West Australian Football League (WAFL) Club Peel Thunder has informed the West Australian Football Commission (WAFC) of a revenue shortfall that is anticipated to result in an operating loss of around $300,000 for its 2007/2008 accounts.While the terms of the Peel Thunder WAFL licence requires it to keep the WAFC informed of its ongoing financial position (via copies of its Board papers), previous papers had not identified any impending and substantial budget variations.
WAFC Chief Executive Officer, Wayne Bradshaw, said this was an extremely serious issue for the WAFC given the important position that Peel Thunder Football Club has within the WAFL competition.
“The WAFC is extremely concerned at this development and will be taking immediate action to ensure the ongoing viability of the Peel Thunder Football Club,” Mr Bradshaw said. “Included in the WAFC’s immediate support will be the provision of a $300,000 loan to Peel Thunder to ensure it has the ability to continue operations and address any immediate issues of cash flow.”
While this situation will not impinge upon the long-term viability of the club, the WAFC, in providing this loan facility, is seeking several conditions from Peel Thunder including WAFC management taking an active short-term administrative role in the Club. “Peel Thunder have informed the WAFC that the club president and CEO have tendered their resignations from their positions effective immediately,” Mr Bradshaw said.
WAFC Commissioners Mr Ric Gloede and Mr Ian Taylor will take on interim advisory positions to the Peel Thunder Board while WAFC Director of Finance Mr Michael Hnatojko will oversee the financial affairs of the Club. Former Subiaco Football Club CEO, Kim Williamson, has agreed to take on the role of Interim CEO. Mr Bradshaw said that these steps would assist the Peel Thunder Board in conjunction with the WAFC to work through some of the immediate issues.
The WAFC is keen to ensure that these off-field issues will not halt the progress of the WAFL’s newest club based in one of Perth’s fastest growing areas. “Since 1997 Peel Thunder have made some considerable improvement on the field and the past season was one of their best ever. Last year the Peel region had the highest growth in participation in the State of 28%.
There are now nearly 9,500 people playing football in the district,” Mr Bradshaw said. “We will be seeking further information from Peel Thunder over the coming days and are looking forward consolidating their financial and operational position accordingly.”
The WAFC will also be re-examining the adequacy of its current supervisory role to consider whether existing mechanisms of financial reporting provide the Commission with adequate levels of scrutiny and oversight.
