2022 Club Financial Results

[My_Username]

In Commercial construction jobs you pay in stages . any smart business person will tell you keep money in your account as long as possible as it’s earning you money through interest nothing silly about that it’s common practice. St kilda are no financial powerhouse but made a profit and have significantly reduced there debt over last couple seasons and are heading in the right direction and will be debt free within five seasons and also have record membership

I'm not suggesting anything improper or unusual has occurred. This is the same thing all clubs with big building projects do (and I've made similar comments with many of them in the past).

I'm just saying that the first glance 'headline' figures don't present a full impression of the state of the organisation.

 

[Kwality]

I'm not suggesting anything improper or unusual has occurred. This is the same thing all clubs with big building projects do (and I've made similar comments with many of them in the past).

I'm just saying that the first glance 'headline' figures don't present a full impression of the state of the organisation.

What constitutes profit varies from club to club.

 

[Tasmanian saint]

I'm not suggesting anything improper or unusual has occurred. This is the same thing all clubs with big building projects do (and I've made similar comments with many of them in the past).

I'm just saying that the first glance 'headline' figures don't present a full impression of the state of the organisation.

Reduced overall debt buy 2.5 million million in a season I would say that’s a positive

 

[Kwality]

Reduced overall debt buy 2.5 million million in a season I would say that’s a positive

Where did it come from ?

 

[Tasmanian saint]

Where did it come from ?

Our membership rose buy 8% and we had record sponsorship revenue .

 

[My_Username]

Reduced overall debt buy 2.5 million million in a season I would say that’s a positive

Did they?

Or did they just redirect some of those building funds temporarily into that?

as an analogy..

If I receive an insurance payment for a car that got totalled.
I know I need to buy a new car, but I have a loaner for another month, so I put some of that money into my credit card in the meantime.

Hey look, I have less debt!

Now I'll repeat...There is nothing wrong with that...In many ways it's wise and prudent financial management to use those funds while they're 'idle'. Just don't kid yourself about the real situation.

~20M has come in for the building. Only a fraction of that has been spent, and the club has a current deficit (ie, they expect more money to go out that come in over the next 12 months) of ~$5M. Yes, there are all sorts of things to consider (clubs generally receive a fair chunk of revenue after balance date with membership payments, etc), but the prospect of at least some of those loans returning isn't out of the question either.

The club hasn't turned around being effectively bankrupt to all smelling over roses in this short a timeframe. Things are still very tight, and their newly acquired major asset isn't worth nearly as much as the balance sheet might say it is (after all, who would buy it?).

 

[Tasmanian saint]

Did they?

Or did they just redirect some of those building funds temporarily into that?

as an analogy..

If I receive an insurance payment for a car that got totalled.
I know I need to buy a new car, but I have a loaner for another month, so I put some of that money into my credit card in the meantime.

Hey look, I have less debt!

Now I'll repeat...There is nothing wrong with that...In many ways it's wise and prudent financial management to use those funds while they're 'idle'. Just don't kid yourself about the real situation.

~20M has come in for the building. Only a fraction of that has been spent, and the club has a current deficit (ie, they expect more money to go out that come in over the next 12 months) of ~$5M. Yes, there are all sorts of things to consider (clubs generally receive a fair chunk of revenue after balance date with membership payments, etc), but the prospect of at least some of those loans returning isn't out of the question either.

The club hasn't turned around being effectively bankrupt to all smelling over roses in this short a timeframe. Things are still very tight, and their newly acquired major asset isn't worth nearly as much as the balance sheet might say it is (after all, who would buy it?).

Record membership which rose buy 8% record sponsorship revenue have reduced debt buy over 6 million in last two seasons you really don’t research do you very I’ll informed posts

 

[My_Username]

Record membership which rose buy 8% record sponsorship revenue have reduced debt buy over 6 million in last two seasons you really don’t research do you very I’ll informed posts

Membership and reserved seat revenue. 8,665,939 up from 8,134,220 ( $531,719 higher )
Membership and reserved seat expenses. 3,224,402 up from 2,981,014 ( $243,388 higher )

Nett gain, $288,331

Nice, and I'm sure it made a difference, and there was doubtless some flow on into merch and sponsorship....But it's hardly going to pay off $2.5M in debt.

I say again...I am NOT attacking the club, I'm saying the balance sheet for ALL clubs get a bit...unclear...during major redevelopments and people shouldn't get too excited about one or two numbers. (even more so after the disruption of covid).


If I was having a go at the club, the $1.2M in additional variable AFL income (the part people can unkindly refer to as handouts or charity) would have been more of a focus...

 

[Tasmanian saint]

Membership and reserved seat revenue. 8,665,939 up from 8,134,220 ( $531,719 higher )
Membership and reserved seat expenses. 3,224,402 up from 2,981,014 ( $243,388 higher )

Nett gain, $288,331

Nice, and I'm sure it made a difference, and there was doubtless some flow on into merch and sponsorship....But it's hardly going to pay off $2.5M in debt.

I say again...I am NOT attacking the club, I'm saying the balance sheet for ALL clubs get a bit...unclear...during major redevelopments and people shouldn't get too excited about one or two numbers. (even more so after the disruption of covid).


If I was having a go at the club, the $1.2M in additional variable AFL income (the part people can unkindly refer to as handouts or charity) would have been more of a focus...

There heading in the right direction and have a plan in place to be debt free that’s a positive . The suns would be in dire straits within a couple seasons if the afl ever decided to scale back even slightly the obscenely high funding they receive you would not have sufficient support to survive your 100% reliant

 

[Kwality]

There heading in the right direction and have a plan in place to be debt free that’s a positive . The suns would be in dire straits within a couple seasons if the afl ever decided to scale back even slightly the obscenely high funding they receive you would not have sufficient support to survive your 100% reliant

Heading in the right direction hopefully.

 

[Rob]

Record membership which rose buy 8% record sponsorship revenue have reduced debt buy over 6 million in last two seasons you really don’t research do you very I’ll informed posts

So take grants out and they've made 6m in profit? I doubt it.

 

[Tasmanian saint]

So take grants out and they've made 6m in profit? I doubt it.

We’re did I say that exactly??? Of course the grants paid a part my point I’m trying to make is we are in a stronger position than a couple of years ago

 

[dave10]

The Tigers announced a net profit, excluding government funding of $2.64M. Total revenue of $92M.

The interesting piece for me is their total revenue figure includes $31.1M derived from its Leisure business. However this business reported expenditure of $32.6M therefore on the surface it made a financial loss. This calls into question its management and contribution to the club. Usually these ventures deliver incremental profit to enhance the football operating result. In a bad year on field it would prop it up. I know there are other benefits of this business from a direct marketing and fanbase perspective however without more background it makes you wonder what it’s role is, why is it underperforming financially and what is its future?

 

[The_Wookie]

 

[Kwality]

The Tigers announced a net profit, excluding government funding of $2.64M. Total revenue of $92M.

The interesting piece for me is their total revenue figure includes $31.1M derived from its Leisure business. However this business reported expenditure of $32.6M therefore on the surface it made a financial loss. This calls into question its management and contribution to the club. Usually these ventures deliver incremental profit to enhance the football operating result. In a bad year on field it would prop it up. I know there are other benefits of this business from a direct marketing and fanbase perspective however without more background it makes you wonder what it’s role is, why is it underperforming financially and what is its future?

It reflects the difficulty footy clubs have establishing commercially viable businesses along side their AFL side.

 

[dave10]

It reflects the difficulty footy clubs have establishing commercially viable businesses along side their AFL side.

What are your views on Craig Vozzo Kwality ? On surface appears a good fit for Essendon: strong football experience in a successful footy environment, apprenticeship under respect CEO Nisbett, West Coast / Essendon both big clubs in town etc. thoughts?

 

[Kwality]

What are your views on Craig Vozzo Kwality ? On surface appears a good fit for Essendon: strong football experience in a successful footy environment, apprenticeship under respect CEO Nisbett, West Coast / Essendon both big clubs in town etc. thoughts?

Always saw Vozzo as a loyal soldier more than a leader though that probably undersells him, as does 'a safe pair of hands'.
Having been at the club through the lows & the high of a flag & the low that has followed it, he's a team player & doesnt leak.

I'm not sure Essendon more generally understands the need for a Craig Vozzo. You've got a tough task at the Bombers with so many competing forces that dont seem to put the club first & a media keen for the next leak.

Wonder what Woosha said to Vozzo ...

 

[dave10]

Always saw Vozzo as a loyal soldier more than a leader though that probably undersells him, as does 'a safe pair of hands'.
Having been at the club through the lows & the high of a flag & the low that has followed it, he's a team player & doesnt leak.

I'm not sure Essendon more generally understands the need for a Craig Vozzo. You've got a tough task at the Bombers with so many competing forces that dont seem to put the club first & a media keen for the next leak.

Wonder what Woosha said to Vozzo ...

Only build to that is that’s the ‘old’ Essendon. There’s been a broom go through the place in a way we haven’t seen in decades. New President who’s bold and a change agent, tired of accepting status quo the last 20 years. New coach who apparently has settled in well and importantly the external review for Vozzo to drive.

A sign of change at Essendon being the CEO announcement was unexpected and not speculated in the media ahead of the announcement which is symbolic of previous admins. The coaching appointment timing also wasn’t leaked early.

From what I’m hearing things are already different inside the joint with renewed alignment from what my sources are telling me. Whilst it may seem immaterial, Brad Scott last Friday declined to attend a Coterie breakfast within the Clubs HQ to focus on that mornings training session. That’s another little though notable sign.

As always, time will tell. However the clubs new direction which prioritises football (I know!!) would suit an experienced football person given it has strong commercial people already working under his leadership. Certainly an interesting watch.

 

[Bjo187]

Are we saying St Kilda still technically made a loss if it weren't for government funding? Seriously the amount of money that saints fan Gillon has siphoned into that club under his reign and they are still in debt, it's unbelievable.

 

[Rob]

Are we saying St Kilda still technically made a loss if it weren't for government funding? Seriously the amount of money that saints fan Gillon has siphoned into that club under his reign and they are still in debt, it's unbelievable.

The option is to cut spending.

Why would you do that, if the AFL is going to pay the bill? Not that St Kilda are the lone ranger in that regard.

 

[Bjo187]

The option is to cut spending.

Why would you do that, if the AFL is going to pay the bill? Not that St Kilda are the lone ranger in that regard.

Yep it's unbelievable to be honest, they aren't even the bottom few smallest clubs in Melbourne.

 

[Tasmanian saint]

The Tigers announced a net profit, excluding government funding of $2.64M. Total revenue of $92M.

The interesting piece for me is their total revenue figure includes $31.1M derived from its Leisure business. However this business reported expenditure of $32.6M therefore on the surface it made a financial loss. This calls into question its management and contribution to the club. Usually these ventures deliver incremental profit to enhance the football operating result. In a bad year on field it would prop it up. I know there are other benefits of this business from a direct marketing and fanbase perspective however without more background it makes you wonder what it’s role is, why is it underperforming financially and what is its future?

You would think the last two years of Covid lockdowns especially in Melbourne would have had a huge impact on all leisure industry related businesses I imagine there would have been a lot that lost money over the period including Richmonds

 

[The_Wookie]

 

[The_Wookie]

 

[Bjo187]

The cost cutting the AFL enforced on clubs due to Covid, is having positive results with this years financials by the look of it.