saskatchewan roughrider football club inc.

SASKATCHEWAN ROUGHRIDER FOOTBALL CLUB INC.
2013-14 ANNUAL REPORT
TABLE OF CONTENTS
1 Report from the Chair
2 Strategic Planning
3 Report from the President and CEO
5 Football Operations
6 Community Relations
12 Financial Results Review
18 Financial Statements
19 Independent Auditor’s Report
20 Consolidated Financial Statements
24 Notes to the Financial Statements
32 Board Members
4
REPORT FROM THE CHAIR
Serving as Chair of the Board for the Saskatchewan Roughriders has been
a great honour and nothing makes me happier than to look back at
the memorable year that was 2013.
The Roughriders, together with the Province of Saskatchewan, City of
Regina and Rider Nation accomplished the ultimate goal. We not only won
the 101st Grey Cup on home soil, we also delivered an incredible Grey Cup
Festival and Grey Cup Championship Game on a national stage. I couldn’t
be more proud of our organization, our province, our city and our fan base.
Thousands of volunteers supported our club over the last two years,
working tirelessly to deliver the 101st Grey Cup Festival and Grey Cup
Championship Game. I’d like to personally thank the staff, Dave
Pettigrew, Mark Stefan, Neil Donnelly and Jill Rhead who played lead
roles in making the week-long event a notable success. It truly was a
‘Celebration in Rider Nation’!
It is often said that success ultimately comes down to people and this is clearly the case for the Saskatchewan Roughriders.
Our President and CEO, Jim Hopson has assembled an outstanding business operations team that delivered franchise
record revenues in 2013. Additionally, the team led the league in home attendance, away attendance and television ratings.
We have built one of the best football operations staffs in the league and have now secured the nucleus of Brendan Taman
and Corey Chamblin through 2017.
Beyond Saskatchewan, the Canadian Football League continues to experience growth. Last season marked the opening
of Investors Group Field in Winnipeg and this season will see new stadiums open in Hamilton and Ottawa – home to
the expansion Ottawa REDBLACKS. The CFL remains strong, evidenced by growing game attendance, and increased
broadcast ratings on both sides of the border.
As I reflect on my last nine years – three as a Director, two as Vice-Chair and the last four as Chair – I do so with a great
deal of pride. I am very proud of my ten colleagues on the Board of Directors, who pour in countless hours. I want
to personally thank each of you: Vice-Chair Wayne Morsky, Arnie Arnott, Randy Beattie, Doug Emsley, Robert Leurer,
Twyla Meredith, Dennis Mulvihill, Laurie Powers, Jeff Stusek, and Joel Teal. The list of accomplishments by the Riders is
long, but nothing is more important than our relationship with Rider Nation. It is this powerful and dedicated group that
has enabled us to move forward with the new stadium.
As Chair, not many days would go by where Jim Hopson and I didn’t talk about the opportunities and challenges facing
the Riders and the CFL. I truly enjoyed my work with Jim, his Executive Team, Football Operations and our entire staff.
The Rider organization is rich with incredible people who all are very committed to championship success on and off
the field. Thank you to each and every one of you!
Respectfully submitted,
Roger Brandvold
CHAIRMAN OF THE BOARD
1
STRATEGIC PLANNING
During 2012 the Football Club’s Board of Directors and leadership team gathered in a facilitated exercise to
evaluate its vision, mission and values. Through that exercise it was noted that there were opportunities
to enhance these foundational elements to better reflect the Club’s purpose and to stretch the Club further
as it looks to the future. The end results were the following Vision and Mission statements for the Club as
well as the Club’s Values shown below:
VISION STATEMENT
We are a championship organization!
MISSION STATEMENT
The Saskatchewan Roughriders set the standard of excellence in Canadian football.
VALUES
As a successful Football Club we value:
• Our fans and stakeholders
• A winning philosophy
•Innovation
•Integrity
• Fairness and respect
• Openness and accountability
• Giving back to the community
As the Club reflects on 2013 and its progress towards its Vision it does so with pride. Winning its fourth
championship, the first and last one at Mosaic Stadium, demonstrates the Club’s commitment to its Vision
of being a championship organization. As the Club looks toward the future and the new stadium there are
countless opportunities to continue on its Mission to set the standard of excellence in Canadian Football
and continue to strive towards its Vision. The Club’s strategic themes continue to provide the framework
for the Club’s long-term planning. A continued focus on our strategic themes of Operational Excellence,
People, Rider Nation, and Sustainability will be fundamentally important as we look towards a new
stadium and endeavor to achieve our Vision of being a championship organization.
The linkage between the themes is highlighted below:
Operational
Excellence
Our vision requires
excellence in all
aspects of our
operations
2
People
Relying on our high
performing people
to deliver results
Rider Nation
And a commitment
to our nation of
fans, sponsors,
and stakeholders
Sustainability
All of which are
foundational to our
sustainability
REPORT FROM THE PRESIDENT & CEO
It is with great pride that I deliver this report on what will be remembered
as one of the greatest years in our franchise’s history.
We entered 2013 knowing that Saskatchewan would be hosting the
101st Grey Cup Championship Game at Mosaic Stadium. Needless to say,
the opportunity came with high expectations from our fan base. It also
brought significant responsibility and pressure to deliver a world class
event in order to showcase our province. I am so proud to be looking back
at not only being in the game, but winning it, and not only delivering a
successful festival, but perhaps delivering one of the greatest Grey Cup
Festivals in history.
Our Football Club reached the ultimate goal in 2013 – bringing home the
101st Grey Cup to Saskatchewan and all of Rider Nation. The Football
Operations team including General Manager Brendan Taman, Assistant
General Manager Jeremy O’Day, Director of Player Personnel Craig
Smith and Head Coach Corey Chamblin surrounded themselves with an
incredible staff and assembled a team of players with one goal in mind.
The off-field performance in 2013 was equally impressive. The Club previously invested over $15 million for stadium
improvements in order to host the 101st Grey Cup. We also invested in staffing and executional resources to ensure
we could deliver our fans an incredible Grey Cup experience, while maximizing revenue opportunities. I am thrilled
to announce that our 2013 business results were the most successful in Club history, producing record revenues
in ticketing, merchandise sales and sponsor partnerships.
Our business and on-field success helped fuel expanded community outreach programs having a direct financial impact
of a staggering $1.67 million to not-for-profit and various charitable organizations.
In the months following the Grey Cup victory, players and staff traveled over 7,700 km reaching upwards of 50,000 people
in 28 communities on a province-wide tour. This allowed fans to get up close and personal with the Grey Cup while
celebrating one of the greatest moments in Roughrider history.
Of course, all of this was made possible by the incredible support of our fan base and the dedication of the thousands of
volunteers who helped us put on a remarkable Grey Cup Festival. On behalf of the Club, I want to express our sincere
thanks to every one of you. You are what make this province and this Football Club special, and you continue to be the
envy of the CFL.
Finally, I want to say a heartfelt farewell to out-going Chair Roger Brandvold. Roger’s leadership during his tenure has
made a significant impression and produced unprecedented success for the Club and the CFL. His leadership will be
missed but his impact on the Club will be ongoing.
Thank you and Go Riders!
Jim Hopson
PRESIDENT/CEO
3
4
FO O TB A L L O P E R AT I O N S
When Saskatchewan was named host of the 101st
Grey Cup Championship, we all knew the season would
be a memorable one. With expectations and the pressure
to win higher than ever, we started a journey that won’t
be forgotten.
The Football Operations department – led by General
Manager Brendan Taman, Assistant General Manager
Jeremy O’Day, and Director of Player Personnel Craig
Smith – went to task, finding the key ingredients in
formulating a championship roster. The offseason began
with Taman orchestrating a trade for Geroy Simon, the
CFL’s all-time leading receiver. When February rolled
around, the team added key free agents like Dwight
Anderson, Ricky Foley, Weldon Brown, Carlos Thomas
and Renauld Williams, while re-signing veteran
Tyron Brackenridge.
Head Coach Corey Chamblin retained a core contingent
of the previous season’s coaching staff with the likes of
Richie Hall, Bob Dyce, Barron Miles, Khari Jones, and
Jason Tucker returning while adding George Cortez,
Todd Howard, Doug Malone, Richard Kent and Cory
McDiarmid to the fold.
The defence was led by four West Division All-Stars: safety
Tyron Brackenridge, half back Dwight Anderson, defensive
lineman Tearrius George and defensive end Alex Hall. The
team posted the number one ranked defence in the CFL.
The league low 398 points-allowed was the lowest total by
the Riders since 2002 and second lowest total since the
CFL moved to an 18 game schedule in 1986. The team
also led the league with 24 interceptions while allowing a
league low 36 touchdowns. The 57 quarterback sacks were
23 more than the previous season. Brackenridge and Hall
both received CFL All-Star recognition.
With the team appearing in four of the last seven Grey
Cup games, expectations remain high looking toward
2014. Vice President of Football Operations & General
Manager Brendan Taman and Head Coach Corey
Chamblin both signed contract extensions creating
stability in Football Operations through the 2017 season.
Renauld Williams was hired as the Director of Player
Development, which displays the type of forward-thinking
and desire to remain ahead of the curve the organization
truly has. All things add up to keeping Saskatchewan the
place to play in the CFL.
The team burst out of the gates, winning eight of their
first nine contests, registering wins over Edmonton,
Calgary, Toronto, Hamilton, Montreal and Winnipeg along
the way. The 8-1 record was the franchises best start in its
103-year history. The team went on to finish with an 11-7
regular season record before beating B.C. and Calgary in
the playoffs, earning a berth in the 101st Grey Cup Game.
The Green and White went on to win the franchises
fourth Grey Cup Championship, 45-23 in front of 44,710
spectators at Mosaic Stadium. Kory Sheets was named the
game’s Most Valuable Player after rushing for a Grey Cup
record of 197 yards, while Chris Getzlaf added 78 yards
receiving to be named the Most Outstanding Canadian.
Five players on offence were named West Division All-Stars:
quarterback Darian Durant, running back Kory Sheets,
receivers Chris Getzlaf and Weston Dressler, and offensive
lineman Brendon LaBatte. Durant threw for 4,154 yards
and a league-high 31 touchdowns. Sheets rushed for 1,598
yards; the second-highest total in franchise history. The
team had three 1,000-yard receivers for the first time since
1993 as Getzlaf, Dressler and Taj Smith all surpassed the
mark. Additionally, Sheets, Dressler and LaBatte were
all named CFL All-Stars with LaBatte also picking up the
league’s Most Outstanding Offensive Lineman Award.
5
CO M M U N I T Y R E L AT I O N S
As a pillar of the community, the Saskatchewan
Roughriders have made it a mandate to give back to the
great people of Saskatchewan. With the tireless work of
the players, coaches and staff the Riders have touched
many lives in every corner of the province. The Football
Club continues to evaluate and expand on the “Pillars”
of the community that we will support with an emphasis
on education, health, well-being and recreation of children
and families in the province of Saskatchewan. In 2013-14,
the commitment provided by the Rider organization had
a direct financial impact to not-for-profit and various
charitable organizations, to the tune of $1.67 million.
HEALTH
Canadian Blood Services – Bleed Green
For the past four seasons the Saskatchewan Roughriders
and Canadian Blood Services have teamed up for the
award winning Bleed Green program, which will continue
in 2014.
The goal is to raise awareness about the impact of donating
blood and the amount of lives it saves. At every Rider home
game you will see many of the great donors from across
the province carry the giant Canadian flag before kickoff.
Members of the Saskatchewan Roughriders visited clinics
throughout the province, with some even donating blood
at the Regina clinic during the bye week.
Our goal last year was to collect 101 donations a month
over the five months of the program for a total of 505
donations. Because of the amazing contributions of Rider
fans, a whopping 1814 units of blood were collected, which
exceeded our goal by 354%.
Touchdown for Dreams
The Touchdown for Dreams program debuted in October
of 2011 as part of the CFL’s new pink initiative. The Riders
decided to use this opportunity to be innovative in the
way we conducted the pink program. With the help of the
Canadian Cancer Agency, we created the Touchdown for
Dreams program, which would produce tangible results
in fullfilling the “dreams” of a number of Saskatchewan
women who had been diagnosed with terminal cancer.
The value of each of these “dreams” is estimated at $5,000,
but the impact and memories last a lifetime.
In 2012, the Saskatchewan Roughriders partnered with
Cameco. This has helped the program flourish in two
ways: it increased the infrastructure to raise more money
for the program, and because of Cameco’s scope across
the province, it has helped give the Roughriders more
of an imprint in northern Saskatchewan. Because of
this partnership, in 2013, six women were granted
their “dream”.
The Saskatchewan Roughriders and Cameco would like to
thank all of the companies and organizations who donate
their time, money and materials without any recognition
at all, except for the smiles they see on the family’s faces.
Children’s Hospital Foundation
The Saskatchewan Roughriders are proud to be a major
supporter of the Children’s Hospital of Saskatchewan.
Currently, there is no Children’s Hospital of Saskatchewan,
but through the hard work and support of organizations
like the Saskatchewan Roughriders, the hospital can one
day be a reality.
6
The Club supports many of the Children’s Hospital of
Saskatchewan’s initiatives and contributes thousands of
dollars through the sales of Roughrider related products
at Federated Co-ops.
EDUCATION
Imagine No Bullying
The Canadian Red Cross has instilled the trust of the
Saskatchewan Roughriders to help deliver their violence
and abuse prevention (RespectED) program to schools
across Saskatchewan. Each year, players are trained to
become a RespectED Educator and are certified to deliver
a specific RespectED program. The program the Riders
deliver is “Beyond the Hurt” which helps prevent bullying
and harassment in schools.
More than 114 schools have received the “Beyond the
Hurt” Saskatchewan Roughrider presentations since 2010.
And, more than 22,000 youth have been reached by the
Saskatchewan Roughrider presentations. Statistics for the
Roughrider “Beyond the Hurt” presentations are as follows:
2013:
6,992 youth reached in 38 schools.
2012:
6,164 youth reached in 26 schools.
2011:
2,350 youth reached in 26 schools.
2010:
7,040 youth reached in 39 schools.
Red Cross continues this work through education
and awareness.
Education — An additional 30,000 youth per year are
reached with bullying-prevention training.
Awareness — Red Cross also raises awareness reaching an
additional 20,000+ youth, 166 businesses, 170 communities
and 320 schools each year through their Day of Pink events
and activities.
Literacy Raise a Reader
A long-standing initiative of the Saskatchewan Roughriders
is the Raise a Reader program, coordinated nationally
by the Postmedia Network of newspapers including the
Regina Leader-Post and the Saskatoon StarPhoenix. The
program is designed to boost awareness and raise funds for
children’s literacy programs throughout Saskatchewan.
Each year, several players volunteer to distribute
newspapers in exchange for donations. Money is also
raised through the donation of tickets to a game that is
close to Raise-A-Reader Day, as well as the support of
many other events.
“Beyond the Hurt” explores all aspects of bullying and
peer harassment. Developed and delivered in concert
with youth, this two-hour program examines:
• All types of harassment and bullying—personal, sexual,
and the abuse of power and authority.
• Interpersonal power issues.
• The rights and responsibilities of individuals.
• Intervention and prevention issues, including through the law and school policies.
This year, Chris Getzlaf along with Scott McHenry
and Neal Hughes are the Roughrider presenters of
this program. Former Roughrider Luc Mullinder is a
coordinator of the RespectEd program in Saskatchewan.
We would like to thank former Roughriders Keith
Shologan and Weston Dressler for being a huge part
of this program.
7
CYC – Community Youth Challenge
Centennial Legacy Fund
For over 10 years, the Saskatchewan Roughriders have
partnered with Triple Four Advertising in support of the
Fine Foods/Express Foods Community Youth Challenge.
2013 was the final year of this fantastic program. Every
offseason, players visit over 60 schools across the province
and share their stories of overcoming the obstacles and
pressures they faced to become the person they are today.
The Community Youth Challenge provides a pair of
scholarships to the students that the Riders visited that
year. Through this program, hundreds of Saskatchewan
communities and thousands of students have been
touched by the Community Youth Challenge.
Following the 2010 Saskatchewan Roughrider Centennial
celebrations, the Club established a legacy fund to help
support amateur football throughout the province. The
$650,000 profit from the Club’s Centennial initiatives
has been allocated to the Saskatchewan Roughrider
Centennial Legacy Fund.
AMATEUR SPORT
In 2013-14, the Legacy Fund supported the following
minor football organizations with grants totaling $145,744.
Through a partnership with Sask Sport and the previously
established Sport Legacy Fund, these funds are being
allocated to amateur football capital projects. A committee
has been formed in partnership with Football Saskatchewan
and Sask Sport, establishing application guidelines and
criteria for grant decisions.
The Roughriders continue their ongoing support of
amateur football in Saskatchewan working to give kids
the opportunity to play organized sports.
November 2013 – $75,744: (number of participants impacted, in brackets)
Maple Creek Composite (30)
Scoreboard
$10,000
Hafford Central School(24)
Storage/Locker Room
$10,000
Davidson High School(20)
Scoreboard
$10,000
Birch Hills School (22)
Spotters tower/Scoreclock
$3,830
Northwest Cent. (Plenty) (19)
Locker Room Churchill Comm.
$8,500
Churchill Community School (LaRonge) (25)
Storage Facility
$13,414
Cupar High School (30)
Scoreboard/Spotters Booth
$10,000
Kelliher High School (22)
Dressing/Fitness Room
$10,000
Moose Jaw Minor Football (250)
Field Repair/Lights
$20,000
Swift Current Minor Football (135)
Storage/Meeting Room
$18,000
Humblodt Minor/High School (60)
Annc. Tower/Concession
$15,000
Rosetown Central High School (45)
Spotters Booth/Storage
$5,000
Porcupine Plain Bears Boosters (40)
Locker Room/Fitness Facility
$6,000
Rosthern High School (20)
Scoreboard/Field Repairs
$3,500
Raymore Rebels High School (20)
Scoreboard
$2,500
April 2014 – $70,000
8
KIDSPORT
50/50 – Amateur Football
(Courtesy of kidsportcanada.com)
The Roughriders continue their ongoing support
of amateur football in Saskatchewan through the
University of Regina Rams 50/50 draw. With the help
of the University of Regina Rams, a new, computerized
50/50 system was installed. Because of its efficiency and
portability, as well as having the Grey Cup in Regina,
a record amount was raised in 2013.
We believe that no kid should be left on the sidelines
and all should be given the opportunity to experience the
positive benefits of organized sports. KidSportTM provides
support to children, removing financial barriers that
prevent them from playing an organized sport.
Why KidSport?
By providing kids with an opportunity to participate in
sport programs, KidSport encourages:
•Developing early physical activity habits that will help
increase the probability that kids will remain active in
adulthood
•Getting kids active in sport programs when they are
young to develop a strong and healthy community for
the future
•Creating opportunities for sport participation,
and playing a significant role in supporting many
under-represented families in Canada facing
economic obstacles.
The Saskatchewan Roughriders coordinate player
appearances in support of KidSport each year, as well
as substantial support with the annual SaskEnergy/
Saskatchewan Roughrider Calendar. The 2013 Calendar
campaign featured current Rider players and was yet again,
a fantastic success with over $100,000 raised. Through this
partnership more than $1 Million has been raised for the
KidSport program in Saskatchewan.
Here is a breakdown of the donations to Saskatchewan
amateur football and other organizations:
Saskatoon Hilltops
$52,205
U of Sask Huskies
$52,205
Regina Thunder
$52,205
Football Sask
$52,205
Regina Riot
$10,000
Saskatoon Valkyries
$10,000
Centennial Legacy Fund
$38,985
Leibel Field
$50,000
Gordie Howe Bowl
$50,000
Roughrider Alumni Association
$19,543
9
Grey Cup Tour
This past November the 13th man played an important role
in winning the 101st Grey Cup.
With their province-wide Grey Cup tour the organization
made an effort to reach as many people as possible.
From Stony Rapids to Estevan, tens of thousands of
Rider fans either got to see the Grey Cup or meet one
of the members of the Grey Cup Champion Saskatchewan
Roughriders:
• Over 50 players, coaches and staff participated in the tour.
• We traveled 7,784 KMs.
boxes and frames in the North and South end zones, and
donate them to a deserving sport, culture or community
organization. The prospective organization is then
responsible for the transport and reconstruction of
the structure.
The cost to purchase and install brand new seating is
around $300 per seat. With this program, organizations
will be able to acquire and install seating at around
$100 per seat.
Interested organizations can apply for this program
through Football Saskatchewan. A detailed financial
and engineering plan is needed within the application.
The winning applicants will be announced in early 2015.
• Over 50,000 people were reached.
• Overall 28 communities were visited.
Green Team
2013 was another successful year for the Go Green
Program. Go Green is a partnership between the City of
Regina, the Saskatchewan Roughriders and North Central
Community Association. The program allows participants
to watch Rider home games and then earn some cash by
staying after the games to pick up recyclables – usually
taking 4-5 hours for the average game. Workers are paid
in cash at the end of the night based on how long it took
to pick up and sort all the recyclables. Most of the money
from recycling the cans and bottles are put back into
wages, with the surplus dedicated to murals and other
community beautification projects.
One hundred and sixty one workers participated in 12
home games (10 regular, 1 playoff and the Grey Cup), and
the Paul McCartney Concert in 2013, as compared to 135
workers in 2012 and 109 in 2011. Approximately $52,000
worth of beverage containers were recycled this year.
Thank you to Premiere Van Lines for providing a truck
and driver, Sarcan for the bags used and sorting services,
and the City of Regina for their support.
OUTREACH
The Saskatchewan Roughriders are also able to reach every
corner of the province with many community outreach
programs and initiatives:
Grey Cup Legacy Project
The 101st Grey Cup in Regina is now history, but the
impact will be felt for a lifetime. One of the many ways
it will affect the province is through the Grey Cup
Legacy Project. Through this project, the Saskatchewan
Roughriders will dismantle the semi-temporary seats,
10
620 CKRM Cheer Team: For many years, the Saskatchewan
Roughriders have had a cheer team under many
different forms. In 2013, under the guidance of
Head Coach Nicole Wegner and Manager Chelsea
Fidler the members of the 620 CKRM Cheer Team
each put in hundreds of hours practicing, performing
and volunteering their time for the Saskatchewan
Roughriders and their fans.
Pep Band: For 30 years The 620 CKRM Rider Pep Band
has entertained fans from coast to coast with their unique
blend of music. They travelled across the province in
2013 with over 40 performances in 12 different
Saskatchewan towns.
Kids Club: In 2013 the Riders launched their new Kids
Club. Offering a unique experience for young Rider fans
to interact with their team, the Kids Club quickly grew
to over 600 members. Throughout the year Kids Club
members took part in a private event at the Saskatchewan
Science Centre, Halloween costume contest, and one lucky
member got to meet Kids Club Ambassador Craig Butler
on the sideline before a home game! Overall results of the
first year of the Club was very positive and we look forward
to further success in 2014.
Player Appearances: This is where the Football Club
makes their biggest impact. In 2013, players made over
425 appearances all over the province traveling over
70,000 kilometres. Time spent in the community exceeds
1,200 hours.
They can be seen doing their acrobatic performances on
the field, across Saskatchewan and at Grey Cup. The male
and female athletes hail from Regina, Saskatoon, Moose
Jaw and Yorkton. Their season begins with tryouts
in April and continues on to Grey Cup in November.
The team also act as role models and teachers to future
members of the Rider Cheer Team with a weekend-long
summer camp called Lil’ Rider Cheer Day, where hundreds
of cheerleaders of all ages learn new skills from the Rider
Cheer Team.
Donations: The Saskatchewan Roughriders donate tens
of thousands of dollars of merchandise to hundreds of
charitable organizations across the province. Their impact
to the province is immeasurable.
There are many more ways the Saskatchewan Roughrider
Football Club helps the great people of the province:
Sneak Peek, Pro’s and Joe’s, SaskCanola Rider Pride
Hockey Challenge, Mosaic Stadium Tours, practice field,
event sponsorship and much more.
Every year, the Club searches for new and improved ways to
give back to the best fans in the world. 2014 will be another
banner year in the community.
Drum Line: 2013 saw the debut of the U of R Conservatory
Rider Drum Line. Under the guidance of Coach Tyler
Taylor and Manager Corey Taylor, they assembled 18
drummers, that have never played together before, into a
fantastic unit that is unique to the CFL. They can be seen
on the practice field and on the west side bricks prior
to games, and underneath the SaskTel Maxtron during
games in 2014.
Gainer the Gopher: The hardest working mascot in the
CFL criss-crosses the province as the Riders ambassador
of good will. When he’s not on the Mosaic Stadium turf
during game days, the fun-loving, high energy rodent can
be seen throughout the year visiting children in hospitals,
participating in parades and attending events spreading
good cheer that only Gainer can provide…proving yet
again, that actions speak louder than words.
11
FI N AN C I A L R E S U LT S R E VIE W
EXCESS OF REVENUE OVER EXPENSES
2013 was truly a Celebration in Rider Nation and the
hosting of the 101st Grey Cup combined with the Club’s
fourth Grey Cup Championship resulted in the strongest
financial results in the Club’s history. In 2013/14 the
Club had excess revenues over expenses of $10.4 million
compared to $1.1 million in the previous year. Grey Cup
2013 contributed $9.3 million in excess revenue over
expenses and helped increase the net profit margin to
24% from 3% in the previous year. The Club set several
new revenue records driven by increased seating capacity
during the season in preparation of hosting the 101st Grey
Cup game.
12
Total operating revenues were $43.8 million in 2013/14
compared to $34.7 million in 2012/13 which was an
increase of 26%. When Grey Cup revenues are included the
Club’s total gross revenues were $68.8 million in 2013/14.
The Club’s operating expenses increased from a total
of $32.2 million in the previous year to $42.0 million in
2013/14. The Club saw increased expenditures in 2013/14
due to expense categories associated with increased
revenues (merchandise and concessions), increased costs
due to the expanded footprint at Mosaic Stadium and
expenses associated with the Grey Cup victory.
14,000
12,000
10,421,363
10,000
8,000
6,607,501
6,000
4,516,321
4,000
3,017,819
2,000
Interest and Investment Income
2%
Fundraising
and other
Friends of the
3%
Riders Inc.
Home Playoff
2%
Game 5%
Gate
CFL 5%
Receipts
35%
Concessions
11%
1,128,833
0
2009/10 2010/11 2011/12 2012/13 2013/14
Excess of Revenue Over Expenses ($ Thousands)
Sponsorship
12%
Merchandise
25%
Revenue Sources - 2013/14
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GATE RECEIPTS
The Club saw record revenue from ticket sales during
the year as a result of the increased capacity at Mosaic
Stadium as the Club brought in temporary seating in a
staged approach during the season. Gate receipts totaled
$15.4 million surpassing the previous year’s record of
$13.1 million by approximately 17%. The Club increased
capacity at Mosaic Stadium from 33,427 the year prior,
to just over 40,600 for the start of the regular season
with capacity increasing to 44,910 for the Labour Day
Classic and the remainder of the season. The Club also
raised the facility fee charged on all tickets by $2 during
the season. This additional revenue will help the Club
to build capital for its future commitments at the new
stadium. The increased capacity combined with a full year
of hospitality offerings from the Grey Cup Legacy Project
and the increased facility fee resulted in an additional
$2.2 million of gate receipts earned during the year.
18,000
15,366,838
15,000
11,263,691 11,791,086
12,000
9,000
13,123,879
10,349,981
6,000
11,114,868
12,000
10,327,325
10,000
8,000
7,141,577
7,085,402 6,976,222
6,000
4,000
2,000
0
2009/10 2010/11 2011/12 2012/13 2013/14
Merchandise ($ Thousands)
SPONSORSHIP
The Club continues to have over 80 key sponsors,
partners and proud supporters who continue to be key
contributors in driving our success. In 2014, the Club had
sponsorship revenue of $5.4 million, an overall increase of
4% over the previous year. As a result, the Club was able
to elevate and deliver an exciting Game Day experience
and year round events and activities to our fans. The
Club also had incredible support for the 101st Grey Cup
Festival’s “Celebration in Rider Nation” with 28 partners
contributing to the overall success of this event.
3,000
0
2009/10 2010/11 2011/12 2012/13 2013/14
Gate Receipts ($ Thousands)
7,500
5,969,022
6,000
4,500
MERCHANDISE SALES
The 13th man’s support during 2013 led to an incredible
$13 million of merchandise sales when you combine sales
of Grey Cup 2013 merchandise with team merchandise
sales during the year. The Club sold $1.9 million of Grey
Cup related merchandise during the year which combined
with the previous year’s sales of $164,484 resulting in over
$2.0 million in merchandise revenue related to the 101st
Grey Cup. Sales of team and Grey Cup Championship
merchandise exceeded $11.1 million which on its own was
the highest in Club history surpassing the $10.3 million
sold during the Club’s Centennial year in 2010.
14
4,148,689
5,380,556
4,802,506
5,172,849
3,000
1,500
0
2009/10 2010/11 2011/12 2012/13 2013/14
Sponsorship ($ Thousands)
OTHER REVENUE SOURCES
The Club continues to set new records for concessions
revenue reaching $4.8 million in sales which topped
the previous year’s record revenue of $3.8 million. The
expanded stadium capacity as well as an overall increased
spend per person helped to drive record revenues.
The Club also saw $2.1 million in revenue from hosting
the West Division Semi-Final in 2013 when included gate
receipts and concession revenues from the Club’s victory
over the BC Lions. The Friends of the Riders Touchdown
Lottery delivered $1.0 million to the Club during the year,
bringing total lottery proceeds from the lottery distributed
back to the Club to $16.6 million since its inception.
EXPENSES
Operating expenses increased by $9.8 million in the year.
Increases in expenses were seen in merchandise expenses
consistent with the large increase in sales. Similarly,
concession expenses increased and were largely related
to increased sales, as well as increased costs associated
with servicing the additional temporary stands during
the year. Increased costs of $1.4 million were recognized
for a full year of amortization expense on the Grey
Cup Legacy Project capital costs. Home game expenses
increased by 35% over the previous year due to increased
operating costs related to security and rentals associated
with the temporary expansion at Mosaic Stadium. Football
operations expenses increased over the previous year due
to increased player costs, bonuses associated with the Club’s
championship season and increased costs related to both
the Club’s mini-camp and training camp. Administration
expenses increased over the previous year due to increases
in consulting costs primarily related to the new stadium
as well as increased staffing costs. The Club incurred just
over $1.0 million in expenses related to hosting the West
Division Semi-Final and incurred $1.4 million in costs
related to the West Division Final in Calgary and direct costs
associated with participating in, and winning the Grey Cup.
These costs include the Provincial Grey Cup tour and the
costs of Grey Cup Championship rings. In 2013/14, the
Club was very proud to direct a record $416,864 back into
our communities in the form of donations, including a
record redistribution from the Club’s portion of the 50/50
proceeds during the year.
GREY CUP 2013
The overwhelming success of hosting the 101st Grey Cup
game and Celebration in Rider Nation festival extended
to the financial results from the event. Grey Cup 2013
contributed excess revenues over expenses of $9.3 million
which made up 89% of the Club’s total excess revenue
over expenses during the year. The Club saw revenue of
just under $25 million with $12.2 million in revenue from
gate receipts for the game, and an
additional $7.0 million in sponsorship
related to the festival. Expenses of
Other
Donations
$15.7 million were driven primarily by
Expenses
2%
Sponsorship
the cost of putting on the festival events,
4%
3%
the hosting fee paid to the Canadian
Ticket Office
3%
Football League, and the cost of
Advertising &
preparing Mosaic Stadium for hosting;
Football Operations
Public Relations
including rental charges related to the
29%
4%
temporary stands. Including expenses
Home Game
incurred in previous years, hosting
Expenses
6%
the 101st Grey Cup had overall excess
revenue over expenses of $8.7 million.
Countless hours from approximately
Concessions
8%
2,500 volunteers are not recorded
in the financial statements but the
incredible financial results certainly
could not have been achieved without
Administration
their enthusiasm and support.
11%
The financial results from the event
enabled the Club’s Board of Directors
Merchandise
18%
Amortization of
to approve a $6.0 million transfer
Property, Plant & Equipment
of cash flow from the event to the
12%
Club’s Stadium Fund to help to
meet the Club’s $40 million capital
Expense Categories - 2013/14
commitment at the new stadium.
15
FINANCIAL POSITION
The Club’s balance sheet continues to position the Club
very well for the future. Overall net assets increased by an
incredible 40% over the previous year to $36.8 million.
Facility fees were collected during the regular season,
playoff game, and Grey Cup game which, when combined
with the $6 million of cash flow transferred from the 2013
Grey Cup, resulted in fund assets of $8.7 million for the
Stadium Fund. This Fund is internally restricted for the
purpose of future capital commitments at the new stadium
to be located at Evraz Place, or continued improvements at
Mosaic Stadium.
The Club’s Stabilization Fund grew to $12.2 million in net
assets which was an increase of 5% over the previous year.
These funds are not to be used without the approval of the
Board of Directors and they function as financial reserves to
sustain the operations of the Club should there be a dropoff in available financial resources for the Club.
CASH FLOW
The Club saw a net increase of $12.7 million in cash
during the year driven mainly by the same factors
impacting earnings, excluding amortization. The strong
cash flow during the year increased the Club’s cash and
cash equivalent balances to just under $22.4 million, as the
Club maintains liquidity largely in preparation for future
stadium commitments. Including long-term investments,
the Club has total cash and cash equivalents and long
-term investments of $43.4 million as of March 31, 2014.
16
17
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SASKATCHEWAN ROUGHRIDER FOOTBALL CLUB INC.
March 31, 2014
18
N
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INDEPENDENT AUDITOR’S REPORT
Deloitte LLP
2103 - 11th Ave.
Mezzanine Level
Bank of Montreal Building
Regina, SK S4P 3Z8
Canada
Tel: 306-565-5200
Fax: 306-757-4753
www.deloitte.ca
To the Members of Saskatchewan Roughrider Football Club Inc.
We have audited the accompanying financial statements of Saskatchewan Roughrider Football Club Inc., which comprise
the statements of financial position as at March 31, 2014 and the statements of operations, changes in net assets and cash
flows for the year then ended and a summary of significant accounting policies and other explanatory information.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with
Canadian accounting standards for not-for-profit organizations, and for such internal control as management determines
is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to
fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in
accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies
used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation
of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion the financial statements present fairly, in all material respects, the financial position of Saskatchewan
Roughrider Football Club Inc. as at March 31, 2014 and the results of its operations and its cash flows for the year then
ended in accordance with Canadian accounting standards for not-for-profit organizations.
Chartered Accountants
May 23, 2014
Regina, Saskatchewan
19
STATEM E N T O F F I N A N C I AL P OSIT ION
Saskatchewan Roughrider Football Club Inc.
As at March 31, 2014
Operating
Stabilization
Fund
Fund
Stadium
Fund
2014
2013
ASSETS
Current assets:
Cash
$8,999,309 $1,080,604 $12,318,080 $
22,397,993
$9,728,401
Accounts receivable 838,958 -
-838,958554,589
Government
remittances receivable 41,686
-
-41,68628,437
Prepaid expenses 1,025,068
-
-1,025,0681,340,128
Merchandise inventory 1,551,888
-
-1,551,8882,177,039
12,456,909 1,080,604 12,318,08025,855,59313,828,594
INVESTMENTS (Note 4)
6,463,974 11,125,368 PROPERTY PLANT AND
EQUIPMENT (Note 5)
1,364,335
-
3,460,808 21,050,150 23,145,712
10,298,103 11,662,438 15,818,144
$20,285,218 $12,205,972 $ 26,076,991
$
58,568,181
$
52,792,450
$
$ 2,817,252
$ 1,649,979
LIABILITIES AND NET ASSETS
Current liabilities:
Accounts payable and
accrued liabilities
2,794,564
Government
remittances payable
$
-
$
22,688
224,609
- Deferred revenue 11,655,548
-
2,676,010 14,331,558 17,548,325
14,674,721
- 2,698,698 17,373,419 19,296,979
ASSET RETIREMENT
OBLIGATIONS (Note 6)
-
-
1,150,631 1,150,631 1,124,203
LONG TERM DEBT (Note 7)
-
-
3,200,000 3,200,000 6,200,000
-
7,049,32921,724,05026,621,182
14,674,721
- 224,609
98,675
NET ASSETS
Fund assets 4,246,162 10,063,534
Invested in property, plant
and equipment 1,364,335
Membership shares (Note 8)
8,729,55923,039,255 8,462,186
- 10,298,10311,662,43815,818,144
- 2,142,438
-2,142,4381,890,938
5,610,497 12,205,972 19,027,66236,844,13126,171,268
$ 20,285,218
$ 12,205,972
$ 26,076,991
$58,568,181
Commitments and contingencies (Note 12)
See accompanying notes
Approved by
______________________________________________________________________________
20
$52,792,450
S TATEM E N T O F O P E R AT IONS
Saskatchewan Roughrider Football Club Inc.
For the year ended March 31, 2014
OperatingStabilization Stadium
Fund FundFund
20142013 20142013 20142013 20142013
REVENUE
- $
- $ 3,355,960 $ 2,362,792 $ 15,366,838 $ 13,123,879
Merchandise 11,114,868 Gate receipts
6,976,222 - - - Sponsorship
5,193,056 4,985,349 - - 187,500 187,500 5,380,556 5,172,849
Concessions
4,793,126 3,835,113 - - - - 4,793,126 3,835,113
Home playoff game
1,805,717 - - - 284,810 - 2,090,527 -
Canadian Football League
1,983,740 2,048,918 - - - - 1,983,740 2,048,918
Fundraising and other
1,260,588 845,706 - - - - 1,260,588 845,706
Friends of the Riders Inc.
1,074,525 1,244,601 - - - - 1,074,525 1,244,601
Interest and investment
income (Note 11)
223,699 439,595 350,047 549,900 176,652 504,641 750,398 1,494,136
39,460,197 31,136,591 350,047 549,900 4,004,922 3,054,933 43,815,166 34,741,424
Football operations 12,162,230 10,852,488 - - - - 12,162,230 10,852,488
Merchandise
- - -
- 7,761,096 5,471,927
$ 12,010,878 $ 10,761,087 $
- 11,114,868 6,976,222
EXPENSES
7,761,096 5,471,927 Amortization of property,
plant and equipment
908,230 857,415 - - 4,214,452 2,898,589 5,122,682 3,756,004
Administration
4,483,219 3,815,558 26,499 24,902 240,803 196,137 4,750,521 4,036,597
Concessions
3,309,443 2,515,908 -
- -
-
3,309,443 2,515,908
Home game expenses
2,440,437 1,813,204 -
-
-
-
2,440,437 1,813,204
Advertising and public relations
1,765,631 1,429,622 -
- -
-
1,765,631 1,429,622
Away playoffs and Grey Cup
1,408,985 236,099 - - - - 1,408,985 236,099
Ticket office
1,198,127 1,021,048 - - - - 1,198,127 1,021,048
Home playoff game
1,011,959 - -
- -
- 1,011,959 -
Sponsorship
630,997 624,332 - - - - 630,997 624,332
Other expenses
219,622 175,707 20,310 2,381 - - 239,932 178,088
Fundraising and other
199,115 237,356 - - - - 199,115 237,356
37,499,091 29,050,664 46,809 27,283 4,455,255 522,617 3,094,726 42,001,155 32,172,673
EXCESS (DEFICIENCY) OF REVENUE
OVER EXPENSES BEFORE
THE FOLLOWING ITEMS:
1,961,106 2,085,927 303,238 (450,333)
(39,793)
1,814,011 Community donations
(416,864)
(234,290)
- -
-
- (416,864)
(234,290)
City of Regina - rent (Note 12) (200,000)
(200,000)
- - - - (200,000)
(200,000)
Grey Cup 2013 (Note 13)
5,869,865 (403,842)
- - 3,415,280 - 9,285,145 (403,842)
Change in fair value of investments
(6,012)
(93,929) 32,061
(45,874)
(80,547)
(167,599)
(54,498)
(307,402)
Loss on disposal of property,
plant and equipment
(6,431)
(38,323)
- - - (256,061)
(6,431)
(294,384)
$ 7,201,664 $ 1,115,543 $
335,299 $
EXCESS (DEFICIENCY) OF
REVENUE OVER EXPENSES
476,743 $ 2,884,400 $
2,568,751
(463,453) $ 10,421,363 $ 1,128,833
See accompanying notes
21
STATEM E N T O F C H A N G E S IN NE T ASSE T S
Saskatchewan Roughrider Football Club Inc.
For the year ended March 31, 2014
NET ASSETS, BEGINNING
Operating Stabilization
Fund
Fund
(Note 2)
(Note 2)
$
Stadium
Fund
(Note 2)
7,201,664 335,299
2,884,400 Membership shares issued for cash
-
251,500
-
Interfund transfers (Note 14)
(6,000,000)
-
6,000,000
NET ASSETS, ENDING
$
22
2013
4,408,833 $ 11,619,173 $ 10,143,262 $ 26,171,268 $24,986,685
Excess of revenue over expenses
See accompanying notes
2014
10,421,363 1,128,833
251,500 55,750
- -
5,610,497 $ 12,205,972 $ 19,027,662 $ 36,844,131 $ 26,171,268
S TATEM E N T O F C A S H FL OWS
Saskatchewan Roughrider Football Club Inc.
For the year ended March 31, 2014
20142013
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES
Excess of revenue over expenses
$
10,421,363 $
1,128,833
5,122,682 3,756,004
Change in fair value of investments
54,498 307,402
Loss on disposal of property, plant and equipment
6,431 294,384
Adjustments for non-cash items
Amortization
Forgiveness of long-term debt (Note 7)
(3,000,000)
-
Changes in non-cash working capital
Accounts receivable
(284,369)
64,838
Government remittances receivable
(13,249)
47,552
Prepaid expenses
315,060 (579,935)
Merchandise inventory
625,151 112,048
Accounts payable and accrued liabilities
1,167,273 125,934 Government remittances payable
(454,283)
44,995
Deferred revenue
(3,216,767)5,102,911
11,324,007 9,824,749
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES
Purchase of property, plant and equipment
(946,978)
Proceeds on disposal of property, plant and equipment
- (14,323,497)
80,920
(946,978)
(14,242,577)
Purchase of investments
(8,472,386)
(6,343,311)
Disposals of investments
10,513,449 7,799,095
Proceeds from long-term debt
- 6,200,000
Membership shares issued (Note 8)
251,500 55,750
2,292,563 7,711,534
NET INCREASE IN CASH
12,669,592 3,293,706
CASH, BEGINNING OF YEAR
9,728,401 6,434,695
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES
CASH, END OF YEAR
$
22,397,993 $
9,728,401
See accompanying notes
23
N O TES TO T H E F I N A N C I A L STAT E ME NT S
Saskatchewan Roughrider Football Club Inc.
For the year ended March 31, 2014
1. DESCRIPTION OF OPERATIONS
The Saskatchewan Roughrider Football Club Inc. (the “Club”) was established in 1910 and incorporated in 1940 and is
registered under the Non-Profit Corporations Act of Saskatchewan. The Club operates a professional football franchise
in the Canadian Football League (the “CFL”).
The Club has two classes of permanent Membership Interests (referred to as “Membership Shares”). The Membership
Shares are not shares in the ordinary sense of the term. The Membership Shares consist of an unlimited number of
permanent, voting Class A Membership Shares and an unlimited number of permanent, non-voting, convertible Class
B Membership Shares (Note 8). The Class A Membership Shares carry the right to one vote each for the election of
the Club’s Board of Directors and for key business matters requiring approval of the members. The Membership Shares
carry no other financial rights or benefits, in particular, no right to receive dividends or other distributions except the
right to a return of the amount paid for each Membership Share on any dissolution of the Club.
2. SIGNIFICANT ACCOUNTING POLICIES
The financial statements have been prepared in accordance with Canadian accounting standards for not-for-profit
organizations (ASNPO) and reflect the following policies:
a) Fund accounting
Revenues and expenses related to operating the football franchise are reported in the Operating Fund. This Fund
balance is considered unrestricted.
The Stabilization Fund includes the proceeds from the sale of membership shares and allocations from time to time
as considered appropriate by the Board. The Fund is internally restricted and is to be used only at the discretion
of the Board of Directors.
The Stadium Fund (previously called the Stadium Improvement Fund) was established in 2005 for the purpose of
Mosaic Stadium facility renewal, including the purchase of property, plant and equipment relating to the facility.
The Board of Directors approved a change in the name and purpose of the Fund in 2013. The Stadium Fund includes
revenues and expenses related to stadium development activities. Facility fees, fundraising activities, and allocations
from time to time are internally restricted for the purpose of capital commitments realated to the new stadium that
is to be located at Evraz Place or improvements at Mosaic Stadium. As a condition of the facility lease with the City
of Regina, funds have also been restricted to decommission certain assets at Mosaic Stadium as noted in Note 6.
b) Revenue recognition
Gate receipts revenue is recognized when the event occurs. Proceeds from tickets sold in advance of the event are
included in deferred revenue. Concessions and merchandise revenue is recognized when the inventory is sold.
CFL revenue is recognized when confirmed or received based on the allocation from the CFL during the year.
Sponsorship revenue is recognized in the year in which the service has been rendered or the product has been sold.
Fundraising and Friends of the Riders Inc. revenue is recognized when received. Interest and other investment
revenue including realized investment gains and losses are recognized in the period earned.
The Club’s activities include sponsorship transactions on a non-monetary basis. The valuation of these
transactions is the fair value of the services or goods received; where the fair value cannot be determined,
the average ticket price of the tickets exchanged for the services or goods received is used as the basis of
measurement. The Club is also supported by many volunteer hours which are not valued in the financial
statements as the fair value of these hours cannot be reasonably estimated.
24
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
c) Use of estimates
The preparation of financial statements in conformity with ASNPO requires management to make estimates and
assumptions that affect reported amounts of assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the year. Actual results could differ from those estimates.
Significant estimates include the useful life of property, plant and equipment, the collectability of accounts
receivable, the valuation of inventory and the fair value of asset retirement obligations.
d) Merchandise inventory
Merchandise inventory is valued at the lower of cost and net realizable value. Cost is calculated on an average
basis. Included in merchandise expense are write-downs of $58,196 (2013 – $nil).
e) Property, plant and equipment
Property, plant and equipment are recorded at cost. Property, plant and equipment are being amortized on a
straight-line basis at the rates calculated to amortize the cost of the assets over their estimated useful lives:
Equipment
Leasehold improvements
Video boards
3-5 years
1-5 years
5 years
f) Asset retirement obligations
A liability is recorded for future retirement obligations associated with the Club’s leasehold improvements at
Mosaic Stadium. The fair value of the Asset Retirement Obligation (“ARO”) is recorded on a discounted basis.
The associated asset retirement cost is capitalized as part of the cost of the related asset and amortized to expense
over the useful life of the asset. The liability accretes until the Club settles the obligation. Changes to the estimated
obligation resulting from revisions to the estimated timing or amount of undiscounted cash flows are recognized
as a change in the ARO and related asset. Actual expenditures incurred are charged against the obligation.
g) Income taxes
As a non-profit organization the Club is exempt from income taxes under Paragraph 149 (1)(l) of the Income Tax Act.
h) Financial instruments
Financial assets and financial liabilities are initially recognized at their fair value. The Club subsequently measures
all financial assets and liabilities at amortized cost with the exception of the Club’s Investments. Investments are
subsequently measured at fair value and changes in fair value are recorded directly in the statement of operations.
i) Defined contribution pension plans
The Club contributes to two defined contribution pension plans. Substantially all of the employees of the Club
are members of a defined contribution pension plan. In accordance with the terms of the plan, the Club matches
contributions made by employees for current service and recognizes an expense in that period of contribution.
Contributions are made to the CFL Player’s Pension Plan for certain players and are recognized as an expense in
the period of contribution.
3. CASH MANAGEMENT
Interest is earned on the cash balance at prime minus 1.60% (2013 – prime minus 1.60%).
The Club has an authorized line of credit of $1,000,000 (2013 - $1,000,000) with an interest rate at prime. As at March 31,
2014, prime was 3% (2013 - 3%). The Club has no amounts outstanding on the line of credit as at March 31, 2014. The
line of credit is secured by a general security agreement covering assets of the Club.
25
4.INVESTMENTS
Fair Value
March 31,
2014
Scotia Short-Mid Government Bond Fund
$
Scotia Short Term Bond Fund
Scotia Canadian Corporate Bond Fund
Scotia Canadian Equity Fund
Scotia US Dividend Fund
Investments
Cost
March 31, March 31,
March 31,
201320142013
8,266,252 $ 15,255,204 $
6,446,294 - 3,742,282 6,754,839 1,373,011 1,135,669 1,222,311 - $ 21,050,150 $ 23,145,712 8,380,314 $ 15,290,740
6,446,294 3,656,031 6,502,949
1,129,131 1,047,361
1,188,217 -
$ 20,799,987 $ 22,841,050
The Club has investments in a managed portfolio of pooled funds. These investments are recorded at fair value based on
quoted market prices. The interest rate for fixed securities within the pooled funds vary from 1.70% to 10.22% and the
maturity dates range from May, 2014 to December, 2049 (2013 investments varied from April, 2014 to April, 2024 and
had interest rates on fixed securities ranging from 1.70% to 10.22%).
It is the Club’s policy only to invest in bonds with a minimum BBB (low) rating. As at March 31, 2014, the minimum bond
rating of any bonds held within the managed portfolio of pooled funds is BBB (low) (March 31, 2013 – BBB (low)).
5. PROPERTY, PLANT AND EQUIPMENT
Net Book Value
Accumulated
Cost Amortization
March 31,
2014
Operating Fund
Equipment
Leasehold improvements
Construction in progress
$ 3,578,822 $
2,827,560 - 2,474,124 $
2,567,923 - 1,104,698 $
259,637 - 6,406,382 5,042,047 1,364,335 1,591,893
Stadium Fund
Video boards/media tower
Field turf
Seating, suites and structures
Leasehold improvements
Construction in progress
3,475,372 599,545 12,659,780 2,532,837 - 1,460,858 434,670 4,976,552 2,097,351 - 2,014,514 164,875 7,683,228 435,486 - 2,755,687
224,829
10,573,679
578,568
93,488
19,267,534 8,969,431 10,298,103 14,226,251
$ 25,673,916 $ 14,011,478 $ 11,662,438 March 31,
2013
958,393
515,573
117,927
$ 15,818,144
6. ASSET RETIREMENT OBLIGATIONS
In accordance with the current lease agreement with the City of Regina, the Club has recognized obligations to
decommission certain of its assets at Mosaic Stadium. These assets consist of the Club’s leasehold improvements
including East Side Club Seating, equipment at the Stadium including two video boards and the structures, suites,
and seating associated with the Grey Cup Legacy Project capital improvements at Mosaic Stadium.
26
6. ASSET RETIREMENT OBLIGATIONS (continued)
The following table presents the reconciliation of the beginning and ending carrying amount of the total obligations
associated with the retirement of certain property, plant and equipment.
March 31,
2014
March 31,
2013
Asset retirement obligations, beginning of year
$1,124,203 $ 536,382
Liabilities incurred
- 511,210
Changes in estimates
(7,347) 44,428
Accretion of asset retirement obligations
33,775 32,183
Asset retirement obligations, end of year
$ 1,150,631 $ 1,124,203
The total undiscounted amount of estimated future cash flows to settle the obligations at March 31, 2014 is $1,376,300
(2013 - $1,349,900). The Club has estimated the timing of the payment of cash flows based on probabilities assigned to
incurring the costs in either 2017 or 2018. The estimated future cash flows were discounted using the Club’s estimated
risk-free rate of 2.5%. It is anticipated that funds from the Club’s Stadium Fund will be utilized to ultimately settle the
asset retirement obligations.
7. LONG-TERM DEBT
On July 16, 2012 the Club entered into a loan agreement with the Government of Saskatchewan for a $6,200,000 loan
to finance a portion of the Grey Cup Legacy Project capital improvement project at Mosaic Stadium. The loan has
interest-only payments for the first four years, payable quarterly at a 2% interest rate. The principal amount is due
on August 30, 2016.
On July 16, 2013 the Government of Saskatchewan forgave $3,000,000 of the principal amount of the loan in support of
the 2013 Grey Cup. The forgiven amount continued to bear interest up until July 16, 2013. All other terms of the loan
remain in effect. This loan forgiveness was included in Grey Cup 2013 Sponsorship revenue (Note 13).
Included in the statement of operations for the year ending March 31, 2014 is $80,379 (2013 - $63,189) of interest
expense related to the loan.
As security for the loan, the Club has provided the Government of Saskatchewan with a registered Assignment of
Investments and accounts receivable held in the name of the Club within the Club’s Stabilization Fund. During the
term of the loan the Club will not allow the balance of Investments and accounts receivable within this Fund held
with its investment managers to fall below $7,500,000 unless approved by the Government of Saskatchewan.
8. MEMBERSHIP SHARES
Class A Voting
Membership Shares
Class B Non-Voting
Membership Shares
Carrying
Amount
Balance, March 31, 2012
Issued for cash
Transfers between classes
9,197 206 (2)
354 $ 1,835,188
17 55,750
2 -
Balance, March 31, 2013
Issued for cash
Transfers between classes
9,401 980 1 373 26 (1)
Balance, March 31, 2014
10,382 398 1,890,938
251,500
-
$ 2,142,438
27
8. MEMBERSHIP SHARES (continued)
Class A Membership Shares
The holders of Class A Membership Shares are entitled to receive notice of and to attend all meetings of members of the
Club, and at all such meetings shall be entitled to one vote in respect of each Membership Share held by such holder.
No individual member or group of affiliated business entity members (being any business entity that controls, is controlled
by or is under common control of any other business entity) may own more than 20 Class A Membership Shares.
Class A Membership Shares may be purchased by an individual or business entity at a price set from time to time, by the
Club’s Board of Directors. Class A Membership Shares are permanent and can only be terminated in accordance with
the criteria set out in the bylaws of the Club.
Class B Membership Shares
The holders of Class B Membership Shares shall be entitled to receive notice of and to attend all meetings of members
of the Club, but shall not be entitled to vote at any such meeting, except as required by law.
Upon approval by the Board of Directors of the Club, Class B Membership Shares can be converted into Class A
Membership Shares provided such Class A Membership Shares will be issued in the name of an individual or business
entity that does not own more than 20 Class A Membership Shares.
There is no limit on the number of Class B Membership Shares that a member may own.
Class B Membership Shares may be purchased by an individual or business entity at a price set from time to time by the
Club’s Board of Directors. Subject to conversion, Class B Membership Shares are permanent and can only be terminated
in accordance with the criteria set out in the bylaws of the Club.
9. NON-MONETARY REVENUE
Included in sponsorship revenue is $626,286 (2013 - $622,791) of non-monetary sponsorship. Included in gate
receipts is $125,041 (2013 - $101,313) of non-monetary gate receipts and included in fundraising and other is
$46,200 (2013 - $59,184) of non-monetary event ticket revenue. Included in Grey Cup 2013 revenue is $3,599,216 of
non-monetary sponsorship revenue (2013 - $nil). No amounts are included in deferred revenue at March 31, 2014
(2013 - $47,244). Corresponding amounts are recorded in expense categories to which the sponsorship, fundraising
or ticketing relates or as capital additions. No amounts reflecting capital additions were recorded during the year
ended March 31, 2014 (2013 - $83,000). In the current year, $3,000,000 of non-monetary sponsorship revenue
included in Grey Cup 2013 was related to loan forgiveness as described in Note 7.
10.RELATED PARTY TRANSACTIONS
The Club has entered into certain transactions with related parties. The Club paid to entities in which certain
directors are either officers or hold direct or indirect equity interests, amounts totaling $634,173 (2013 – $344,271)
for certain expenses which are included in the statement of operations. The Club received from entities in which
certain directors are either officers or hold direct or indirect equity interests, amounts totaling $182,364
(2013 – $652,405) for items included in revenue in the statement of operations and additional amounts
totaling $129,536 (2013 - $nil) included in Grey Cup 2013 revenue.
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10.RELATED PARTY TRANSACTIONS (continued)
The following table summarizes the Club’s other related party transactions for the year not otherwise disclosed:
March 31,
2014
Included on statement of financial position:
Deferred revenue
Accounts receivable
Accounts payable and accrued charges
March 31,
2013
$56,668 $
- - 141,376
58,421
-
These transactions are in the normal course of operations and are measured at the exchange amounts, which is the
amount of consideration established and agreed to by the related parties.
11.INTEREST AND INVESTMENT INCOME
March 31,
2014
Pooled fund distributions
Realized (losses) gains on sale of investments
$838,553 (88,155)
March 31,
2013
$ 1,268,212
225,924
$750,398 $1,494,136
12.COMMITMENTS AND CONTINGENCIES
Commitments
In 2010, the Club entered into a five-year lease agreement with the City of Regina. Rental charges will be 25% of excess of
revenue over expenses, as determined in accordance with the lease, to a maximum of $200,000. The Club will be responsible
for operations, maintenance and repair costs for space used plus telephone and existing electrical demand charges.
The Club has the rights for all Mosaic Stadium concessions, including the related operating and capital expenditures.
In 2013, the Club entered into a funding and contribution agreement with the City of Regina related to the new
stadium that is to be located at Evraz Place. Subject to certain conditions outlined in the funding and contribution
agreement, the Club has committed to a contribution to the City of Regina of $25,000,000 to assist in payment of
the stadium capital costs. The $25,000,000 is payable in two equal installments on or before June 30, 2016 and upon
substantial completion of the new stadium.
The Club is committed to payments under various other operating leases for buildings and equipment with expiry dates
ranging from 2014 to 2018. Minimum annual payments for the next four fiscal years are as follows:
2015 531,839
2016 403,962
2017 223,442
2018 12,168
$1,171,411
Contingencies
The Club may be subject to contingencies and disputes for which a provision in the financial statements has not been
made. The occurrence of the confirming future event is not determinable or it is not possible to determine the amounts
that may ultimately be assessed against the Club with respect to these. Management believes that any such amounts
would not have a material impact on the business or financial position of the Club. Guarantees
The Club has provided a guarantee on behalf of the Friends of the Riders Inc. for credit card refunds in the event of
non-performance of the Friends of the Riders Inc. lottery.
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13.GREY CUP 2013 REVENUE AND EXPENSES
2014
2013
REVENUE:
Gate receipts
$12,153,442 $
Sponsorship
6,973,876 Festival events
2,678,915 Merchandise
1,905,683 Concessions
1,017,279 Other income
222,927 Interest income
39,350 164,484
13,118
24,991,472 177,602
EXPENSES:
Festival events
Canadian Football League
Game operation
Administration
Merchandise
Advertising and promotion
Concessions
Ticket office
Sponsorship
Other expenses
4,255,474 3,780,000 3,361,138 1,098,958 1,024,933 852,795 529,960 476,306 183,596 143,167 19,108
393,226
73,179
95,931
-
15,706,327 581,444
$ 9,285,145 NET GREY CUP 2013
$
(403,842)
14.INTERFUND TRANSFERS
During 2014, the Board of Directors approved a transfer of net assets from the Operating Fund to the Stadium Fund
in the amount of $6,000,000. In the previous year, the Board of Directors approved a transfer from the Operating
Fund to the Stabilization Fund in the amount of $500,000. These movements restrict these funds to only be used at
the discretion of the Board of Directors as described in Note 2 a).
15.FINANCIAL INSTRUMENTS
Significant terms and conditions
There are no significant terms and conditions related to financial instruments classified as current assets or current
liabilities that may affect the amount, timing and certainty of future cash flows. Significant terms and conditions for the
other financial instruments are disclosed separately in those financial statements.
Credit risk
The Club is exposed to credit risk from the potential inability of a counterparty to a financial instrument to meet
its contractual obligations. The carrying amount of cash and cash equivalents, accounts receivable, and investments
represent the maximum exposure of the Club to credit risk. The Club’s credit risk is considered to be low and is
managed through regular monitoring of balances and communication with debtors. The Club manages credit risk
related to cash and cash equivalents and investments through its cash management and investment policies.
Market risk
Market risk arises as a result of the holding and trading of investments within a pooled fund. The value of individual
investments within the pooled fund may be adversely impacted by changes within the specific company or governments which
issue the security. The Club has an investment policy designed to manage risk that specifies various parameters for investing,
including eligible types of investments, target asset mixes, minimum credit ratings, and maximum exposure to a single party.
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15.FINANCIAL INSTRUMENTS (continued)
Interest rate risk
Interest rate risk refers to the adverse consequences of interest rate changes on the Club’s cash flows, financial position,
and investment income. The Club is exposed to price risk with respect to the fair value of fixed income investments and
cash flow risk with respect to cash and cash equivalents that have variable interest rates.
Foreign currency risk
Foreign currency risk is the risk to the Club that arises from fluctuations in foreign exchange rates. The Club has
exposure to foreign currency risk through its investments in pooled funds that have equities that trade in a foreign
currency. The Club manages this risk through its investment policy which limits foreign equity exposure.
16.TRUST ACCOUNTS
Certain players are eligible to contribute to an Employee Benefit Plan, as defined in subsection 248(1) of the Income Tax
Act. In accordance with applicable contracts and trust agreements, funds amounting to $2,583,207 (2013 – $2,394,317)
are on deposit with a financial institution. As the trust assets are offset by trust liabilities, they are not reflected in the
financial statements.
17.DEFINED CONTRIBUTION PENSION PLANS
In accordance with the terms of the respective defined contribution plan, each Member Club in the CFL shall contribute
funds to the CFL Players’ Pension Plan for each player who has been on one or more Member Club Roster or Injured
Player’s List or Disabled List for nine or more games during each respective season. During 2014, the Club made
contributions of $222,000 (2013 – $201,833).
The Club has a defined contribution pension plan (Saskatchewan Roughrider Football Club Inc. Employees’ Pension
Plan) for employees. The Club’s obligations are limited to matching contributions made by the employees for current
services. During the year, the Club contributed $215,147 (2013 – $215,207) to the Plan which is included as an expense
in the statement of operations.
18.CAPITAL MANAGEMENT
The Club relies on ticket sales, sponsorship fees, merchandise revenue, and fundraising to finance operations. The funds
available are allocated to various programs and projects based on the needs of the Club and as directed by the Board of
Directors. Note 2 to the financial statements describes the various funds and the activity pertaining to them for the year.
The Club’s main objective when managing capital is to ensure that sufficient financial resources are in place to both
deliver on the priorities as set by the Club’s Board of Directors as well as to maintain a reserve to ensure the capability
of operations in the case of unexpected events. As part of capital management the Club invests funds in financial
instruments permitted under its Statement of Investment policies and procedures approved by its Board of Directors.
19.COMPARATIVE FIGURES
The previous year’s interest and investment income amount has been adjusted to conform to the presentation adopted
for the current year. Amounts related to the change in the fair value of investments included in interest and investment
income in the previous year have been reclassified to change in fair value of investments to be consistent with the current
year’s presentation.
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BO AR D M E MB E R S
Roger Brandvold
Chair
Wayne Morsky
Vice-Chair
Arnie Arnott
Randy Beattie
Doug Emsley
Robert Leurer
Twyla Meredith
Dennis Mulvihill
Laurie Powers
Jeff Stusek
Joel Teal
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The Roughriders would like to recognize the 101st Grey Cup Festival Sponsors:
Thank you to our Premier Partners!
Thank you to our Major Partners!
Thank you to our Festival Partners!
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S A S K AT C H E W A N R O U G H R I D E R S
1463 Albert Street, Regina, SK S4R 2R8 Bus: (306) 569-2323 Fax: (306) 566-4280
RIDERVILLE.COM