Analysis AFC finances - Rich Club, Poor Club?

[GreyCrow]

Goes to show you what we COULD be capable of if we run this place properly.

Read this and see how many you could point to the AFC doing the same

Icarus paradox - Wikipedia

en.wikipedia.org

Just 1 example from me

successful companies tend to fail precisely because of their strengths and past victories, which engendered over-confidence and lulled them into complacency.

This happens as managers make unwise decisions based on past strategies that they mistakenly believe will always be relevant and companies exploit as much as possible the strategies that contributed to their success, centralise their focus on the products that launched their brand and become blinded to changes in the external business environment

' We exist to make the 8'

 

[DJ75]

When it comes to the reporting of the finances there are some interesting points to note.

AFC is set up as a not-for-profit organisation, so posting large profits is problematic. Many private schools are the same. Schools get around it by borrowing large sums of money regularly and then using the profits to pay back the loan. This way they can look at a zero net profit or even a loss, when the actual result is very different. It's why the schools are always building. (For instance, schools like St. Peter's College have over $100 million dollars in investments, but borrow money whenever they build).

We also have to look at how much do we want to contribute to the equalisation fund. Post big profits etc... and we have to pay more out (I'm guessing). Be creative and we don't. Could this be one of the reasons why we are keen to move and build??

I'm sure there are some people on here who would know the ins and outs better, but that's how it looks to me.

 

[1970crow]

When it comes to the reporting of the finances there are some interesting points to note.

AFC is set up as a not-for-profit organisation, so posting large profits is problematic. Many private schools are the same. Schools get around it by borrowing large sums of money regularly and then using the profits to pay back the loan. This way they can look at a zero net profit or even a loss, when the actual result is very different. It's why the schools are always building. (For instance, schools like St. Peter's College have over $100 million dollars in investments, but borrow money whenever they build).

We also have to look at how much do we want to contribute to the equalisation fund. Post big profits etc... and we have to pay more out (I'm guessing). Be creative and we don't. Could this be one of the reasons why we are keen to move and build??

I'm sure there are some people on here who would know the ins and outs better, but that's how it looks to me.

Not for profits can run large surpluses, there’s no problem there. With interest rates where they’re at, borrowing and repaying has negligible impact on the P&L, it’s 99% balance sheet movements. With the AFL equalisation fund, I’m not sure that profits are one of the triggers. We pay some vases upon our season ticket holders or crowds, I don’t think it matters whether we convert it to a big profit or massive loss, we pay it anyway.

 

[Deaneus!]

Not for profits can run large surpluses, there’s no problem there. With interest rates where they’re at, borrowing and repaying has negligible impact on the P&L, it’s 99% balance sheet movements. With the AFL equalisation fund, I’m not sure that profits are one of the triggers. We pay some vases upon our season ticket holders or crowds, I don’t think it matters whether we convert it to a big profit or massive loss, we pay it anyway.

vases?

 

[1970crow]

vases?

With what else does one use to pay taxes?

 

[flashcrow]

vases?

Money Vase

 

[Deaneus!]

Okay got the FS this morning and had a look

 

[Deaneus!]

Gee, this seems quaint now. Can't wait to see this year's statements.

 

[GreyCrow]

 

[Cap]

What happen in 2014? Is that when we bought our license?

Huge drop in equity, increase in payable but no increase in assets outside $3m in property

 

[Golumless]

What happen in 2014? Is that when we bought our license?

Huge drop in equity, increase in payable but no increase in assets outside $3m in property

I'm pretty sure the licence was the last thing Trigg did.

 

[Cap]

I'm pretty sure the licence was the last thing Trigg did.

That was a big asset hit. Unless that equity was intangible, even though its called retained earnings

 

[Deaneus!]

things to take away from this:

(1) we have proof of life for Andrew Fagan

(2) Bruce Spiers got out of bed for this

(3) we have a new debt facility and we didn’t need VFL cash to get through the Rona so there’s one thing we can be proud of that the VFL will somehow * us for

(4) you can get Crows-branded debit cards now, and I would like to see one

 

[boncer34]

things to take away from this:

(1) we have proof of life for Andrew Fagan

(2) Bruce Spiers got out of bed for this

(3) we have a new debt facility and we didn’t need VFL cash to get through the Rona so there’s one thing we can be proud of that theVFL will somehow fu** us for

(4) you can get Crows-branded debit cards now, and I would like to see one

Just on 4 that's been around for awhile mate.

Debit Cards - Easy and secure access to your own money

Get easy access to your own funds and use your own money in store, online and overseas with a Bendigo Bank Debit card, or an Easy Money card. Apply online today

www.bendigobank.com.au

However website doesn't actually show you. Does show you the Cats one haha.

 

[jackster83]

(4) you can get Crows-branded debit cards now, and I would like to see one

I heard they result in a lot of hamstring injuries and ruined weekends for the user.

 

[Coopers]

Just on 4 that's been around for awhile mate.

Can you please post an image of yours? Make sure the numbers on the back are visible too.

 

[CrowsB4hoes]

We can thank the SANFL President for that

This aged well

 

[1970crow]

What's the accusation directed at the AFL here?

 

[Deaneus!]

What's the accusation directed at the AFL here?

Me no understand

 

[1970crow]

Me no understand

Query re point 3 and the AFL ******* us over if we used their LoC. In what way would they screw us. The only clubs to not take up the offer so far were the megabucks clubs that weren't borrowing at that stage at all. Every other club that needed funding to keep afloat seemed to accept the AFL's conditions. What made us different?

 

[Deaneus!]

Query re point 3 and the AFL ******* us over if we used their LoC. In what way would they screw us. The only clubs to not take up the offer so far were the megabucks clubs that weren't borrowing at that stage at all. Every other club that needed funding to keep afloat seemed to accept the AFL's conditions. What made us different?

I think you misunerstood
- we‘re Adelaide.
- we didn’t need their filthy lucre to stay afloat
- anywhere else that would give us independence
- we’re still subject to arbitrary rule changes though

they * us every time.

 

[Mego Red]

Query re point 3 and the AFL ******* us over if we used their LoC. In what way would they screw us. The only clubs to not take up the offer so far were the megabucks clubs that weren't borrowing at that stage at all. Every other club that needed funding to keep afloat seemed to accept the AFL's conditions. What made us different?

Isn't there already a lot of discussion about the rate in which clubs will have to pay down the line of credit to the AFL, and that the AFL will use this to get some clubs spending less on their operations?

I feel like Caro has raised this a couple of times, as have others. Wasn't it mentioned in an article about St Kilda recently?

 

[CrowsB4hoes]

Isn't there already a lot of discussion about the rate in which clubs will have to pay down the line of credit to the AFL, and that the AFL will use this to get some clubs spending less on their operations?

I feel like Caro has raised this a couple of times, as have others. Wasn't it mentioned in an article about St Kilda recently?

Exhibit A: the AFL over ruling Port on their new CEO

 

[1970crow]

Isn't there already a lot of discussion about the rate in which clubs will have to pay down the line of credit to the AFL, and that the AFL will use this to get some clubs spending less on their operations?

I feel like Caro has raised this a couple of times, as have others. Wasn't it mentioned in an article about St Kilda recently?

AFL has already done that by decreeing 40% reduction to footy cap. I expect the AFLs interest will extend only as far as limiting wasteful expenditure. I bet that we'll enjoy the 2021 season as much as 2019 despite 40% footy dept spend reduction and the screws being tightened on admin spend. If we're running lean and mean, AFL review of our admin spend should cause us no concern whatsoever. Which admin costs would you be concerned they'll try and cut? Noting that footy dept and player costs are already fully controlled by and reported to AFL House. What is it about our admin spend do we need to protect from prying eyes?

 

[1970crow]

Exhibit A: the AFL over ruling Port on their new CEO

Did they overrule the choice or the spend?