News 2019 financials

Pugz89

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Jun 29, 2015
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$2.9M profit, not bloody bad if I say so myself!
Some will make use of the figures and feel free to dumb it down for us plebs, but needless to say, looks like another good year for the club! Well done, folks!!
 

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BenF

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Just had a quick look. The profit includes $1.7 million in government land grants, as well as nearly $1.5 million from gaming revenue. Take those out and we're about break even - sorry to be a downer!

We'll lose the gaming revenue from 2020, but there will be a tidy sum coming in for the sale of the gaming machines in next year's report.
 

Virgin Dog

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Oct 29, 2017
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$2.9M profit, not bloody bad if I say so myself!
Some will make use of the figures and feel free to dumb it down for us plebs, but needless to say, looks like another good year for the club! Well done, folks!!
On track for another huge profit next FY too, thanks to the sale of our remaining gaming operations.

Some interesting things to me, as someone who has never read one of our financial reports:
  • $2m is attributed to Redevelopment grant income (minus $286,674 in Redevelopment expenses). We received closer to $18m in value from Redevelopment grants (including land) last year.
  • We currently hold around $7.9m in cash as an asset which is significantly higher than I would have expected.
 

Virgin Dog

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Oct 29, 2017
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Just had a quick look. The profit includes $1.7 million in government land grants, as well as nearly $1.5 million from gaming revenue. Take those out and we're about break even - sorry to be a downer!

We'll lose the gaming revenue from 2020, but there will be a tidy sum coming in for the sale of the gaming machines in next year's report.
That's very true, but it should be mentioned that club operations would change with those amounts in mind. In other words, if we weren't receiving the land grants, then it's likely that some of our expenses elsewhere would have been adjusted throughout the year, or our investment in other revenue sources might have changed. It's hard to truly compare, but on the surface this does look like a very healthy financial position to be in
 

BenF

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That's very true, but it should be mentioned that club operations would change with those amounts in mind. In other words, if we weren't receiving the land grants, then it's likely that some of our expenses elsewhere would have been adjusted throughout the year, or our investment in other revenue sources might have changed. It's hard to truly compare, but on the surface this does look like a very healthy financial position to be in
Absolutely - the club is in a healthy position. The balance sheet (consolidated statement of financial position) is the best way to determine an organisation's overall financial health and ours looks very rosy.
 

dogzrule

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Jul 20, 2010
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Just had a quick look. The profit includes $1.7 million in government land grants, as well as nearly $1.5 million from gaming revenue. Take those out and we're about break even - sorry to be a downer!

We'll lose the gaming revenue from 2020, but there will be a tidy sum coming in for the sale of the gaming machines in next year's report.
Agree but take in depreciation and amortisation and there is probably a healthy + cash profit from continuing ops

Going forward not as much room to move unless revenues substantially increase
 

Golden_6

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I’m an accountant and had a quick look. The club is in a solid healthy position, not a lot has changed since last year. It seems like we’re in a very stable position and capable of dealing with some very sporadic changes such as the gaming entitlement sales and whiten oval redevelopment. All is good in the financial department.
 

ExRoyboy

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I’m an accountant and had a quick look. The club is in a solid healthy position, not a lot has changed since last year. It seems like we’re in a very stable position and capable of dealing with some very sporadic changes such as the gaming entitlement sales and whiten oval redevelopment. All is good in the financial department.
I would agree with this assessment. I’m also an accountant (A CFO actually) and there is lots to like in this set of accounts. Plus for the future they have retained the assets in one of the gaming venues, in terms of the land and buildings, and will lease these back to the new owners to generate another income source.
We have a very healthy cash position with basically zero debt. We have a facility to draw down up to $4.5 million but it is unused and we have over $7 million in cash and deposits. Now some of this may be money being held for the redevelopment but the fact we have no debt is positive regardless. We have actually reduced our creditors as well, other liabilities increased slightly but this was mainly unearned revenue which suggests we are maybe getting more membership revenue up front than last year which isn’t a bad thing either.

The other small thing I liked was that we decreased spending on administration and hospitality and increased spending on the Football Department. Better spent there than on administration.

Also the assets held for sale are worth a net $1.3 million and the report suggested we sold them for quite a bit more than this which will increase both our profit next year and our cash position even further.
We do still need to identify more revenue sources to replace the $1.4m in gaming related profits but with the team onfield looking good and a really good TV schedule for next season as well, I expect revenue from both sponsorship and membership to increase further as well.

The club is in good hands folks!!
 

_M_16_

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How much were we making a year on the pokie machines if anyone is genuinely in the know? Curious to how much money we will have to make up for through other means.
 

DelRe

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Jan 29, 2017
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I would agree with this assessment. I’m also an accountant (A CFO actually) and there is lots to like in this set of accounts. Plus for the future they have retained the assets in one of the gaming venues, in terms of the land and buildings, and will lease these back to the new owners to generate another income source.
We have a very healthy cash position with basically zero debt. We have a facility to draw down up to $4.5 million but it is unused and we have over $7 million in cash and deposits. Now some of this may be money being held for the redevelopment but the fact we have no debt is positive regardless. We have actually reduced our creditors as well, other liabilities increased slightly but this was mainly unearned revenue which suggests we are maybe getting more membership revenue up front than last year which isn’t a bad thing either.

The other small thing I liked was that we decreased spending on administration and hospitality and increased spending on the Football Department. Better spent there than on administration.

Also the assets held for sale are worth a net $1.3 million and the report suggested we sold them for quite a bit more than this which will increase both our profit next year and our cash position even further.
We do still need to identify more revenue sources to replace the $1.4m in gaming related profits but with the team onfield looking good and a really good TV schedule for next season as well, I expect revenue from both sponsorship and membership to increase further as well.

The club is in good hands folks!!
The club recorded a loss before the benefits of redevelopment though but if I was in their position I would probably run with the headline of reporting a profit as well. But that loss does highlight revenue increased by only $300K while football department spend increased by nearly $1M. That’s an important point in terms of keeping up with the natural growth of the league and competing with other clubs.
 

ExRoyboy

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The club recorded a loss before the benefits of redevelopment though but if I was in their position I would probably run with the headline of reporting a profit as well. But that loss does highlight revenue increased by only $300K while football department spend increased by nearly $1M. That’s an important point in terms of keeping up with the natural growth of the league and competing with other clubs.
No they still recorded a profit of just under $1.3 million but that included the net profit from gaming operations which was $1.4 million and won’t be there next year. When you back that out and also back out the one off costs incurred last year with getting rid of the gaming licences then we were basically break even.
Next year we will record a reasonable profit from the sale of the gaming operations plus increases in other revenue lines so I would expect another surplus again but hopefully the year after they have replaced the gaming related profit with other revenues which I think they will.
 

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ExRoyboy

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How much were we making a year on the pokie machines if anyone is genuinely in the know? Curious to how much money we will have to make up for through other means.
We have to make up about $1.4 million which was the net profit from gaming i.e. the revenue from operating the venues less the costs incurred.
Some of this gap will come from the fact that we didn’t sell all of the assets in one venue, we kept the land and buildings and will lease them to the new operater. So that will partly offset the drop in profit.
 

DelRe

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No they still recorded a profit of just under $1.3 million but that included the net profit from gaming operations which was $1.4 million and won’t be there next year. When you back that out and also back out the one off costs incurred last year with getting rid of the gaming licences then we were basically break even.
Next year we will record a reasonable profit from the sale of the gaming operations plus increases in other revenue lines so I would expect another surplus again but hopefully the year after they have replaced the gaming related profit with other revenues which I think they will.
The line “Profit/(loss) before Redevelopment Activities” is clearly a loss of $163,212. Sure, you can add back in the amounts from the redevelopment and discontinued activities but it doesn’t change that item from being a loss, and highlighting that revenue is not keeping pace with growth in football department expense and in that sense I agree needs to be replaced from other sources (and/or grow revenue or cut expenses).

Why do you think they will replace that gaming profit and have increased in other revenue lines (outside of the sales)?
 

ExRoyboy

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The line “Profit/(loss) before Redevelopment Activities” is clearly a loss of $163,212. Sure, you can add back in the amounts from the redevelopment and discontinued activities but it doesn’t change that item from being a loss, and highlighting that revenue is not keeping pace with growth in football department expense and in that sense I agree needs to be replaced from other sources (and/or grow revenue or cut expenses).

Why do you think they will replace that gaming profit and have increased in other revenue lines (outside of the sales)?
I’m including the profit from discontinued operations ie the gaming related profit because it was definitely part of the result last year.
If you just look at continuing operations and back out the redevelopment then you also have to back out the divestment costs from getting rid of the gaming licences, hence it is basically break even.

I think they will increase revenue for the reasons I stated above. They now have a new revenue stream from the lease of the venue, I also think we will improve membership sales and merchandise on the back of improved on field play over the coming years and certainly next years TV schedule is more favourable than last years which they can hopefully turn into improved sponsorship revenue.

The challenge is still there to make this more sustainable even if the on field performance is not so good, but I suppose I’m taking a more optimistic view of the future at least over the next few years.

There may also be more revenue in future once the redevelopment is completed but I’m not sure about that.
 

DelRe

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I’m including the profit from discontinued operations ie the gaming related profit because it was definitely part of the result last year.
If you just look at continuing operations and back out the redevelopment then you also have to back out the divestment costs from getting rid of the gaming licences, hence it is basically break even.

I think they will increase revenue for the reasons I stated above. They now have a new revenue stream from the lease of the venue, I also think we will improve membership sales and merchandise on the back of improved on field play over the coming years and certainly next years TV schedule is more favourable than last years which they can hopefully turn into improved sponsorship revenue.

The challenge is still there to make this more sustainable even if the on field performance is not so good, but I suppose I’m taking a more optimistic view of the future at least over the next few years.

There may also be more revenue in future once the redevelopment is completed but I’m not sure about that.
Well you can massage the numbers to make it break even but that is still backwards on last year and revenue is still growing at a slower rate than football department expenses. I’m not sure what would support membership and merchandise sale increases (doesn’t seem a strong correlation to on-field results) but I hope it does happen. Leasing revenue will help a bit.
 

Dogs till i die

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Big Tommy Boyd forgoing a fair chunk of his 2019 contract $ would have helped the bottom line too.

Still concerned at the loss of gaming revenue long term, leasing of the buildings for the new gaming operators is smart...........but as another poster suggested, we are still involved in the gaming industry even if only as a landlord.

The machines are still there......is the community better off?
 

dogwatch

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Big Tommy Boyd forgoing a fair chunk of his 2019 contract $ would have helped the bottom line too.

Still concerned at the loss of gaming revenue long term, leasing of the buildings for the new gaming operators is smart...........but as another poster suggested, we are still involved in the gaming industry even if only as a landlord.

The machines are still there......is the community better off?
I'm pretty sure the player salaries (TPP) are a quarantined disbursement from the AFL so they shouldn't figure in our profit/loss/assets/liabilities statements.

As for the gaming machines, yes it would have been better to retire them completely. But are we doing a Pontius Pilate and washing our hands of the issue, or didn't we have any real choice?

I don't know how the licensing of them works in Victoria but if there's a maximum number allowed out in the community our retiring a few wouldn't make any difference because some opportunistic operator would simply go out and buy up new licences to make up the shortfall. So in that scenario, no the community would be no better off but it would be better we sell them than the government gets a windfall profit that could have been ours.

However if the government could have guaranteed they'd be retired permanently (and not replaced elsewhere) we would then be making a significant financial sacrifice to do so. It then becomes a question of how much we can afford and are prepared to sacrifice on a point of principle and ethics. Naturally there will be widely differing opinions on that one!

I'm less concerned about the morality of leasing buildings where gambling might occur. At some point we are all involved in a complex web of unethical practices. Do you know where your superannuation funds are invested? Chances are there are a lot of companies guilty of dubious practices in your super portfolio (or of lending to such companies) - e.g. all four of the banks excoriated by the recent Royal Commission, companies involved in tobacco, armaments, gambling, environmental degradation, exploiting third world labour and so on. Leasing a building where gaming machines might be deployed is not ideal but it's probably right at the mild end of what we need to be concerned about.
 
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