Success costs money and a Final appearance helps fill the coffers

THE Kerry GAA county committee don’t need the senior team to reach an All-Ireland Final in any given year to be financial secure, but a Final appearance every few years certainly doesn’t do any harm. That - and the fact that success costs money - was the message from the guardians of the finances, as the end of year accounts are to be presented to County Convention next Tuesday.

All in all, Kerry GAA is in a strong place financially, with the end of year balance sheet showing an operating profit of 143,360 and a retained profit of €262,480. The positives include a substantial increase of €58,000 in gate receipts for all domestic games, up from €455k in 2018 to over €513k this year. Kerry’s run to the All-Ireland Final (and replay) this year, as well as reaching the Allianz Football League final saw income from the National Leagues and associated expenses claimed from Munster and Croke Park grow from €430k last year to almost €575k in 2019.

Commercial income also saw an appreciable rise in 2019, going from €661,311 last year to €786,006 in 2019. Most of this €120,000 increase is accounted for by increased revenues from competition sponsors, including Garvey’s SuperValu (County SFC & SHC), Kerry Petroleum (Club Championships), Acorn Life (U-21 championships), Keane’s SuperValu (Minor Championships) and all other associate sponsors totalling €400,000.

While fundraising activities show a huge increase from €125k last year to €553k this year most of that was down to All-Ireland Final related events such as the golf classics, car raffle and team holiday fund. In general terms the Board’s fund-raising income dropped by €170k, substantially driven by the Ticket Scheme closure, reducing income from that source by €150k.

Kerry GAA treasurer Tom Keane, in his annual report, writes: “Kerry

GAA hit new highs with a record revenue generated for Kerry GAA in a year which presented many difficult headaches, but headaches that come with success, and we are delighted to report that we cleared all the fences in front of us due to the hard and dedicated work of many different people.

“Such is the way in the modern game, a direct link between a teams success and both the revenue generated and spent both rise accordingly, and while I’m pleased to see such big numbers in the revenue generated ledger, we must continue to be prudent in our spending in order to keep a steady ship, which above all else must always be the goal.

“Income of KCC for 2019 is €6.14 million, up from €3.5m in 2018. The bulk of the additional income - €1.7m came from the increase in ticket income, which is a pass through arrangement with Croke Park, arising from the success of our senior footballers who reached the All Ireland Senior Football Final and League Final. All other income sources for the

KCC have risen by €0.9m, substantially from increased shares of National GAA and fundraising initiatives of KCC supported by our loyal supporters and sponsors.

“At the Operating line, this leaves an Operating Profit before Fund Raising of €143k, in line with last year. Fund raising has fallen back by €170k, substantially driven by the Ticket Scheme closure, reducing income from that source by €150k. Of the balance a substantial increase from Austin Stack Park is offset by reductions in Cairde Ciarrai, and Fitzgerald Stadium. The results after fund raising show a retained profit of €400k, down on last year by €170k. Retained Profit is €262k down from €539k, contributed by the reduction in the Tickets Scheme, and the non-cash charge increase mentioned above.”

On the perennial challenges that Kerry GAA face in terms of keeping their financial heads above water, Mr Keane (pictured) said: “The greatest financial challenge is [that] to keep ahead of our peer group we may have to spend even more, and that in any one year, by the end of the Super 8s, we may have 80% of our team preparation costs invested for the year, due to the tightening up of the All-Ireland schedule. Should we not progress into the All-Ireland Final, income streams are limited. Success breeds success and [we need] income streams to sustain the effort. We need to continue to be successful on the field and to keep exploring more avenues of fundraising in support, that don’t burden or impinge on our clubs’ sources of funding.

“To keep Kerry teams successful, huge effort is required from players and management alike who in turn demand more resources resulting in costs to the board that are reflected in our team expenses, especially in the area of player welfare and medical expenses. The results achieved for 2019 would not be possible without the support of our players and management teams who are well aware of the tight financial constraints that we have to operate within.

“2019 has been an enormous success for Kerry GAA and has us once in a very healthy position. However, the continued upkeep of our Centre of Excellence in Currans will always present a challenge to the board and upkeep costs will be €150,000 per annum. There is a challenge to the board to increase the rental income of this facility.

“It is the Board’s plan to provide every team representing the county, the best chance of success by providing all the resources necessary (medical, physio, S&C programmes, dietary and most importantly well-being programmes for our players) for success in a prudent manner. We are fully aware that to invest in our players costs money. Our aim for success on the field of play will entail challenges to the board to ensure the subsequent support financially. Meanwhile we must be mindful of our annual banking repayment obligations of existing debt and carefully evaluate any future proposals for repayment capacity.”