4 Corners (21/3/16) - Actual show at around pg 25

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Slartibartfast said:
The financial hardships have just started for the bombers.
If the appeal is lost, Jobe loses brownlow, 100 point thrashings, compo payments, legal bills, current sponsors bail, new sponsors hard to find happening all in the same season would put any business in a position of vulnerability.
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The club only this week signed a new sponsor.

The club has been managing its legal bills and other costs over the past three seasons which is why the reduced liabilities indicate a strong balance sheet, the club will face challenges that is beyond dispute, but as long as it maintains a healthy membership base that has been pretty stable over the past three years then it should be able to come though this period, its on field performance wont be any worst this year as it was last season and I would expect crowd levels to be similar to last season so all up the club is in better shape than one would have expected considering the issues.
 
OzJohnnie said:
This is one of topics I find odd about this situation. There has been no boardroom level fight for control. No one contesting the board for leadership. The network had held together very tightly.

Even Hawthorn with all its success had a contested leadership change when Kennett retired. I'm really surprised an Essendon patron hasn't agitated for a sweep. It's seems the sweep, as it were, was all done within the confines of the network.
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Recently I watched an excellent documentary on the Hawthorn Football Club (on YouTube) it was produced in the early 1990s, it made the point that one of the things that has underpinned the Hawks success is that the boards have been mostly stable with its board members needing to serve a period of time before becoming the president. The club from top to bottom works as one, hence the saying, embrace Hawthorn and it embraces you.
 

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I think your on field may be worse this year, my other concern it had been Little who had been reaching into his pocket to square off sudden tabs.
People like that don't fall off trees and if he at some stage says no EFC could see struggle street.
Really hope it does not play out like that but firmly believe that the next five years will be very difficult.
Out of interest who is the new sponsor?
 
Slartibartfast said:
I think your on field may be worse this year, my other concern it had been Little who had been reaching into his pocket to square off sudden tabs.
People like that don't fall off trees and if he at some stage says no EFC could see struggle street.
Really hope it does not play out like that but firmly believe that the next five years will be very difficult.
Out of interest who is the new sponsor?
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The new sponsor is MAP

http://www.essendonfc.com.au/video/2016-03-22/btv-map-partnership-announcement-march-22-2016

I agree that the club does face many problems and could quite easily become a basket case but if the last three years are a guide then I think it will be able to manage its problems.

On field, the first two rounds will be big in telling the story of 2016, if the side can win one or both of its opening matches then it might go on to be okay, the real concern for Essendon will be the second half of the season particularly if there is a run of bad injuries. Essendon missed about half of the suspended 12 for large parts of last season and it had no forward line yet had six wins and only became easy beats from mid season onward. On paper I would say that both the midfield and forwardline are as good if not slightly better than last season's list, however the backline looks like Swiss cheese.
 
Bombermania said:
The new sponsor is MAP

http://www.essendonfc.com.au/video/2016-03-22/btv-map-partnership-announcement-march-22-2016

I agree that the club does face many problems and could quite easily become a basket case but if the last three years are a guide then I think it will be able to manage its problems.

On field, the first two rounds will be big in telling the story of 2016, if the side can win one or both of its opening matches then it might go on to be okay, the real concern for Essendon will be the second half of the season particularly if there is a run of bad injuries. Essendon missed about half of the suspended 12 for large parts of last season and it had no forward line yet had six wins and only became easy beats from mid season onward. On paper I would say that both the midfield and forwardline are as good if not slightly better than last season's list, however the backline looks like Swiss cheese.
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Thanks for that.
Murray Rance from map. Is that the ex footballer?
 
Bombermania said:
Nah, the financials are okay, sure the club made a loss last season and may do so again this season but from a cash flow point of view it has its liabilities under control and trending lower. The reason why this is of such little concern is that the club doesn't need to distribute dividends to its members, that comes by winning matches.
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The concern is future extraordinary liabilities. Great big buckets of them.

There is no doubt there will be 34 payouts for loss of reputation and loss of future endorsement and football earnings - including post career. Add to that mental anguish and associated mental health issues. Drug and alcohol abuse are already on the table. It's inevitable that some of these 34 are going to have messy lives post football. That will be laid at the Club's door as well.

And if the players have even the sense god gave to a newt, there will be no settlements. So add god knows how much in legal fees - and legal costs awarded to the players is pretty much inevitable. Consider that Hird's 4 days in Court cost close to a million bucks, and we are potentially looking at 34 court cases. I'm not convinced the players are going to fall for the all in together method again.

All this before looking at the giant elephant in the room. Future health effects. Any of these guys develops an ingrown toenail the lawyers will be lining up. More seriously, god forbid, cancer. Or suicide. Or birth defects. This is going to play out for 30 years or more.

Start trying to put a $ estimate on that lot and it gets into scary numbers. Especially if we think about one more possibility.

Commonly referred to as 'exemplary damages' in Australia, punitive damages are damages awarded in addition to compensatory damages. Their purpose is to punish defendants for reprehensible conduct.

I venture to suggest that the court might look closely at putting healthy young men on an experimental cocktail of drugs, some of which can not legally be administered to humans, and actively preventing medical supervision. Having looked, the court would seem justified in calling it reprehensible.
 
Laphroaig said:
The concern is future extraordinary liabilities. Great big buckets of them.


Start trying to put a $ estimate on that lot and it gets into scary numbers. Especially if we think about one more possibility.

Commonly referred to as 'exemplary damages' in Australia, punitive damages are damages awarded in addition to compensatory damages. Their purpose is to punish defendants for reprehensible conduct.

I venture to suggest that the court might look closely at putting healthy young men on an experimental cocktail of drugs, some of which can not legally be administered to humans, and actively preventing medical supervision. Having looked, the court would seem justified in calling it reprehensible.
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I agree that the players have very strong cases, under workcover they can sue for both or either injury or economic loss, for some they will be able to claim both, making this worst for the club, workcover itself has already found against the club. The club does face many risks and challenges going forward.
 
Slartibartfast said:
I think it is possible for EFC to find themselves in an insolvent situation but I do believe that the AFL would financially give them a life line. They are integral part of the AFL and unlike North and Fitzroy are not considered expendable.
In the long term it will not effect the EFC fan base, talk about loyal. You would want EFC fans in the trenches with you. That's the wonder of this game that people compromise, neglect, abuse in there daily life but come footy time they see there club like a revered deity and treat it as such.
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Be far from the first club to be given a life line.

Number of clubs currently are technically insolvent and are only able to keep trading due to the AFL giving assurances they not going to call in their debt.

If the club is hit with a raft of damages claims (not covered by insurance) and liabilities increase suspect the AFL will take over EFCs debt and do the same thing.

Be a bit stiff of the AFL to do this for Brisbane and St Kilda and not for EFC.
 
Bombermania said:
I agree that the players have very strong cases, under workcover they can sue for both or either injury or economic loss, for some they will be able to claim both, making this worst for the club, workcover itself has already found against the club. The club does face many risks and challenges going forward.
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Pro athletes are legally excluded from claiming Workcover under that Act
 

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Doss said:
And yet what some here are advocating is agitation by turning their back on the club altogether.
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I think there could be a place for that for a time - I would be doing it with Geelong if they continued to behave like EFC are acting.

In fact I have currently withdrawn my membership from Geelong until they divest themselves of gambling revenue. I have written to every section of the club alerting them of this. My memberships are always a straight donation, as I am unable to attend games due to distance and work commitments.

I think people are limiting their definitions of "support". Support isn't just about going to the games or paying a membership. Sometimes it means taking hard stands for the greater good, the longer term, or the betterment of the whole organisation. I think there has been precious little of that sort of action and talk from 60,000 + EFC members. One or two have made an effort - like Mrs Hunter - but the rest are conspicuous by their absence of voice.
 
Muggs said:
Be far from the first club to be given a life line.

Number of clubs currently are technically insolvent and are only able to keep trading due to the AFL giving assurances they not going to call in their debt.

If the club is hit with a raft of damages claims (not covered by insurance) and liabilities increase suspect the AFL will take over EFCs debt and do the same thing.

Be a bit stiff of the AFL to do this for Brisbane and St Kilda and not for EFC.
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Giving 3milion a year is a bit different to 50 ( worst case scenario) though
 
Laphroaig said:
I suspect Workcover also lacks the horsepower in what it can award to be a feasible route.
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Spot on. It also has no authority to enter a site if it is denied access. Funding has also been reduced which is the equivalent to poking out the eyes and removing the ears of a toothless tiger.
 
Doss said:
What doesn't kill you makes you stronger. The bad times make you appreciate the good more.
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That they do.

Remember watching Glenelg kick 49 goals against us at the Bay, in the 70s.
There was considerable relief, when the FF lining up for goal #50 in the dying minutes of the game, missed.
I was about 7.
Defeating them in the 2008 Grand Final was all the sweeter for the memory!
 
Sector 7G said:
Giving 3milion a year is a bit different to 50 ( worst case scenario) though
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Doubt it be additional ongoing support. More a once off interest free or low interest loan to cover compensation

Doesn't really cost the AFL much if anything to transfer cash reserves sitting in a bank account to a receivable asset, charge the EFC interest equal to that forgone costs the AFL nothing.

Might take the EFC same time, years, to repay it.
 
Bombermania said:
Nah, the financials are okay, sure the club made a loss last season and may do so again this season but from a cash flow point of view it has its liabilities under control and trending lower. The reason why this is of such little concern is that the club doesn't need to distribute dividends to its members, that comes by winning matches.
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The biggest issue is going to be the revenue side. How much is this years performance going to affect match attendance numbers? While last years numbers are reasonably good, heavily influenced by Anazc day which you split with Collingwood. Also some good early season games. As performance dropped so did attendance. Your low place last year also means worse scheduling this year.

While it was a record season for membership numbers, was not for membership revenue suggesting a lot of downgrading of packages. Will this continue this year?.

Yes you made a cash profit but it's got smaller each of the last few years, so be surprised if you make one again this year considering the revenue issues.

Costs got more from top ups and paying most of the banned players. Football clubs costs are also largely fixed. Staff contracts etc.

Suspect going to ge a bad year for you.

But most clubs have had bad years and got or getting through them with AFL becoming their biggest creditor.

As performance improves so will the finances.

Just really how much line of credit does the AFL need to give you to cover out of pocket compensation.
 
Laphroaig said:
So add god knows how much in legal fees - and legal costs awarded to the players is pretty much inevitable. Consider that Hird's 4 days in Court cost close to a million bucks, and we are potentially looking at 34 court cases. I'm not convinced the players are going to fall for the all in together method again.
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Not sure this would happen, especially after the grind the EFC put Hunter through, it seems it was only the intervention of a 4 Corners report that made Essendon pull back and agree not to pursue. ( not proven but damning)

By going alone the EFC would pick each player off individually creating the legal nightmare and paperwork runaround as shown on 4 Corners. I think the time to go alone has well and truly passed.

I am frustrated and angry at a legal system where compassion cant be shown to an individual. I understand this is legal advice the EFC is following but it really doesn't look good. No-one will remember or care who the lawyers are , it will be the EFC and what it represents and how it presented that people will remember
 
Muggs said:
Doubt it be additional ongoing support. More a once off interest free or low interest loan to cover compensation

Doesn't really cost the AFL much if anything to transfer cash reserves sitting in a bank account to a receivable asset, charge the EFC interest equal to that forgone costs the AFL nothing.

Might take the EFC same time, years, to repay it.
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The problem is that amount of money doesn't come 'free'. The EFC stops being the EFC once it is in debt to the AFL for that amount, and it may become little more than a larger GWS or the Gold Coast. It is honestly a big hit to the club's identity.

Which isn't a good thing. Caro - the media extension of Gillon McLachlan - says a war is brewing between the AFL and the Pies, and there is good reason to believe her. The AFL is getting a bit too big for its britches and I want to see the clubs starting to exert some more pressure back on them. With Carlton and Essendon both in the s**t, Richmond possibly hesitant to pick a fight with the AFL having only recently stopped being a basket case, and the Hawks seemingly uninterested, we don't really have any possible allies in Melbourne that could help knock us HQ down a peg.
 
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