongoing Mystery Shopper program continues to provide feedback on customer experience, which informs staff training modules.

A streamlined live reporting function for event day supervisors has also been implemented to equip staff with additional tools to provide superior service delivery.

An event day staff dashboard has been generated to act as a live indicator for tracking the overall performance of staff; including presentation standards, incentives, service delivery, absenteeism and specific areas of focus. An effort has been made to increase female crowd safety officers with a number of female employees expressing their desire to take part in certification training.

Overall, significant progress has been made to improve customer service delivery of event day staff during the reporting period.


WORKFORCE PROFILE REPORT

Trends in the Representation of Workforce Diversity Groups

Workforce Diversity Group Benchmark/Target 2014 2015 2016

Women 50% 38.6% 35.5% 36.8%

Aboriginal People and Torres Strait Islanders 2.6% 3.0% 0.9% 1.9%

People whose First Language Spoken as a Child was not English 19.0% 8.0% 8.5% 9.7%

People with a Disability N/A 2.0% 0.9% 1.9%

People with a Disability Requiring Work-Related Adjustment 1.5% 2.0% 0.9% 1.9%

Trends in the Distribution of Workforce Diversity Groups

Workforce Diversity Group Benchmark/Target 2014 2015 2016

Women 100 86 95 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

2014 Feb 2015 Feb 2016 Feb 2017 Feb

FTE Emps FTE Emps FTE Emps FTE Emps

Executive Staff 7.00 7 7.00 7 8.00 8.00 8.00 8.00

Administration 3.36 4 3.38 4 2.34 3.00 3.35 4.00

Event & Operations 17.45 19 20.70 21 23.31 27.00 20.03 22.00

Membership & Marketing 29.34 51 27.07 50.2 35.10 56.00 34.89 59.00

Commercial 6.00 6 7.00 7 5.00 5.00 2.00 2.00

Corporate Services 15.53 17 13.95 15.8 13.77 15.00 12.89 14.00

Strategy & Projects 0.00 0 3.00 3 0.00 0.00 0.00 0.00

Properties / Facilties 31.00 31 27.00 27 26.00 26.00 26.00 26.00

Media & Communications 0.00 0 1.00 1 2.00 2.00 2.00 2.00

Human Resources 3.00 3.00 3.00 3.00

109.68 135 110.10 136 118.52 145.00 112.16 140.00

Breakdown of employees

2014 2015 2016 2017

FULL TIME = 87 88 94 90

PART TIME = 21 22.8 23 23

CASUALS = 27 25.2 28 27

TOTAL EMPS = 135 136 145 140

FTE = 109.68 FTE = 110.10 FTE = 118.52 FTE = 112.16Executive Remuneration

Band 2017 2016 2015

Female Male Female Male Female Male

Band 4 (Secretary) 0 1 0 1 0 1

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

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

Band 1 (Director) 2 2 2 3 1 3

Totals 3 5 2 6 1 6

8 8 7

*Percentage of total employee-related expenditure was 13.4% for 2015/16 compared to 12.9% for 2014/15

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.


Tony Shepherd AO – Chairman COMMITTEES:BUSINESS,DEVELOPMENT&FINANCE

Bachelor of Commerce

Chairman: Macquarie Specialised Asset Management Ltd

Chairman: ASTRA

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 Director: Reardon Capital

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 13 July 2017

Rod McGeoch AO LLB – Deputy Chairman; Chairman, Development CommitteeCOMMITTEES:BUSINESS,DEVELOPMENT&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

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


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

Journalist

Chairman: Destination NSW

Chairman: Prime Media Group

Director: Australian Paralympic Committee

Life Member: Bradman Foundation

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:DEVELOPMENT

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

Former Australian Test cricket player

Wine, sport and media commentator


Steve Waugh AO COMMITTEE:DEVELOPMENT&MUSEUMANDARCHIVESTASKFORCE

International businessman & philanthropist

Former Australian Test cricket captain

Inducted into the Australian Cricket & ICC Hall of Fame 2009

Founder & Chairman: Steve Waugh Foundation, Australia/India

Queen’s Birthday Honour: Officer of the Order of Australia for services to cricket and charity 2003

Australian of the Year 2004, Australian Father of the Year 2005, named one of Australia’s ‘National Living Treasures’ 2006

Member: Laureus World Sports Academy & Sports for Good Foundation, Global

Patron: Udayan & Calcutta Girls Foundation


Maurice Newman, AC – Chairman, Finance Committee; Chairman, Audit & Risk Management

COMMITTEE:FINANCEANDAUDIT&RISKMANAGEMENT

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

Ron Graham AMCOMMITTEES:FINANCE,DEVELOPMENTANDAUDIT&RISKMANAGEMENT

Partner: Heidrick & Struggles Australia Pty Ltd

Director: Redcourt Consulting Pty Ltd

Director: Coast Distributors Pty Ltd

Director: Weary Dunlop Foundation Ltd

Former President and Chairman: NSW Rugby Union

Former President and Chairman: Australian Rugby Union

Australian Wallaby (18 Tests 1973-78)


COMMITTEE:DEVELOPMENT

CEO, Racing Australia Ltd

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


Hon Barry O’Farrell


Nihal GuptaCOMMITTEES:AUDITANDRISKMANAGEMENT,BUSINESSANDFINANCE

CEO: Palsonic Corporation Pty Ltd

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

Member: Asia Society Advisory Board of Australia

Director: Digital Electronics Corporation Australia Pty Ltd

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


Lyn LarsenCOMMITTEE:BUSINESS

Honorary Member: Lord’s Taverners, Northern NSW

Member: Cricket NSW Hall of Fame

Member: NSW Hall of Champions

Member: Sports Australia Hall of Fame

Life Member: Cricket NSW

Former Captain of the NSW and Australian Women’s cricket team


Katie PageCOMMITTEE:BUSINESS

Chief Executive Officer: Harvey Norman Holdings Limited

Executive Director: Harvey Norman Holdings Limited

Director: Pirrama Holdings Ltd (Singapore)

Director: Space Furniture Pte Ltd (Singapore)

Member – UWS Foundation Council

Member: Retail Council

Member: NSW Council for Women’s Economic Opportunity

Former Member: NSW Public Service Commission Advisory Board

Former Director: Museum of Contemporary Art Limited


David GilbertCOMMITTEE:BUSINESS

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


Phil WaughCOMMITTEES:FINANCEANDMUSEUM&ARCHIVESTASKFORCE

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


Richard Colless AMCOMMITTEE:DEVELOPMENT

Chairman: Moelis Australia Asset ManagementChairman: Honan Insurance GroupFormer Non-executive Director: Simonds Group LimitedFormer Chairman: Sydney Swans LimitedFormer Chairman: Carbine Club of NSWFormer Director: Events NSWFormer Director and Chairman: ING Management LimitedFormer Member: JP Morgan Australian Advisory BoardFormer Consultant: Mercantile MutualFormer CEO: Pacific Mutual Australia LimitedFormer Chairman: Inaugural AFL (NSW/ACT) CommissionFormer Chairman: West Coast Eagles (AFL)Life Member AFL (2006)Life Member Sydney Swans (2013)Appointed Trustee to 13 July 2017


Management organisational chart

TRUST

JAMIEBARKLEY

Chief Executive Officer

Audit & Risk Management Committee

BERNIELAMERTON

General Manager Corporate Services

JANECOLES

General Manager Membership & Marketing

DEBORAHKELLY

General Manager Strategy & Projects

JOHNNYNAOFAL

General Manager Facilities

JASONHILL

General Manager Commercial

PHILLIPHEADS

General Manager Communications, Heritage and Government Relations

VACANTPOSITION

Events & Operations

JACQUELINECUNNINGHAM

General Manager Human Resources

Finance

Membership

Master Plan

Venue & Asset Management

Corporate Hospitality

Heritage

Sports Partner Relationship

Workforce Services

Payroll Services

Stadium Fitness Centre

Design & Development

Grounds

Sponsorship

Communications Recruitment

Procurement

Marketing

Major Building Projects

Capital Works

Gold & Platinum Membership & Sales

Public Relations

Event Management

Remuneration & Benefits

Maintenance

Venue Operations

Tenant Management

WH&S and Security

Commercial Rights & Contract Negotiation

Government RelationsInformation &

Communications Technology Talent Management

Right to Information & Public Interest Disclosures

Finance Committee

Business Committee

Development Committee

TrusteeAttendanceFinanceCommitteeMeetings(4)

BusinessCommitteeMeetings(3)

DevelopmentCommitteeMeetings(6)

Audit&RiskManagementCommitteeMeetings(4)

TrustMeetings(9)

Tony Shepherd, AO 2 2 4 8

Rod McGeoch AO LLB 1 5 8

Richard Colless AM 4 7

David Gilbert 3 9

Ron Graham 4 3 4 8

Nihal Gupta 4 3 4 9

John Hartigan 2 3 8

Alan Jones AO 3 6

Lyn Larsen 3 8

Stuart MacGill 2 7

Maurice Newman, AC 4 4 9

Barry O’Farrell 4 9

Katie Page 2 8

Phil Waugh 3 9

Steve Waugh AO 1 4

Trust meetings

From 1 March 2016 to 28 February 2017, attendances by Trustees at the Finance Committee, Audit & Risk Management Committee, Business Committee, Development Committee and Trust meetings are set out below.

FinanceCommittee

BusinessCommittee

DevelopmentCommittee

Audit&RiskManagementCommittee

Maurice Newman John Hartigan Rod McGeoch Maurice Newman

Tony Shepherd Tony Shepherd Tony Shepherd Ron Graham

Rod McGeoch Rod McGeoch Richard Colless Nihal Gupta

Ron Graham David Gilbert John Hartigan

Nihal Gupta Nihal Gupta Alan Jones

Phil Waugh Lyn Larsen Steve Waugh

Stuart MacGill Barry O’Farrell

Katie Page Ron Graham


CEO AND GENERAL MANAGER PROFILES

Chief Executive Officer

Jamie Barkley was appointed as Chief Executive Officer of the Sydney Cricket and Sports Ground Trust in February 2001. He is responsible for management of the SCG and Allianz Stadium. Prior to this, Jamie was Chief Operating Officer from October 1999 and General Manager of the Sydney International Aquatic and Athletic Centres from 1994.

Jamie has a Bachelor of Arts and a Master of Business Administration from the Royal Melbourne Institute of Technology. He has over 30 years’ experience in sport and venue management.

Jamie is a Director of the Bradman Foundation and the Sydney Cricket Club.

General Manager – Corporate Services

Bernie 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, Trust Secretary as nominated in the Trust Charter and Liquor Licensee. He is responsible for preparation of the Trust’s statutory financial statements and is one of the longest serving employees at the Trust.

General Manager – Commercial

Jason 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. 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.

Jason has also undertaken the role of interim General Manager – Events and Operations during the period December 2016 to May 2017. Jason assisted with the responsibility for event acquisition, event delivery, sports partner contracts and key venue supply agreements including catering services, ticketing and merchandise.

General Manager – Membership and Marketing

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, the SCG Museum, Heritage and Tour Experience, 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 key stakeholder management. In May 2014, Jane was appointed as the second female Director of SCG Cricket (Sydney Cricket Club) assisting with the future direction and planning of the Club and the SCG XI membership group. In July 2015, Jane assumed responsibility for the broader ICT strategy across the precinct and the Trust’s new Connected Stadium Solution featuring a range of fan engagement features.

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 – Facilities

Johnny Naofal joined the Trust in February 2016 and has over 20 years’ experience as a Facilities and Operations Manager in the service/venue sector, most recently as the Director of Building Services with the International Convention Centre Sydney and at the Sydney Exhibition Centre at Glebe Island where he was part of the pre-opening and executive team since 2013.

Skilled in the management of large mass gathering and multi-site venues, Johnny has a broad range of venue operations including in FM Operations and security/safety, project management, facilities management, operational management, traffic and logistics management, precinct interface management and FF&E Asset Management. He has formal qualifications in project management, security/risk management and in business management.

General Manager – Human Resources

Jacqueline 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 facilitates the achievement of Human Resources strategic objectives that are aligned to overall business objectives.

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 and managing the Trust’s strategic real estate projects, including project planning, stakeholder management, government liaison and contract negotiation.

Deborah has 20 years of experience in equity and debt capital markets financing, mergers and acquisitions and investor relations. 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.


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 TrustUnder 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

JamieBarkley,ChiefExecutiveOfficerAnnual Salary: $571,505

The Chairman reported that the Chief Executive Officer performed to a high level during 2016-17 the financial year. Mr Barkley’s major achievements included:

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

» Increased operating revenue by 5.9 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 Gold, Platinum

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) and AFL (Sydney Swans) at the SCG and 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 Day Cup and the A-League Grand Final

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

» Construction of Australian Rugby Development Centre, home of Australian Rugby Union and University of Technology, Sydney (to be opened in 2017)

» Completion of Trust’s Concept Plan including future stages of the SCG redevelopment program, Allianz Stadium project and 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 and spa and pool plant room

» Safety and Compliance upgrade for the precinct » Additional solar powered lighting in the

MP1 car park and surrounds


FIVE-YEARREVENUEREVENUEOperatingrevenue

OperatingRevenue

GrantRevenue

On2015/16to

160

140

120

100

80

60

40

20

0 2012/13 2013/14 2014/15 2015/16 2016/17

76

67

57

761284

685

092

6%

$92m

FINANCIAL INDICATORSTHE TABLES OUTLINED BELOW DETAIL THE TRUST’S REVENUE, DEBT LEVELS, OPERATING SURPLUS, EARNINGS BEFORE INTEREST AND MEMBERSHIP RENEWAL FINANCIALS.


FIVE-YEAROPERATINGSURPLUSVBUDGET

MEMBERSHIPRENEWALS

DEBTLEVELS

OPERATINGSURPLUSExcludinggrantsandallocationofreserves

OnBudgetto

6.0

5.0

4.0

3.0

2.0

1.0

0 2012/13 2013/14 2014/15 2015/16 2016/17

20%

$1.4m

FIVE-YEAREBITDAEBITDAInlinewithbudget 25

20

15

10

5

0 2012/13 2013/14 2014/15 2015/16 2016/17

13 1417 19 18$18m

20000

15000

10000

5000

0 2012/13 2013/14 2014/15 2015/16 2016/17

2012/13 2013/14 2014/15 2015/16 2016/17

90

75

60

45

30

15

0

Actual

Budget


BEGINNING OF AUDITED FINANCIAL STATEMENTSSYDNEYCRICKETANDSPORTSGROUNDTRUST

Statement of Profit or Loss and Other Comprehensive Income for the Year Ended 28 February 2017

CONSOLIDATED PARENT

NOTES2017

$’0002016

$’0002017

$’0002016 $’000

REVENUE

Membership 2a 26,466 25,438 26,466 25,438Hire Fees 10,915 10,454 10,915 10,454Catering 2b 23,297 21,430 23,297 21,430Advertising and Sponsorship 2c 15,706 14,790 15,706 14,790Corporate Seating sales 2d 3,805 4,122 3,805 4,122Government Grant 2e - 5,800 - 5,800Other Revenue 2f 11,348 10,253 11,348 10,253

TotalRevenue 91,537 92,287 91,537 92,287

EXPENDITURE

Operating Expense 3a 54,331 48,379 54,331 48,379Employee Related Expense 3b 18,871 18,405 2,282 2,586Personnel Services Expense 3b - - 16,302 16,111Depreciation 6 13,291 13,130 13,291 13,130Finance Costs 3c 3,932 4,168 3,932 4,168

TotalExpenditure 90,425 84,082 90,138 84,374

OPERATING RESULT 1,112 8,205 1,399 7,913

Gain/(Loss) on Disposal of Plant & Equipment 2g (8,052) (5) (8,052) (5)

NETRESULT (6,940) 8,200 (6,653) 7,908

OTHERCOMPREHENSIVEINCOMEItems that will not be reclassified subsequently to profit or loss

Net increase/(decrease) in property, plant and equipment revaluation reserve 6 - 18,516 - 18,516

Actuarial gains/(losses) on defined benefit pension plans 9 287 (292) - -

TotalOtherComprehensiveIncome 287 18,224 - 18,516

TOTALCOMPREHENSIVEINCOME (6,653) 26,424 (6,653) 26,424

The accompanying notes form part of these financial statements.


SYDNEYCRICKETANDSPORTSGROUNDTRUST

Statement of Financial Position as at 28 February 2017

CONSOLIDATED PARENT

NOTES2017

$’0002016

$’0002017

$’0002016

$’000

ASSETS

CurrentAssets

Cash and Cash Equivalents 4 9,657 8,629 9,657 8,629Receivables 5 17,334 15,099 17,334 15,099Inventories 1,453 907 1,453 907

TotalCurrentAssets 28,444 24,635 28,444 24,635

Non-CurrentAssets

Property, Plant & Equipment 6 779,670 787,828 779,670 787,828Receivables 5 6,735 6,806 6,735 6,806

TotalNon-CurrentAssets 786,405 794,634 786,405 794,634

TotalAssets 814,849 819,269 814,849 819,269

LIABILITIES

Current LiabilitiesPayables 7a 21,046 14,469 19,567 13,319Other Liabilities 7b 18,197 18,279 18,197 18,279Borrowings 8 8,838 8,516 8,838 8,516Provisions 9 2,594 2,344 5,132 4,855

TotalCurrentLiabilities 50,675 43,608 51,734 44,969

Non-CurrentLiabilities

Payables 7a 4,811 7,268 4,811 7,268Other Liabilities 7b 3,332 3,070 3,332 3,070Borrowings 8 68,128 70,465 68,128 70,465Provisions 9 1,059 1,361 - -

TotalNon-CurrentLiabilities 77,330 82,164 76,271 80,803

TotalLiabilities 128,005 125,772 128,005 125,772

NetAssets 686,844 693,497 686,844 693,497

EQUITY

Reserves 360,828 360,828 360,828 360,828Accumulated Funds 326,016 332,669 326,016 332,669

TotalEquity 686,844 693,497 686,844 693,497



Statement of Changes in Equity for the Year Ended 28 February 2017

CONSOLIDATED PARENT

Notes

AccumulatedFunds$’000

AssetRevaluation

Reserve$’000

Total$’000


AssetRevaluation

Reserve$’000

Total$’000

BALANCEAT1MARCH2016 332,669 360,828 693,497 332,669 360,828 693,497

Net Result for the Year (6,940) - (6,940) (6,653) - (6,653)Other Comprehensive Income Net increase/(decrease) in property, plant and equipment revaluation reserve

6 - - - - - -

Actuarial Gains/(Losses) on defined benefit pension plans 9 287 - 287 - - -

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

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

- - - - - -

BALANCEAT28FEBRUARY2017 326,016 360,828 686,844 326,016 360,828 686,844

CONSOLIDATED PARENT

Notes


AssetRevaluation

Reserve$’000

Total$’000


AssetRevaluation

Reserve$’000

Total$’000

BALANCEAT1MARCH2015 324,761 342,312 667,073 324,761 342,312 667,073

Net Result for the Year 8,200 - 8,200 7,908 - 7,908Net increase/(decrease) in property, plant and equipment revaluation reserve

6 - 18,516 18,516 - 18,516 18,516

Actuarial Gains/(Losses) on defined benefit pension plans 9 (292) - (292) - - -

TotalComprehensiveIncomefortheyear 7,908 18,516 26,424 7,908 18,516 26,424

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

- - - - - -

BALANCEAT29FEBRUARY2016 332,669 360,828 693,497 332,669 360,828 693,497




Statement of Cash Flows for the Year Ended 28 February 2017

CONSOLIDATED PARENT

NOTES 2017$’000

2016 $’000

2017$’000

2016 $’000

CASHFLOWSFROMOPERATINGACTIVITIES

Receipts

Receipts from Operations 99,873 86,443 99,873 86,443Government Grants - 5,800 - 5,800Interest Received 168 142 168 142Other 543 882 543 882

TotalReceipts 100,584 93,267 100,584 93,267

Payments

Suppliers and Employees (77,716) (61,399) (77,716) (61,399)Interest Paid (4,049) (4,304) (4,049) (4,304)Other (2,672) (2,770) (2,672) (2,770)

TotalPayments (84,437) (68,473) (84,437) (68,473)

NETCASHFLOWSFROMOPERATINGACTIVITIES 14b 16,147 24,794 16,147 24,794

CASHFLOWSFROMINVESTINGACTIVITIES

Purchase of Property, Plant and Equipment (13,651) (19,067) (13,651) (19,067)

Proceeds from Sale of Plant and Equipment 193 173 193 173

NETCASHFLOWSFROMINVESTINGACTIVITIES (13,458) (18,894) (13,458) (18,894)

CASHFLOWSFROMFINANCINGACTIVITIES

Proceeds from Borrowings - - - -Repayment of Borrowings (1,661) (2,164) (1,661) (2,164)

NETCASHFLOWSFROMFINANCINGACTIVITIES (1,661) (2,164) (1,661) (2,164)

NetIncrease/(Decrease)inCashandCashEquivalents 1,028 3,736 1,028 3,736

Opening Cash and Cash Equivalents 8,629 4,893 8,629 4,893

CLOSINGCASHANDCASHEQUIVALENTS 14a 9,657 8,629 9,657 8,629


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.

The Sydney Cricket & Sports Ground Trust Staff Agency (the Agency) is a Public Service Agency, established pursuant to schedule 1 of the Government Sector Employment Act 2013 (GSEA).

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. The consolidated Financial Statements of the Trust include the activities of this Agency. The enactment of this legislation resulted in the assets and liabilities of the previous entity (the Sydney Cricket and Sports Ground Trust Division) being transferred to the new entity (the Sydney Cricket and Sports Ground Trust Staff 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.

In the process of preparing the consolidated financial statements for the Trust, consisting of the controlling and controlled entities, all inter-Trust transactions and balances have been eliminated.

These financial statements for the year ended 28 February 2017 have been authorised for issue by the Audit and Risk Committee on 14 June 2017.

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 has 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, in accordance with Treasury’s Mandate to not-for-profit general government sector entities.

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.


Notes to the Financial Statements for the Year Ended 28 February 2017


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.

(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. The last comprehensive revaluation of buildings was completed on 28 February 2015 and the last interim formal revaluation was completed on 28 February 2017, both based on an independent assessment. A full revaluation of land was completed on 29 February 2016 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.

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.

(v)Depreciationofproperty,plantandequipmentProperty, 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%

(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


Notes to the Financial Statements for the Year Ended 28 February 2017SYDNEYCRICKETANDSPORTSGROUNDTRUST



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 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)DerecognitionoffinancialassetsandfinancialliabilitiesA 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)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 derecognition.

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 Pillar Administration. In accordance with NSW Treasury policy TC 14-05 Accounting for Superannuation and AASB 119 Employee Benefits, the consolidated entity recognises actuarial gains and losses and the actual return on fund assets for defined benefit superannuation schemes outside of the surplus/(deficit) in the ‘other comprehensive income’. The actuarial gains and losses for defined benefit superannuation schemes are expensed by the parent entity as part of their personnel service expenses. 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 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 13 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 Policy, Including New or Revised Australian Accounting StandardsThe accounting policies applied in 2016-17 are consistent with those of the previous financial year.

At 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 17-04.

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 1058 Income of Not-for-profit Entities

» AASB 2016-1 Amendments to Australian Accounting Standards – Recognition of Deferred Tax Assets for Unrealised Losses

» AASB 2016-2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 107

» AASB 2016-4 Amendments to Australian Accounting Standards – Recoverable Amount of Non-Cash-Generating Specialised Assets of Not-for-Profit Entities

» 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 2017-2 Amendments to Australian Accounting Standards – Further Annual Improvements 2014-2016 Cycle

It is considered that the implementation of these Standards will not have any material impact 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

CONSOLIDATED PARENT

2017$’000

2016 $’000

2017$’000

2016 $’000

(a) Membership

Membership Annual Subscriptions 20,693 19,125 20,693 19,125SCG Member Entrance Fees 649 586 649 586Platinum/Gold Member Entrance Fees 5,124 5,727 5,124 5,727

26,466 25,438 26,466 25,438

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

Liquor Sales 18,133 16,676 18,133 16,676Food Sales Commission 4,191 4,007 4,191 4,007Contract Premium Amortisation 973 747 973 747

23,297 21,430 23,297 21,430

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.

(c) Advertising and Sponsorship

ADVERTISING&SPONSORSHIP 15,706 14,790 15,706 14,790

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.





CONSOLIDATED PARENT

2017$’000

2016 $’000

2017$’000

2016 $’000

(d) Corporate Seating Sales

Premium Seating 250 310 250 310Private/Corporate Boxes 3,555 3,812 3,555 3,812

3,805 4,122 3,805 4,122

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) Government Grants

NSWGOVERNMENTGRANT - 5,800 - 5,800

In 2015/16 the Trust received a grant of $5.8M from the NSW Government to undertake a concept design process for the future National Football Stadium project.

(f) Other Revenue

Merchandising 585 792 585 792Ticketing 1,198 1,028 1,198 1,028Parking Fees 2,143 2,183 2,143 2,183Interest Received 168 142 168 142Rental Income 4,307 3,832 4,307 3,832Contributions 1,961 1,428 1,961 1,428Insurance Recoveries 81 35 81 35Sundry 905 813 905 813

11,348 10,253 11,348 10,253

(g) Gain / (Loss) on Disposal of Plant & Equipment

Proceeds from Disposal 193 173 193 173Written down value of assets disposed (8,245) (178) (8,245) (178)

Gain/(Loss)ondisposalofPlant&Equipment (8,052) (5) (8,052) (5)

In November 2014, the NSW Government earmarked funding for sports infrastructure as part of its Rebuilding NSW strategy. Subsequently, the Trust received government grants in 2014 and 2015 to develop a concept design to deliver a world-class new National Rectangular Stadium (NRS) at Moore Park. In April 2016, the NSW Government announced a $1.6 billion package for Sydney Stadium redevelopment, including the refurbishment of Allianz Stadium, to begin during the next term of Government, post 2019. While the Allianz Stadium project remains under active consideration, there is no evidence to demonstrate committed funding from the Government at this time for the project. As such, the sum $8.101M expended on the NRS concept design has been written off as at 28 February 2017. The write-off of design expenditure has been included in Gain/(Loss) on Disposal of Property, Plant & Equipment.

3. ExpenditureCONSOLIDATED PARENT

2017$’000

2016 $’000

2017$’000

2016 $’000

(a) Operating Expenses

Event Operating Costs 17,660 14,329 17,660 14,329Ground Operation & Maintenance 12,240 11,931 12,240 11,931Liquor Cost of Goods Sold 5,641 5,029 5,641 5,029Liquor Management Fee 6,248 5,477 6,248 5,477Corporate Seating Expenses 1,792 1,296 1,792 1,296Marketing Expenses 3,989 3,746 3,989 3,746Advertising & Sponsorship 2,826 2,569 2,826 2,569Audit Fees (Audit Office of NSW) 115 115 115 115Accounting and Legal Services 555 402 555 402Consultant Fees 1,063 1,285 1,063 1,285Architects Fees 93 83 93 83Travel 98 173 98 173Postage/Freight 151 155 151 155Communication Expenses 345 428 345 428Printing and Stationery 965 706 965 706Bad Debts Written off 19 81 19 81Insurance 498 574 498 574Members Seating 33 - 33 -

54,331 48,379 54,331 48,379

The Audit Office of NSW’s fee for auditing the annual financial statements for the year ended 28 February 2017 is $115,000 ($115,000) in 2016).

Reconciliation – Total Maintenance:

Ground Operation & Maintenance expense as above 9,137 8,880 9,137 8,880

Employee related maintenance expense include in Note 3(b) 3,711 3,269 3,711 3,269

Total maintenance expenses included in Note 3(a) + 3(b) 12,848 12,149 12,848 12,149





CONSOLIDATED PARENT

2017$’000

2016 $’000

2017$’000

2016 $’000

(b) Employee Related Expense

Salaries and Wages 14,872 14,165 1,965 1,624Trustees Remuneration 192 211 192 211Annual Leave and Long Service Leave 1,448 1,198 - -Superannuation 1,239 1,301 (287) 292Workers Compensation (240) 166 - -Payroll Tax 808 786 - -Other Staff Related Expenses 552 578 412 459

18,871 18,405 2,282 2,586

Personnel Services - - 16,302 16,111

18,871 18,405 18,584 18,697

(c) Finance Costs

Interest on Loans 3,635 3,887 3,635 3,887Other Finance Charges 297 281 297 281

3,932 4,168 3,932 4,168

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 9,652 8,625 9,652 8,625NSW Treasury Corporation Hour-Glass 5 4 5 4

CashandcashequivalentsperStatementofFinancialPosition 9,657 8,629 9,657 8,629

CashandcashequivalentsperStatementofCashFlows 9,657 8,629 9,657 8,629

The fair value measurement hierarchy for NSW Treasury Corporation Hour-Glass facility is Level 2. Refer Note 13 for details regarding credit risk, liquidity risk and market risk arising from financial instruments.

5. ReceivablesCONSOLIDATED PARENT

2017$’000

2016 $’000

2017$’000

2016 $’000

CURRENT:

Prepayments 3,036 2,934 3,036 2,934Accrued Income 8,013 2,050 8,013 2,050Catering Debtors 2,326 3,136 2,326 3,136Sundry Debtors 3,680 6,807 3,680 6,807Allowance for impairment (21) (28) (21) (28)Finance Lease Receivable 300 300 300 300

17,334 15,099 17,334 15,099

NON-CURRENT:

Finance Lease Receivable 4,472 4,494 4,472 4,494Prepayments 2,263 2,312 2,263 2,312

6,735 6,806 6,735 6,806

MOVEMENTINTHEALLOWANCEFORIMPAIRMENT

Balance at 1 March 128 66 128 66Amounts written off during the year - (31) - (31)Amounts received during the year (128) (35) (128) (35)Increase/(decrease) in allowance recognised in surplus or deficit 21 128 21 128

Balanceatreportingdate 21 128 21 128

FINANCELEASERECEIVABLE

2017$’000

Gross Investment

2017$’000

Present Value

2016 $’000

Gross Investment

2016 $’000

Present Value

< 1 year 300 300 300 300> 1 year < 5 years 1,200 1,035 1,200 1,035> 5 years 11,643 3,437 11,943 3,459

13,143 4,772 13,443 4,794

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 2017 stood at $8.4M (29 February 2016: $8.7M). Contingent rentals relating to CPI adjustment of $47,411 were collected during 2017 ($40,768 in 2016). Details regarding credit risk, liquidity risk and market risk, including financial assets that are either past due or impaired, are disclosed in Note 13.





6. Property, Plant and EquipmentCONSOLIDATED PARENT

2017$’000

2016 $’000

2017$’000

2016 $’000

Land at Valuation 61,519 61,519 61,519 61,519Buildings and Improvements (at fair value) 887,169 884,508 887,169 884,508Accumulated Depreciation (183,355) (171,579) (183,355) (171,579)

703,814 712,929 703,814 712,929

Plant and Equipment (at fair value) 29,669 27,459 29,669 27,459Accumulated Depreciation (15,332) (14,079) (15,332) (14,079)

14,337 13,380 14,337 13,380

TotalCarryingAmount 779,670 787,828 779,670 787,828

The Trust’s current Industrial Special Risks insurance policy as at 28 February 2017 provides a cover on buildings, plant & equipment to the value of $1,108M ($1,092M in 2016).

RECONCILIATIONS

2017LAND$’000

BUILDINGS$’000

PLANTANDEQUIPMENT

$’000TOTAL$’000

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

2016

Carrying amount as at 1 March 2015 43,003 708,451 13,397 764,851Net Revaluation Increment 18,516 - - 18,516Additions - 16,557 1,212 17,769Reclassification - (456) 456 -Disposals - - (178) (178)Depreciation Expense - (11,623) (1,507) (13,130)

Carryingamountasat29February2016 61,519 712,929 13,380 787,828

VALUATIONOFLAND,BUILDINGSANDIMPROVEMENTS

(a) Fair Value Hierarchy

2017LEVEL 1

$’000LEVEL 2

$’000LEVEL 3

$’000

TOTAL FAIR VALUE

$’000

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

- - 765,333 765,333

2016LEVEL 1

$’000LEVEL 2

$’000LEVEL 3

$’000

TOTAL FAIR VALUE

$’000

PropertyLand - - 61,519 61,519Buildings - - 712,929 712,929

- - 774,448 774,448




(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 and 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. The valuation increment recorded since the previous valuation of land, $18.5M, was transferred to the Asset Revaluation Reserve.

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 2014/15 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 $14.3m recorded since the previous valuation of buildings and improvements was transferred to the Asset Revaluation Reserve as at 28 February 2015.

As a result of the revaluations, an Asset Revaluation Reserve remains established. The balance of this Reserve as at 28 February 2017 stood at $360.8M (29 February 2016: $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.

CONSOLIDATED PARENT

2017$’000

2016 $’000

2017$’000

2016 $’000

(a) PayablesCURRENT:

Sundry Creditors 11,864 6,857 11,864 6,857Accruals 5,543 4,014 4,064 2,864Finance Lease Payable 2,457 2,381 2,457 2,381GST Payable 70 45 70 45Interest Payable 1,112 1,172 1,112 1,172

21,046 14,469 19,567 13,319

NON-CURRENT:

Finance Lease Payable 4,811 7,268 4,811 7,268

4,811 7,268 4,811 7,268

Details regarding credit risk, liquidity risk and market risk, including a maturity analysis of the above payables are disclosed in Note 13.

(b) Other LiabilitiesCURRENT:

Subscriptions Paid in Advance 11,639 11,192 11,639 11,192Rents Paid in Advance 1,378 1,318 1,378 1,318Advertising – Fees in Advance 2,005 2,137 2,005 2,137Catering – Licence Fees in Advance 1,040 400 1,040 400Other Deferred Income 2,135 3,232 2,135 3,232

18,197 18,279 18,197 18,279

NON-CURRENT:

Catering – Licence Fees in Advance 2,773 1,467 2,773 1,467Other Deferred Income 559 1,603 559 1,603

3,332 3,070 3,332 3,070

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

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)

FairValueasat28February2017 61,519 703,814 765,333

2016 LEVEL3

LAND $’000

BUILDINGS $’000

TOTAL RECURRING LEVEL 3

FAIR VALUE $’000

Fair Value as at 1 March 2015 43,003 708,451 751,454Additions/Reclassifications - 16,101 16,101Revaluation Increments/decrements recognised in other comprehensive income – including in the line item/’Net increase/(decrease) in property, plant and equipment revaluation reserve’

18,516 - 18,516

Depreciation - (11,623) (11,623)

FairValueasat29February2016 61,519 712,929 774,448





9. ProvisionsCONSOLIDATED PARENT

(a) Employee Entitlements 2017$’000

2016 $’000

2017$’000

2016 $’000

CURRENT:

Provision for Annual Leave and on-costs 1,202 1,076 - -Provision for Long Service Leave and on-costs 1,392 1,268 - -

2,594 2,344 - -

NON-CURRENT:

Provision for Long Service Leave and on-costs 278 321 - -

Defined superannuation liability 781 1,040 - -

1,059 1,361

3,653 3,705 - -

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) Personnel ServicesCURRENT

Personnel services in respect of employee entitlements of the Division - - 5,132 4,855

The aggregate employee benefit liability Recognised and included in the financial statements is as follows Accrued salaries, wages and on-costs 1,479 1,150

- -

Provision for employee benefits (current) 2,594 2,344 - -Provision for employee benefits (non-current) 278 321 - -

Defined benefit liability (non-current) 781 1,040 - -

5,132 4,855 - -

8. Borrowings

CONSOLIDATED PARENT

2017$’000

2016 $’000

2017$’000

2016 $’000

CURRENT:

NSW Treasury Corporation Loans 8,838 8,516 8,838 8,516

8,838 8,516 8,838 8,516

NON-CURRENT:

NSW Treasury Corporation Loans 68,128 70,465 68,128 70,465

68,128 70,465 68,128 70,465

Total 76,966 78,981 76,966 78,981

SIGNIFICANTTERMS&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 13.





Description of risksThere 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.

Description of Significant EventsThere were no fund amendments, curtailments or settlements during the period.

(c) Superannuation – Defined Benefits PlanThe Trust has a $780,569 ($1,040,082 in 2016) net liability for the employer’s obligation to defined benefit superannuation schemes at the Trust.

The funding position at 28 February 2017 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 Pillar Administration:

FUND ESTIMATEDRESERVEACCOUNTSFUNDS

ACCRUEDLIABILITY

NETLIABILITYATYEAREND

2017$’000

2016 $’000

2017$’000

2016 $’000

2017$’000

2016 $’000

SASS 2,428 2,170 3,054 3,042 626 872SANCS 127 105 281 273 155 168

2,555 2,275 3,335 3,315 781 1,040




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

FundinformationThe 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.

Description of the regulatory frameworkThe 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.

Description of other entities’ responsibilities for the governance of the fundThe 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

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 from 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


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)

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.

SASS2016

$’000

SANCS2016

$’000

Reconciliationofthefairvalueoffundassets:

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 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 after 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 0 0Contributions to accumulation section 0 0Past service cost 0 0Settlements 0 0Exchange rate changes 0 0

Presentvalueofdefinedbenefitobligationsatendoftheperiod 3,054 281

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





VALUATIONMETHODANDPRINCIPALACTUARIALASSUMPTIONSATTHEBALANCEDATE:

(a)SignificantActuarialAssumptionsatreportingdate: 28FEB2017

Salary increase rate (excluding promotional increases)

2.5% 2016/2017 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% 2016/2017; 2.25% 2017/2018; 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.

MaturityprofileofdefinedbenefitobligationThe 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

Definedbenefitobligation(A$) 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


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


Asat30November2016(mostrecentavailable)

AssetcategoryTotal

(A$’000)

Quotedpricesinactivemarketsforidentical

assetsLevel1(A$’000)

Significantobservable

inputsLevel2(A$’000)

UnobservableinputsLevel3

(A$’000)

Short Term Securities 2,229,551 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:

As at 30-Nov-16Short 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%

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.





Base Case

Scenario G +5% pensioner mortality rates

Scenario H -5% pensioner mortality rates


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 2016. 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

SANCS2017

$’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:

SASS Multiple of member

contributions

SANCS % member

salary

0.00 0.00




(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 2016 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

ExpectedrateofCPIincrease 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.


SASS2016

$’000

SANCS2016

$’000

Net Defined Benefit Liability/(Asset) at start of year 584 157Current service cost 30 9Net Interest on the net defined benefit liability/(asset) 14 4Past service cost 0 0(Gains)/losses arising settlements 0 0Actual return on fund assets less Interest income 94 4Actuarial (gains)/losses arising from changes in demographic assumptions 230 (2)Actuarial (gains)/losses arising from changes in financial assumptions 21 2Actuarial (gains)/losses arising from liability experience (63) 6Adjustment for effect of asset ceiling 0 0Employer contributions (38) (12)Effects of transfers in/out due to business combinations and disposals 0 0



Reconciliationofthefairvalueoffundassets:SASS2016

$’000

SANCS2016

$’000

Fair value of Fund assets at beginning of the period 2,142 95Interest income 50 2Actual return on Fund assets less Interest income (94) (4)Employer contributions 38 12Contributions by participants 26 0Benefits paid 2 0Taxes, premiums & expenses paid 6 0Transfers in 0 0Contributions to accumulation section 0 0Settlements 0 0Exchange rate changes 0 0



Present value of defined benefit obligations at beginning of the year before contribution tax assumption change 2,726 253

Current service cost 29 9Interest cost 64 6Contributions by participants 26 0Actuarial (gains)/losses arising from changes in demographic assumptions 229 (2)Actuarial (gains)/losses arising from changes in financial assumptions 21 2Actuarial (gains)/losses arising from liability experience (63) 6Benefits paid 3 0Taxes, premiums & expenses paid 7 (1)Transfers in 0 0Contributions to accumulation section 0 0Past service cost 0 0Settlements 0 0Exchange rate changes 0 0



SASS2016

$’000

SANCS2016

$’000










Actuarial (gains) losses on liabilities 187 6Actual return on Fund assets less Interest income 95 4Adjustment for effect of asset ceiling 0 0

Totalre-measurementinOtherComprehensiveIncome 282 10

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.




Assetcategory Total(A$’000)

Quotedpricesinactivemarketsfor

identicalassetsLevel1(A$’000)



Unobservableinputs

Level3(A$’000)

Short Term Securities 2,978,555 2,943,012 35,542 -Australian Fixed Interest 2,650,946 27,895 2,623,051 -International Fixed Interest 828,608 (75) 828,683 -

Australian Equities 9,512,077 9,057,851 446,022 8,204International Equities 12,451,509 9,268,278 2,180,440 1,002,792Property 3,438,598 1,036,559 701,343 1,700,696Alternatives 7,790,660 557,505 3,108,946 4,124,209

Total 39,650,953 22,891,025 9,924,027 6,835,901


ASAT 30-NOV-15

Short Term Securities 7.5%Australian Fixed Interest 6.7%International Fixed Interest 2.1%Australian Equities 24.0%International Equities 31.4%Property 8.7%Alternatives 19.6%

Total 100.0%







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 include $179.0M in the NSW government bonds.

Valuationmethodandprincipalactuarialassumptionsatthebalancedate:



2.5% 2015/2016 to 2018/2019; 3.50% 2019/2020 and 2020/2021;



Expected rate of return on assets 7.8%


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 12 years.



Base CaseScenario A


+1.0% discount rate



Base Case



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



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



Base Case

Scenario G +0.5% pensioner

mortality rates

Scenario H -0.5% pensioner

mortality rates





SASS2016

$’000

SANCS2016

$’000





SASS2016

$’000

SANCS2016

$’000




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.



Expected rate of return on fund assets backing current pension liabilities 7.8% paExpected rate of return on fund assets backing other liabilities 6.8% pa

Expected salary increase rate 3.0% to 30 June 2019, then 3.5% pa thereafter







10. Capital And Other Expenditure CommitmentsCONSOLIDATED PARENT

2017$’000

2016 $’000

2017$’000

2016 $’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 - 1,611 -- Later than 1 year but not later than 5 years - - - -

Total(includingGST) 1,611 - 1,611 -

FinanceLeaseCommitments:Future non-cancellable finance lease not provided for and payable:

PrincipalCommitments

- Not later than 1 year 2,457 2,381 2,457 2,381- Later than 1 year but not later than 5 years 4,811 7,268 4,811 7,268

- Later than 5 years - - - -

Total(includingGST) 7,268 9,649 7,268 9,649

Futurenon-cancellablefinanceleaserentalspayable:- Not later than 1 year 2,646 2,646 2,646 2,646- Later than 1 year but not later than 5 years 4,960 7,606 4,960 7,606


Total(includingGST) 7,606 10,252 7,606 10,252

OperatingLeaseCommitments:Future non-cancellable operating lease rentals not provided for and payable:

- Not later than 1 year 315 236 315 236- Later than 1 year but not later than 5 years 263 - 263 -


Total(includingGST) 578 236 578 236

The total operating leases contracted at 28 February 2017 but not provided for in the financial statements.

RugbyAustraliaHouse:The Trust holds a construction licence with ARU/UTS for the current construction of the Rugby Australia House project to be completed in late 2017. The Trust receives $20,000 per month in construction licence fees. When construction is completed, the Trust will enter into 25 year leases (plus two further options of 25 years each) with both ARU and UTS based on payment of annual land rent.


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 2017 to be material (2016 – nil).

11. Trustees RemunerationThe Trust is classified as an Advisory Board thereby enabling the payment of fees to Trust members.

Fees totalling $192,000 ($210,583 in 2016) were paid to the Trustees in accordance with rates determined by the Department of Premier and Cabinet.

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.

12. 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.

13. 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.




(a) Financial Instrument Categories

CONSOLIDATED PARENT

CLASS NOTES CATEGORY 2017$’000

2016 $’000

2017$’000

2016 $’000

FinancialAssetsCash and Cash Equivalents 4 N/A 9,657 8,629 9,657 8,629

Receivables (1) 5 Loans and Receivables (at amortised cost) 18,770 17,409 18,770 17,409

Total 28,427 26,038 28,427 26,038

FinancialLiabilities

Payables (2) 7(a) Financial Liabilities (at amortised cost) 25,788 21,692 25,788 20,542

Borrowings 8 Financial Liabilities (at amortised cost) 76,966 78,981 76,966 78,981

Total 102,754 100,673 102,754 99,524

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 2016. The analysis assumes that all other variables remain constant.

Interest Rate RiskThe Trust’s exposure to market interest rates relates primarily to the Trust’s long term debt obligations and cash and cash equivalents.


CashandCashEquivalentsA 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.

CONSOLIDATED $‘000 -0.25% 0.25%

CARRYINGAMOUNT PROFIT EQUITY PROFIT EQUITY

2017FinancialAssetsCash and Cash Equivalents 9,652 (24.1) (24.1) 24.1 24.1

2016FinancialAssets

Cash and Cash Equivalents 8,625 (21.6) (21.6) 21.6 21.6

PARENT $‘000 -0.25% 0.25%

CARRYINGAMOUNT PROFIT EQUITY PROFIT EQUITY






ManagedDebtPortfolioThe Trust’s policy is to manage its finance costs using a mix of fixed and variable rate debt.

At 28 February 2017 100% of the Trust’s borrowings were at a fixed rate of interest (2016: 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 2017, if interest rates had moved, as illustrated in the table below, with all other variables held constant, TCorp have estimated that post tax surplus and equity would have been affected as follows:

OPERATINGRESULTIMPACT

EQUITYIMPACT

2017$’000

2016 $’000

2017$’000

2016 $’000

Consolidated Increase/DecreaseinbasispointsAUD 100 (1%) 3,313 3,352 3,313 3,352

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 2017$000

2016 $000

Cash Facility Cash, Money market instruments Up to 1.5 years - 4

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

2017$’000

2016 $’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 2017.


(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.

(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

Asat28February2017 2,082 13 107 313As at 29 February 2016 865 847 40 2,322

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 was $19,000 of impaired receivables at reporting date. ($116,000 in 2016).

(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.

Maturity analysis of financial liabilities is based on management’s expectation.




MATURITYANALYSISANDINTERESTRATEEXPOSURE

CONSOLIDATED 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

2017 $‘000 $‘000 $‘000 $‘000 $‘000 $‘000 $‘000

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

2016


PARENT 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

2017 $‘000 $‘000 $‘000 $‘000 $‘000 $‘000 $‘000


2016


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 $33,000 security deposit guarantee (Sydney Water).

The Trust holds a bank guarantee facility of $2.3M, with $30,651 in use (2016: $63,651) (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. 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 2017 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:

CONSOLIDATED PARENT

2017$’000

2016 $’000

2017$’000

2016 $’000

Cash 9,652 8,625 9,652 8,625NSW Treasury Corporation Hour-Glass 5 4 5 4

9,657 8,629 9,657 8,629

(b) Reconciliation From the Surplus/ (Deficit) to the Net Cash Flows From Operations

Surplus/(deficit) for the year 1,161 8,200 1,448 7,908

Depreciation 13,291 13,130 13,291 13,130Increase (Decrease) in Debt Transactions (354) (375) (354) (375)Actuarial gains/(losses) on defined benefit pension plans 287 (292) - -

Loss (Gain) on Sale of Non-Current Assets (49) 5 (49) 5Increase (Decrease) in Creditors 4,457 11,201 4,457 11,201Decrease (Increase) in Inventories (546) 198 (546) 198Decrease (Increase) in Debtors (2,047) (7,681) (2,047) (7,681)Increase (Decrease) in Provisions (53) 408 (53) 408

NetCashFromOperatingActivities 16,147 24,794 16,147 24,794

Firmly committed long-term financing facilities of $95M were available to the Trust at 28 February 2017.

As at that date, $76.966M ($78.891M in 2016) of these facilities was in use.

15. Post Balance Date EventsNo post balance date events have occurred which would materially affect the financial statements.

ENDOFAUDITEDFINANCIALSTATEMENTS


BEGINNING OF FINANCIAL STATEMENTSSYDNEYCRICKETANDSPORTSGROUNDTRUSTSTAFFAGENCY

Statement of Profit or Loss and Other Comprehensive Income for the Year Ended 28 February 2017

NOTES 2017$’000

2016 $’000

REVENUE

Personnel Services 16,015 16,403

TotalRevenue 16,015 16,403

EXPENDITUREEmployee Related Expenses 2 16,302 16,111

TotalExpenditure 16,302 16,111

NETRESULT (287) 292

Other Comprehensive IncomeItems that will not be reclassified subsequentlyto profit or loss

Actuarial Gain/(Loss) on defined benefit plans. 287 (292)

TotalOtherComprehensiveIncomefortheyear 287 (292)

TOTALCOMPREHENSIVEINCOME - -


NOTES 2017$’000

2016 $’000

ASSETS

Current Assets

Receivables 3 5,132 4,855

TotalCurrentAssets 5,132 4,855

Non-Current Assets

TotalNon-CurrentAssets - -

TotalAssets 5,132 4,855

LIABILITIESCurrent LiabilitiesPayables 4 1,479 1,150

Employee Provisions 5 2,594 2,344

TotalCurrentLiabilities 4,073 3,494

Non Current LiabilitiesEmployee Provisions 278 321

Superannuation Liability 5 781 1,040

TotalNonCurrentLiabilities 1,059 1,361

TotalLiabilities 5,132 4,855

NetAssets - -

EQUITYAccumulated Funds - -

TotalEquity - -


SYDNEYCRICKETANDSPORTSGROUNDTRUSTSTAFFAGENCY

Statement of Financial Position as at 28 February 2017


NOTES ACCUMULATEDFUNDS TOTAL

$’000 $’000BalanceAt1March2016 - -Surplus/(Deficit) for the Year (287) (287)

OTHERCOMPREHENSIVEINCOME

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

TotalComprehensiveIncomefortheyear - -

BALANCEAT28FEBRUARY2017 - -

BALANCEAT1MARCH2015 - -

Surplus/(Deficit) for the Year 292 292

OTHER COMPREHENSIVE INCOMEActuarial Gains/(Losses) on defined benefit pension plans (292) (292)

TotalComprehensiveIncomefortheyear - -

BALANCEAT29FEBRUARY2016 - -



Statement of Changes in Equity for the Year Ended 28 February 2017

NOTES 2017 2016

$’000 $’000NET CASH FLOWS FROM OPERATING ACTIVITIES - -

NET CASH FLOWS FROM INVESTING ACTIVITIES - -

NET CASH FLOWS FROM FINANCING ACTIVITIES - -

NETINCREASE/(DECREASE)INCASHANDCASHEQUIVALENTS - -

Opening Cash and cash equivalents - -

CLOSINGCASHANDCASHEQUIVALENTS - -



Statement of Cash Flows for the Year Ended 28 February 2017


(f) Payables Payables include accrued wages, salaries, and related on costs (such as payroll tax, fringe benefits tax and workers’ compensation insurance) where there is certainty as to the amount and timing of settlement.

A payable is recognised when a present obligation arises under a contract or otherwise. It is derecognised when the obligation expires or is discharged, cancelled or substituted.

A short-term payable with no stated interest rate is measured at historical cost if the effect of discounting is immaterial.

(g) Salaries and Wages, Employee Benefit Provisions and Expenses 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. Annual leave is not expected to be settled wholly before 12 months after the end the annual reporting period in which the employees render the related service. As such it is required to be measured at present value in accordance with AASB 119 Employee Benefits.

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.

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 are recognised as other comprehensive income for the reporting period as calculated and advised by Pillar Administration. In accordance with NSW Treasury policy TC 14-05 Accounting for Superannuation and AASB 119 Employee Benefits, the consolidated entity recognises actuarial gains and losses and the actual return on fund assets for defined benefit superannuation schemes outside of the surplus/(deficit) in the ‘other comprehensive income’. The actuarial gains and losses for defined benefit superannuation schemes are expensed by the parent entity as part of their personnel service expenses. 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.

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

1. Summary of Significant Accounting Policies

(a) Reporting Entity The Sydney Cricket & Sports Ground Trust Staff Agency (the Agency) is a Public Service Agency, established pursuant to Schedule 1 of the Government Sector Employment Act 2013 (GSEA). The Trust is a not for profit entity (profit is not its principle objective). The reporting entity is consolidated as part of the Sydney Cricket and Sports Ground Trust Accounts. The entity employs and remunerates all Trust permanent and casual employees, excluding Trustees and contracted event day casual staff.

The Agency was established on 24 February 2014 under the Government Sector Employment Act 2013 (GSEA) to provide personnel services to the Trust. The enactment of this legislation resulted in the assets and liabilities of the previous entity (the Sydney Cricket and Sports Ground Trust Division) being transferred to the new entity (the Sydney Cricket and Sports Ground Trust Staff 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.

The Agency is domiciled in Australia and its principal office is at Moore Park Road, Paddington.

(b) Basis of Preparation The Agency’s financial statements are general purpose financial statements prepared in accordance with the requirements of Australian Accounting Standards (including Australian Accounting Interpretations), the Public Finance and Audit Act 1983, the Public Finance and Audit Regulation 2015 and specific directions issued by the Treasurer.

Generally, the historical cost convention has been adopted and the financial statements do not take into account changing money values or current valuations. However, certain provisions are measured at fair value.

The accrual basis of accounting has been adopted in the preparation of the financial statements, except for cash flow information.

Management’s judgements, key assumptions and estimates 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 Agency’s financial statements for the year ended 28 February 2017 has been authorised for issue by the Trust on 14 June 2017.

The Agency’s financial statements comply with Australian Accounting Standards (which includes Australian Accounting Interpretations).

(d) Revenue RecognitionRevenue is measured at the fair value of the consideration received or receivable. Revenue from the rendering of personnel services is recognised when the service is provided and only to the extent that the associated recoverable expenses are recognised.

(e) Receivables A receivable is recognised when it is probable that the future economic benefits associated with it will be realised and it has a value that can be measured reliably. It is derecognised when the contractual or other rights to future economic benefits from it expire or are transferred.

A receivable is measured initially at fair value and subsequently at amortised cost using the effective interest rate method, less any allowance for impairment. A short-term receivable with no stated interest rate is measured at the original invoice amount where the effect of discounting is immaterial. An invoiced receivable is due for settlement within thirty days of invoicing.

If there is objective evidence at year-end that a receivable may not be collectable, its carrying amount is reduced by means of an allowance for impairment and the resulting loss is recognised in the statement of comprehensive income. Receivables are monitored during the year and bad debts are written off against the allowance when they are determined to be irrecoverable. Any other loss or gain arising when a receivable is derecognised is also recognised in the statement of comprehensive income.


Notes to the Financial Statements for the Year Ended 28 February 2017SYDNEYCRICKETANDSPORTSGROUNDTRUSTSTAFFAGENCY



(i) New Accounting Standards Issued But Not EffectiveThe accounting policies applied in 2016-17 are consistent with those of the previous financial year.

At 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 17-04.

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 1058 Income of Not-for-profit Entities

» AASB 2016-1 Amendments to Australian Accounting Standards – Recognition of Deferred Tax Assets for Unrealised Losses

» AASB 2016-2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 107

» AASB 2016-4 Amendments to Australian Accounting Standards – Recoverable Amount of Non-Cash-Generating Specialised Assets of Not-for-Profit Entities

» 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 2017-2 Amendments to Australian Accounting Standards – Further Annual Improvements 2014-2016 Cycle

It is considered that the implementation of these Standards will not have any material impact on the Trust’s financial results.

(j) Equity and ReservesAccumulated funds include all current and prior period retained funds.

2. Employee Related Expenses

2017$’000

2016 $’000

Salaries & Wages 12,907 12,541

Annual Leave/Long Service Leave 1,448 1,199Payroll Tax 807 786Workers Compensation Insurance (240) 166Superannuation 1,239 1,301Other 141 118

16,302 16,111

3. ReceivablesCurrent

Parent Entity – Sydney Cricket & Sports Ground Trust 5,132 4,855

5,132 4,855



4. Payables2017

$’0002016 $’000

Current

Accrued salaries, wages & on-costs 1,479 1,150

1,479 1,150

5. ProvisionsCurrentAnnual Leave 1,202 1,076Provision for long service leave and on-costs 1,392 1,268

TotalEmployeeRelatedProvisions 2,594 2,344

NonCurrent Provision for long service leave and on-costs 278 321Superannuation Liability 781 1,040

1,059 1,361

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.

Superannuation – Defined Benefits PlanThe Trust has a $780,569 ($1,040,082 in 2016) net liability for the employer’s obligation to defined benefit superannuation schemes at the Trust.

The funding position at 28 February 2017 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 Pillar Administration:

FUND ESTIMATEDRESERVEACCOUNTSFUNDS

ACCRUEDLIABILITY

NETLIABILITYATYEAREND

2017$’000

2016 $’000

2017$’000

2016 $’000

2017$’000

2016 $’000

SASS 2,428 2,170 3,054 3,042 626 872SANCS 127 105 281 273 155 168

2,555 2,275 3,335 3,315 781 1,040

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

FundinformationThe 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.

Description of the regulatory frameworkThe 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.

Description of other entities’ responsibilities for the governance of the fund

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 risksThere 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.

Description of significant events - There were no fund amendments, curtailments or settlements during the period.


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 from 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


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 0 0Contributions to accumulation section 0 0Settlements 0 0Exchange rate changes 0 0







Present value of defined benefit obligations at beginning of the year after 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 0 0Contributions to accumulation section 0 0Past service cost 0 0Settlements 0 0Exchange rate changes 0 0









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)

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.



AssetcategoryTotal

(A$’000)

Quotedpricesinactivemarketsforidentical

assetsLevel1(A$’000)



UnobservableinputsLevel3

(A$’000)

Short Term Securities 2,229,551 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 24International 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


As at 30-Nov-16Short 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%







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:



2.5% 2016/2017 to 2018/2019; 3.50% 2019/2020 and 2020/2021;




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


The weighted average duration of the defined benefit obligation is 11.3 years.



Base CaseScenario A


+1.0% discount rate



Base Case



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


Base Case



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


Base Case






SASS2017

$’000

SANCS2017

$’000









SASS2017

$’000

SANCS2017

$’000




SASS Multiple of member

contributions

SANCS % member

salary

0.00 0.00

(c)Asset-Liabilitymatchingstrategies

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



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





SASS2016

$’000

SANCS2016

$’000

Net Defined Benefit Liability/(Asset) at start of year 584 157Current service cost 30 9Net Interest on the net defined benefit liability/(asset) 14 4Past service cost 0 0(Gains)/losses arising from settlements 0 0Actual return on Fund assets less Interest income 94 4Actuarial (gains)/losses arising from changes in demographic assumptions 230 (2)Actuarial (gains)/losses arising from changes in financial assumptions 21 2Actuarial (gains)/losses arising from liability experience (63) 6Adjustment 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)atendoftheperiod 872 168


Fair value of Fund assets at beginning of the period 2,142 95Interest income 50 2Actual return on Fund assets less Interest income (94) (4)Employer contributions 38 12Contributions by participants 26 0Benefits paid 2 0Taxes, premiums & expenses paid 6 0Transfers in 0 0Contributions to accumulation section 0 0Settlements 0 0

Exchange rate changes 0 0







SASS2016

$’000

SANCS2016

$’000

Present value of defined benefit obligations at beginning of the year before contribution tax assumption change 2,726 253

Current service cost 29 9Interest cost 64 6Contributions by participants 26 0Actuarial (gains)/losses arising from changes in demographic assumptions 229 (2)Actuarial (gains)/losses arising from changes in financial assumptions 21 2Actuarial (gains)/losses arising from liability experience (63) 6Benefits paid 3 0Taxes, premiums & expenses paid 7 (1)Transfers in 0 0Contributions to accumulation section 0 0Past service cost 0 0Settlements 0 0Exchange rate changes 0 0









SASS2016

$’000

SANCS2016

$’000

Actuarial (gains) losses on liabilities 187 6Actual return on Fund assets less Interest income 95 4Adjustment for effect of asset ceiling 0 0

Totalre-measurementinOtherComprehensiveIncome 282 10

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.



Assetcategory Total(A$’000)

Quotedpricesinactivemarketsfor

identicalassetsLevel1(A$’000)



Unobservableinputs

Level3(A$’000)

Short Term Securities 2.978.555 2.943.012 35.542 - Australian Fixed Interest 2.650.946 27.895 2.623.051 - International Fixed Interest 828.608 (75) 828.683 -

Australian Equities 9.512.077 9.057.851 446.022 8.204 International Equities 12.451.509 9.268.278 2.180.440 1.002.792 Property 3.438.598 1.036.559 701.343 1.700.696 Alternatives 7.790.660 557.505 3.108.946 4.124.209

Total 39.650.953 22.891.025 9.924.027 6.835.901


ASAT 30-NOV-15

Short Term Securities 7.5%Australian Fixed Interest 6.7%International Fixed Interest 2.1%Australian Equities 24.0%International Equities 31.4%Property 8.7%Alternatives 19.6%

Total 100.0%








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 2015 include $179.0M in the NSW government bonds.

5. Provisions



2.5% 2015/2016 to 2018/2019; 3.50% 2019/2020 and 2020/2021;



Expected rate of return on assets 7.8%


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


The weighted average duration of the defined benefit obligation is 12 years.

SENSITIVITYANALYSIS

The entity’s total defined benefit obligation as at 29 February 2016 under several scenarios is presented below.


Base CaseScenario A


+1.0% discount rate



Base Case



Discount rate as above as above as above

Rate of CPI increase as above above rates plus 0.5% pa


Salary inflation rate as above as above as above


Base Case



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



Base Case





EXPECTEDCONTRIBUTIONS:

SASS2016

$’000

SANCS2016

$’000











7. Contingent Liabilities and Contingent Assets

Contingent LiabilitiesThe Agency 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 Agency as shown in the Financial Statements.

Contingent AssetsThe Agency 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 Agency as shown in the Financial Statements.


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.



Expected rate of return on fund assets backing current pension liabilities 7.8% paExpected rate of return on fund assets backing other liabilities 6.8% pa

Expected salary increase rate 3.0% to 30 June 2019, then 3.5% pa thereafter




6. Employee Benefits

LiabilityThe aggregate employee benefit liability recognised and included in the financial statements is as follows:

2017$’000

2016 $’000

Accrued salaries, wages & on costs 1,479 1,150

Provisionforemployeebenefits:Current (note 5) 2,594 2,344

Non-Current (note 5) 1,059 1,361

3,653 3,705

Totalemployeebenefitsliability 5,132 4,855




Sydney Cricket & Sports Ground Trust Annual Report 2017132

8. Financial Instrument DisclosuresThe Agency’s principal financial instruments comprise receivables and payables. The CEO of the Sydney Cricket & Sports Ground Trust has responsibility for the establishment and oversight of risk management. Compliance with risk management policies are reviewed by the Audit Committee and Internal Audit continuously.

Financial Instruments are carried at amortised cost. The resultant values are reported in the Statement of Financial Position and are deemed to constitute net fair values due to their short term nature. The Staff Agency does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.

FINANCIALINSTRUMENTCATEGORIES

CLASS NOTE CATEGORY

CARRYINGAMOUNT

2017$’000

Carrying Amount

2016 $’000

FinancialAssets

Receivables 3 Loans and receivables (measured at amortised cost) 5,132 4,855

FinancialLiabilities

Payables 4 Financial Liabilities (measured at amortised cost) 1,479 1,150

Credit Risk

Credit risk arises when there is the possibility of the Agency’s debtors defaulting on their contractual obligations. The maximum exposure to credit risk is represented by the carrying amounts of the financial assets.

All receivables are from the parent Sydney Cricket & Sports Ground Trust, comprising salaries and entitlements of employee services provided. There are no financial assets that are past due or impaired. No collateral is held by the Staff Agency and it has not granted any financial guarantees.

Liquidity RiskLiquidity risk is the risk that the Agency will be able to meet its payment obligations when they fall due. The financial liabilities recognised are for amounts due to be paid in the future for employee services received. Amounts owing to employees are settled as they fall due. The Agency is not exposed to interest rate risk and amounts are expected to be settled within 12 months. During the current and previous year there were no defaults or breaches on any amounts payable. No assets have been pledged as collateral.

Market RiskMarket risk is the risk that the fair value of the financial instrument will fluctuate because of a change in market prices. The Agency does not have exposure to market risk as all financial instruments relate to employee payments made by the Trust. The Agency has no exposure to foreign currency or interest rate risk and does not enter into commodity contracts.

9. Post Balance Date EventsNo post balance date events have occurred which would materially affect the financial statements.

ENDOFAUDITEDFINANCIALSTATEMENTS

133


CONSUMER RESPONSEThe Trust’s venues and member facilities, such as the Stadium Fitness Centre and SCG Museum, catered for more than 1.8 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 issues related to availability of spaces in the Gold and Platinum car park on event and non-event days. Whilst the Trust only holds direct responsibility for this parking facility, we continue to work closely with Centennial Park and Moore Park Trust in relation to the EP2 and EP3 car parks.

The Trust also communicates regularly with Transport NSW, the NSW Police 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 such 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.

The Trust also conducted surveys regarding reserved seating arrangements and facilities and held focus group sessions to discuss the future plans for membership.

CORPORATEGUESTS

During 2016-17, the Trust investigated approximately 20 complaints from corporate guests, generally relating to the quality of food and in-seat service offered in these areas.

In many cases, these were issues that could be resolved on the day and or followed up by our contracted cleaner/caterer in the lead up to fixtures. Annual clients work closely with Trust commercial representatives to ensure customers receive the best possible service.

STADIUMCLUB

The Stadium Club deals with members on a daily basis. Overall the Stadium Club has received more positive feedback than complaints in the past year.

Just under 800 written and verbal complaints were recorded in the last reporting period, a similar amount to the previous year. This feedback related to car parking, gym maintenance, the facility and closures.

Improvements and upgrades to the gym and wet facilities were well received.

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 is frequently received from the SCG Tour Experience on the knowledge, experience and professional manner that the tour guides provide. Our stadium tours are also rated well by users on Trip Advisor.


INDEX

16 Asset management

14 Attendances

65 Audited financial statements (Trust)

110 Audited financial statements (Trust Staff Agency)

64 Auditor’s report (Trust)

107 Auditor’s report (Trust Staff Agency)

75 Budget of revenue and expenditure

17 Capital works program

13 Catering

54 CEO and General Manager profiles

4 Chairman’s report

22 Commercial

13 Concerts

23 Corporate hospitality

32 Corporate services

17 Environment and sustainability

10 Event management

60 Financial indicators

42 Human resources

2 Letter of submission

30 Media and Communications

24 Membership and marketing

3 Minister’s forward

27 Museum and tours

52 Organisational chart

58 Performance statement

136 Right to information

22 Sponsorship

26 Stadium Club

20 Strategy and projects

46 Trustee profiles

53 Trust meetings

6 Vision and values

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

RequestsTwo requests were received in the last year from the Sydney Morning Herald and Channel 7 for information relating to the expansion of grounds controlled by the Trust and government funding for infrastructure upgrades.

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

Fax: (02) 9360 1319

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

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