Club Mgmt. 2019 Financial Result - Debt Free!

[dave10]

So why don't we see what happens next year before we start to whinge?

Nothing wrong with a good discussion and review of the result surely...

 

[CBombers17]

Nothing wrong with a good discussion and review of the result surely...

Absolutely nothing at all wrong with it Out of interest do you have any ideas on what other revenue streams the club should look at?

The thought of us diversifying is fairly scary tbh but it's going to be necessary.

 

[Old Campaigner]

Absolutely nothing at all wrong with it Out of interest do you have any ideas on what other revenue streams the club should look at?

The thought of us diversifying is fairly scary tbh but it's going to be necessary.

Medicinal marijuana

 

[CBombers17]

Medicinal marijuana

I like it. I was thinking an Essendon monorail

 

[tandino]

Absolutely nothing at all wrong with it Out of interest do you have any ideas on what other revenue streams the club should look at?

The thought of us diversifying is fairly scary tbh but it's going to be necessary.

Isn’t there some sort of medical imaging business in the pipeline?

 

[dave10]

Absolutely nothing at all wrong with it Out of interest do you have any ideas on what other revenue streams the club should look at?

The thought of us diversifying is fairly scary tbh but it's going to be necessary.

You look at what other clubs are doing.. Richmond have invested in a chain of leisure centres, it generated $24M revenue in 2019. Richmond is planning a $60m investment in redeveloping it’s facilities so it needs to continue to generate strong profits and surplus cash. All clubs will need similar diversified revenues.

we are limited at Marvel, reliant on success with membership, gate and merchandising to adegree.

mer are playing a bit of a long game with esports and possibly looking at what we can to with our land at Tulla to create new revenue. Whether that’s a medical centre on site, leisure facility for public use... Who knows.

 

[blitzer]

I do like the idea of diversifying our revenue streams. The more we can utilise our resources to generate revenue the better we will be able to support our core activity which should be winning premierships.

I don't pretend to be an expert on such things but hopefully we can utilise our supposed world class facilities to make money for us in various ways and recoup some of the massive costs we are spending on it.

As a fan of esports - I'm not sure I believe in it as a revenue stream for EFC.

 

[Seagrave_Holmes]

Also premiership free since 2000!

 

[Bunk Moreland]

I'm no financial expert but getting rid of debt can only be a good thing, right?

Depends what the debt is for and how much interest you’re paying on it, basically.

 

[JuniorWatch]

Maybe we can stop stripping the povvos in Melton of their last $$$ now and move onto a more reputable source of income

 

[CBombers17]

Maybe we can stop stripping the povvos in Melton of their last $$$ now and move onto a more reputable source of income

That or double down with a ring of EFC (Essendon Fried Chicken) stores and Bomberland Liquor barns around the outskirts of Melbourne.

 

[dave10]

no growth...

 

[DapperJong]

View attachment 782525
no growth...

Pretty disappointing. Almost like from 2012-2016 something really bad happened.

 

[Lore]

Wonder why they picked 2008..

 

[calyam]

In layman's terms, yes. But I think in business (and in government when they're not trying to get elected), there's a different perspective, concerning "good" debt and "bad" debt. Good debt you borrow in order to invest and overall grow your assets when the interest rate is low. When things change you reverse the process to prevent it from biting you in the arse. That's typically why people have mortgages, though that can turn bad if you pay too much for the loan and/or the house ends up being worth less than what you paid for it.

Bad debt is more along the lines of a car loan where by the time you finish paying it off the car isn't worth anything anymore (assuming it's a regular sort of car and not some limited edition thing that becomes more valuable over time).

Debt is best used on assets that provide value over a prolonged period of time. A house is a great example of that. So too is a high performance centre. A car is typically a good debt even though it cannot be sold for much. Of course in every example you can pay too much on bad terms. A bad debt is better seen as borrowing to cover operating expenses.

In practical terms, Essendon being debt free is the club admitting that that it can think of no ways to invest or innovate that will benefit the club now and into the future. I'm not sure why we would celebrate that.

 

[ghostdog]

Pleased about this, but really, I would have preferred a beanie and scarf. Why do we never get a beanie? I've got hats coming out of my ears.