2019 Financials

Bojangles17

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May 17, 2004
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Not suggesting it's a problem because any meaningful analysis requires more than 2 years of figures (and the notes), however our Revenue grew about 15% yet the bottom line fell 2.3%, which is not a big fall, but some bottom line growth off 15% more turnover might have been nice.

There must be some significant investment going on to grow one line of expenses (Health Fitness and Community) by a whopping 70%. Notable are the additional finance costs on leased assets. Hopefully there is more Income growth to come off the same or similar expenses.

Also Finance and Admin costs increased 20% off that 15% Revenue growth. Hopefully that gap closes a bit too.
Weโ€™d be the dumbest idiots in the world to declare like a 10mn profit as it would guarantee the afl would reduce our future dividend by millions as we d look self sufficient , we need to build a war chest that will likely fund much of the pro redevelopment
 

Bojangles17

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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.
Terrible idea , Iโ€™m thinking we propose to Yarra council that we take over Kevin Bartlett reserve and build a super training complex there
 

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Tiger_Of_Old

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Nov 23, 2000
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how much cash reserves do they have?

hope they buy a private jet so they whinge less about travel.
They can buy the town of Ceduna(Halfway between perth & melb),Build a stadium size of the G(Plenty of room to build 3 g's).Cut down travel by half.
 

Ned_Flanders

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Weโ€™d be the dumbest idiots in the world to declare like a 10mn profit as it would guarantee the afl would reduce our future dividend by millions as we d look self sufficient , we need to build a war chest that will likely fund much of the pro redevelopment
All clubs gets the same dividend from the AFL. It's only the competitive balance shit that varies, and we ain't getting that. We only get some small compo for our shitty mcg deal (which the MCC refuse to discuss with us last I heard)
 

Phar Ace

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Feb 9, 2017
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Weโ€™d be the dumbest idiots in the world to declare like a 10mn profit as it would guarantee the afl would reduce our future dividend by millions as we d look self sufficient , we need to build a war chest that will likely fund much of the pro redevelopment
It's no worse than declaring $24m in cash reserves, not dumb at all to expect revenue increases to develop with profit increases, even in a not-for-profit entity. It's just good governance. If all that investment of resources and risk amounts to no extra bottom line it's a distraction. No one is suggesting profit figures like $10m, but an uptick of some profit would be nice as variable costs start to dominate fixed costs, which should occur at some point to some degree. That said, the synergies with a Football Club are smart. Caps and costs and all that. Cashflow surplus alone grew $10m in one year. Remember when we had to shake cans just to get small % of that?!
 

Bojangles17

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All clubs gets the same dividend from the AFL. It's only the competitive balance shit that varies, and we ain't getting that. We only get some small compo for our shitty mcg deal (which the MCC refuse to discuss with us last I heard)
Thatโ€™s not true in the slightest , GC gws Melb Norf saints And others get significantly more than the 12mn we get,, google it Itโ€™s called competitive balance was intro a while ago
 

Mr Unbelievable

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Nov 27, 2014
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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
What would we do with the other $ 24 million
 

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theflea

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Feb 16, 2010
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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. Itโ€™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 Kiwi, but for the non accountants here, if this thing earns say $20m what should we expect in profit on this earnings? $2m? $1m? Just trying to get a picture as raising the revenue is great, but if we don't realise any profit then is it worth it?
 

Ned_Flanders

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Thatโ€™s not true in the slightest , GC gws Melb Norf saints And others get significantly more than the 12mn we get,, google it Itโ€™s called competitive balance was intro a while ago
Did you read my post, I specified the competitive balance stuff is the variation, the dividend is separate and is the same for all.clubs.

Other than shitty mcg deal, we don't have SFA members, we aren't in a development market, and we aren't a basket case

So what are you expecting competitive balance funds for ??
 

Bojangles17

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Did you read my post, I specified the competitive balance stuff is the variation, the dividend is separate and is the same for all.clubs.

Other than shitty mcg deal, we don't have SFA members, we aren't in a development market, and we aren't a basket case

So what are you expecting competitive balance funds for ??
Call it what you will itโ€™s an afl div and it will be developed on same abacus as the FA compo model leaving it very discretionary , do you think if we made 15mn profits we d continue to receive the same distribution
 

Ned_Flanders

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Call it what you will itโ€™s an afl div and it will be developed on same abacus as the FA compo model leaving it very discretionary , do you think if we made 15mn profits we d continue to receive the same distribution
Yes

The only bonus coin we get is due to our stadium deal. And it's not that much

We are not a club to receive the competitive balance shit anymore because our club has members and isn't in NSW/Qld

Stop looking for handouts
 

Bojangles17

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With that kinda funds in reserve , would now pay to employ a fund manager , put aside 4-5mn capital and invest . A quality manager would do well , heck I only throw darts at a wall and have been avg 7-8% last 10y
 

THE_GUN

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With that kinda funds in reserve , would now pay to employ a fund manager , put aside 4-5mn capital and invest . A quality manager would do well , heck I only throw darts at a wall and have been avg 7-8% last 10y
Probably because you are not having to be accountable to anybody else and its your own money so can be more risky
also the fact you dont need to pay yourself a salary to do this.

Lets just buy the MCG ffs and have all te pleb teams pay us :D :D :D
 

KiwiTiger

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Feb 28, 2010
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With that kinda funds in reserve , would now pay to employ a fund manager , put aside 4-5mn capital and invest . A quality manager would do well , heck I only throw darts at a wall and have been avg 7-8% last 10y
What makes you think we don't do that already?

Haere Ra
 

Livonski

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May 23, 2010
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What makes you think we don't do that already?

Haere Ra
And if we did would the return appear in the revenue line? Or interest?
Iโ€™m rapt with the performance but from a pure curiosity viewpoint Iโ€™d love to see some segmentation of the revenue line.
The business itself could be split down revenue lines eg Allied Leisure, pokies etc as one division and footy revenue inc merchandise, as another then corporate, sponsorship as another. Allocate costs around and we could analyse the crap out of it all and drive management insane!! Lol.
Chance?
Ok, no probs. Sorry I asked. ๐Ÿ‘
 

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