MOTORSPORT Australia has announced its 2023 financial results, headlined by a seven-figure post-tax deficit.
Operating to a January to December financial year, Motorsport Australia has released figures ahead of its annual member forum tonight.
Key figures include “a loss before interest, tax, depreciation and amortisation of $517,792” and a post-tax deficit of $1,060,928.
The latter number compares to a deficit of $288,492 recorded in 2022.
Rising insurance costs ($730,000, or 36 percent, year-on-year) have been circled as a major contributor to the blowout.
Per Motorsport Australia communications, its “balance sheet and cash reserves remain strong” but “the sport cannot continue indefinitely to absorb rising costs”.
“Business and households are facing the pressure of rising costs, and we are not immune,” said Motorsport Australia president Andrew Fraser.
“We working to hold costs down where we can, but ultimately this result is not sustainable if repeated into the future. In recent years, we have done our best to absorb much of the inflationary pressures on the sport to date, but we cannot continue to do this and must ensure our sport remains in a strong financial position.
“We have a new CEO, along with other new leaders, who have a clear mandate to deliver organisational sustainability for the longer-term future of the sport.
“Tonight’s member forum will provide members with the opportunity to hear more from the leadership of our sport, as we present our 2023 financial statements, as well as addressing our future strategic direction. I encourage everyone to attend if they are available to do so. We will also be taking questions from members through the Q&A function on the night.”
CEO Sunil Vohra added: “We know that results such as this are not sustainable for the sport on an ongoing basis and the bottom line is: we need to significantly improve our bottom line.
“I can confirm we have put in place new reporting structures and increased financial oversight as we progress through 2024.
“There are a number of working groups and other initiatives already in place to ensure we improve our financial position and reduce our expenses further wherever possible, while also looking at new revenue opportunities. Discussions are also underway with our insurers to determine how we can address the significant increases in our premiums and what more can be done to reduce our costs.
“Rising insurance costs are an issue for us, for other motorsport bodies and for sport generally. All options need to be on the table to address this trend.
“As members would be aware, the cost of licences was increased by 15 percent late last year. This was directly related to the increasing insurance costs we are facing.”
