Netball Australia has posted a financial turnaround of $4.7m in 2022, easing fears over its future viability after the previous year’s results sparked an existential crisis for the sport.
The latest figures represent a remarkable turnaround for the organisation which was reported to be on the brink of financial ruin 12 months ago with $11m of debt and losses.
Having posted a $4.4m loss in 2021, the organisation recovered to have revenue exceed expenses by $300,000 in 2022.
A debt of $4.2m remains, however, with the debt facility extended from May and September 2023 to August 2025. Clearing that debt will be a priority for the organisation in 2023.
Netball Australia, which announced the results at its AGM on Thursday night, said the more stable position had been reached due to good cost management and growth in commercial revenues, including a new broadcast partner in the Foxtel Group.
A major sponsorship deal with Visit Victoria also played its part in the recovery, after the tourism branch of the Victorian government stepped in to plug a $15m hole left when Hancock Prospecting pulled out of a deal in controversial circumstances in October.
Commercial and broadcast sponsorship contributed 49% of total revenue in 2022, a dramatic increase on 2021.
The previous year’s disastrous financial results were in a large part down to the impact of the Covid-19 pandemic, but with crowds back in stadiums, income from events surpassed the $3m mark in the latest figures.
Netball Australia’s chief executive, Kelly Ryan, said the results show the sport is heading in the right direction.
“Being above budget in 2022 is a great turnaround and shows Netball Australia has been fiscally responsible and is able to grow its revenues,” Ryan said.
“We know there is still more work that needs to be done and we are focused on strengthening our balance sheet so that we can continue to invest in the development of the sport at the grassroots through to the elite level.”
Participation is also up in the sport. Ausplay, which is led by the Australian Sports Commission, reported this week that participation surpassed one million in 2022, making it the third most popular team participation sport in Australia behind football and basketball, and ahead of AFL football.
But the encouraging results come after the organisation was served a new headache to deal with, with the Collingwood Magpies telling Netball Australia they are reviewing their program after suffering from poor form and financial instability since their inception.
