News Financial Results (moved discussion on TPP/veterans/rookies from post #107)

http://www.saints.com.au/news/2013-...inancial-result?camefrom=EMCL_195884_10066328

St Kilda Football club has reported an operating loss (EBITDA) of $1,198,587. After accounting for depreciation, amortisation and interest the club made a statutory loss of $2,614,837 for the year ending October 31, 2013.

President Peter Summers said everyone at the Club is disappointed in the financial result which contrasted with an EBITDA profit for 2012 of $631,135 (statutory loss of $436,818)

"Losing our first two matches of the season unfortunately saw membership stop abruptly at 32,748 which was 2705 members short of our 2012 figure. With a 16th place ladder finish, many other match-related activities experienced sizeable negative movement, which is not uncommon when team performance falls away as it did for us in 2013,” Summers said.

The material matters that have impacted the financial result include:
  • Membership revenue: negative variance of $438,990 to 2012 (35,453 members in 2012 down to 32,748 in 2013)
  • Match returns revenue: negative variance of $264,012 to 2012
  • Merchandise net profit negative variance of $213,893 to 2012
  • AFL future fund dis-equal untagged compensation: reduction in dividend by $275 000 (2012 - $700,000, 2013 - $425,000 )
  • Saints Marching Fund (foundation): establishment costs of $203,800 (to be launched in calendar year 2014)
  • Events and hospitality net profit: negative variance of $453,872 to 2012
Mr Summers also said "Importantly, the result also includes one-off termination costs in the football department which occurred late in the financial year. Without these one-off costs, as well as the foundation establishment costs, the loss before depreciation, amortisation and interest would have been in the order of $495,000. Whilst still disappointing, this number is well under the extreme numbers that have been circulating and reported in some quarters in recent times."

The AGM will be held at Frankston Arts Centre on February 7th.

(from a quick calc, the payout to Watters appears to be pretty much as mooted at $499,787)
 

Periphery

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I might be mistaken but I thought they timed the Watters payout to fall in next years financial period?
 

Periphery

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9,911
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Doubt you'll see another club mess up 7 years of success like this club did ever again. It truly is astounding. Should never have been left in a position to return to these lows after 04-10.
 

stkildathunda

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What cop out blaming losing first 2 games of season. No wonder we are basket case off field and never make a profit. Time those inside the club started to take some responsibility.
 
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does any one know when our contract with etihad expires? Or when we can actually negotiate a better deal.
I don't get how if a club needs to get say 30k people to a game to break even and their average attendance is 25k for a game, how can the business turn a profit?
Clubs main source of revenue is membership and gate yeah? So if you can't make a profit in either than your going to make a loss every year until those numbers go up. Its such a flaud system and yet somehow the brains trust agreed to a deal that still sees us 15 years down the track making a a continued loss in one of our main revenue streams.
 

Nutsngum

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What cop out blaming losing first 2 games of season. No wonder we are basket case off field and never make a profit. Time those inside the club started to take some responsibility.
They wouldn't just be saying this for no reason. They will have week by week membership tally comparisons and would be able to see a distinct drop off due to the poor start which never really got any better.

Have to face that at the moment the club only has around 30,000 dedicated supporters and most above that are more fair weather supporters. The trick of course is getting more of them to be dedicated supporters, through thick or thin.
 

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Mark has now been on every ready adio staton, including this morning's sport 927 deigrading the theSaints


Mark????
 
he's a talkback caller who goes on every radio station spotuing off about the saints, talks about every rumour, every bad thing, and even though he says he is a supporter, i don't know about that, but i get sick of hearing him all the time.
 

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A loss is a loss, irrespective of how it is spruced up. Too many what if's in the explanation for me. Summers statement that the loss is really only $495k if you exclude poor decisions, payments for sackings, mistakes we have made, interest, etc etc is poor. Seriously can't we do better than that?

The only upside is that we surely can't get any worse, can we? But the problem now in the playing list rebuilding phase, is that we can become like the last Federal Government, in that revenues from our boom time (04-10) has been squandered and we have no significant assets and rising debt levels.

We cannot keep doing what has been done and hope for a different result. Change and improvement have to be the bywords at the Saints for 2014. This change has to be admin personnel as well, as well as administrative functions and procedures.

Not a cheery end to 2013 for the club, members and supporters.
 

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he's a talkback caller who goes on every radio station spotuing off about the saints, talks about every rumour, every bad thing, and even though he says he is a supporter, i don't know about that, but i get sick of hearing him all the time.



Samm thanks for that. A bitter loser with an axe to grind. If he keeps at it, he may end up with a job at the Herald Sun.
 

stkildathunda

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They wouldn't just be saying this for no reason. They will have week by week membership tally comparisons and would be able to see a distinct drop off due to the poor start which never really got any better.

Have to face that at the moment the club only has around 30,000 dedicated supporters and most above that are more fair weather supporters. The trick of course is getting more of them to be dedicated supporters, through thick or thin.

It's a fair point but guess my problem is that we lose money almost every single year. At some point those inside the club need to take responsibility for this and to stop taking fans/members for granted. Yes fans take club for granted but the club needs treat everyone as an equal, none this separating fans into groups of how long each has been a member.. Every single no matter how long they have been member is as important as someone that's been member for 100 years.

Then there's the corporate side of things which is a basket case in itself and it's no surprise why sponsors are walking away. (Remember there's lots different level of sponsors).

Hopefully Summers can walk the walk and not just talk the talk.. Time will tell.
 
The drop in members from 40+ k in 2010 ( a club record I believe) to the position we see in 2013 is somewhat linked to performance, however I would say that the failure of the board to engage the fan base during that period is also to blame. And for that the board must be held accountable, in the same manner coaches and players are held accountable for their performances.

The board have failed the club by being unable to captivate, engage and encourage members to renew by providing a level of service to the members that leaves most uninspired, and therefore unwilling to depart with there hard earned for something they feel disengaged from. I am predicting that the numbers will again fall this year, with more of the "bandwagon" members dropping off that had previously jumped on during the glory years.

The role of the board is to ensure these members continue to renew through good times and bad, and when the next glory period returns and the member base again swells to record levels, work just as hard to retain the new level of support. They have failed us all.
 
does any one know when our contract with etihad expires? Or when we can actually negotiate a better deal.
I don't get how if a club needs to get say 30k people to a game to break even and their average attendance is 25k for a game, how can the business turn a profit?
Clubs main source of revenue is membership and gate yeah? So if you can't make a profit in either than your going to make a loss every year until those numbers go up. Its such a flaud system and yet somehow the brains trust agreed to a deal that still sees us 15 years down the track making a a continued loss in one of our main revenue streams.


We don't have a contract (expired), but the AFL has committed to a minimum number of games and we don't have an alternative venue (or realistic ability to extract ourselves as an incumbent tenant). Hence the compensation from the AFL.
 

Nutsngum

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We don't have a contract (expired), but the AFL has committed to a minimum number of games and we don't have an alternative venue (or realistic ability to extract ourselves as an incumbent tenant). Hence the compensation from the AFL.

Just have the team show up to home games at Moorabbin and the AFL can either deal with it or stuff their TV rights. :)
 
Fact is, I'm not convinced it's really about fairweathers running away. I think it's a lot of die hards, who actually feel they have been betrayed by the club's handling of all kinds of stuff over the years. They watched their club be in the position to win premierships, and to get within a hairs' breadth of a premiership or two, only to fall - and why? Because players were being idiots: taking nude pictures, sleeping with psychos, etc, etc. Our recruiters - seemingly under the approval of the board - absolutely butchered our list, going for short term gain with no preparation for the future. Our admin has made an art-form out of insulting, alienating, and sometimes ridiculing members. Our online presence, which has had so much potential for encouraging new members and informing current ones, has been so far behind the rest of the comp that you might assume they're working with a rock-tablet and chisel.

Frankly, I am wondering if we shouldn't have stayed with Butterss all those years ago. For all his faults, he had put Lyon in already, and I get the impression we were in a stronger financial, administrative and football trajectry when he and his board were in charge.
 
Oh, not to mention the bloody Bubble, which basically came down to "rack off members, this doesn't concern you." I remember the 2010 AGM, there were a LOT of die-hard members that were VERY ticked off that year, and all they got from Roo up the front was, "I want to tell the players - we know what we stand for, and we'll stick fat". In other words, "Bugger you, members, we are sticking with ourselves." Now, I don't think that's entirely what Roo is about, but I think that's what he was encouraged to think and feel, and be, during the Bubble days.

Look to that for your 10,000 members gone, Mr Summers.
 

Sunshine Saint

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It will be interesting to see what is produced by the club, but then of more interest to actual announced or projected changes, will be the actual engagement with members.

The improvements in videos and web site have been noticeable, but are still a long way behind others. Will be interesting to see if this is carried throughout the season.
 
Oh don't tempt fate.

Not to be rude but heard on SEN about an addition error in the balance sheet supplied. Error occurs in both 2013 and 2012 seasons where adding up liabilities gives a total about 4 million dollars less.

You can find it on page 13 of the annual report (page 2 of financials). Although I am no accountant so maybe there's an explanation.
 
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