Discussion 2023 Annual Report

[no1saint66]

2023 STK Annual Report

A couple of things I have noticed:

1. Revenue is up $4.8million from 2022 excluding Moorabbin redevelopment funding.

2. No debt was paid down in 2023 compared to $2.7million in 2022.

3. Expenditure jumped almost $7.5million compared to 2022.

That’s all I can comprehend at this time of the night. I look forward to other more educated people telling us what the report means in laymen terms.

 

[Joffaboy]

Lets all talk and freak out about dEbT

 

[bergholt]

Our AFL distribution actually dropped by 9%, I didn't realise that was happening. That's $700k straight off the bottom line, so still making a solid profit is good work in the face of that.

Main revenue sources:

• Sponsorship revenue up 5% (to $11.2m)
• Membership revenue up 13% (to $9.8m)
• Match revenue up 40% (to $3.1m)
• Merchandise revenue up 37% (to $2.8m)
• Social club revenue down 3% (to $1.8m)

Between them that's an extra $3.3m for us to spend on strengthening the club.

Interest rates increasing took our borrowing costs from $104k to $258k. Next year I reckon it will be closer to $400k with higher rates for the duration of the year. Still a tiny number in the context of revenue and interest rates near the top so not a big concern imo, I wouldn't be rushing to pay down debt and cut spend on more important things. That said, the facility expires end of 2024 so we'll be renegotiating at that point.

Wages only up 6% or so, seems under control. Number of FTEs steady at 116 vs 117 last year.

Looks like we renewed our gaming licences this year so we're stuck with that for another 10 years, judging from the amortisation.

Danny Frawley Centre is interesting. Last year it brought in $720k on costs of $1.8m (presumably a lot of setup). This year revenue $2.2m on costs of $2.4m, so it's still losing money but a lot less. I wonder if that trajectory is going to continue - would be great if we could start banking profit from the DFC as well as having positive community benefits.

Fundamentally we're a bit s**t for operating cash flow. Measuring it as standard receipts vs standard payments last year was about +$2.8m while this year deteriorated to +$0.2m. We need our increased sponsorship revenue to help us on that front next year and start bumping that up - as long as it improves from here then I'm not too worried.

Overall seems ok to me with some green shoots but basically it's not rocket science; we need membership and sponsorship revenue to keep increasing and then we'll be able to actually spend on important things.

 

[Dr Spaceman]

We need our increased sponsorship revenue to help us on that front next year

With a Chery on top?

 

[no1saint66]

Our AFL distribution actually dropped by 9%, I didn't realise that was happening. That's $700k straight off the bottom line, so still making a solid profit is good work in the face of that.

Main revenue sources:

• Sponsorship revenue up 5% (to $11.2m)
• Membership revenue up 13% (to $9.8m)
• Match revenue up 40% (to $3.1m)
• Merchandise revenue up 37% (to $2.8m)
• Social club revenue down 3% (to $1.8m)

Between them that's an extra $3.3m for us to spend on strengthening the club.

Interest rates increasing took our borrowing costs from $104k to $258k. Next year I reckon it will be closer to $400k with higher rates for the duration of the year. Still a tiny number in the context of revenue and interest rates near the top so not a big concern imo, I wouldn't be rushing to pay down debt and cut spend on more important things. That said, the facility expires end of 2024 so we'll be renegotiating at that point.

Wages only up 6% or so, seems under control. Number of FTEs steady at 116 vs 117 last year.

Looks like we renewed our gaming licences this year so we're stuck with that for another 10 years, judging from the amortisation.

Danny Frawley Centre is interesting. Last year it brought in $720k on costs of $1.8m (presumably a lot of setup). This year revenue $2.2m on costs of $2.4m, so it's still losing money but a lot less. I wonder if that trajectory is going to continue - would be great if we could start banking profit from the DFC as well as having positive community benefits.

Fundamentally we're a bit s**t for operating cash flow. Measuring it as standard receipts vs standard payments last year was about +$2.8m while this year deteriorated to +$0.2m. We need our increased sponsorship revenue to help us on that front next year and start bumping that up - as long as it improves from here then I'm not too worried.

Overall seems ok to me with some green shoots but basically it's not rocket science; we need membership and sponsorship revenue to keep increasing and then we'll be able to actually spend on important things.

Cheers for the summary. I can see why they pushed so hard for that round 2 home game at G. That should be a tidy little profit maker there. Ideally 2 to 3 a year would help us to the tune of $2 to $3 million a year.

 

[Atomboy]

Have they depreciated RSEA down to an asset value of $50 million now ?.

Amazing asset to have on our books.

 

[Ricmel]

Have they depreciated RSEA down to an asset value of $50 million now ?.

Amazing asset to have on our books.

I am pretty sure the club does not own RSEA, it is still owned by Kingston? We may have some share of capital improvements but that is not a liquid asset. It is the club's biggest issue, it owns very little. Asset's drive just about everything and is why clubs like Hawthorn have done so well.

 

[sunny3193]

I am pretty sure the club does not own RSEA, it is still owned by Kingston? We may have some share of capital improvements but that is not a liquid asset. It is the club's biggest issue, it owns very little. Asset's drive just about everything and is why clubs like Hawthorn have done so well.

LOL, Hawthorn is sitting on a methane time bomb.

 

[bergholt]

I am pretty sure the club does not own RSEA, it is still owned by Kingston? We may have some share of capital improvements but that is not a liquid asset. It is the club's biggest issue, it owns very little. Asset's drive just about everything and is why clubs like Hawthorn have done so well.

A footy club doesn't really need assets because big daddy AFL will guarantee any debt they need to raise. The brand, the license to run an AFL club and the player contracts are the biggest "assets" really, but none appear in the financial statements.

 

[no1saint66]

I am pretty sure the club does not own RSEA, it is still owned by Kingston? We may have some share of capital improvements but that is not a liquid asset. It is the club's biggest issue, it owns very little. Asset's drive just about everything and is why clubs like Hawthorn have done so well.

Non football related revenue would be a huge improvement for the club. RSEA Park needs more revenue generating facilities that can be used throughout the year similar to Collingwood’s Glasshouse function centre.

 

[Atomboy]

LOL, Hawthorn is sitting on a methane time bomb.

Maybe they can invest in a bio-gas facility and double their revenue ?

 

[Joffaboy]

I am pretty sure the club does not own RSEA, it is still owned by Kingston? We may have some share of capital improvements but that is not a liquid asset. It is the club's biggest issue, it owns very little. Asset's drive just about everything and is why clubs like Hawthorn have done so well.

Not sure this is correct.

We have 53 million in NCA's, 51 million in property plant and equipment.

Can't have that on the books if the entity doesn't own it.
Is it transferable is another matter. So basically it is owned for Accounting purposes.
I think Kingston owns the land.

Cash flow has fallen off a cliff in 2023. Still ok but significantly down in surplus compared to 2022.

On SM-S908E using BigFooty.com mobile app

 

[CursingFijian]

Maybe they can invest in a bio-gas facility and double their revenue ?

I thought they did, from memory it’s called Sam Frost.

 

[Dr Spaceman]

LOL, Hawthorn is sitting on a methane time bomb.

 

[saint66au]

Membership revenue up with is good. I wonder though is it because the cost of membership went ups, or are people buying more expensive memberships?

The clubs shout membership numbers from the rooftops, but Id love to see the breakdowns. We need 11/16/SC/reserved seat numbers to be rising, not having the total numbers kinda falsely inflated by cheap 3 game GA memberships

 

[bergholt]

Membership revenue up with is good. I wonder though is it because the cost of membership went ups, or are people buying more expensive memberships?

The clubs shout membership numbers from the rooftops, but Id love to see the breakdowns. We need 11/16/SC/reserved seat numbers to be rising, not having the total numbers kinda falsely inflated by cheap 3 game GA memberships

I think the logic of memberships is you want people to be able to buy whatever they can afford/feel up for. If they’re a little bit committed but not a lot then a three game membership is perfect and gets money out of them when they would have given nothing. Most members don’t go to games regularly these days anyway so the overall number means both less and more than it used to.

 

[Ricmel]

Not sure this is correct.

We have 53 million in NCA's, 51 million in property plant and equipment.

C

On SM-S908E using BigFooty.com mobile app

It is under the catch all Property Plant and Equipment and itemised as leasehold improvements. The club will own some property somewhere most likely but it does not own the land that RSEA is on. It owns the buildings or part thereof. Land does not depreciate and the asset listed is on an aggressive depreciation schedule.

 

[Ricmel]

LOL, Hawthorn is sitting on a methane time bomb.

Hawthorn can buy and sell the St Kilda football Club with cash they have sitting in the bank. All $69,000,000 of it.

 

[PoppedCorn]

It’s be nice to see the membership breakdown
How many interstate, overseas, pet, junior etc

 

[Imtellingya]

Have they depreciated RSEA down to an asset value of $50 million now ?.

Amazing asset to have on our books.

Where does the facility at Seaford fit in with all of this. Still very much a St Kilda presence with junior football training activity, large office space, gym facilities, wellness centre, open to the community, large ground etc.

 

[Cal Silky]

It’s be nice to see the membership breakdown
How many interstate, overseas, pet, junior etc

Would be a brave club that does this. Imagine the banter from other fans when 30% of your members are pets.

 

[Atomboy]

It’s be nice to see the membership breakdown
How many interstate, overseas, pet, junior etc

One of the other other threads does an analysis on membership revenue by member.

Shows who is making decent cash and who is using smoke and shadows (apologies to T Cloke).

 

[sauce_head]

Now to get a docklands deal that resembles that at the G…

 

[StFly]

Where does the facility at Seaford fit in with all of this. Still very much a St Kilda presence with junior football training activity, large office space, gym facilities, wellness centre, open to the community, large ground etc.

Essentially, peppercorn lease is "can be worth a peppercorn and does not reflect true value of" so Seaford is as stated, accounted at cost of under right of use asset.

 

[sunny3193]

Hawthorn can buy and sell the St Kilda football Club with cash they have sitting in the bank. All $69,000,000 of it.

Yes, but what does that have to do with my observation?
What was the phrase used in The Age when describing why there has been a 12 month plus delay in the project at Dingley?
Oh, yes: “due to methane amelioration.”