2008 Financial Report

[The Old Dark Navy's]

http://carltonfc.com.au/portals/0/blues_docs/img-Y261457-0001.pdf

Just looking at key points of debate that frequently come up on BigFooty and dissecting them.

* The loan from the AFL - was an interest free loan until 31/10/08. It was not due to be paid back by then contrary to what many of us believed. After this date the loan attracts interest at a rate of 6% and is due to be paid in full by 31/10/09. I dare say, we will be looking to pay for that quickly now unless we have other liabilities attracting larger interest fees.

* Costs were about $2m more in 2008 compared to 2007 but revenue was some $6m more. Only a few years ago we brought in $19m in revenue and now we are up to $31m. Of course with better personnel at the club, wages are up a bit too. Spend money to make money they say.

Any other notables you want to collect in the same thread so we are forearmed?

 

[The Old Dark Navy's]

I note that most of the directors income generated has decreased or was a negligible amount to begin with. Sticks and Pratt are around the previously high standard set last year by them but one man, Richard Newton is going gangbusters in corporate sales and pretty much leaving the other lesserlights for dead. Is it any wonder, we have a new vice president?

 

[WeninRome]

http://carltonfc.com.au/portals/0/blues_docs/img-Y261457-0001.pdf

Just looking at key points of debate that frequently come up on BigFooty and dissecting them.

* The loan from the AFL - was an interest free loan until 31/10/08. It was not due to be paid back by then contrary to what many of us believed. After this date the loan attracts interest at a rate of 6% and is due to be paid in full by 31/10/09. I dare say, we will be looking to pay for that quickly now unless we have other liabilities attracting larger interest fees.

* Costs were about $2m more in 2008 compared to 2007 but revenue was some $6m more. Only a few years ago we brought in $19m in revenue and now we are up to $31m. Of course with better personnel at the club, wages are up a bit too. Spend money to make money they say.

Any other notables you want to collect in the same thread so we are forearmed?

Although our expenses have increased, they are increasing in the right areas, mainly player development and coaching. This is where we should be spending most of our profit.

However, with the economic climate at present it should be the clubs number one priority to wipe off any debt which is oweing, this includes the loan from the AFL.

Hopefully the new major sponsor, Malaysia, can help us in this area.

One thing that stands out for me is that the revenue generated by us, the clubs members from buying a membership. One should not underestimate the influence our membership has on the club and the help it enables us to overcome any debt..

 

[LemmingMaster]

A key result is the revenue from gaming, which living in W.A I am not 100% sure, but if that means pokies.
I really hate the thought of clubs surviving on the back of pokies. They're a blight on the community.

 

[The Old Dark Navy's]

We are not surviving on the back of pokies going by that. Our gaming revenue probably equals our profit these days, but we are surviving on the back of membership, sponsorship and merchandise much more than gaming.

 

[LemmingMaster]

We are not surviving on the back of pokies going by that. Our gaming revenue probably equals our profit these days, but we are surviving on the back of membership, sponsorship and merchandise much more than gaming.

Very true, I just have a dislike for pokies.

 

[WeninRome]

A key result is the revenue from gaming, which living in W.A I am not 100% sure, but if that means pokies.
I really hate the thought of clubs surviving on the back of pokies. They're a blight on the community.

If you were to compare our revenue with ours and say a rugby league club then you iwll find we do not rely on gaming at all. As ODN said we rely heavily on membership, whereas the NRL as usual are fairly well beind in that depeartment and thus still rely heavily on their leagues clubs for revenue.

We are in a great position as supporters to contribute to OUR clubs, which is very unusual when compared with most major sports in the world.

I dare say this financial report, espeically revenue may have been slightly different if that pub deal had of gone thru....

 

[The Old Dark Navy's]

This part is a little confusing:

Amounts contracted to AFL players

2008 - $6,109,172
2007 - $5,852,800

Later than one year but not later than two years

2008 - $5,010,000
2007 - $3,355,000

Later than two years but not later than five years

2008 - $4,890,000
2007 - $4,875,000

Total

2008 - $16,009,172
2007 - $14,082,800

I assume this is player payments which means that we had more than about $1.3m to play with this year and thus the claim we frontloaded some 2009 contracts. The 2007 figure is another $1m lower though and the cap wasn't that low. Is it possible we frontloaded some other contracts last year and were in the vicinity of 92.5% of the cap?

I don't get the significance of the over 1 year but less than 2 and the over 2 years but less than 5 parts. Any idea what this means?

 

[WeninRome]

This part is a little confusing:

Amounts contracted to AFL players

2008 - $6,109,172
2007 - $5,852,800

Later than one year but not later than two years

2008 - $5,010,000
2007 - $3,355,000

Later than two years but not later than five years

2008 - $4,890,000
2007 - $4,875,000

Total

2008 - $16,009,172
2007 - $14,082,800

I assume this is player payments which means that we had more than about $1.3m to play with this year and thus the claim we frontloaded some 2009 contracts. The 2007 figure is another $1m lower though and the cap wasn't that low. Is it possible we frontloaded some other contracts last year and were in the vicinity of 92.5% of the cap?

I don't get the significance of the over 1 year but less than 2 and the over 2 years but less than 5 parts. Any idea what this means?

I think it means player years in the AFL

eg...over 1 year = second year player, but before the end of their 2nd year in the afl...

i think this is just a simplistic breakdown of the clubs salary cap so that they can prioritise the money in the salary cap to the more expensive players... ie the players over 2 years???

 

[LemmingMaster]

Later than one year but not later than two years

hmmm, I wonder what is later than 1 but not later than two???

hmmmmmm

Could it just be two years

I think that table just shows how much in contracts have already been signed up. Just means that contracts like Judd's and Fevola's are currently accounted for in the coming years.

 

[The Old Dark Navy's]

Ah, it is allowing for contracted amounts in the future. I was thinking it was going back in time but it is going forward.

So our 2008 contracted payments are $6,109,172.

Our contract commitments for 2009 so far are $5,010,000.

Our contract commitments for 2010-2012 so far are $4,890,000.

So this is $16,009,172 in contract commitments until the end of 2012 including the year just passed. On top of this are new draftees and re-signing players during that period.

Given that our total player payment cap over this period of time is about $38m plus nearly $3m marketing allowance, it just indicates what percentage of future caps is already committed.

 

[WeninRome]

Ah, it is allowing for contracted amounts in the future. I was thinking it was going back in time but it is going forward.

So our 2008 contracted payments are $6,109,172.

Our contract commitments for 2009 so far are $5,010,000.

Our contract commitments for 2010-2012 so far are $4,890,000.

So this is $16,009,172 in contract commitments until the end of 2012 including the year just passed. On top of this are new draftees and re-signing players during that period.

Given that our total player payment cap over this period of time is about $38m plus nearly $3m marketing allowance, it just indicates what percentage of future caps is already committed.

jackpot

 

[The Old Dark Navy's]

Our contract commitments for 2010-2012 so far are $4,890,000

Does this figure give us an insight into how much certain players are on?

How many players are contracted for 2010 or beyond? A precious few I'd suggest. Obviously if Judd is on $1m per year, then $3m of that commitment is right there.

 

[blue gunslinger]

I am happy to say the WABlues did very well and the gains will be past onto the club
Cheers all