2019 Financials

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Phar Ace

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Feb 9, 2017
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Health, Fitness and Community is Aligned Leisure costs. As AL wins contracts, we absorb costs associated with managing leisure assets of the contracted entity, such as staff, maintenance and consumables. Revenue from such contracts is grouped in Revenue from Contracts with Customers.
Finance and Admin also increases as we grow administrative infrastructure to manage AL growth. It’s amazing but with the AL business, we are one of the biggest employers in the AFL. Geelong with their catering business are up there as well. So our administration resource needs grows to manage contracts, Human Resources etc.

And remember folks, we are a not for profit entity existing in a competitive landscape that requires us to make mandatory spends on salary and soft cap. You cannot apply a private entity lens of revenue growth translating to margin and profit growth. We invest revenue growth on our strategic aims.

Haere Ra
Thanks KT. I figured you'd respond with some more expansive information. I did preface my comments and there was no commercial lens on my comments, more of a basic and fundamental look on some reported financial data and their directions on two sets of figures is all. I'd expect some massive swings at the start of an investment cycle, it's just whether they are sustained or simply a timing issue with perhaps some front end costs that taper.

A $4m profit is nothing to be sneezed at, commercially or not-for-profit, and given the Club's trading history over the last 30 of years, it's an absolute credit to those involved. My comment on the profit was simple enough for what we get to see and know.

Thanks again for put some meat on the bones.
 

DeLaCon

Senior List
Nov 15, 2019
257
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Richmond
Great super result but my concern us that because we are not for profit, it becomes a reason for the club to issue big increases in pay to current employees. I believe they should be paid properly but not just receive increases just for the sake of it.

An example of what I would consider better expenditure and a great project would be the purchase of a large land holding in a place like Cape Shanck or Fingal and the development of a resort where Richmond supporters could go and stay over a weekend or for holidays. Such a development could include ovals and a training base for our players during the summer. They could then return to Punt Rd in late February or Early March. A bit like how the RACV goes about its business.
 

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Ned_Flanders

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Aug 22, 2009
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Great super result but my concern us that because we are not for profit, it becomes a reason for the club to issue big increases in pay to current employees. I believe they should be paid properly but not just receive increases just for the sake of it.

An example of what I would consider better expenditure and a great project would be the purchase of a large land holding in a place like Cape Shanck or Fingal and the development of a resort where Richmond supporters could go and stay over a weekend or for holidays. Such a development could include ovals and a training base for our players during the summer. They could then return to Punt Rd in late February or Early March. A bit like how the RACV goes about its business.
Cape Shank cost $150m. We dont have that kind of coin to invest in a business.

As for wages, the soft cap will limit how much wage inflation is
 

A Banderas

All Australian
Nov 2, 2019
776
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Richmond
Health, Fitness and Community is Aligned Leisure costs. As AL wins contracts, we absorb costs associated with managing leisure assets of the contracted entity, such as staff, maintenance and consumables. Revenue from such contracts is grouped in Revenue from Contracts with Customers.
Finance and Admin also increases as we grow administrative infrastructure to manage AL growth. It’s amazing but with the AL business, we are one of the biggest employers in the AFL. Geelong with their catering business are up there as well. So our administration resource needs grows to manage contracts, Human Resources etc.

And remember folks, we are a not for profit entity existing in a competitive landscape that requires us to make mandatory spends on salary and soft cap. You cannot apply a private entity lens of revenue growth translating to margin and profit growth. We invest revenue growth on our strategic aims.

Haere Ra
didnt liddle Kane set up advanced leisure ? how long before he trys to poach it off us like when they took that pub in Richmond off us about 8 years ago
 

A Banderas

All Australian
Nov 2, 2019
776
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An example of what I would consider better expenditure and a great project would be the purchase of a large land holding in a place like Cape Shanck or Fingal and the development of a resort where Richmond supporters could go and stay over a weekend
sounds like a death cult. we could all drink the kool aid at the same time too and benny gale could be Jim Jones
 
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THE_GUN

R.I.P Shane Tuck 21
Dec 28, 2007
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So we have $25 million cash reserves ! What will we do with this ?

I have an idea , Lets Invest more into talent identification and get more junior talent scouts so we can continue to get good players later in the draft as well as our first 2 picks.

And buy Norff melbourne so we can take their best 3 players and trade their 1st & 2nd round picks to Richmond every year
 

THE_GUN

R.I.P Shane Tuck 21
Dec 28, 2007
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Richmond owning assets rather than leasing stuff is not a bad thing. We lease Punt Road we dont own it. I just reckon its time for our club to own things outright rather than just renting or leasing everything.
That would all depend on what the lease cost is , I used to be a person that owned everything outright and payed a sh!t load of taxes as i couldnt claim anything. Leasing things if you make profits is not a bad thing
 

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A Banderas

All Australian
Nov 2, 2019
776
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So we have $25 million cash reserves ! What will we do with this ?

I have an idea , Lets Invest more into talent identification and get more junior talent scouts so we can continue to get good players later in the draft as well as our first 2 picks.

And buy Norff melbourne so we can take their best 3 players and trade their 1st & 2nd round picks to Richmond every year
we can buy carltoon and erase them
 

A Banderas

All Australian
Nov 2, 2019
776
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AFL Club
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Just read that the state gov do not want to help us with the 65mil redevelopment but they can give shitloads for other clubs facilities. gee i wonder if that would have anything to do with winning 2 flags in 3 years :drunk:

GAGF you campaigners we will pay for it ourselves and youse cant step foot in it
 

Phar Ace

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Feb 9, 2017
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That would all depend on what the lease cost is , I used to be a person that owned everything outright and payed a sh!t load of taxes as i couldnt claim anything. Leasing things if you make profits is not a bad thing
Yep, some assets are/have very low lease returns but high capital gains if you manage the holding costs. Very different investor types.
 
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Jan 13, 2005
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The Hospital
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So we have $25 million cash reserves ! What will we do with this ?

I have an idea , Lets Invest more into talent identification and get more junior talent scouts so we can continue to get good players later in the draft as well as our first 2 picks.
We are still bound by the soft cap. Every club, including WCE and Collingwood, have been wary of crossing that threshold so far.

It’ll be interesting to see if us/pies/WCE do start to take that risk soon.
 

Ned_Flanders

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Aug 22, 2009
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We are still bound by the soft cap. Every club, including WCE and Collingwood, have been wary of crossing that threshold so far.

It’ll be interesting to see if us/pies/WCE do start to take that risk soon.
It will be wce, once they redo their facility they have nothing else to spend on, so it may as well be the tax
 

NZ_Tiger

Norm Smith Medallist
Aug 30, 2011
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kensington
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Richmond
So we have $25 million cash reserves ! What will we do with this ?

I have an idea , Lets Invest more into talent identification and get more junior talent scouts so we can continue to get good players later in the draft as well as our first 2 picks.

And buy Norff melbourne so we can take their best 3 players and trade their 1st & 2nd round picks to Richmond every year
Recruiting numbers are down across the league after the soft cap. What we could do is set up a business that does contract scouting and sell the reports to ourselves at a low cost.


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