The Hawks have counted that sum of $1.5m in the annual report under the heading of “provisions” – an estimate of what they might spend on legal fees and/or other costs. This includes settlements with either the players and partners affected,or the coaches and officials –headed by active senior coaches Alastair Clarkson and Chris Fagan. But Hawthorn believe legal costs would form the majority of any outlay.
Hawthorn have not paid out any of that $1.5m yet,but that potential liability is counted against the club’s bottom line. In their official financial statements,the Hawks also revealed a massive cost of $6,885,277 in “other expenses” – an increase of more than $3 million compared with 2022 ($3,851,230) in that item.
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Hawthorn confirmed that this huge $3m increase in unspecified “other expenses” consisted of three factors:First,the legal costs (for the racism probe);second,the allocation of $1.5m for future legal bills or compensation;and third,the major increase in costs,post-COVID,of running the football club this year.
“It’s financially prudent and it’s for legal costs and expenses,” Hawthorn president Andy Gowers said of the $1.5 million allocated. Gowers said he and the Hawks did not know what they would end up spending on the First Nations investigation fallout. “It’s undetermined.”
Gowers was grilled by outspoken former skipper and club great Don Scott at the Hawthorn annual general meeting (AGM) on Tuesday night – including questions about the extra costs of $3 million and the provision of the $1.5 million,the cultural safety review and conflicts of interest among board members. Scott refused to relinquish the microphone when a staff member sought to take the microphone,having asked several questions.