And the figure will almost double once the club receives payment for the Beach Hotel, which it has sold for $1.7 million.
With proceeds from the hotel sale included, the Magpies' total profit for the past year is $3,841,436.
Aided by an all-time record membership tally of 72,728, the club's total revenue grew to more than $75.5 million.
That meant Collingwood could clear its existing $3 million debt, and plough more money into its already well-resourced football department.
The Magpies spent just under $19.5 million on football in 2011, an increase of almost $377,000 on the previous year.
The investment helped drive the Magpies to a second straight Grand Final, although they were prevented from capturing back-to-back premierships by Geelong.
"This is a great result for the club financially," Collingwood CEO Gary Pert said.
"While it's nice to announce another solid profit for the year, the most critical factor is that the club is now debt free.
"All Collingwood supporters and members should feel very proud of the club they have helped create."
