2020 Financials Thread

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NoobPie

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Sep 21, 2016
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Vic government is throwing money at any construction project they can find lately. Supposedly it's for Covid recovery, but it's so much in one sector of the economy you can only conclude that the CFMEU must have Dan by the short and curlies.

These deals are just the loose change that's fallen by the wayside.

1) what has been announced has not all gone into one sector....I've not been keeping track but there has been substantial money going to hospitality / tourism sectors including the voucher announced yesterday
2) construction is generally hit hard during a recession and this one, where migration has completely stopped, is likely to make that even harder
 

Rob

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It's going to be interesting to see how clubs treat all those membership payments that they're providing a credit for next year. Technically it should be reported as income next year, however until the member actually signs up as a 2021 member that (non refundable) credit isn't a prepayment yet.
If it's all reported as income this year, then a lot of the financial pain won't show up until next year.

From an accounting perspective, you could make an argument to go either way.
 

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Kwality

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Essendon's report is now available. A $1.2m comprehensive profit but as they point out it would have a $3.7m loss without grants and donations for their facilities expansion.

Bloody good effort to get the $numbers out do quickly & the operating loss is excellent.
The numbers will make interesting reading.
 

telsor

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Essendon's report is now available. A $1.2m comprehensive profit but as they point out it would have a $3.7m loss without grants and donations for their facilities expansion.

A good result overall, but yeah, looking through the numbers, there is a lot of influence from the hanger project.

A lot of clubs are going to have interesting numbers, this year and probably for a few more after. With adjustments to how clubs are run, projects like the hangar, and corrections like Rob mentioned a few posts back, there could be a bit of a rollercoaster for a while.

These are times when you better hope your club is well managed.
 

Kwality

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A good result overall, but yeah, looking through the numbers, there is a lot of influence from the hanger project.

A lot of clubs are going to have interesting numbers, this year and probably for a few more after. With adjustments to how clubs are run, projects like the hangar, and corrections like Rob mentioned a few posts back, there could be a bit of a rollercoaster for a while.

These are times when you better hope your club is well managed.
The devil is always in the detail.
 

telsor

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Richmond is out.


Small operating profit ($217,727)
Revenue down ~20% to $74M including $10.8M from the government from jobkeeper.
 

Kwality

Brownlow Medallist
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Richmond is out.


Small operating profit ($217,727)
Revenue down ~20% to $74M including $10.8M from the government from jobkeeper.
Payments to employees down only $340k down in $45mil.

Professional job by the Tiges as we have grown to expect on & off field.
 

telsor

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Payments to employees down only $340k down in $45mil.

Professional job by the Tiges as we have grown to expect on & off field.
I dare say a sizable slice of that would be in redundancy payments and he like, and the expectation for next year would be noticeably lower.

Overall, it looks like a good set of numbers, although it's probably a bit easier when the figures last year (both actual and budgeted) would have been very healthy.
 

Kwality

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I dare say a sizable slice of that would be in redundancy payments and he like, and the expectation for next year would be noticeably lower.

Overall, it looks like a good set of numbers, although it's probably a bit easier when the figures last year (both actual and budgeted) would have been very healthy.
:thumbsu:

At some point the comparison will made with how far down the industry/clubs are down year on year. Havent looked at the Bombers yet.
 

Rob

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Reading Essendon's financials there is virtually no allowance for 2020 membership fees that are going to be credited to 2021. Either that or very few members took up the option.
 

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dave10

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Payments to employees down only $340k down in $45mil.

Professional job by the Tiges as we have grown to expect on & off field.
Winning successive premierships certainly help provide the needed buffer to the bottom line in a COVID year. The YOY spin offs across its revenue base have certainly helped prop up their bottom line. Terrific result all round.
 

Ned_Flanders

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Richmond is out.


Small operating profit ($217,727)
Revenue down ~20% to $74M including $10.8M from the government from jobkeeper.
COSTS
Footy Ops - down $4.8m (17%)
Gaming - down $2.4m (37%)
Merch - down $2m (22%)
Sponsorship and Corp - down $4.2m (56%)
Aligned Leisure - unchanged


INCOME
AFL - down $1.6m (13%)
Gaming - down $4.3m (63%)
Game day and merch - down $12.8m (40%)
Sponsorship and Corp - down $5m (31%)
Aligned Leisure - down $7m (28%)
 

Kwality

Brownlow Medallist
Aug 14, 2011
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West Coast
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COSTS
Footy Ops - down $4.8m (17%)
Gaming - down $2.4m (37%)
Merch - down $2m (22%)
Sponsorship and Corp - down $4.2m (56%)
Aligned Leisure - unchanged


INCOME
AFL - down $1.6m (13%)
Gaming - down $4.3m (63%)
Game day and merch - down $12.8m (40%)
Sponsorship and Corp - down $5m (31%)
Aligned Leisure - down $7m (28%)
Got any thoughts on the payments to employees?
 

Ned_Flanders

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Got any thoughts on the payments to employees?
putting jobkeeper aside (im assuming all clubs will be hitting that), i know the redundancies at the club did bite. We have closed our VFLW side, at one stage we shut down our vfl team, and our recruiting/NGA has had big cuts

the club are hoping a lot of them can come back, but thats dependant upon what the soft quota looks like, and what the afl season will look like
 

telsor

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Got any thoughts on the payments to employees?
I'd guess the final result was similar due to redundancy payments and the like.

The costs involve in cuts tend to mean the benefits don't usually flow through for a while afterwards.

Another curious aspect is the $10.8M from jobkeeper.

Essendon recorded 4.5M in 'government assistance', which I assume is the same thing...Say what you will about Essendon, but they're not so incompetent as to leave ~6M on the table (and even if they were, no way would the AFL have let them!).

I can only assume a major part of this difference is from Aligned Leisure as that seems to be the only major point of difference between the clubs that could seem relevant (unless people have other ideas???).
 

Ned_Flanders

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I'd guess the final result was similar due to redundancy payments and the like.

The costs involve in cuts tend to mean the benefits don't usually flow through for a while afterwards.

Another curious aspect is the $10.8M from jobkeeper.

Essendon recorded 4.5M in 'government assistance', which I assume is the same thing...Say what you will about Essendon, but they're not so incompetent as to leave ~6M on the table (and even if they were, no way would the AFL have let them!).

I can only assume a major part of this difference is from Aligned Leisure as that seems to be the only major point of difference between the clubs that could seem relevant (unless people have other ideas???).
just posted this on our board (replying to you there)

Aligned Leisure's costs were pretty much unchanged, where the footy dept, media dept, and commercial depts were all smacked (big reductions in costs)

given the staff and work done at aquatic centres, they reek of being exactly the stuff jobkeeper was build to keep on paycheques
 

Rob

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Whichever way you look at it, it all comes down to the impact of premierships and on field success. The correlations are pronounced indeed.
You're right, but 2016 is also when Richmond started Aligned leisure. That would have added a fair bit to turnover (I believe it was $14m in 2018 and $24m in 2019) which probably made up the bulk of the increase from 2016 to 2017.
 

dave10

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You're right, but 2016 is also when Richmond started Aligned leisure. That would have added a fair bit to turnover (I believe it was $14m in 2018 and $24m in 2019) which probably made up the bulk of the increase from 2016 to 2017.
Yes good point. And that’s where reviewing revenue is also problematic in a sense. These days however it’s important to have a diversified business that generates additional revenue and more importantly profit to the football Clubs bottom line. Some football clubs are more advanced and do it better than others.

It will be interesting to see Collingwood’s financial result, In light of its apparently tanking netball business, it will be interesting to see what impact it’s having on the performance of the consolidated business. Apparently it’s not performing well in a financial sense.
 

Rob

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Yes good point. And that’s where reviewing revenue is also problematic in a sense. These days however it’s important to have a diversified business that generates additional revenue and more importantly profit to the football Clubs bottom line. Some football clubs are more advanced and do it better than others.
Yeah, it depends on what it is. I don't see Aligned leisure's profit reported separately in their accounts, but they do say they pay a tiny bit of income tax on their profit and based on that you can probably say that they don't make much of a profit (yet).

That West Coast turned over more than Richmond in 2019 despite the latter having $24m from Aligned leisure shows you just what a behemoth they are.
 

Ned_Flanders

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Yes good point. And that’s where reviewing revenue is also problematic in a sense. These days however it’s important to have a diversified business that generates additional revenue and more importantly profit to the football Clubs bottom line. Some football clubs are more advanced and do it better than others.

It will be interesting to see Collingwood’s financial result, In light of its apparently tanking netball business, it will be interesting to see what impact it’s having on the performance of the consolidated business. Apparently it’s not performing well in a financial sense.
Yeah, it depends on what it is. I don't see Aligned leisure's profit reported separately in their accounts, but they do say they pay a tiny bit of income tax on their profit and based on that you can probably say that they don't make much of a profit (yet).

That West Coast turned over more than Richmond in 2019 despite the latter having $24m from Aligned leisure shows you just what a behemoth they are.
the Aligned Leisure stuff is pretty easy to tag. Other than Aligned Leisure, the Community and Stuff section is the KGI, our indigenous school, and the Swinburne Institute. KGI and the school are not revenue earning (so pure costs). Swinburne is, BUT its very new.

If you look at the annual reports over recent years, you can see the progression of how AL has impacted upon revenue, costs, and profits:


2015
Revenue: $53,921
Expenses: $933,794
Profit: -$879,873

2016 **started AL with Cardinia contract**
Revenue: $2,473,589
Expenses: $2,917,060
Profit: -$443,471

2017 **added eltham**
Revenue: $8,639,721
Expenses: $9,622,630
Profit: -$982,909

2018 **added Wodonga**
Revenue: $14,237,718
Expenses: $14,160,181
Profit: $77,537

2019
Revenue: $24,847,040
Expenses: $24,208,745
Profit: $638,295

2020
Revenue: $17,849,104
Expenses: $24,322,020
Profit: -$6,472,916
 

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