2019 Financial Results

[dave10]

Richmond now has the biggest turnover in the afl, the biggest membership, and the highest home crowds

Possibly... However that would be expected after winning two flags in 3 years whilst the Tiges generate around $32M from it’s non football related operations. Not that that’s a bad thing, assuming these ventures derive profits, they will fund the clubs significant expansion plans. $4.1m profits on $92M is a strong result as would be expected.
Richmond are now among the most financially sound clubs in the AFL. However they have big outlays on the horizon which will likely draw on these cash reserves fully.

 

[The_Wookie]

Richmond now has the biggest turnover in the afl, the biggest membership, and the highest home crowds

How about we wait til West Coast reports in.

 

[Rob]

How about we wait til West Coast reports in.

I'd be surprised if they can surpass $92m gross given they have virtually no non-football revenue.

Of course on pure football revenue West Coast makes Richmond look like a VFL club.

 

[Ned_Flanders]

I'd be surprised if they can surpass $92m gross given they have virtually no non-football revenue.

Of course on pure football revenue West Coast makes Richmond look like a VFL club.

1) wce will be the biggest because they will have their 2018 gf merch sales in their number

2) if you take out pokies and our health centres, RFC still has a higher revenue than Adelaide, port, freo, Brissy, GC, sydney, gws, dogs, saints, north, and the dees did in 2018, even if you include these clubs gaming revenues. I get the point you are trying to make (wce is a money making machine unrivaled in the league, and I agree), but saying a club with $60m in footy revenue is earning vfl money is stupid

 

[RussellEbertHandball]

1) wce will be the biggest because they will have their 2018 gf merch sales in their number

2) if you take out pokies and our health centres, RFC still has a higher revenue than Adelaide, port, freo, Brissy, GC, sydney, gws, dogs, saints, north, and the dees did in 2018, even if you include these clubs gaming revenues. I get the point you are trying to make (wce is a money making machine unrivaled in the league, and I agree), but saying a club with $60m in footy revenue is earning vfl money is stupid

Why did revenue and expenses for - Health, fitness and community groups - increase by $10.61m and $10.05m respectively?

Is this where Richmond account's for its community programs that it might get large government and corporate grants to carry out community work like with the Bachar Houli Foundation programs, the Aboriginal programs thru the Korin Gamadji Institute and the Diversity and Inclusion Action Plan, the Tigers do, as well as the work with the Alannah and Madeline Foundation?

On first reading of the report yesterday it appeared the club was saying its all as a result of health business - "Following the launch of Aligned Leisure in 2016, our health and fitness operation continues to facilitate non-traditional revenue sources for the Club. This venture continues to provide links with the community, assisting with further growth in membership numbers as well as providing additional corporate partnerships. The board and management are excited about the opportunity to expand and grow this non-football part of our business in the short, medium and long term." page 5.

But re reading the bold part especially and the stuff on page 2 and page 3 it seems to be more than just the leisure health and fitness business tied up in those revenue and expenditure items.

Its not a criticism, I'm just trying to get my head around it, as Port officials have told me Port spend about $3m on community programs involving work with Aboriginal communities in APY Lands and in NT, Aboriginal education programs across SA, The Aboriginal Power Cup, general school programs, stuff with defence forces families etc, from government grants and corporate funding, but they never make it clear where they account for the $3m in and $3m out.

 

[Ned_Flanders]

Why did revenue and expenses for - Health, fitness and community groups - increase by $10.61m and $10.05m respectively?

Is this when Richmond account's for its community programs that it might get large government and corporate grants to carry out community work like with the Bachar Houli Foundation programs, the Aboriginal programs thru the Korin Gamadji Institute and the Diversity and Inclusion Action Plan, the Tigers do, as well as the work with the Alannah and Madeline Foundation?

On first reading of the report yesterday it appeared the club was saying its all as a result of health business - "Following the launch of Aligned Leisure in 2016, our health and fitness operation continues to facilitate non-traditional revenue sources for the Club. This venture continues to provide links with the community, assisting with further growth in membership numbers as well as providing additional corporate partnerships. The board and management are excited about the opportunity to expand and grow this non-football part of our business in the short, medium and long term." page 5.

But re reading the bold part especially and the stuff on page 2 and page 3 it seems to be more than just the leisure health and fitness business tied up in those revenue and expenditure items.

Its not a criticism, I'm just trying to get my head around it, as Port officials have told me Port spend about $3m on community programs involving work with Aboriginal communities in APY Lands and in NT, Aboriginal education programs across SA, The Aboriginal Power Cup, general school programs, stuff with defence forces families etc, from government grants and corporate funding, but they never make it clear where they account for the $3m in and $3m out.

A lot of this is me making a few educated guesses before the AGM:

1) why the increase in revenue and expenditure?
Revenue would be up because the aligned leisure contracts in northern Victoria are producing decent moneys now roll out is mostly done. Expenditure I'm guessing off the start of our training arrangement with Swinburne uni, and the expansion of our indigenous school.

2) grants, in this income?
Not sure how this is done. Traditionally grants have been highlighted separately, but they have mostly been grants tied to the kgi (ie ultimately our facility). We have $500k in grants this year, but no idea what it was for.

3) why is community and non footy commercial lumped together?
I suspect it's due to the management structure at the club. footy income and spending is bucketed as consumer or commercial because of this, so if non footy is under a single reporting line, it would make sense it's also like that

This is just a guess however

 

[Kwality]

Why did revenue and expenses for - Health, fitness and community groups - increase by $10.61m and $10.05m respectively?

why the increase in revenue and expenditure?
Revenue would be up because the aligned leisure contracts in northern Victoria are producing decent moneys now roll out is mostly done. Expenditure I'm guessing off the start of our training arrangement with Swinburne uni, and the expansion of our indigenous school.

The business venture is in a very competitive field. The turnover is there, the margins could be a question for the AGM.

 

[Marcel Proust]

I'd be surprised if they can surpass $92m gross given they have virtually no non-football revenue.

Of course on pure football revenue West Coast makes Richmond look like a VFL club.

thats what richmond is

vfl club with 25m in the bank

 

[Ned_Flanders]

The business venture is in a very competitive field. The turnover is there, the margins could be a question for the AGM.

The margins aren't actually bad (not massive, but not low). There were only a couple of firms bidding for this stuff in Vic (the mob behind genesis gyms and YMCA), and both were in the habit of padding out council tenders

 

[blaisee]

I'd be surprised if they can surpass $92m gross given they have virtually no non-football revenue.

Of course on pure football revenue West Coast makes Richmond look like a VFL club.

So what is hawthorn Carlton and Collingwood without pokies?

Insolvent?

 

[NoobPie]

So what is hawthorn Carlton and Collingwood without pokies?

Insolvent?

Well we'll know soon because the Pies don't have any pokies anymore

 

[Tiger Soze]

Possibly... However that would be expected after winning two flags in 3 years whilst the Tiges generate around $32M from it’s non football related operations. Not that that’s a bad thing, assuming these ventures derive profits, they will fund the clubs significant expansion plans. $4.1m profits on $92M is a strong result as would be expected.
Richmond are now among the most financially sound clubs in the AFL. However they have big outlays on the horizon which will likely draw on these cash reserves fully.

What impresses me about this result is the near $10m increase in cash reserves from the $92m revenue.
The $60m Punt Road redevelopment costs are covered by $20m each by Fed and state governments with the Tigers hopeful the AFL will stump up $5m,
That leaves a $15m contribution out of the current $24.4m cash balance.

 

[NoobPie]

What impresses me about this result is the near $10m increase in cash reserves from the $92m revenue.
The $60m Punt Road redevelopment costs are covered by $20m each by Fed and state governments with the Tigers hopeful the AFL will stump up $5m,
That leaves a $15m contribution out of the current $24.4m cash balance.

You'd hope not now. Why would the AFL grant Richmond redevelopment money?

 

[Tiger Soze]

You'd hope not now. Why would the AFL grant Richmond redevelopment money?

Maybe because Richmond is a major contributor to the competition, but the term was hopeful so it’s not guaranteed

 

[The_Wookie]

What impresses me about this result is the near $10m increase in cash reserves from the $92m revenue.
The $60m Punt Road redevelopment costs are covered by $20m each by Fed and state governments with the Tigers hopeful the AFL will stump up $5m,
That leaves a $15m contribution out of the current $24.4m cash balance.

Leaves a bit more than that currently.

Feds = $15 million
State = nothing yet - nothing in either the 2018-19 or 2019-20 budgets, no announcements as far as Im aware.
AFL = nothing yet

 

[Tiger Soze]

Leaves a bit more than that currently.

Feds = $15 million
State = nothing yet - nothing in either the 2018-19 or 2019-20 budgets, no announcements as far as Im aware.
AFL = nothing yet

Yes I stand corrected, my numbers are from the proposal.

 

[NoobPie]

Maybe because Richmond is a major contributor to the competition, but the term was hopeful so it’s not guaranteed

Yeah but the $5 million would just be a transfer to a growing balance sheet.

I think facility grants from the AFL should only go to the smaller clubs*

*I should really check to see if we got anything for the glass house development!

 

[Ned_Flanders]

Leaves a bit more than that currently.

Feds = $15 million
State = nothing yet - nothing in either the 2018-19 or 2019-20 budgets, no announcements as far as Im aware.
AFL = nothing yet

Last time I spoke to someone at the club about this, they weren't expecting more from the feds.

Timing sucked for state funds. We were basically told how much coin we got would come down to if we got a women's team, and missing out on the second round was apparently a big factor behind the club getting donuts. Some in the club are thinking even though the redevelopment is mostly about the kgi/school/aflw , the recent success is making it hard to get state govt interested. As such a scaled back plan with no state funding and a bigger RFC stake is looking more likely

This is old info though, so s**t may have changed since that chat

 

[Ned_Flanders]

Yeah but the $5 million would just be a transfer to a growing balance sheet.

I think facility grants from the AFL should only go to the smaller clubs*

*should check to see if we go anything for the glass house development!

Pretty sure the AFL helps most clubs when it comes to women's footy or the academy stuff (and that's the only reason I'd see them giving anything for this)

 

[NoobPie]

Pretty sure the AFL helps most clubs when it comes to women's footy or the academy stuff (and that's the only reason I'd see them giving anything for this)

Fair enough at the margins for that kind of stuff. Larger (eg $5m) general grants I would think probably should only go to smaller clubs who are otherwise drawing larger annual distributions

 

[Kwality]

Yeah but the $5 million would just be a transfer to a growing balance sheet.

I think facility grants from the AFL should only go to the smaller clubs*

*I should really check to see if we got anything for the glass house development!

Just because your club benefits does not make it right .... WHY the AFL do or dont fund is anything but consistent IMHO.

 

[Ned_Flanders]

Fair enough at the margins for that kind of stuff. Larger (eg $5m) general grants I would think probably should only go to smaller clubs who are otherwise drawing larger annual distributions

I think that's already happening (at chaddy so can't search old news articles easily)

 

[NoobPie]

Just because your club benefits does not make it right .... WHY the AFL do or dont fund is anything but consistent IMHO.

You really don't pick up on subtlies do you?

Apparently we didn't get anything from the AFL....in fact it was at a time when the AFL introduced a soft cap on the football department with no warning ....

Collingwood continue to fly off the field with multi-million-dollar profits

www.google.com

I'm looking forward to seeing Collingwood's first report post pokies sale. People will be able to make a more cogent assessment of the commercial performance of the glasshouse facility and the effect of removing the gaming from its books

 

[blaisee]

As far as the PRO redevelopment

From what I have heard
Fed money $15m
State will give at least $5m
AFL $5m

Thing is, the whole thing could cost $30m +

Then the hat will go around to major sponsors, coteries and the general rank and file

Doubt the RFC will put in a penny of the cash in the bank

Richmond is a pretty good example of the Pareto distribution at work.

 

[Rob]

So what is hawthorn Carlton and Collingwood without pokies?

Insolvent?

Compared to West Coast? Pretty much.