News 2012 operating results announced

[rp84]

This is disgraceful and reeks of terrible business management.

Even with payouts, there is no way we should ever make a loss again.

We are one of the biggest clubs in the comp, massive supporter base, and even though it was a poor year on field, its not as if we are Melbourne bad.

It seems our sponsorship deals and membership options are a fair bit behind some other clubs.

Disappointing.

 

[The_Wookie]

Thanks Wookie. You're all over this stuff.

Do you know where the extra $6m went? I think we paid back a similar amount of debt last year so that shouldn't be the expenditure. An extra $1m in payouts counts, but not sure about anything else.

Also, where were our biggest revenue gains? I saw that sponsorship went down % wise but maybe not $ wise and we lost on attendances. Slight gains membership wise. Anything else?

• Revenue up $6 million
• Operating expenses were up $7 million
• Sponsorship and Hospitality revenue was up about $150,000
• Membership and Reserved seating was up $1.2 million
• Gaming revenue more than doubled $4.5 million to $9 million
• Gate reciepts dropped $400,000
• Merchandise stayed steady at $1.9 million
• Football Department spending rose by $2.2 million to $20.3 million
• Wages and salaries rose by $2.6 million to $19.73 million *this is included in operating expenses.
• AFL Income dropped by $900,000

Hope this helps. Important to remember last years profit was on the back of grants.

ref
2012 Accounts
2011 Accounts

 

[The Old Dark Navy's]

• Revenue up $6 million
• Operating expenses were up $7 million
• Football Department spending rose by $2.2 million to $20.3 million
• Wages and salaries rose by $2.6 million to $19.73 million *this is included in operating expenses.

Okay so the rise in revenue was largely due to gaming as expected.

Considering the salary cap went up by about $550k (only read it one source and too lazy to check anywhere else) and we paid out approx $1m for sacked coaches, other wages still went up by $1m. Interested in how many people we have employed at the club now as non-player wages account for about $10m.

Hope we are paying for the best with that sort of coin.

 

[The_Wookie]

Okay so the rise in revenue was largely due to gaming as expected.

Considering the salary cap went up by about $550k (only read it one source and too lazy to check anywhere else) and we paid out approx $1m for sacked coaches, other wages still went up by $1m. Interested in how many people we have employed at the club now as non-player wages account for about $10m.

Hope we are paying for the best with that sort of coin.

In the notes it says that we paid 3.5 million in wages to key personnel (up 1 million on 2011). These people included:

• CEO Greg Swann
• Coach Brett Ratten
• CFO Jason Reddick
• General Manager Commercial operations Anthony Barham
• General Manager Football operations Andrew Mckay
• General Manager Communications Ian Coutts
• General Manager Operations Martin Shannon
• General Manager Consumber Business and Digital Media Clinton Brown

Mick Malthouse didnt start til November and his wage will not be counted in the 2012 report. The only personnel that werent present from 2011 was Stephen icke, so its likely to be Rattens payout on his contract.

 

[Jock]

I was all for paying Ratts out and taking MM - I thought the timing was right and he would take us to another level.
What I did think was that some of the payout money was coming from some individuals and sponsors. Very disappointing this hit our bottom line.

 

[The Old Dark Navy's]

I was all for paying Ratts out and taking MM - I thought the timing was right and he would take us to another level.
What I did think was that some of the payout money was coming from some individuals and sponsors. Very disappointing this hit our bottom line.

I reckon this has indirectly been absorbed by that increase in gaming revenue. That kind of moolah probably buys you a few decisions.

 

[TheHeatleyStand]

The pay outs were not as high as reported and MM isnt on as much as is reported.

 

[JustaBattler]

AFL revenue actually increased...

 

[The_Wookie]

AFL revenue actually increased...

yeah it did, got the two windows mixed up. the reports look identical lol

 

[JustaBattler]

yeah it did, got the two windows mixed up. the reports look identical lol

Easy to do Wookie - I do this for a living - and if I could buy Carlton stock - I'd be loading up big time the financial outlook is starting to look very good.

Merchandising is disappointing and attendances were down - staff costs were up more than expected ( but we all know why ) - will be interesting to see a full year revenue from gaming hit the books nek year and if early season success kicks membership along - maybe some 'controversial' too and fros between MM and Eddie McFatchins would help - I see a huge cash flow increase again..

A quite whisper into Vlad's ear carry's more weight since we are nw #2 in TV ratings as well..

 

[The_Wookie]

Easy to do Wookie - I do this for a living - and if I could buy Carlton stock - I'd be loading up big time the financial outlook is starting to look very good.

Merchandising is disappointing and attendances were down - staff costs were up more than expected ( but we all know why ) - will be interesting to see a full year revenue from gaming hit the books nek year and if early season success kicks membership along - maybe some 'controversial' too and fros between MM and Eddie McFatchins would help - I see a huge cash flow increase again..

A quite whisper into Vlad's ear carry's more weight since we are nw #2 in TV ratings as well..

Yeah next years report will be quite positive for us id reckon. something to look forward to.

 

[Jock]

Would I be correct in assuming Matho re aligning extra gaming venues to us has effectively handed us approximately another 5 mill a year? Pretty handy financial gesture if so.

 

[matt decat]

I tend to agree that overall the club is in a pretty good position especially given the year we just had. I, like many people on here, would like to see other forms of revenue coming in to the club other than gaming, however I am yet to come across another possible way of bringing money into the club.

just a couple of other things to note
marketing and other department spending up $4.4 million
also, lease of gaming venues has doubled and management of gaming venues has tripled for the coming years so may limit the expected gaming revenue.

 

[Dramoth]

I reckon this has indirectly been absorbed by that increase in gaming revenue. That kind of moolah probably buys you a few decisions.

I always thought that Mathieson had a big say in getting rid of Ratts and hiring MM. And after seeing the 9mill figure for gaming revenue I am feeling somewhat justified about this thought.

He signed over the rights to the revenue to the club and he is still trying to make board level decisions and pushing people around to get them to agree with his point of view.

It would have been good to see him putting his hand in his pocket for at least some of Ratts severance package. But I can see that he was probably thinking that giving the club all those pokies makes all the difference.

 

[Wickzki]

I was scared that the club would post worse figures. To see the figures that we have posted is fantastic financial news for the future of this football club. Much better position than North, Essendon or Richmond who should have been hoping for even larger numbers considering that they pounded even their most wealthy supporters for as much as they could get.

 

[MickyB]

Once you factor in the $1.7 million odd of Depreciation and Amortisation expenses (paper costs) we don't look to bad at all. Especially considering we paid out coaches and reduced our interest bearing liabilities by over $700k. If we get a similar increase in revenue in 2013 things will be looking quite rosy.

 

[blueboy25]

Merchandise Income:

• Essendon – $3,226,302
• Hawthorn – $2,700,000
• Carlton – $1,902,671

Two areas where I think we really struggle is the membership department and merchandise. Our membership try hard but always have a lot of issues and we seem to be very reactive to what other clubs are doing not proactive.

Merchandise is one that has bugged me for a while, the range of stuff the club shop stocks is terrible when you compare them to our big rivals. Things like the training singlets and shirts the players wear in pre season are never available to supporters until Feb/mar. They should have a full range available in November ready for people to buy for Christmas.

 

[Duffman95]

I think those people crowing over our improved "cash position" also need to consider that Trade Payables leapt from $2.3m to $6.9m, and Revenue Received in Advance has jumped from $110k to $1.34m.

Even considering the assumption we have accounted for the expense of the terminations, but haven't actually paid the physical cash yet, it still doesn't explain everything that's happened this financial year. It certainly puts into perspective the improvement of Current Assets ($4.1m to $7.1m), with the net movement in Current Assets/Liabilities actually negative $2.65m.

Some seriously questionable stuff happening with the financial management of this club at the moment.

 

[JustaBattler]

Given the trolls who hang around here delivering likes -

I prefer to just say in response - read note 12 in accounts as per accounts - there has been a significant change in venue management scale and therefore associated costs as well as expected revenues - I think we are probably looking timing difference relate issues here - the 'qulification' in accounts re going concern issues make it obvious that nothing is being hidden.

 

[drusswaylander]

Matt Decat is on the money. Page 29 note 16 of the report lists the rent and management fees, these as you would expect, are substantial. As others have noted we will need to see a full year of operations to see exactly what we are getting with these gaming deals. From experience I can tell you that sometimes these deals are a bit like tax brackets, the more revenue you generate the higher the rate you pay. The devil will be in the detail as the big M is still a businessman and is accountable to his partners. We should make money, but exactly how much isn't just looking at the gaming revenue unfortunately.

For me the worry is why the need for spin with the attendence loss. That was more than compensated for by increases in membership revenue. Will be very interested in next years financial results.

 

[andyrogers80]

First post so don't smash me.
Generally think the financials are ok and I am very thankful for the gifted gaming licenses.
Understanding each club is in the same position and we shouldn't rely on only our core business when there is things like gaming revenue available. Shouldn't we be a little concerned our "football club" could not be sustained without gaming income? Or am I wrong on that point?
Also earlier I read people wanting Swann gone. I think he is a good operator don't be foolish.
Final note is that I agree we could be stronger in membership but it looks like the corner has been turned recently.

 

[andyrogers80]

Harker: page 25 trade and other payables. Current liabilities in other words.

2011 totaled 2.3 mill
2012 totals 6.9 mill

I am no accountant but surely that's a concern?

 

[JustaBattler]

Welcome Andy - the gaming revenue or most of it has a use by date of 2022 I think - at which point the Club can decide to walk away. Lets hope that Carlton uses the intervening years wisely and broadens its revenue base so as to diminish the importance of any single part of the revenue portfolio. Consistent finals appearances is found to be the most important single factor in maximising membership numbers and sponsorship income.

I suspect one can't have a healthy Club without being known as a winner - time for Carlton to lift performance sooner rather than later...

 

[mediumsizered]

First post so don't smash me.
Generally think the financials are ok and I am very thankful for the gifted gaming licenses.
Understanding each club is in the same position and we shouldn't rely on only our core business when there is things like gaming revenue available. Shouldn't we be a little concerned our "football club" could not be sustained without gaming income? Or am I wrong on that point?
Also earlier I read people wanting Swann gone. I think he is a good operator don't be foolish.
Final note is that I agree we could be stronger in membership but it looks like the corner has been turned recently.

There are only so many sources of revenue available to sporting clubs, particularly in a saturated market like Victoria. We have all read/heard the arguments for & against poker machines, but regardless of which side of the fence everyone sits on, if our club is to be successful we need to maximise our revenue the best we can. We are still well behind Collingwood, whose overall revenue is almost $30m higher than ours. Approx. $20m of the Magpies revenue comes from gaming revenue, so we are currently receiving less than half what the Magpies are from this source.

Unless we can pull an extra 30k members & substantially increase our merchandise sales, we will continue to have no option but to rely on gaming revenue as one of our 'cash cows', given our sponsorship revenue favourably matches that of other clubs & there is minimal scope to increase this source of revenue in the foreseeable future.

The sad reality is the top end of the AFL ladder, excepting those clubs on various AFL drip feeds, is increasingly made up of clubs who are at the higher end of the revenue scale & if you want to compete you have to do whatever you legally can to bridge that revenue gap.

 

[andyrogers80]

Just to clarify I wholly support gaming revenue as a legit income and welcome any business opportunity with that type of steady income.

The question more related to the rest of the organisation and how well managed it is or otherwise. Probably worded poorly.