saskatchewan roughrider football club inc.

SASKATCHEWAN ROUGHRIDER FOOTBALL CLUB INC.
2014-15 ANNUAL REPORT
TABLE OF CONTENTS
1 2015 Chairman’s Report
2 Strategic Planning
3 Report from the President & 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
2
2015 C H A I R MA N ’ S R E P ORT
The last year can best be described as a “year of new”: I am completing my
first year as Chair of the Saskatchewan Roughriders Board of Directors, we
recently introduced the Riders second President & CEO in club history, the
CFL has hired a new Commissioner and construction of the new state of
the art Mosaic Stadium is well on its way. It has been a great privilege being
involved in all of this, and looking back puts a big smile on my face.
At the press conference announcing Craig Reynolds as the Riders’
next President & CEO, I stated, “We are in good hands.” The Board
of Directors continues to believe this. There is comfort knowing that Craig
has a talented and committed team behind him to ensure the ongoing
success of the Riders organization.
Jim Hopson, who after 10 years stepped down as President & CEO,
played a significant role in shaping the successful organization we see
today. Jim will be missed and the passion he had for Rider Nation will be
remembered for years to come. Thank you Jim, and all the best in your
well-deserved retirement.
The CFL continues to experience growth. Last season marked the opening of the new Tim Hortons Field in Hamilton
and a renovated TD Place in Ottawa. As we look ahead league wide, by 2020 over $1.5 billion will have been spent on
new or upgraded venues. The CFL brand remains strong and with the hiring of Jeffery Orridge as Commissioner, we look
for innovative strategies to take the CFL to the next level. This is also a time to bid farewell to retiring Commissioner
Mr. Mark Cohon. Mark was often referred to as the “Fan’s Commissioner” and many of the successes listed above have
Mark’s fingerprint on them.
Lastly, and most importantly is the success of Rider Nation both on and off the field. 2014 was not the repeat we wanted.
However, under the leadership of Brendan Taman, Jeremy O’Day and Corey Chamblin, the team made the playoffs and
continues to fill stadiums across the league. The 2015 team is sure to provide us with an exciting season and has what it
takes to be the next Grey Cup Champions. Off the field our brand is often envied for it’s sold out games, season ticket
waiting list, record retail sales and strong community involvement. For that we offer a big thank you to everyone in
Rider Nation for their ongoing enthusiasm and support.
As Chair, I have the privilege of representing the strong group of individuals that make up our Board of Directors. Their
dedication and expertise helps provide the leadership needed for a world-class organization. Thank you for sharing your
time, knowledge and passion.
Respectfully submitted,
Wayne Morsky
CHAIRMAN OF THE BOARD
1
STRATEGIC PLANNING
The 2014-15 fiscal year represents the second year of the Club’s five year planning cycle. The Club’s Board
of Directors and leadership team gathered in 2012 to evaluate it’s vision, mission and values. Through that
exercise the Club made some adjustments 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:
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
The Club’s commitment to continue on its Mission to set the standard of excellence in Canadian Football
is clearly evident as the Club’s new home — new Mosaic Stadium — is rapidly rising, with the goal of
delivering the best football facilities in the country. A new stadium, a new store opening in Saskatoon and
a new football season with the goal of winning another championship is creating a tremendous amount of
excitement in Rider Nation. Looking to the future, there will be a continued focus on our strategic themes
of Operational Excellence, People, Rider Nation and Sustainability, which are all fundamentally important
as we aim to capture the countless opportunities in front of the Club.
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 pleasure that I submit my first report as President & CEO
of the Saskatchewan Roughriders Football Club. It is an opportunity for us
to reflect on the events of the prior year, while we also anticipate the many
exciting moments ahead.
First of all, I would like to extend a heartfelt thank you to Jim Hopson.
Ten years ago Jim became the Club’s first President & CEO. He had a
strong influence at the team and league level on the many successes we
see today. As an organization we are focused on continuing to build on
the solid foundation that Jim helped build.
Last season began with much anticipation as the team set out to defend
their 2013 Grey Cup championship. An impressive early season seven game
winning streak pushed their record to 8-2 before taking a turn for the
worse. Suffering through many key injuries, the group dropped six of the
last eight contests finishing with the third best record in the CFL, before a
season ending loss in the Western Semi-Final. I have a tremendous amount
of confidence in the plans and strategies of General Manager Brendan
Taman, Head Coach Corey Chamblin and the rest of the football operations
staff in leading our team towards more championship seasons.
The construction of the new Mosaic Stadium officially began last spring and significant progress has been made. The
stadium will be the premiere outdoor facility in Canada. It will offer fans a modern and exciting game day experience while
allowing our football team the opportunity to recruit and retain the best players, coaches and staff. Our organization has
been focused on the planning related to the eventual transition of our football team and business operations to the new
stadium, as well as preparing to move our passionate season ticket base to this outstanding new facility. As much as we look
forward to that, the next two seasons will also provide us with a time to reflect on the moments and memories created over
the many years at the current Mosaic Stadium.
As always, none of this is possible without the incredible support of our fans — Rider Nation. Last season, the Riders led
the league in overall game attendance, playing in front of an average crowd of 29,854 fans through 18 regular season games.
We continue to be the envy of the CFL because of your relentless dedication to our team.
In closing, I would like to acknowledge and thank the Board of Directors. Board Chair, Wayne Morsky, Vice-Chair Jeff Stusek,
and all of the Directors help instill the vision and direction of our organization. Your commitment and dedication is
greatly appreciated.
I look forward to seeing everyone at Mosaic Stadium in 2015. Go Riders!
Craig Reynolds
President & CEO
3
4
FO O TB A L L O P E R AT I O N S
Building off the momentum of the 2013 season,
the Saskatchewan Roughriders set out to do what no
other team in franchise history has done: repeat as
Grey Cup champions.
VP of Football Operations and General Manger Brendan
Taman, Assistant General Manager Jeremy O’Day and
Director of Player Personnel Craig Smith set out to
construct another championship calibre team. Free
agency and retirement picked away at the Riders roster,
but the staff found fresh faces like Anthony Allen, Mark
LeGree and Derek Walker. The CFL Draft produced first
year regulars Dylan Ainsworth, Matt Webster and Alex
Pierzchalski. The team also landed veteran receiver and
fan favourite Weston Dressler in September after his return
from NFL training camp.
Third year head coach Corey Chamblin retained seven
members of the 2013 Grey Cup winning coaching staff
with Richie Hall, George Cortez, Bob Dyce, Barron Miles,
Doug Malone, Todd Howard and Jason Tucker returning,
while adding running backs coach Avon Cobourne and
linebackers coach Brad Miller to the unit.
The Riders stumbled out of the gate and entered an early
season bye week losing two of their first three starts. The
week off provided an opportunity to refresh, and the team
responded by winning the next seven games. It was just
the fifth time in franchise history that a Rider team had
registered eight wins in their first ten games. However,
fortunes would change as the injury list grew; including
a season ending tendon tear to the throwing elbow of
franchise quarterback Darian Durant. The team was in a
tailspin losing six of their final eight contests to finish in
third place with a 10-8 regular season record. The 2014
season ended with an 18-10 road loss to the Edmonton
Eskimos in the Western Semi-Final.
The defence was led by three West Division All-Stars:
safety Tyron Brackenridge, defensive end John Chick and
defensive tackle Tearrius George. Brackenridge picked up
his second consecutive Division All-Star and CFL All-Star
recognitions after totalling 64 defensive tackles and tying a
career high with three interceptions. Chick led the league
with 15 quarterback sacks while adding a career high 45
defensive tackles. He picked up both West Division and
CFL honours for the second time in his career. George
was also named a West Division All-Star for the second
consecutive year after posting career marks with 37
defensive tackles and 12 quarterback sacks. As a unit, the
Rider defence led the league with 61 quarterback sacks.
Notably, Tristan Jackson led the CFL in combined return
yards as he topped the list in kickoff returns and missed
field goal returns. Weston Dressler added two punt return
touchdowns, including a 78 yard return, leading all CFL
punt returners in the category.
The team continues to have a lot to build on. The Riders
have appeared in four of the last eight Grey Cup games
and have made the playoffs 12 times since the 2000 season.
Saskatchewan continues to be the place to play in the
Canadian Football League.
Two players on offence were named West Division AllStars: receiver Rob Bagg and offensive lineman Brendon
LaBatte. Bagg picked up his first career All-Star nod after
leading the Riders with 54 catches and 803 yards, while
also finishing in a four-way tie for the team lead with three
touchdown receptions. LaBatte was named a Division
All-Star for the sixth consecutive season while also being
named a CFL All-Star for the second year in a row and
third overall.
5
CO M M U N I T Y R E L AT I O N S
Throughout the season, members of the Saskatchewan
Roughriders visit clinics throughout the province with
some even donating blood!
In 2014 Rider fans rolled up their sleeves and donated
1,611 units of blood, 124% of the yearly pledge.
The Saskatchewan Roughrider Football Club launched a
new community theme, “Pass It On,” which aims to redefine
and elevate the impact that Roughriders community
initiatives have in Saskatchewan. “Pass It On” will be
represented across all of the community programs and
partner organizations that the Roughriders are involved
with. In 2014-15, the commitment provided by the Rider
organization had a direct financial impact of $1.2 million
to not-for-profit and various charitable organizations.
The Football Club continues to evaluate and expand on
the “pillars” of the community that we will support and
have put an emphasis on education, health recreation
and the well-being of children and families. Players are
the biggest part of “Pass It On,” and in 2014 they made
410 appearances in over 50 communities in Saskatchewan.
Their travels covered over 67 thousand kilometres
and over 1,413 hours helping numerous charities and
initiatives. Another key way the Football Club contributes
to charities in Saskatchewan is through the donation of
Roughrider memorabilia which, during the course of 2014,
helped these organizations raise over $175,000.
The pillars of the “Pass It On” initiative are:
HEALTH
Canadian Blood Services – Bleed Green
2014 was another successful year for the Bleed Green
campaign. A great partnership between the Riders and
Canadian Blood Services, its goal is to raise awareness
about the impact of donating blood and the number of
lives it saves. Every Rider home game you can see donors
from across the province carry the giant Canadian flag
onto the field before kickoff.
6
Touchdown for Dreams
The Touchdown for Dreams program was created in 2011.
As part of the CFL’s pink initiative, this program raises
funds to grant the dreams of women in Saskatchewan
who have been diagnosed with terminal cancer. Dreams
range from vacations to concerts, and new cars to home
renovations. Thanks in large part to our partner Cameco,
the Touchdown for Dreams program has granted over
20 dreams, each worth $5,000.
Children’s Hospital Foundation
In 2015, the program will hit more schools than ever
before. Over 60 institutions and 10,000 students have been
reached by the Saskatchewan Roughrider presentations.
The Saskatchewan Roughriders are proud to be a major
supporter of the Children’s Hospital of Saskatchewan.
In 2014 the Riders partnered with the Craven Country
Jamboree and raised almost $10,000 for the hospital
through an online auction.
The Club also 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.
An additional 30,000 youth per year are reached with
bullying prevention training. Through Red Cross Day
of Pink, Red Cross also raises awareness reaching an
additional 20,000+ youth, 166 businesses, 170 communities
and 320 schools each year.
AMATEUR SPORT
The Saskatchewan Roughriders help give kids the
opportunity to play organized sports through their
ongoing support of Amateur Football in Saskatchewan.
EDUCATION
Imagine No Bullying
Since 2010, former and current members of the
Saskatchewan Roughriders including Weston Dressler,
Luc Mullinder, Chris Getzlaf, Keith Shologan, Scott
McHenry and Dan Clark have travelled to each corner
of the province delivering the Red Cross’ Beyond the Hurt
anti-bullying presentations to schools.
Their presentations begin the process of engaging schools
and students in bullying prevention education. The Red
Cross believes that researched-based education is the key
to creating social change. After the player presentations,
the Red Cross offers in-depth Youth Facilitator bullying
prevention training and Adult Facilitator bullying
prevention training.
This training is driven by evidence-based research and is
constantly evaluated for effectiveness both independently
and through the Red Cross partnership with PREVnet,
Canada’s authority in bullying research.
Centennial Legacy Fund
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 Legacy Fund.
Through a partnership with Sask Sport and the previously
established Sport Legacy Fund, the funds are being
dispersed for amateur football capital projects. A committee
was formed in partnership with Football Saskatchewan and
Sask Sport establishing application guidelines and criteria
for making the grant decisions.
In 2014-15, the Legacy Fund supported the following
minor football organizations with grants totaling $84,000.
January 2015 – $34,000: (number of participants impacted in brackets)
Kerrobert Comp School (100)
Score clock
$4,000
Martensville High School (75)
Club house/storage
Hafford Minor Football (40)
Spotters booth/storage
Esterhazy Warrior Football (100)
Goal Post/bleachers
$10,000
Clubhouse/locker room
$50,000
$15,000
$5,000
March 2015 – $50,000
Yorkton Minor/High School Football (600+)
7
KIDSPORT
GREY CUP LEGACY PROJECT
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. KidSport provides
support to children in order to remove financial barriers
that prevent them from playing organized sport.
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.
•developing early physical activity habits that will help
increase the probability that kids will remain active
in adulthood
The semi-temporary seats, boxes and structures in the
north and south end zones of Mosaic Stadium will be
made available for any sport, culture or community
organization that has a use for them. The Saskatchewan
Roughriders will dismantle and donate the seats, frames
and structure. The prospective organization is then
responsible for the transport and reconstruction of
the project.
•getting kids active in sport programs when they are
young to develop a strong and healthy community for
the future
Purchase and installing brand new seating costs around
$300 per seat. With this program, organizations will be
able to acquire and install seating at around $100 per seat.
Why KidSport?
By providing kids with an opportunity to participate in
sport programs, KidSport encourages:
•helping to create these opportunities for sport
participation and playing a significant role in supporting
many under-represented families in Canada facing
economic obstacles
The Saskatchewan Roughriders provide many player
appearances in support of KidSport each year as well
as substantial support with the annual Saskatchewan
Roughrider Calendar. The 2014 Calendar campaign
featured current Rider players and was yet again a fantastic
success with over $75,000 raised. Since the relationship
began between the Saskatchewan Roughriders and
KidSport, the amount of money raised is over $1 million.
All of the proceeds go towards KidSport initiatives
in Saskatchewan.
(Courtesy of kidsportcanada.com)
50/50 – AMATEUR FOOTBALL
The Roughriders continue their ongoing support of
amateur football in Saskatchewan through the University
of Regina Rams 50/50 draw.
Here is a breakdown of the donations to Saskatchewan
amateur football organizations after the 2014 season:
Saskatoon Hilltops
$40,000
U of Sask Huskies
$40,000
Regina Thunder
$40,000
Football Sask
$40,000
Regina Riot
$3,375
Saskatoon Valkyries
$3,375
Centennial Legacy
$6,750
8
The winning applicants will be announced in the
beginning of the 2015 season.
GREEN TEAM
2014 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 then pick up recyclables after
— which usually takes 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 is
put back into wages. The surplus is dedicated to murals
and other community beautification projects.
Thank you to Premiere Van Lines for providing the truck
and driver, SARCAN for working with us to obtain the bags
we use and for counting the recyclables, and the City of
Regina who we couldn’t do this without.
128 workers participated in 11 home games (nine regular,
one pre-season and one REDBLACKS ‘home game’) in
2014, as compared to 161 workers in 2013, 135 workers
in 2012 and 109 in 2011. Approximately $34,400 worth
of beverage containers were recycled this year.
OUTREACH
The Saskatchewan Roughriders reach every corner of
the province with these community outreach programs
and initiatives:
620 CKRM Cheer Team
Historically, the Saskatchewan Roughriders Cheer Team
has existed in many different forms: the Golden Girls, the
Dream Team, and the Trailblazers. In most recent years,
the former dance team has adopted a collegiate sideline
style of performance. In 2014, under the guidance of
Head Coach Nicole Wegner, Manager Chelsea Fidler
and assistant coach Jenaya Giblett, the members of
the 620 CKRM Cheer Team put in hundreds of hours
practicing, performing and volunteering their time for
the Saskatchewan Roughriders and their fans. The co-ed
team can be seen doing their acrobatic performances
on the field, at many Saskatchewan public appearances,
and at Grey Cup festivals. The Cheer Team is represented
by athletes from Regina, Saskatoon, Moose Jaw and
Yorkton. Their season begins with tryouts in March and
performances through to Grey Cup in November.
The cheerleading program influences future members
of the Rider Cheer Team with “Lil’ Rider Cheer Day,” a weekend-long summer camp where hundreds of young
and aspiring cheerleaders learn new skills from the Rider
Cheer Team. The Team also spends many hours appearing
at local non-profit events, interacting with fans and
representing the Club.
Drum Line
2014 was the second season for the University of Regina
Conservatory Rider Drum Line. Coach Tyler Taylor and
Manager Corey Taylor put together 20 drummers that
have never played together before to create a fantastic unit
that is unique to the CFL. They can be seen at pregame
FANFEST and on the west side bricks prior to games and
underneath the SaskTel Maxtron during games.
Gainer the Gopher
The hardest working mascot in the CFL criss-crosses the
province as the Riders ambassador of goodwill. When he’s
not on the Mosaic Stadium turf during game days, the funloving, high energy rodent can be seen 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.
Pep Band
For over 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
2014 with over 40 performances in 12 different
Saskatchewan communities.
9
Kids Club
2014 was the second year of the Rider Kids Club. After
a solid first year, the Kids Club saw its membership grow
to over 700. We continue to look for ways to provide our
members with unique experiences and opportunities to
interact with their favourite CFL team. Some of the events
that our Kids Club members were invited to participate
in included a movie night at the Saskatchewan Science
Centre, free time on the Mosaic Stadium field after a
game, and various holiday related contests. Also new to
the Kids Club was the introduction of the Kids Club
Member of the Game. Ten lucky members were invited
to a Rider home game where they were given a pregame
experience, tickets to the game and their own Ben Heenan
signed Rider jersey. Kids Club is looking towards 2015 as
an opportunity to continue the growth of our younger
fan base.
10
11
FI N AN C I A L R E S U LT S R E VIE W
EXCESS OF REVENUE OVER EXPENSES
In 2014/15 the Club had excess revenues over expenses of
$2.2 million compared to $10.4 million in the prior year.
Grey Cup 2013 accounted for $9.3 million of the excess
revenue over expenses in the previous year. The Club
continued to see strong financial results despite falling
short of its ultimate goal on the field. Excluding the
2013 Grey Cup net profits, the overall net profit margin
increased to 5% from 3% the previous year.
The Club continued to see strong revenue from all its
operating sources. Total gross revenues were $42.4 million
in 2014/15 compared to $43.8 million in 2013/14.
The primary reasons for the 3% decrease were lower
merchandise revenue compared to the record setting
Grey Cup 2013 year, lower concessions revenue, and the
lack of a home playoff game.
12
The Club’s operating expenses dropped to $40.1 million
as compared to $42 million in the prior year mainly due
to not hosting a home playoff game in 2014/15 and the
prior year including costs associated with the playoff and
Grey Cup victory.
Fundraising
and other
2%
14,000
12,000
Concessions 10%
10,421,363
Interest and Investment Income
2%
Friends of the
Riders Inc.
2%
10,000
Gate
Receipts
35%
8,000
CFL 12%
6,607,501
6,000
4,000
2,000
4,516,321
2,202,831
1,128,833
0
2010/11 2011/12 2012/13 2013/14 2014/15
Excess of Revenue Over Expenses ($ Thousands)
Sponsorship
15%
Merchandise
22%
Revenue Sources – 2014/15
13
GATE RECEIPTS
The 2014 season saw the Club return to its regular
capacity at Mosaic Stadium after expanded capacity
in 2013. Season ticket renewals for the 2014 season
were consistent with the prior year. Game attendance
continued to be strong with an announced average
attendance of 28,600 despite several games that were
challenged as a result of the weather. Gate receipts
totaled $15 million compared to $15.4 million the
previous year. The decrease of $0.4 million in gate
receipts earned during the year was due to lower
average capacity at Mosaic Stadium during 2014.
11,114,868
12,000
10,000
10,327,325
9,372,483
8,000
7,085,402 6,976,222
6,000
4,000
2,000
0
2010/11 2011/12 2012/13 2013/14 2014/15
Merchandise ($ Thousands)
18,000
15,366,838
15,000
12,000
11,263,691 11,791,086
14,982,320
13,123,879
9,000
6,000
3,000
0
2010/11 2011/12 2012/13 2013/14 2014/15
Gate Receipts ($ Thousands)
MERCHANDISE SALES
The Club continued to set the pace in merchandise sales
in the CFL during the year. The Club exceeded the
$9 million mark in total merchandise revenue for the
third time in the past five years. The Club anticipated a
drop-off in merchandise sales from the all-time record of
$13 million of merchandise sales from the previous year,
which included sales of Grey Cup and Championship
merchandise. However, the Club’s stores continued to
perform well, driven by higher than anticipated demand
for the new signature jersey and record online sales.
SPONSORSHIP
The Club continues to have strong relationships with
sponsors, partners and proud supporters who continue
to be key contributors in driving our success. In 2014-15,
the Club had its highest annual sponsorship revenue in
history of $6.1 million, an overall increase of 14% over
the prior year. Many of our partners enjoyed incredible
visibility, especially given our league leading television
broadcast audiences. The Club was able to elevate an
exciting game day experience with the addition of sideline
LED displays along the visiting team sidelines. Outside
of game day, improvements were made to partnership
involvement at other events such as Training Camp,
Riderville Tour events and the Grey Cup Luncheon.
7,500
5,380,556 6,118,545
6,000 5,969,022
4,500
4,802,506
5,172,849
3,000
1,500
0
2010/11 2011/12 2012/13 2013/14 2014/15
Sponsorship ($ Thousands)
14
OTHER REVENUE SOURCES
The Club received an increase of $2.9 million in CFL
distributions primarily as a result of the new television
agreement. Concessions revenues decreased $0.7 million
to $4.1 million compared to the record level of
$4.8 million the previous year mainly due to the return
to regular capacity in the stadium, as well as some games
with lower attendance due to undesirable weather. The
Club did not host a home playoff game in 2014 which
resulted in a decrease of $2.1 million in revenue from the
prior year. The Friends of the Riders Touchdown Lottery
delivered $1 million to the Club during the year bringing
total lottery proceeds distributed back to the Club to
$17.6 million since its inception. The Club also saw
strong investment income during the year resulting in
$0.9 million in interest and investment income,
an increase of 25% over the prior year.
the Grey Cup. Football operations expenses increased 8%
over the prior year due to the increase in the salary cap,
additional compensation associated with the signing of a
new CFLPA Collective Bargaining Agreement and increased
costs related to team travel for an extended stay in the East
Division due to the game schedule. Home game expenses
increased over the prior year by 13% due to increased
operating costs related to security and costs related to
relocating the LED ribbon boards at Mosaic Stadium.
Advertising and public relations expenses increased 24%
over the prior year primarily due to marketing costs directly
related to the future transition to the new stadium. The
Club was also very proud to direct $332,767 back into
our communities in the form of donations in 2014/15
including redistribution from the Club’s portion of the
50/50 proceeds during the year to various amateur football
organizations in the province.
FINANCIAL POSITION
EXPENSES
Operating expenses decreased by $1.9 million in the year.
Decreases in expenses were seen in merchandise expenses
that were consistent with the decrease in sales compared
to the prior year. Similarly, concession expenses decreased
relative to the decrease in sales. As the Club did not host a
home playoff game in 2014, operating expenses decreased
$1 million from the prior year. Similarly, operating expenses
decreased due to the prior year including $1.4 million in
expenses related to the West Division Final in Calgary and
direct costs associated with participating in, and winning
Donations
1%
Ticket Office
3%
Other
Expenses
4%
Advertising &
Public Relations
5%
The Club’s Stabilization Fund grew to $13.1 million in net
assets which was an increase of 7% over the prior 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 drop-off in available
financial resources for the Club.
Football Operations
33%
Home Game
Expenses
7%
Concessions
7%
Administration
11%
Amortization of
Property, Plant & Equipment
12%
The Club’s balance sheet continues to position the Club
very well for the future. Overall net assets increased by
6% over the prior year to $39.1 million. An additional
$2.9 million in facility fees were collected during the
regular season and allocated to the Stadium Fund.
This Fund is internally restricted for the purpose of future
capital commitments at the new stadium or continued
improvements at Mosaic Stadium.
Merchandise
17%
Expense Categories – 2014/15
CASH FLOW
The Club saw a net increase of $6 million in
cash during the year driven from operating
activities including deferred revenue related to
the Club’s exceptional season ticket renewals.
The Club also continues to make strategic
capital investments including capital spend
on new field level LED displays and design
development costs of the Club’s space in the
new stadium. The strong cash flow during
the year increased the Club’s cash and cash
equivalents balance to $28.4 million as the
Club maintains liquidity in our Stadium Fund
to start to prepare for our large future stadium
capital commitments.
15
16
17
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
SASKATCHEWAN ROUGHRIDER FOOTBALL CLUB INC.
March 31, 2015
18
N
T
S
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, 2015 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, 2015, 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 Professional Accountants
May 19, 2015
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, 2015
Operating
Stabilization
Fund
Fund
Stadium
Fund
2015
2014
ASSETS
Current assets:
Cash and cash equivalents
$
9,132,899 $
838,301
Accounts receivable
997,728 $
-
18,273,789 $28,404,416 -
838,301
$ 22,397,993
838,958
Government
remittances receivable
43,481 -
-
43,481 41,686
Prepaid expenses
1,418,456 -
-
1,418,456 1,025,068
Merchandise inventory
2,099,377 -
-
2,099,377 1,551,888
13,532,514 997,728 INVESTMENTS (Note 4)
6,676,069 12,098,912 PROPERTY, PLANT AND
EQUIPMENT (Note 5)
1,587,255 $ 13,096,640 -
18,774,981 21,050,150
7,150,219 8,737,474 11,662,438
$
25,424,008 $60,316,486 $58,568,181
-
$
245,371 $ 2,027,270 $ 2,817,252
139,830 -
Deferred revenue 11,777,477 -
2,844,468 14,621,945 13,699,206 -
3,089,839 16,789,045 17,373,419
ASSET RETIREMENT
OBLIGATIONS (Note 6)
-
-
1,246,729 1,246,729 1,150,631
LONG-TERM DEBT (Note 7)
-
-
3,200,000 3,200,000 3,200,000
13,699,206 -
7,536,568 21,235,774 21,724,050
Fund assets
6,509,377 10,920,452 10,737,221 28,167,050 23,039,255
Invested in property, plant
and equipment
1,587,255 $ 21,795,838 -
18,273,789 32,804,031 25,855,593
LIABILITIES AND NET ASSETS
Current liabilities:
Accounts payable and
accrued liabilities
$
1,781,899 Government
remittances payable
$
-
139,830 224,609
14,331,558
NET ASSETS
-
Membership shares (Note 8)
-
2,176,188 8,096,632 13,096,640 $ 21,795,838 $ 13,096,640 $
7,150,219 8,737,474 -
2,142,438
17,887,440 39,080,712 36,844,131
25,424,008 $58,568,181
$60,316,486 Commitments and contingencies (Note 12)
See accompanying notes
Approved by
______________________________________________________________________________
20
11,662,438
2,176,188 S TATEM E N T O F O P E R AT IONS
Saskatchewan Roughrider Football Club Inc.
For the year ended March 31, 2015
OperatingStabilization Stadium
Fund FundFund
2015
2014201520142015201420152014
REVENUE
- $
- $2,936,300 $ 3,355,960 $ 14,982,320 $ 15,366,838
Merchandise 9,372,483 11,114,868 - - - Sponsorship 5,931,045 5,193,056 - - 187,500 187,500 6,118,545 5,380,556
4,942,960 1,983,740 - - - - 4,942,960 1,983,740
Concessions 4,092,443 4,793,126 - - - - 4,092,443 4,793,126
Friends of the Riders Inc.
1,027,162 1,074,525 -
- - - 1,027,162 1,074,525
Interest and investment
income (Note 11)
308,338 223,699 404,246 350,047 226,484 176,652 939,068 750,398
Fundraising and other
845,153 1,260,588 -
- 50,145 - 895,298 1,260,588
Home playoff game
- 1,805,717 -
- - 284,810 - 2,090,527
404,246 350,047 3,400,429 Gate receipts
$ 12,046,020 $ 12,010,878 $
Canadian Football League
38,565,604 39,460,197 -
9,372,483 11,114,868
4,004,922 42,370,279 43,815,166
EXPENSES
Football operations 13,233,961 12,241,350 -
-
-
-
13,233,961 12,241,350
Merchandise 6,995,768 -
-
-
-
6,995,768 7,761,096
-
-
4,136,247 4,214,452 4,901,535 5,122,682
163,767 240,803 4,606,558 4,671,401
Amortization of property,
plant and equipment
7,761,096 765,288 908,230 Administration 4,420,958 4,404,099 Concessions 2,947,932 3,309,443 -
-
-
-
2,947,932 3,309,443
Home game expenses
2,764,102 2,440,437 -
-
-
-
2,764,102 2,440,437
Advertising and public relations
1,944,504 1,765,631 -
-
-
2,186,089 1,765,631
Ticket office
1,259,404 1,198,127 -
-
-
-
1,259,404 1,198,127
Sponsorship 653,282 630,997 -
-
8,250 -
661,532 630,997
Fundraising and other
303,267 199,115 -
-
-
-
303,267 199,115
Away playoffs and Grey Cup
164,048 1,408,985 -
-
-
-
164,048 1,408,985
Other expenses
120,299 -
-
121,839 -
-
Home playoff game
-
219,622 1,011,959 21,833 1,540 20,310 -
35,572,813 37,499,091 23,373 EXCESS (DEFICIENCY) OF REVENUE
OVER EXPENSES BEFORE
THE FOLLOWING ITEMS:
2,992,791 1,961,106 380,873 26,499 -
(416,864)
-
- City of Regina - rent (Note 12) (200,000)
(200,000)
-
-
5,869,865 -
-
Change in fair value of investments
Loss on disposal of property,
plant and equipment
EXCESS (DEFICIENCY) OF
REVENUE OVER EXPENSES
26,111 -
(6,012)
(6,431)
$ 2,486,135 $ 7,201,664 $
476,045 -
856,918 $
-
-
(332,767)
-
-
(200,000)
-
3,415,280 9,198 -
239,932
1,011,959
2,224,244 (450,333)
-
32,061 -
4,455,255 40,146,035 42,001,155
303,238 (1,149,420)
(332,767)
-
4,549,849 46,809 Community donations
Grey Cup 2013 (Note 13)
241,585 -
-
(416,864)
(200,000)
9,285,145
511,354 (80,547)
1,814,011
-
(54,498)
(6,431)
335,299 $ (1,140,222) $ 2,884,400 $2,202,831 $ 10,421,363
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, 2015
NET ASSETS, BEGINNING
Operating Stabilization
Fund
Fund
(Note 2)
(Note 2)
$
NET ASSETS, ENDING
$
See accompanying notes
22
2015
2014
5,610,497 $ 12,205,972 $ 19,027,662 $ 36,844,131 $ 26,171,268
Excess (deficiency) of revenue
over expenses 2,486,135 Membership shares issued for cash
Stadium
Fund
(Note 2)
- 856,918 (1,140,222)
2,202,831 10,421,363
33,750 - 33,750 251,500
8,096,632 $ 13,096,640 $ 17,887,440 $ 39,080,712 $36,844,131
S TATEM E N T O F C A S H FL OWS
Saskatchewan Roughrider Football Club Inc.
For the year ended March 31, 2015
2015
2014
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES
Excess of revenue over expenses
$
2,202,831 $
10,421,363
4,901,535 5,122,682
(511,354)
54,498
6,431
Adjustments for non-cash items
Amortization
Change in fair value of investments
Loss on disposal of property, plant and equipment
-
Forgiveness of long-term debt (Note 7)
-
(3,000,000)
Accounts receivable
657 (284,369)
Government remittances receivable
(1,795)
(13,249)
Prepaid expenses
(393,388)
315,060
Merchandise inventory
(547,489)
625,151
Accounts payable and accrued liabilities
(789,982)
1,167,273
(84,779)
125,934
Changes in non-cash working capital
Government remittances payable
Deferred revenue
290,387 5,066,623 (3,216,767)
11,324,007
CASH FLOWS USED IN INVESTING ACTIVITIES
Purchase of property, plant and equipment
(1,880,473)
(946,978)
(1,880,473)
(946,978)
Purchase of investments
(1,073,277)
(8,472,386)
Disposals of investments
3,859,800 10,513,449
Membership shares issued (Note 8)
33,750 251,500
2,820,273 2,292,563
NET INCREASE IN CASH
6,006,423 12,669,592
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
22,397,993 9,728,401
CASH AND CASH EQUIVALENTS, END OF YEAR
28,404,416 CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES
$
$
22,397,993
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, 2015
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 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 related 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) Cash and cash equivalents
Cash and cash equivalents consist of cash on hand, bank balances and investments in money market instruments.
e) 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 $28,282 (2014 – $58,196).
f) 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
g) 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.
h) Income taxes
As a non-profit organization the Club is exempt from income taxes under Paragraph 149 (1)(l) of the Income Tax Act.
i) 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.
j) 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 Players’ 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% (2014 – prime minus 1.60%).
The Club has an authorized line of credit of $1,000,000 (2014 - $1,000,000) with an interest rate at prime. As at March
31, 2015, prime was 2.85% (2014 – 3%). The Club has no amounts outstanding on the line of credit as at March 31,
2015. The line of credit is secured by a general security agreement covering assets of the Club.
25
4.INVESTMENTS
Fair Value
2015
Scotia Short Term Bond Fund
$
Scotia Short-Mid Government Bond Fund
Scotia Canadian Corporate Bond Fund
Scotia Canadian Equity Fund
Scotia US Dividend Fund
201420152014
6,657,281 $6,446,294 $
6,274,408 8,266,252 2,880,558 3,742,282 1,492,525 1,373,011 1,470,209 1,222,311 $ 18,774,981 Investments
Cost
$21,050,150 6,631,735 $
6,183,817 2,722,955 1,259,150 1,215,817 $ 18,013,474 6,446,294
8,380,314
3,656,031
1,129,131
1,188,217
$ 20,799,987
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 1.74% to 10.22% and the
maturity dates range from March, 2016 to March, 2025 (2014 investments varied from May, 2014 to December, 2049 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, 2015, the minimum bond
rating of any bonds held within the managed portfolio of pooled funds is BBB (low) (March 31, 2014 – BBB (low)).
5. PROPERTY, PLANT AND EQUIPMENT
Net Book Value
Accumulated
Cost Amortization
2015
2014
Operating Fund
Equipment
Leasehold improvements
Construction in progress
7,415,263 5,828,008 1,587,255 1,364,335
Stadium Fund
Video boards/media tower
Field turf
Seating, suites and structures
Leasehold improvements
Construction in progress
3,484,602 599,545 12,681,918 2,617,855 816,743 2,274,536 494,625 7,910,910 2,370,373 - 1,210,066 104,920 4,771,008 247,482 816,743 2,014,514
164,875
7,683,228
435,486
-
20,200,663 13,050,444 7,150,219 10,298,103
$ 27,615,926 $ 4,525,728 $ 3,104,544 $ 1,421,184 $ 1,104,698
2,865,444 2,723,464 141,980 259,637
24,091 - 24,091 -
$ 18,878,452 $ 8,737,474 $ 11,662,438
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.
2015
2014
Asset retirement obligations, beginning of year
$1,150,631 $1,124,203
Changes in estimates
61,536 (7,347)
Accretion of asset retirement obligations
34,562 33,775
Asset retirement obligations, end of year
$ 1,246,729 $1,150,631
The total undiscounted amount of estimated future cash flows to settle the obligations at March 31, 2015 is $1,362,900
(2014 - $1,376,300). 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 1.4% (2014 – 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, 2015 is $64,000 (2014 - $80,379) 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, 2013
Issued for cash
Transfers between classes
9,401 980 1
373 $ 1,890,938
26 251,500
(1) -
Balance, March 31, 2014
Issued for cash
Transfers between classes
10,382 127 - 398 8 -
Balance, March 31, 2015
10,509 406 2,142,438
33,750
-
$ 2,176,188
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 $647,496 (2014 – $626,286) of non-monetary sponsorship. Included in gate
receipts is $140,961 (2014 – $165,041) of non-monetary gate receipts and included in fundraising and other is
$44,450 (2014 – $46,200) of non-monetary event ticket revenue. Included in the prior year Grey Cup 2013 revenue
is $3,599,216 of non-monetary sponsorship revenue. Corresponding amounts are recorded in expense categories to
which the sponsorship, fundraising or ticketing relates. In the prior 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 $318,525 (2014 – $634,173)
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 $251,790 (2014 –
$182,364) for items included in revenue in the statement of operations. In the prior year additional amounts totaling
$129,536 were included in Grey Cup 2013 revenue.
The following table summarizes the Club’s other related party transactions for the year not otherwise disclosed:
Included on statement of financial position:
Deferred revenue
Accounts receivable
2015
$58,831 $
28,500
2014
55,668
-
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.
28
11.INTEREST AND INVESTMENT INCOME
2015
Pooled fund distributions
Realized gains (losses) on sale of investments
$849,460 89,608
2014
$
838,553
(88,155)
$939,068 $ 750,398
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 intends to treat the $25,000,000 as a stadium contribution grant. The amount will be shown
separately from the usual business operations as an expense in the period in which it becomes due to the City of Regina.
Additionally, the Club has committed to collecting a Stadium Facility Fee on each ticket it sells for CFL games played in
the new stadium during the term of the initial lease.
The Club is committed to payments under various other operating leases for buildings and equipment with expiry dates
ranging from 2015 to 2020. Minimum annual payments for the next five fiscal years are as follows:
2016
$ 540,219
2017 365,789
2018
154,515
2019
142,347
2020 113,484
$1,316,354
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.
29
13.GREY CUP 2013 REVENUE AND EXPENSES
2015
2014
REVENUE:
Gate receipts
$
Sponsorship
Festival events
Merchandise
Concessions
Other income
Interest income
- $
- - - - - - - 24,991,472
EXPENSES:
Festival events
Canadian Football League
Game operation
Administration
Merchandise
Advertising and promotion
Concessions
Ticket office
Sponsorship
Other expenses
- - - - - - - - - - - 15,706,327
-
NET GREY CUP 2013
$
12,153,442
6,973,876
2,678,915
1,905,683
1,017,279
222,927
39,350
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
$ 9,285,145
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. This movement restricted these funds to only be used at the discretion of the Board of
Directors as described in Note 2 a). No interfund transfers were approved by the Board of Directors during 2015.
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.
30
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 $2,617,613 (2014 – $2,583,207)
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 2015, the Club made
contributions of $220,766 (2014 – $222,000).
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 $224,790 (2014 – $215,147) 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
Certain expenses in the prior year have been reclassified from administration to football operations to conform to the
presentation adopted for the current year.
31
BO AR D M E MB E R S
Wayne Morsky
Chair
Jeff Stusek
Vice-Chair
Arnie Arnott
Randy Beattie
Barry Clarke
Doug Emsley
Robert Leurer
Twyla Meredith
Dennis Mulvihill
Laurie Powers
Joel Teal
32
33
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