Analysis AFC finances - Rich Club, Poor Club?

[brucetiki]

Yep, power and water prices have led to the demise of a number of pubs and other small businesses. It's time we stopped foreign owners ripping off South Australians. Selling or leasing our power and water overseas were masterstrokes. We are governed by lunatics.

We can thank the SANFL President for that

 

[kirky]

Just hurry up and buy Nextgen next door to AO. Still run as is but utilise function rooms etc for after games. I assume the function rooms are still there...

As a member of Next Gen, yes there are.

Would concur with this as basically come footy nights the complex is barely used come game time (leave just before). You could pay Next Gen for after match stuff and split the bar. Win-win.

 

[CrowsB4hoes]

We can thank the SANFL President for that

Those bastard SANFL

Always trying to tear us apart

 

[mistylake]

The club has polled supporters about this before and the fact is that while a small vocal amount talk about wanting a base in the city, the vast majority are not interested. Most people who go to the game leave straight afterwards and go home. Even with an option of somewhere to go, they expressed no interest in doing so. You have to make it profitable throughout the whole year and the cost of staffing, liquor licence et al make it a huge financial drain.

That’s a rather odd view if true as I thought most hospitality business owners Pubs, restaurants etc are in it for profitable reasons. Or is it that it’s not core business?
Wait did someone say competitive computer gaming. That sounds like a winner.

 

[mistylake]

I would hazard a guess and say a lot of people don't realize how thin the margins are on a lot of pubs going around.

I expect the profit then might only be realised upon its sale which probably still makes them a good investment, but not so hot if your chasing strong cashflow over capital growths.

 

[1970crow]

I don’t know if Manchester United, Golden State Warriors or the Yankees have clubrooms where you’ll find Derek Jeter pulling a few Buds from behind the bar.

When it gets overly busy, I pull a few beers at the Alice Springs Golf Club. I actually enjoy it. Nothing better than serving customers, as long as you don't do it for a living. And can walk away whenever you've had enough.

 

[1970crow]

I expect the profit then might only be realised upon its sale which probably still makes them a good investment, but not so hot if your chasing strong cashflow over capital growths.

That makes no sense. If you're not making profits, the likelihood of realising profit upon disposal is remote.

 

[dogs105]

When it gets overly busy, I pull a few beers at the Alice Springs Golf Club. I actually enjoy it. Nothing better than serving customers, as long as you don't do it for a living. And can walk away whenever you've had enough.

Do you have Responsible Service of Alcohol qualifications?

 

[mistylake]

That makes no sense. If you're not making profits, the likelihood of realising profit upon disposal is remote.

You could be making a small profit after all costs but not enough for a yearly windfall.
Real estate will appreciate regardless of this. I’m talking about owning the land and buildings not just running the business.

 

[1970crow]

Do you have Responsible Service of Alcohol qualifications?

I've done the course, but only for an ex-president. I don't think I actually need it as a committee person that's donating my time. I'll have to check the legislation, but I think it only relates to people employed to serve alcohol. I'm not employed.

 

[dogs105]

I've done the course, but only for an ex-president. I don't think I actually need it as a committee person that's donating my time. I'll have to check the legislation, but I think it only relates to people employed to serve alcohol. I'm not employed.

Just didn't want the club getting in trouble, and didn't know if you should keep if shtum. All okay by the sounds though.

 

[1970crow]

You could be making a small profit after all costs but not enough for a yearly windfall.
Real estate will appreciate regardless of this. I’m talking about owning the land and buildings not just running the business.

Sure, but commercial land values are very much linked to rental income. Which is linked to business profits. There is a stable underlying value of the asset, but there isn't a lot of profit to be made upon disposal if there's not a kick ass lease in place. Otherwise, commercial premises aren't any different to residential in terms of banking coin from acquisition and then disposal.

 

[1970crow]

Just didn't want the club getting in trouble, and didn't know if you should keep if shtum. All okay by the sounds though.

I will check when I'm at a PC. It's been mentioned in the past that there's no need for an RSA if you're not actually being paid. But, experience tells me that nearly every person that tells you that something is "law", has never actually read a piece of legislation and would be unlikely to even know what one is.

 

[JP Sauce]

It's an opportunity for fan engagement. Albeit an expensive one. We always have a drink or three after night games. As long as they aren't stooges with the pricing, we'd absolutely go back there after every game. I love me a good raffle.

I understand cost wise its prohibitive for the club, but surely there's a way of having a cost effective "home away from home" to go to straight after the game that doesn't sell the farm.

That's what the Magarey Room is. Drinks with other fans post-game, a few player interviews... hell I think they even do raffles sometimes.

 

[mistylake]

Sure, but commercial land values are very much linked to rental income. Which is linked to business profits. There is a stable underlying value of the asset, but there isn't a lot of profit to be made upon disposal if there's not a kick ass lease in place. Otherwise, commercial premises aren't any different to residential in terms of banking coin from acquisition and then disposal.

I guess it’s a bit different in SA than Qld with Pubs and Clubs.
I just see the big Cazalys (Aussie rules) and Brothers leagues club (Rugby league) large entertainment driven facilities which obviously have different licensing, tax and of course pokies, being very popular in Cairns where I live. I think there are plenty of other restaurant options around but the meals are reasonably priced a Schooner (pint in SA) is from $3.80 to $5.00 and you can barely get a seat anywhere in them Friday- Sunday. They still get crowds on Wednesday lunchtime.
I would think with 600,000 supporters a place where supporters can gather, have a reasonably priced meal a cheap beer and watch sports amongst others with similar tastes in afl teams would be patronised pretty well. Look how popular AO has been.
So I think comparing a normal pub with a massive football club facility done correctly really are not operating in the same market.

 

[Mego Red]

I will check when I'm at a PC. It's been mentioned in the past that there's no need for an RSA if you're not actually being paid. But, experience tells me that nearly every person that tells you that something is "law", has never actually read a piece of legislation and would be unlikely to even know what one is.

I think the designated manager would be in trouble if an incident occurred - having someone without an RSA serving the public would leave them liable, but probably not you.

It's maybe not a big risk, depending on the circumstances.

 

[mistylake]

I think the designated manager would be in trouble if an incident occurred - having someone without an RSA serving the public would leave them liable, but probably not you.

It's maybe not a big risk, depending on the circumstances.

I think half the reason people live in the NT is so they don’t have to worry about petty laws or laws in general.

 

[Tex Danger]

Maybe we need to do this over the railway yards where the roofed stadium was to be built.

Training facilities, include function venue/bar as well as open space for public use (so more government investment).

Close to AO
Close to hospital (would increase general demand)
More parklands so greenies happy

If only money wasn’t an option!

 

[1970crow]

I think the designated manager would be in trouble if an incident occurred - having someone without an RSA serving the public would leave them liable, but probably not you.

It's maybe not a big risk, depending on the circumstances.

I think the lack of RSA training would have to have influenced the incident for anyone to be liable for anything.

 

[Elite Crow]

The club has polled supporters about this before and the fact is that while a small vocal amount talk about wanting a base in the city, the vast majority are not interested. Most people who go to the game leave straight afterwards and go home. Even with an option of somewhere to go, they expressed no interest in doing so. You have to make it profitable throughout the whole year and the cost of staffing, liquor licence et al make it a huge financial drain.

Did they ask poll the supporters and asked them if they wanted a club?

 

[Kerleys Ghost]

Do you have Responsible Service of Alcohol qualifications?

lol, 60 minute online course.

Last time I worked the bar you were only required to have one 'qualified' person on the premises at any given time, but any adult could serve. Might have changed since then.

 

[brucetiki]

I will check when I'm at a PC. It's been mentioned in the past that there's no need for an RSA if you're not actually being paid. But, experience tells me that nearly every person that tells you that something is "law", has never actually read a piece of legislation and would be unlikely to even know what one is.

It's a state/territory issue - each state/territory has it's own RSA laws.

In SA, everyone that serves alcohol has to have a RSA. There's also legislation about Responsible Persons, Management Plans etc. RSA's cost next to nothing though (if you use those 'Groupon' sites, they often appear on there for around $30), and they don't expire.

I'd suspect things in the NT to be more relaxed.

 

[Kane McGoodwin]

It's a state/territory issue - each state/territory has it's own RSA laws.

In SA, everyone that serves alcohol has to have a RSA. There's also legislation about Responsible Persons, Management Plans etc. RSA's cost next to nothing though (if you use those 'Groupon' sites, they often appear on there for around $30), and they don't expire.

I'd suspect things in the NT to be more relaxed.

You just suspect...

PS. Excluding ATSI lands where there are tight restrictions.

 

[Mego Red]

I think the lack of RSA training would have to have influenced the incident for anyone to be liable for anything.

You'd need to somehow be involved - just working when it happens wouldn't be enough.

 

[brucetiki]

You just suspect...

PS. Excluding ATSI lands where there are tight restrictions.

Well they do have the NT News and **** Out Tuesday in the Territory