Club Mgmt. 2021 Financial Result - Bank-debt free!

[Lore]

Essendon Football Club is pleased to have strengthened its financial position in 2021, announcing a statutory profit of $8.2 million.

This is made up of an underlying profit from operations of $1.2m, together with $7m of donations and grants directly attributable to the expansion of the NEC Hangar development. The underlying cash profit from operations was $5m.

The net assets of the club have increased to $49m at October 31, 2021, compared with $40.8m in 2020.

The club is once again bank-debt free, with the expansion of the fully funded $50m NEC Hangar now complete.

Key points of the club’s 2021 financial result:

• An increase of $2.1m in net income from the club’s non-football-related revenue streams due to strong performance during the periods of trade, which were less impacted than the 2020 year.
• An increase in match day and stadium returns of $3.3m due to being able to play a full 23-round season, with most games in front of crowds, albeit limited, and the highly successful sell-out Dreamtime game in Perth.
• A small growth in net membership revenue of $0.2m, despite an increase of 14,941 members, as the club invested in additional benefits to acknowledge the loyalty of members who maintained their support over the past two difficult seasons.
• A decrease in football department expenditure of $1.0m through the reduction in the AFL football department soft-cap expenditure limits.
• An increase of $2.2m in player payments, net of AFL contributions, as the industry returned to a full season and in line with the CBA increase.

2021 financial result: Bombers strengthen position

The club announces a strong outcome in its 2021 financial result.

www.essendonfc.com.au

 

[Lore]

Annual report;

https://resources.essendonfc.com.au/aflc-ess/document/2021/11/23/6bac3693-7b2a-4bdc-b1a2-1e577689566e/EFCAnnualReport2021-V7.pdf

 

[owen87]

2021 financial result: Bombers strengthen position

The club announces a strong outcome in its 2021 financial result.

www.essendonfc.com.au

Nice.

Can we ditch the pokies now?

 

[eth-dog]

Nice.

Can we ditch the pokies now?

This.

 

[acm21]

This.

Agreed. But would cause a massive hole in the budget (and would likely just sell the license to someone else)

 

[owen87]

Agreed. But would cause a massive hole in the budget (and would likely just sell the license to someone else)

I'd rather the hole and EFC taking a stand against it tbh.

Credit to North, they've managed to exit pokies and be debt free.

 

[acm21]

I'd rather the hole and EFC taking a stand against it tbh.

Credit to North, they've managed to exit pokies and be debt free.

I think North are the only one who has exited pokies without selling the licenses.

 

[Godzke]

Curious to know what the terms are of the $1.3m in loans from external parties
Strong result, hopefully further buoyed by strong ticket revenue in 2022

 

[jmoo wan]

Curious to know what the terms are of the $1.3m in loans from external parties
Strong result, hopefully further buoyed by strong ticket revenue in 2022

we have to pay it back in 4 easy payments before the crippling interest kicks in.

 

[Godzke]

we have to pay it back in 4 easy payments before the crippling interest kicks in.

Based on what?

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[acm21]

Based on what?

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I think its a joke

 

[jmoo wan]

Based on what?

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sorry - it was this

I think its a joke

it is curious though - I wouldn’t put it past Xavier to have made some sketchy deals with some biker types

 

[Godzke]

I think its a joke

sorry - it was this

it is curious though - I wouldn’t put it past Xavier to have made some sketchy deals with some biker types

Private credit has thrived during the pandemic and given the financial stress football clubs were under, it would be of no surprise if Essendon had taken out high-rate loan or PIK structured finance.

 

[GUMBLETRON]

My first thought was ol' mate Paul Little.

 

[boncer34]

Private credit has thrived during the pandemic and given the financial stress football clubs were under, it would be of no surprise if Essendon had taken out high-rate loan or PIK structured finance.

PIK maybe though I'd be surprised.

Can see no reason why they'd move bank debt to a high rate loan.

 

[acm21]

My first thought was ol' mate Paul Little.

Wouldn't be suprised if it was, or someone of his type.

 

[Godzke]

PIK maybe though I'd be surprised.

Can see no reason why they'd move bank debt to a high rate loan.

You don't willfully refinance bank debt to higher rate loans. If the banks are tapped out, then you have no choice

The fact that bank debt was repaid before other external loans would suggest there is some sort of fixed payment structure in place.

 

[boncer34]

You don't willfully refinance bank debt to higher rate loans. If the banks are tapped out, then you have no choice

The fact that bank debt was repaid before other external loans would suggest there is some sort of fixed payment structure in place.

I can guarantee you that no bank would turn Essendon away.

 

[ant555]

This.

I could not care less if pokies disappeared of the face of the Earth but I hope we do not just sell the venues to some random rich conglomerate or the licenses.
My view is it does nothing to resolve anything. Would rather see the money going into a sporting club ,Essendon , that has multiple community programs rather than some rich peoples pocket.

 

[acm21]

I could not care less if pokies disappeared of the face of the Earth but I hope we do not just sell the venues to some random rich conglomerate or the licenses.
My view is it does nothing to resolve anything. Would rather see the money going into a sporting club ,Essendon , that has multiple community programs rather than some rich peoples pocket.

This.

 

[owen87]

I could not care less if pokies disappeared of the face of the Earth but I hope we do not just sell the venues to some random rich conglomerate or the licenses.
My view is it does nothing to resolve anything. Would rather see the money going into a sporting club ,Essendon , that has multiple community programs rather than some rich peoples pocket.

I used to think similarly, but at this point I think it means something for such a well known community organisation like Essendon to make a public stand and cease their involvement.

Sure, the venue and the machines likely still exist, but EFC saying 'we don't believe this is a positive and health contribution to the community and is not congruous with our values' or some such, is a strong (and important) position to take IMO.

Similarly with gambling.

 

[boncer34]

I used to think similarly, but at this point I think it means something for such a well known community organisation like Essendon to make a public stand and cease their involvement.

Sure, the venue and the machines likely still exist, but EFC saying 'we don't believe this is a positive and health contribution to the community and is not congruous with our values' or some such, is a strong (and important) position to take IMO.

Similarly with gambling.

It will mean next to nothing. It would mean something to you because you're an Essendon fan.

Nobody else will give a s**t.

 

[owen87]

It will mean next to nothing.

Maybe, maybe not.

Having every AFL club dump pokies and any association with pokies venues might well mean something though.

 

[boncer34]

Maybe, maybe not.

Having every AFL club dump pokies and any association with pokies venues might well mean something though.

I might be in the minority but I don't make any of my life's decisions based on whether the AFL supports it.

I'm firmly in Ants camp. Pokies are a disease and should be destroyed but better the money goes somewhere that'll give back to the community than some faceless corporate.

 

[acm21]

It will be Interesting if the pokies move along with the club when they eventually move (as the club wants) or have a major reno