Bombers post $5.1-M operating profit for 2017

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This article was published 18/04/2018 (2192 days ago), so information in it may no longer be current.

The Winnipeg Football Club released its annual financial report Thursday, announcing a $5.1-million operating profit in 2017 — an increase of $2.3 million from 2016.

The bump in 2017 from the previous year is in large part due an increase in the number of events — both football and non-football related — that took place at Investors Group Field over the past year, as well as improved attendance for Blue Bombers games during the 2017 CFL season.

Average attendance jumped from 25,935 in 2016 to more than 27,400 in 2017, an improvement of six per cent.

“What we’re really positive about is the increase in attendance and seeing the fans embrace the football team in the way they did last year,” Winnipeg Football Club President and CEO Wade Miller said in an interview Thursday, adding that three times last season the Bombers eclipsed 30,000 fans.

“That goes to show how big the support we have in this city and province.”

When speaking with the Free Press at this time last year, following the release of the 2016 financial report, Miller celebrated the team’s strong performance on the field. Though they finished the 2016 season 11-7, their first winning record since 2011, he lamented the fact the Bombers were unable to host a playoff game, finishing third in a competitive West Division.

“Host a home playoff game and watch how much money you make,” Miller said at the time.

He would get his wish in 2017, as the Bombers capped off the year with the CFL’s second-best record (12-6). They hosted Edmonton in the West semifinal, falling 39-32 to the Eskimos, but still reaped the financial benefits of hosting an additional CFL match.

“Getting an extra major event in the stadium, if you look at it from that perspective, is big. For our fans, we need to host home playoff games and it made a big difference for us, for sure. That’s another whole game day,” Miller said.

Other non-football related events at IGF that played a crucial role in boosting the bottom line included an international women’s soccer match between Canada and Costa Rica, Nitro Circus, a Guns N’ Roses concert and the closing ceremonies of the 2017 Canada Summer Games. The Manitoba Marathon finish line was also moved to IGF for the first time, with the event scheduled to return again in 2018.

Despite posting an operating profit of 2.8 million in 2016, the Bombers ultimately ended that year in the red, as they required an additional $1.65 million in reserve money to cover the balance of a hefty stadium bill worth $4.5 million. By contrast, in 2015, the Bombers turned an $11.4-million profit — much of that coming from hosting a number of FIFA Women’s World Cup soccer games, as well as the Grey Cup — which dropped closer to $5 million after another stadium loan payment and other expenses.

In 2017, even when including the stadium payment — which fell to a maximum contribution of $3.5 million as per the team’s agreement with Triple B, a non-share corporation that manages the stadium and which the Bombers are a member — the team remained in the black, posting an overall profit — excess of revenues over expenses — of nearly $1.6 million.

An additional payment of $1.3 million — a large chunk of the $1.9 million of total debt paid off in the year — was made to the City of Winnipeg to cover an earlier Winnipeg Enterprises Corporation debt that was assigned to the team by the city in 2005. The football club inherited the debt after the team took over operations of Canad Inns Stadium, a debt that was supposed to be paid off using the entertainment tax from the old stadium.

“So then that ended up on the Bombers books when we came here,” said Miller.

Total revenue generated in 2017 was $32.5 million — an increase of $2.9 million from 2016 — with overall expenses ($27.4 million) up just $700,000 from the previous year. “Football operations” was once again the biggest expense, contributing to nearly 43 per cent ($11.75 million) of total costs. Total game revenue also climbed by $1.6 million (14 per cent) from 2016.

Improving the game-day experience remains among the top priorities for the football club, which is always trying to come up with new and innovative ways to engage fans and to ensure a positive experience for everyone, Miller said. Fan surveys are sent out after every home game and at the end of the season. Data from those surveys and information collected from other areas, are then studied and changes made.

Last season, the club spent $670,000 on capital expenditures, including the expansion of the viewing platform at the north end of the stadium. Changes are already being put in place for the 2018 CFL season, including up to seven live bands set to play during halftime.

The club remains committed to easing congestion in the concourse, which will be achieved by removing various concessions, Miller said.

“There’s not one thing, but what it is, is not being satisfied and always adjusting and changing and learning,” said Miller, when asked about how to run a successful team off the field.

“We’re not going to stop improving the game-day experience and listening to our fans.”

The outlook for next year is for lower earnings as no significant plans to use IGF have been confirmed for 2018. The inconsistency of putting on big events, such as concerts, is in part because of the low Canadian dollar and the irregularity of big-ticket bands doing stadium-sized tours across North America, Miller said.

There is one area where the football club could make up for fewer events hosted at IGF, and it’s if the Bombers are able to bring a professional soccer team to the city. The team has spent the last two years working behind the scenes to make it happen, including being accepted as one of the clubs to make up the Canadian Premier League. The team could be here as early as next year, playing host to a dozen or more soccer matches.

“Part of our mandate is to maximize revenues and opportunities for the stadium and that will definitely help,” he said. “Stay tuned for further announcement.”

Miller said he isn’t all that concerned about what a long playoff run by the Winnipeg Jets might mean for Bombers ticket sales. He said the club is projected to hit similar targets from last year for season tickets, and he believes the excitement brought on by the Jets should only help in the long run.

With the Goldeyes, Winnipeg’s professional minor-league baseball team, winning the American Association Championship last fall and the Jets being one of the favourites to win the Stanley Cup, Miller was asked about the prospective of the Bombers potentially breaking their Grey Cup curse, now at 27 years.

“Every year the plan is to win the Grey Cup,” said Miller.

jeff.hamilton@freepress.mb.ca twitter: @jeffkhamilton

Winnipeg Football Club 2017 Annual Report