itsintheblood
26 May 2004, 10:34
Tigers still in turmoil
By Caroline Wilson
May 26, 2004
The Richmond Football Club is facing further financial and political turmoil, with an expected 2004 loss of $2 million and several key positions, including that of chief executive Ian Campbell, under serious review.
President Clinton Casey's depleted board will meet next week in the knowledge that at least five former Tigers - Ian Stewart, Barry Richardson, Rex Hunt, Emmett Dunne and Brendon Gale - have rejected invitations over the past two months to return as directors.
With the AFL keeping a close eye on the club's finances, savage cost-cutting this season means the team will travel to Subiaco for Saturday's clash against West Coast without an interchange steward, statisticians or coach Danny Frawley's regular whiteboard assistant.
The football department has been instructed to restrict its travel party for the club's five interstate fixtures this season.
The club's poor start to the season and a spectacular black hole in the club's marketing and corporate sales has led Campbell's projected profit - estimated at the end of last year at between $250,000 and $600,000 - to plummet to a record loss.
The former Nike executive, who has overseen improved membership figures in 2004 but is now expected to preside over big losses in his first two seasons, will have his performance closely assessed at the end of the season. Coach Danny Frawley's contract also expires at the end of 2004.
And Casey's board remains vulnerable to challenge following the resignation of three directors - Brendan Schwab, Peter Welsh and Michael Daddo - on the eve of the season. The defeat of Tony Jewell in the January club election means that Richmond is the only Victorian club without a former player on its board.
Casey, who guaranteed the club a $300,000 loan in December 2003 to help its desperate cash flow, remained unavailable for comment yesterday despite several calls from The Age.
The president's guarantee was overridden in March by a $3.2 million bank loan that came via an AFL guarantee, which is to be taken out of the club's $4 million dividend at the end of the season.
While the club has privately conceded it will lose at least $2 million in a worst-case scenario, it continues to deny it has put in place a strategy to apply to the AFL for further assistance via the competitive balance fund - a seven-figure facility already used by the Bulldogs and the Kangaroos, and for which Melbourne will officially apply next month.
But the stark reality of 2004 is that massive losses have been recorded in the marketing and corporate support areas, with the President's Men coterie group virtually halved from 49 members in 2003 to 25 in 2004. The cost of a President's Men membership, which includes finals series tickets, is $8500.
While the club moved last year to outsource most of its corporate functions to Elite Sports Properties, a deal with the group was not signed until March this year.
With eight members of the Tigers' marketing department sacked, made redundant or choosing to resign late last year, the staff shortage meant a significant drop in corporate support and mid-level sponsorship that has cost the club hundreds of thousands of dollars.
Richmond's deal with its major sponsor, TAC, expires at the end of this year.
ESP is believed to have paid the Tigers an estimated $250,000 to take over the club's corporate functions until at least the end of 2006.
Richmond always has struggled to keep up with successful clubs in the corporate area and remains disenchanted with its home stadium, the MCG.
A Tiger deputation will hold talks with Melbourne Cricket Club officials next week
By Caroline Wilson
May 26, 2004
The Richmond Football Club is facing further financial and political turmoil, with an expected 2004 loss of $2 million and several key positions, including that of chief executive Ian Campbell, under serious review.
President Clinton Casey's depleted board will meet next week in the knowledge that at least five former Tigers - Ian Stewart, Barry Richardson, Rex Hunt, Emmett Dunne and Brendon Gale - have rejected invitations over the past two months to return as directors.
With the AFL keeping a close eye on the club's finances, savage cost-cutting this season means the team will travel to Subiaco for Saturday's clash against West Coast without an interchange steward, statisticians or coach Danny Frawley's regular whiteboard assistant.
The football department has been instructed to restrict its travel party for the club's five interstate fixtures this season.
The club's poor start to the season and a spectacular black hole in the club's marketing and corporate sales has led Campbell's projected profit - estimated at the end of last year at between $250,000 and $600,000 - to plummet to a record loss.
The former Nike executive, who has overseen improved membership figures in 2004 but is now expected to preside over big losses in his first two seasons, will have his performance closely assessed at the end of the season. Coach Danny Frawley's contract also expires at the end of 2004.
And Casey's board remains vulnerable to challenge following the resignation of three directors - Brendan Schwab, Peter Welsh and Michael Daddo - on the eve of the season. The defeat of Tony Jewell in the January club election means that Richmond is the only Victorian club without a former player on its board.
Casey, who guaranteed the club a $300,000 loan in December 2003 to help its desperate cash flow, remained unavailable for comment yesterday despite several calls from The Age.
The president's guarantee was overridden in March by a $3.2 million bank loan that came via an AFL guarantee, which is to be taken out of the club's $4 million dividend at the end of the season.
While the club has privately conceded it will lose at least $2 million in a worst-case scenario, it continues to deny it has put in place a strategy to apply to the AFL for further assistance via the competitive balance fund - a seven-figure facility already used by the Bulldogs and the Kangaroos, and for which Melbourne will officially apply next month.
But the stark reality of 2004 is that massive losses have been recorded in the marketing and corporate support areas, with the President's Men coterie group virtually halved from 49 members in 2003 to 25 in 2004. The cost of a President's Men membership, which includes finals series tickets, is $8500.
While the club moved last year to outsource most of its corporate functions to Elite Sports Properties, a deal with the group was not signed until March this year.
With eight members of the Tigers' marketing department sacked, made redundant or choosing to resign late last year, the staff shortage meant a significant drop in corporate support and mid-level sponsorship that has cost the club hundreds of thousands of dollars.
Richmond's deal with its major sponsor, TAC, expires at the end of this year.
ESP is believed to have paid the Tigers an estimated $250,000 to take over the club's corporate functions until at least the end of 2006.
Richmond always has struggled to keep up with successful clubs in the corporate area and remains disenchanted with its home stadium, the MCG.
A Tiger deputation will hold talks with Melbourne Cricket Club officials next week