Saga starting to bite EFC financially

[Muggs]

EFC annual report is out. 1.3 million loss

http://www.essendonfc.com.au/news/2015-11-20/2015-financial-result

“Our financial loss this year is the result of a number of unforeseen costs to the business,” Campbell said.

The loss includes a combination of abnormal costs associated with the ASADA/WADA issue and the impact of a disappointing season on the field.”

Nice spin, however total expenses down around 600k... Which by sheer coincidence is about the same drop in the ASADA related costs (coincidence for sure). So not sure how unforeseen costs can account for a loss when total expenses are down..

Revenue dropping is the main reason, biggest two drops are marketing (I.e sponsorship) and merchandising.

What I find interesting is no where in the annual report does it make mention of the drop in marketing revenue... Completely ignored in the spin... Yet this on a % basis is one of the largest changing numbers....

Hence the nice spin, ignore the fact you lost sponsorship...

Member revenue also fell slightly (despite more members, so looks like less season ticket holders more smaller members) but that's ok they spent less on their members.

 

[Great8]

Have had a glance over the full report and whilst it's never great to make a loss I don't think it's as bad as it sounds financially. Made a cash profit of nearly $2m and had a increase in football club expenditure by a fair whack, I'm presuming that figure includes Jim's payout. We also had to pay nearly $300k in equalisation tax. No doubt the saga has hurt us financially but hopefully the club can turn things around. Will be interesting to see how many clubs do make a profit this year, I'm tipping only a handful

 

[yeahmate]

Personally surprised they kept records of the loss

 

[Muggs]

Have had a glance over the full report and whilst it's never great to make a loss I don't think it's as bad as it sounds financially. Made a cash profit of nearly $2m and had a increase in football club expenditure by a fair whack, I'm presuming that figure includes Jim's payout. We also had to pay nearly $300k in equalisation tax. No doubt the saga has hurt us financially but hopefully the club can turn things around. Will be interesting to see how many clubs do make a profit this year, I'm tipping only a handful

That cash profit is a bit of spin though (its just removing the depreciation for your fancy new training center), overall cash reserves are down half a mill, and cash from operating activities (day to day cash) is down 1.6 million with overall cash receipts down 2.5 million.

It's not a bad considering, everyone is entitled to the odd bad result, but another result like that and you be increasing debt not paying it down.

 

[ManWithNoName]

"Club finishes in bottom 4 and sacks coach, loses money"

Hopefully we'll get more info on this shocking breaking news.

 

[Lance Uppercut]

Oh dear. A loss. Don't see many of them. Dare say we'll make it back next year.

 

[pluggeranddoc]

Finished payouts to Albert yet?

 

[dave10]

The headline result is poor however in reality given the events on and off the field the result is probably reasonable. You can look at it with a negative or positive angle.

In a rock bottom year for the club it still generated $58M and a $2M cash surplus and increased football investment by $1.6M. Yes the result was well below 2014 but the club didn't appear to minimise the potential loss. It's well placed financially.

Abnormal items is legal costs $660K, coach payouts $1M and a 5 win season impacting merchandising and gate by $770K. Much of these amounts can be expected to be reversed in 2016.

With good news in sponsorship pending and expected membership growth next year, the club is well placed to achieve a $2-2.5M turnaround in 2016.

 

[Satan]

If the last $800,000 (of the 2 million fine ) due 31 dec 2015 has not been paid then essendon most likely 800,000 down already for next year.
Intresting to see Little's statement, unlike previous years no mention of players ingesting , taking, non harmful .. in 2012.
Also no mention of contingent liabilities figures only discussion with internal and external stakeholders . Hal says hi?

 

[Muggs]

If the last $800,000 (of the 2 million fine ) due 31 dec 2015 has not been paid then essendon most likely 800,000 down already for next year.
Intresting to see Little's statement, unlike previous years no mention of players ingesting , taking, non harmful .. in 2012.
Also no mention of contingent liabilities figures only discussion with internal and external stakeholders . Hal says hi?

Fine will have no affect on profit though, was expensed the year it was levied. It affect the cash balance next FY but that's it. This will be counter acted however if it's unpaid having roughly the same amount of current payables less this year...

Agree on contingent liabilities.

 

[SBYM]

For reals...

I love kicking the ol' EFC as much as the next bloke...but is the fact that this whole stinking shitstorm has been expensive worth another thread?

 

[Bunk Moreland]

If the last $800,000 (of the 2 million fine ) due 31 dec 2015 has not been paid then essendon most likely 800,000 down already for next year.
Intresting to see Little's statement, unlike previous years no mention of players ingesting , taking, non harmful .. in 2012.
Also no mention of contingent liabilities figures only discussion with internal and external stakeholders . Hal says hi?

The entire $2m was written of in 2013. Get a clue.

 

[Randomizor]

Imagine how they'd be doing if they didn't hire the most incompetent coach in the world

 

[Upgrayedd]

I hate essendon and literally would love it if they fold

But...considering they were a rabble on field, sacked their coach, spent more in general, yeah they probably wern't going to make a profit. Even the most rabid fanboy would of told you they would of taken a hit.

 

[DERIBERATE]

“Our financial loss this year is the result of a number of unforeseen costs to the business,” Campbell said.

The accountant is shocked to be sitting here

 

[Thrawn]

The accountant is shocked to be sitting here

Do all the chairs at Essendon have these installed by any chance?

 

[Taylor]

Meh, the AFL would pay for it all in the end anyway.

 

[Great8]

Meh, the AFL would pay for it all in the end anyway.

We still had to pay nearly $300k in equalisation tax so the AFL can find the even poorer clubs

 

[BF Tiger]

Oh dear. A loss. Don't see many of them. Dare say we'll make it back next year.

There were 16 this year alone.

 

[the_interloper]

We still had to pay nearly $300k in equalisation tax so the AFL can find the even poorer clubs

That's nothing compared to what this saga has cost you.

 

[Muggs]

Imagine how they'd be doing if they didn't hire the most incompetent coach in the world

Yup, cost them up 1.6 million (less other increases in football expenses) to pay him out...

 

[Satan]

The entire $2m was written of in 2013. Get a clue.

I used the word paid

 

[Smoky]

Paid $300,000 in equalistion tax...

And showed a loss of 1.3m...

What a joke. Wake up to yourselves AFL

 

[Muggs]

Paid $300,000 in equalistion tax...

And showed a loss of 1.3m...

What a joke. Wake up to yourselves AFL

But your club president, CEO and finance director all stated how good shape you in financially and how much net assets you have, making you one of the wealthiest clubs....

 

[Adelaide Hawk]

Imagine how they'd be doing if they didn't hire the most incompetent coach in the world

And their fanatical devotion to him remains a mystery. The man caused irreparable damages to the fabric of their club, and yet they stand by him. Can't feel sorry for that kind of stupidity.