The Edmonton Football Team has detailed the financial toll on the franchise due to the COVID-19 pandemic.
Coronavirus led to a cancelled CFL season in 2020, which had a negative impact on all aspects of the team’s operations, particularly a decrease in revenues. In 2020, the EE Football Team experienced significant decreases in net operating income creating a net operating loss of $7.1 million.
Edmonton had prepared to play the 2020 season and incurred significant expenses and commitments. The CFL considered multiple scenarios to play a shortened schedule but ultimately cancelled on August 17 to focus on planning for 2021.
Overall, revenue decreased to $3.8 million which was an 84 percent drop year-over-year. It was driven by the complete loss of ticket sales, sponsorship, league distributions, concessions, and game day revenue due to the cancellation of the season.
The Edmonton Football Team was able to mitigate the decline in revenue through government assistance from the Canadian Emergency Wage Subsidy in the amount of $2.5 million during the year.
The total operating expenses decreased by 55 percent to $10.9 million. Although the franchise incurred typical expenses in anticipation of a regular season. Expenses were incurred to continue the day-to-day operation of the organization with a focus on ramping up for a 2021 season.
Upon pandemic restrictions going into effect, the team took action to significantly reduce expenses, including reductions in contracts and operating costs, staff reduction, and decrease in employee compensation.
There were a number of non-operating items that included investment income earned on the Trust Fund of $737,000, amortization of $1 million, and community and 50/50 donations of $1.4 million to support and promote amateur football in Edmonton and a donation to the Winnifred Stewart Association in support of Joey Moss. The 50/50 expense was offset by 50/50 revenue of $1.4 million.
In spite of the significant losses caused by the extraordinary circumstances, the Edmonton Football Team has sufficient cash and working capital to meet all of its current and anticipated obligations.