Our Financials
Highlights of 2023/24
To illustrate WinSport’s financial situation and the scope and scale of our operations, we present selected highlights from our annual audited financial statements.
WinSport follows the fund method of accounting and divides the full scope of operations into three separate funds, depending on the nature of each transaction.
The Operating Fund includes the assets and liabilities (excluding property, plant, and equipment) related to the operations of the organization.
The Restricted Fund includes the assets and liabilities of government capital and business operations; other restricted funds with specific purposes; and all property, plant, and equipment of Canada Olympic Park, the Bill Warren Training Centre in Canmore, and the Beckie Scott High Performance Training Centre on Haig Glacier.
The Endowment Fund includes the assets and liabilities of the Olympic Endowment Fund (“OEF”), the Oval Capital Reserve Fund and the OCO Trust Fund (OCO stands for Olympiques Calgary Olympics, which was the ’88 Olympic Organizing Committee).
WinSport’s total assets are the sum of the Operating Fund assets, the Restricted Fund Assets, and the Endowment Fund assets. For example, in Fiscal Year (FY) 2024, the total assets of those three funds were $15M, $182M, and $114M respectively ($311M total).
Without a significant recapitalization, we expect total assets to decline over time as our physical buildings and equipment are depreciated through use. We have taken steps forward by proceeding with a renovation in 2024 of the 38-year-old Day Lodge thanks to funding commitments from the Government of Canada and Government of Alberta; however, additional recapitalization is still required to meet the final cost of the renovation.
The Endowment Fund balance had held reasonably steady pre-Covid, but after a strong return in Fiscal Year 2021 experienced a significant downturn in FY2022. The Endowment fund rebounded strongly in FY2023 and continued that trend in FY2024. The strong returns in FY2023 and FY2024 allowed the fund to grow to approximately $113M while still allowing for some cash draws.
We have been working over the past decade to diversify WinSport’s revenue-generating business as we strive to increase cash flow and reduce the annual Operating Fund loss. Since 2010, WinSport has more than doubled Operating Fund revenue through successful diversification and optimization of our operations. Over the past several years, we have simplified our operations and reduced the scale and scope of services we offer to our stakeholders and guests.
As shown in Chart 3, (note the negative scale), we have been successful in recent years in reducing WinSport’s annual operating loss by expanding revenue-generating lines of business and running lean operations. Although Chart 3 indicates WinSport managed our negative cash flows effectively during the pandemic, the scale and scope of our operations were materially reduced during the period. During Fiscal 2024, the overall operating loss did decrease significantly due to improved operating results and increased investment returns.
The WinSport Operating Fund has recorded an annual operating loss every single year since 1989. WinSport was never intended to be a money-making enterprise and WinSport has survived for the past 37 years because the annual operating losses have historically been covered by the Endowment Fund earnings. However, we can not expect the earnings from the Endowment Fund to cover our ongoing operating loss in the future.
The Operating Fund loss presented above has been adjusted (by removing the non-cash depreciation, and grants made to the Calgary Olympic Oval) to represent each year’s loss from operations more clearly.
Conclusion
The current strategic plan, which is based on 2023 to 2026, is currently being revised to extend through 2028 as we have reached the midway point of the current plan. WinSport is focused on fulfilling our mandate with all available resources while also prudently managing our reserves so we can continue to deliver value to Calgarians, Albertans, and Canadians for the next 30+ years.