REGINA - As was the case last year, Saskatchewan Roughriders had another strong performance to report in their 2022-23 annual report.
According to the numbers reported to the club’s Annual General Meeting on Wednesday, the Roughriders reported excess revenues over expenses from operating activities of almost $3.9 million. It is off only slightly -- $245 to be exact -- from a year ago. Last year net income from operating activities was $3,883,291. This year it is $3,883,046.
These numbers for 2022-23 do not include the revenue from hosting the 2022 Grey Cup Game. When including that Grey Cup revenue with the club’s non-operating activities, the Roughriders recorded excess revenues over expenses of $7.2 million, which compares to excess revenues over expenses of $13.3 million in the prior year.
Gate receipts had increased $6 million compared to the prior year, and operating expenses had also gone up $6 million, due to the return for the Riders to playing a full 10-game home schedule.
In short, the Roughriders look to have fully rebounded from the heavy losses endured during the COVID-19 pandemic when the entire 2020 season was cancelled. At that time in 2020-21, the club reported an $8.3 million loss.
Roughriders Chief Financial Officer Kent Paul shared the 2022-23 results in an embargoed media briefing Wednesday morning, prior to the AGM held that evening. He pointed to the contrast to two years ago, when the pandemic “created lots of financial uncertainty for the club.”
“Here we are two years later, and I’m pleased to announce strong financial results for the club. The opportunity to play a full season along with strong support from our fans, partners and stakeholders have allowed us to recover from the financial challenges we faced not too long ago. In addition, the opportunity to host the 2022 Grey Cup, which was a resounding success, was also part of the equation.”
Here are five key takeaways from the annual report, takeaways that the Roughriders themselves identified during their media conference:
The club’s ability to play a full season in 2022 was a key component to seeing the club’s revenues and expenses return to normal levels.
According to the annual report, hosting a full 18-game season allowed the club’s most significant revenue source, gate receipts, to bring in revenue of $15.9 million compared to $11.1 million in the prior year when the regular season was only 14 games.
Operating expenses for 2022-23 also were up, having increased to $35.8 million compared to $29.9 million the year before, again due to the return of a full season of football. Paul said the majority of the expense categories increased from the prior year and returned to what they would call “normal levels.”
Hosting the 109th Grey Cup and 2022 Grey Cup Festival resulted in strong financial results for the club and the CFL.
Overall, the Grey Cup generated $23 million in revenues and $16.4 million in expenses, for a net profit of $7.5 million. Revenues were split 60-40 per cent with the CFL receiving $4.5 million and the Roughriders $3 million.
According to the annual report, the financial results were one of the strongest ever for any Grey Cup. Sponsorship revenues were among the strongest for any Grey Cup, and the club sold over $1.3 million in Grey Cup merchandise.
The largest expenses were for CFL costs. Those included the cost of the competing teams travelling to Regina, the halftime show, and league-related costs. Grey Cup Festival events were the second largest expense.
As well, over $750,000 was invested back into several communities through the Grey Cup Legacy Program.
The club’s financials are strong and look to have recovered from the financial impact of the pandemic.
“The Club has survived the impact of the pandemic, the cancellation of the 2020 season and the shortened 2021 season,” Paul said. “The club has been able to reinvest in its stabilization fund, bringing the balance to be higher than what it was pre-pandemic.”
He said with the opportunity to host the Grey Cup, having a strong financial year last year started them on their financial recovery. With the results this year, “we truly believe we’re in a good place going forward.”
Inflation, rising interest rates, and the overall economy which is impacting Rider Nations’ disposable income available for entertainment, is in turn impacting the Club’s revenues and in particular ticket sales.
Paul pointed to overall increases in all consumer goods which is impacting everyone’s bank accounts. He also cited the impact of the introduction of PST to ticket sales, saying it made it “harder and harder for Rider Nation to attend games.”
Paul also acknowledged that the club was down a little bit in season ticket sales. The factors they are hearing are economic, and “just the world we’re in right now,” Paul said.
Also, it was noted it is normal for season ticket sales to drop after a Grey Cup; this drop is not considered out of line compared to other Grey Cups.
The Club has taken steps to try and support the current economic factors - for example, reducing the price on 9,000 tickets, introducing the $99 family pack and $5 menu items.
Paul said the club was “committed to working through” the items such as the inflation and economic situation, by taking these measures to make game days more affordable.
“Really, it’s looking to what can the club do to make Game Day affordable for in particular families, but for everyone.”
Affordability is a particular issue facing out of town fans who fill up on gas to drive to and from Roughrider games in Regina. Paul noted that is something they are trying to respond to as well.
“Is it part of a broader piece we’re managing? 100 per cent,” said Paul. “We have a strong fan base that are outside the city of Regina, we try and support them as best as we can with the models we have.”
