Analysis AFC finances - Rich Club, Poor Club?

[Geoffa32]

I’d try to buy the Kent town hotel and gut the awful themed restaurant(formerly driving range)parts, turning them into an indoor training venue.Id then try to strike a deal with PAC to use their oval and pool. Keep the rooftop and heritage bars and small gaming room and transform those areas into a club room. Buy the appartments out next door and turn them into a boarding lodge for remote area academy prospects and interstate rookies etc.
Eventually turn that whole wedge of real estate in the Crows Hub.

Not a bad concept. But expensive.

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[1970crow]

If you paid rent / ground maintenance costs you wouldn't

http://www.adelaidenow.com.au/sport...t/news-story/2557ffcad3f95ac58bd4c946405cb4ea

Actually, numbnuts, increasing underlying costs would have no impact on gross revenue. The post you quoted was about revenue, not profit/surplus.

 

[Ramify]

Not a bad concept. But expensive.

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Meh, just get Roo to put his hand in his pocket. Surely the Hackney has done its dash by now(soon to be apartment block anyway if rumour is correct).

Yeah it would be an expensive plot of land, but it wouldn’t have to be all done at once. Solid investment property.

 

[subaru]

Go with friends for a meal and a drink before

Grab a coffee or a drink after at a pub after.

The British is great and a short walk if you head off in that direction.

Could not give a stuff about clubrooms frankly.

 

[Roovolution]

Go with friends for a meal and a drink before

Grab a coffee or a drink after at a pub after.

The British is great and a short walk if you head off in that direction.

Could not give a stuff about clubrooms frankly.

I don’t either but I get that some do. Going to the Norwood club after beating Port and watching Craig Balme go toe to toe with Evans was awesome. Wearing the duffel coat with the badges and my Redlegs scarf. Great days.

 

[bomberclifford]

Serious question.

Why do puffers hang their hat on their perceived checkmate move of "Crows don't pay rent yada yada yada"?

I don't get it. Port pay SFA to the owners of Alberton oval.

Serious answer...

Crows do pay rent now via the higher license buyback arrangement. This was one of the things factored in. It also covers the cost of any maintenance to the training grounds and facilities.

Port pay a peppercorn rent to the PAEC, as it's always done, barring a short period in the 70s. The club pays for the maintenance and upkeep of the facilities, including the oval. Any development is paid for by the club, via loans or grants.

AFAIK, during the time the Crows were 'owned' by the SANFL, there was no rent or maintenance paid on Footy Park but in my mind this is offset by the investment the Crows made into the development of the facilities.


tl;dr
It's a nothing issue. Both clubs have different arrangements due to vastly different circumstances.

 

[Dc9798]

Thought Fages answered Rowes’ pub question really well.
Setting up a pub in the city makes no sense at all when there are so many decent existing options to meet somewhere before the and after the game, the Magarey Room does the job for post match functions for both us and Port.
However, if we can set up our West Lakes facility to be a bit more fan friendly, ie a better set-up in terms of Crowmania, Cafe, Admin integration (you walk into the club and everything is there) and a Carlton / Hawthorn set-up where you can have lunch overlooking the ground, that’d be nice.


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[CrowsB4hoes]

Serious answer...

Crows do pay rent now via the higher license buyback arrangement. This was one of the things factored in. It also covers the cost of any maintenance to the training grounds and facilities.

Port pay a peppercorn rent to the PAEC, as it's always done, barring a short period in the 70s. The club pays for the maintenance and upkeep of the facilities, including the oval. Any development is paid for by the club, via loans or grants.

AFAIK, during the time the Crows were 'owned' by the SANFL, there was no rent or maintenance paid on Footy Park but in my mind this is offset by the investment the Crows made into the development of the facilities.


tl;dr
It's a nothing issue. Both clubs have different arrangements due to vastly different circumstances.

Hallelujah.

 

[Iron]

I find it iritating that whilst we had a record result Port still had a larger income stream. I think their income revenue was $57.9m. Yes I know their Stat Profit was only $28,000 versus our $600+k but they still enjoyed a higher level of income.

We don't own a couple of failing hotels in Alberton.

 

[1970crow]

Thought Fages answered Rowes’ pub question really well.
Setting up a pub in the city makes no sense at all when there are so many decent existing options to meet somewhere before the and after the game, the Magarey Room does the job for post match functions for both us and Port.
However, if we can set up our West Lakes facility to be a bit more fan friendly, ie a better set-up in terms of Crowmania, Cafe, Admin integration (you walk into the club and everything is there) and a Carlton / Hawthorn set-up where you can have lunch overlooking the ground, that’d be nice.


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Forget West Lakes, will never be anything but a training ground and admin centre.

 

[MRB37]

I was one for wanting a pub in the city years ago. Love the idea of going to lunch at a pub owned by the club. Would not even need to be "Crows" themed. But then learnt how competitive the industry is and cost in setting up a decent venue.





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I would hazard a guess and say a lot of people don't realize how thin the margins are on a lot of pubs going around.

 

[xazos79]

People have options to stick around now and don't.

Sticking a Crows logo out the front of a pub isn't going to attract tens of thousands of people there at 10:30pm on a Thursday night.

It's an opportunity for fan engagement. Albeit an expensive one. We always have a drink or three after night games. As long as they aren't stooges with the pricing, we'd absolutely go back there after every game. I love me a good raffle.

I understand cost wise its prohibitive for the club, but surely there's a way of having a cost effective "home away from home" to go to straight after the game that doesn't sell the farm.

 

[GreyCrow]

You either have a dead place that is open very few times , with all the associated set-up costs , or one that is open every day (10pm non-game nights) and all the on-going costs associated.

As an oldie I do appreciate that club feel but I also recognise it would be a very random thing for me. Certainly wouldnt be banking on my patronage to fill the coffers. My playing time is when I spent most of my time in a club. Attending Sturt games I used to drop in every now and then but not enough to put names to faces. These days its game finished and get on the train as quick as possible. If I had a place in the city that might change but at this time I am happy for the club to explore the best option

 

[Deaneus!]

Okay, Tracey at the club was nice enough to send me the financial statements today, so i've thrown it against all results since 2012 so we can see how the club has evolved.



The green line is the last year Stephen Trigg ran the show, and i think the last year we had the SANFL sucking blood.

Take-aways:
Revenue up 15% on last year and 44% since 2014, outstanding. Season tickets/AFL membership up 6% on last year, and 43% on 2014. Sponsorship, 17% and 54%, just fantastic in three years. Funnily enough, corporate boxes/reserved seating up 9% on last year but down 6% since 2014... huh? Grant revenue is lower, perhaps there were less grants available? The always vague Sundry Income was up 18%.

Merchandise - ah, some funny business. Oddly, the 2016 accounts have been re-organised for the 2017 FS - the online merchandise was split out this year, so the 2016 online merch was split out too. Which also means that we can see that online merch is down more than half!! Because some of it is gross and some is net, we can't see what the real gross revenues are, but we can figure that it's probably the highest it's ever been, so that's cool. Also means we can't see the margins, but they're probably stable.



There's a jump in other football expenses, travel & training, and admin - i expect this is due to the AFLW team (and probably why our sponsorship was up more this year). AFL Revenue Sharing & Equalisation disappeared this year. Depreciation is the same, SANFL fee is the same, Adelaide Oval fee is the same.

Nothing else really stands out. Basically, it's a $2M turnaround from last year, with an extra $6.5M in revenue and $4.5M in expenses.

Oh, and Legacy eSports is in there now, but it isn't split in any way, so we can't see what it's doing.



Balance sheet - we've got a healthy cash balance again, a far cry from a couple of years ago; PP&E is the same, Trade Payables is a little higher, liabilities overall down by $700K. We're nowhere near the net asset position of give years ago, but this year's result (+$678K) is a great step forwards (EDIT: i wrote backwards here, WTF). I'm pretty happy with our results, but like the board i wonder about expanding the revenue base.

I'll be very interested to see how the other big clubs did this year.

 

[Cleric]

I remember discussing a few years ago here how I expected the club to grow by double digits each year, as that is what most companies expect in growth. A number said that was totally unreasonable and it could not be an expectation.
Well, it was and it happened.
Good work AFC.

 

[Sanders]

Okay, Tracey at the club was nice enough to send me the financial statements today, so i've thrown it against all results since 2012 so we can see how the club has evolved.

View attachment 465466

The green line is the last year Stephen Trigg ran the show, and i think the last year we had the SANFL sucking blood.

Take-aways:
Revenue up 15% on last year and 44% since 2014, outstanding. Season tickets/AFL membership up 6% on last year, and 43% on 2014. Sponsorship, 17% and 54%, just fantastic in three years. Funnily enough, corporate boxes/reserved seating up 9% on last year but down 6% since 2014... huh? Grant revenue is lower, perhaps there were less grants available? The always vague Sundry Income was up 18%.

Merchandise - ah, some funny business. Oddly, the 2016 accounts have been re-organised for the 2017 FS - the online merchandise was split out this year, so the 2016 online merch was split out too. Which also means that we can see that online merch is down more than half!! Because some of it is gross and some is net, we can't see what the real gross revenues are, but we can figure that it's probably the highest it's ever been, so that's cool. Also means we can't see the margins, but they're probably stable.

View attachment 465491

There's a jump in other football expenses, travel & training, and admin - i expect this is due to the AFLW team (and probably why our sponsorship was up more this year). AFL Revenue Sharing & Equalisation disappeared this year. Depreciation is the same, SANFL fee is the same, Adelaide Oval fee is the same.

Nothing else really stands out. Basically, it's a $2M turnaround from last year, with an extra $6.5M in revenue and $4.5M in expenses.

Oh, and Legacy eSports is in there now, but it isn't split in any way, so we can't see what it's doing.

View attachment 465468

Balance sheet - we've got a healthy cash balance again, a far cry from a couple of years ago; PP&E is the same, Trade Payables is a little higher, liabilities overall down by $700K. We're nowhere near the net asset position of give years ago, but this year's result (+$678K) is a great step backwards. I'm pretty happy with our results, but like the board i wonder about expanding the revenue base.

I'll be very interested to see how the other big clubs did this year.

Doesn’t the income growth really start in 2014, and just carry on?

Year on year growth looks as high as any year in 2014?

Did Trigg set the scene with the growth he oversaw just carrying on?

Sponsorship looks the only thing that really gets bigger. Membership and Corp boxes are more the AO effect aren’t they?

Don’t really understand much of the rest

 

[Deaneus!]

Doesn’t the income growth really start in 2014, and just carry on?

Yes - in Trigg’s last year there was quite a bump, split between season ticketing and sponsorship.

Year on year growth looks as high as any year in 2014?

Maybe later I’ll make some graphs for fun but yes it’s been a constant ride

Did Trigg set the scene with the growth he oversaw just carrying on?

Ordinarily I’d agree, but I recall Fagan’s hissyfit about the Oval deal when he arrived. Truth is, if we can’t see the interplay of the various contractual arrangements etc we can’t tell who did what. It would be easy (and satisfying) for me to claim that Fagan was God and Trigg was terrible but it wouldn’t explain how Trigg raised revenues in his last year... maybe there was a pre-move bump? We can certainly say that whatever Fagan’s been doing, it’s been working.

Sponsorship looks the only thing that really gets bigger. Membership and Corp boxes are more the AO effect aren’t they?

Yeah, the AO effect most likely. I forgot all about having moved, Footy Park is like a distant memory.

Don’t really understand much of the rest

Sure.

 

[1970crow]

Okay, Tracey at the club was nice enough to send me the financial statements today, so i've thrown it against all results since 2012 so we can see how the club has evolved.

View attachment 465466

The green line is the last year Stephen Trigg ran the show, and i think the last year we had the SANFL sucking blood.

Take-aways:
Revenue up 15% on last year and 44% since 2014, outstanding. Season tickets/AFL membership up 6% on last year, and 43% on 2014. Sponsorship, 17% and 54%, just fantastic in three years. Funnily enough, corporate boxes/reserved seating up 9% on last year but down 6% since 2014... huh? Grant revenue is lower, perhaps there were less grants available? The always vague Sundry Income was up 18%.

Merchandise - ah, some funny business. Oddly, the 2016 accounts have been re-organised for the 2017 FS - the online merchandise was split out this year, so the 2016 online merch was split out too. Which also means that we can see that online merch is down more than half!! Because some of it is gross and some is net, we can't see what the real gross revenues are, but we can figure that it's probably the highest it's ever been, so that's cool. Also means we can't see the margins, but they're probably stable.

View attachment 465491

There's a jump in other football expenses, travel & training, and admin - i expect this is due to the AFLW team (and probably why our sponsorship was up more this year). AFL Revenue Sharing & Equalisation disappeared this year. Depreciation is the same, SANFL fee is the same, Adelaide Oval fee is the same.

Nothing else really stands out. Basically, it's a $2M turnaround from last year, with an extra $6.5M in revenue and $4.5M in expenses.

Oh, and Legacy eSports is in there now, but it isn't split in any way, so we can't see what it's doing.

View attachment 465468

Balance sheet - we've got a healthy cash balance again, a far cry from a couple of years ago; PP&E is the same, Trade Payables is a little higher, liabilities overall down by $700K. We're nowhere near the net asset position of give years ago, but this year's result (+$678K) is a great step backwards. I'm pretty happy with our results, but like the board i wonder about expanding the revenue base.

I'll be very interested to see how the other big clubs did this year.

That BS doesn’t look that strong. Working capital still non-existant. And what are the $6m worth of non-current trade and other payables?

 

[Coopers]

Okay, Tracey at the club was nice enough to send me the financial statements today, so i've thrown it against all results since 2012 so we can see how the club has evolved.

Great post. Awesome.

That's awfully nice of them to give out that. Is it a requirement of the AFL for the clubs to have this available to the public?

Not that I can see anything devastating in there. Really interesting to see the "SANFL not sucking blood" drop, and that we've subsequently spent a lot of that too.

 

[Tex Danger]

Find it very interesting how steady merch sales are. Variations really only also match variations in cost of product to make (I assume that means we sell a similar amount and the cost of item changes to reflect cost of production).

Would have expected in a GF year those numbers would have spiked.

 

[Sanders]

It would be easy (and satisfying) for me to claim that Fagan was God and Trigg was terrible but it wouldn’t explain how Trigg raised revenues in his last year... maybe there was a pre-move bump? We can certainly say that whatever Fagan’s been doing, it’s been working.

I think it would be tough to say Fagan ‘s been doing a bad job, he’s clearly doing at least a good job

What I think he has done really well is bring the club together, and make supporters feel like the club is on its side. Trigg sucked at that and left people believing he wanted to please the Afl more that the fans

I doubt it was true but he left room for people to think it might be

 

[beartoo]

I would hazard a guess and say a lot of people don't realize how thin the margins are on a lot of pubs going around.

Yep, power and water prices have led to the demise of a number of pubs and other small businesses. It's time we stopped foreign owners ripping off South Australians. Selling or leasing our power and water overseas were masterstrokes. We are governed by lunatics.

 

[CrowsB4hoes]

I don’t know if Manchester United, Golden State Warriors or the Yankees have clubrooms where you’ll find Derek Jeter pulling a few Buds from behind the bar.

 

[dogs105]

I don’t know if Manchester United, Golden State Warriors or the Yankees have clubrooms where you’ll find Derek Jeter pulling a few Buds from behind the bar.

Why would Derek Jeter be pulling beers in Manchester?

 

[CrowsB4hoes]

Why would Derek Jeter be pulling beers in Manchester?

The correct questions is why he would be pulling Buds in Manchester when New York have perfectly good beers of their own ...

Ah no actually, your point was fine.