2019 Financials

[JAKLAUGHING]

Great result. Now when are we getting out of the pokies business?

I'm happy to see them stay at the Wantirna Club for the local punters...as long as we do not focus on them for our financial salvation!

 

[Phar Ace]

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]

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.

 

[Ned_Flanders]

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

 

[DeLaCon]

How do you know it would cost $150 million?

 

[A Banderas]

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

 

[DeLaCon]

He can try and pinch individual contracts off us but Aligned Leisure is a 100% subsidiary of the RFC.

 

[A Banderas]

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

 

[DeLaCon]

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.

 

[THE_GUN]

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]

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

 

[A Banderas]

pies have gotten out of pokies

 

[dustysnecktattoo]

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.

Richmond own an army

 

[Tiger_Of_Old]

How do you know it would cost $150 million?

Ned is Gina Rinehart.

 

[Tiger_Of_Old]

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

Name the other 2!

 

[A Banderas]

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]

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

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

 

[Phar Ace]

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.

 

[Ned_Flanders]

How do you know it would cost $150 million?

Because the RACV said in its press release that their Cape Shank resort cost $150m

 

[Havoc]

Oppos melting over our financials.. is there an end to the salt?

 

[Calcium Man]

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]

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

 

[Calcium Man]

It will be wce, once they redo their facility they have nothing else to spend on, so it may as well be the tax

how much cash reserves do they have?

hope they buy a private jet so they whinge less about travel.

 

[NZ_Tiger]

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.


Sent from my iPhone using Tapatalk

 

[Ned_Flanders]

how much cash reserves do they have?

hope they buy a private jet so they whinge less about travel.

Reported start of the year they had $60m, BEFORE they spent $35m on their facility