Analysis AFC finances - Rich Club, Port Club?

deaneus

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Thread starter Moderator #1
MOD NOTE: there was a tiny thread for 2015. and a tiny thread for 2017. instead of creating another tiny thread, i just stuck these two together and I'll run with that.


I suddenly don't recall if these were out or not? If this has been discussed, mods please delete

Capture-PL.PNG


Prima facie, 13% increase in revenues with an 8.1% increase in costs. I see a big jump (14%) in sponsorship expenses, Other Football (whatever that is) doubled, travel and training dropped (did we travel less?), admin up 26%, marketing up 16% (those pretty commercials don't come cheap) and a jump in interest expense from the loan we took out
Capture-BS.PNG


Gee those current assets dropped a bit didn't they? Mostly cash, a third of the trade receivables and nearly half the Other. Everything else was the same bar the Trade payables, which was less, so that's nice.
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Notables: acquisition of PPE - $870K, increased from $471K. More to the SANFL. We brought in a lot more cash - 19% more than last year, ~$8M.
Capture-Notes.PNG


This one's nice. Ticket sales up 15%, sponsorship up 22.6% (!!!), AFL-sourced revenue (cut of TV deal?) up 6.2%. I wonder what Sundry Income is. Merchandise revenue is presented strangely... up 2%, but margins on it jumped 4%, from 28% to 32% (nice). Revenue sharing from $0 to $130K!!!! Boo! At least our equalisation payments are less... although i bet revenue sharing's a rose by any other name.
 
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deaneus

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Thread starter Moderator #10
Did we make another large loss?
You wily old coot, you can read

Is this before or after depreciation? :p
During


Okay, I've had a chance to actually read it properly now.

I see lots of positive movement for the club.

Overall revenues up from $39.367M to $44.492M - that's $5.125M or 13%, especially sponsorship revenue, that's up 22% (!!!)

Odd that Prepayments in Other Current Assets should be so different from the year before.

Trade Payables has jumped.

Unearned Income, that's an interesting one. In this context - and I'm sure I read it in there somewhere - it would have to be Membership Revenue taken up before it's been earned, i.e., probably before the game has been played (perhaps they divide the membership fee by 11 and bank 1/11th at every home game or something). If the balance date is 31/10, then any amount in the Unearned Income would be Membership money paid for the 2016 season - but it's jumped from $79K to $339K, so waaaay more people got on board in the off-season. If you used a $500 basis for a membership, we went from 160 people paying in advance, to 680! A four-fold increase in people paying upfront is great, especially when we get to cashflow issues...

...so cash-flow. The big scary item in the results is the drop in cash - $833K to $163K, a drop of $670K. That would make me nervous ordinarily, although obviously i don't get to see the Crows' internal cash flow graphs so i wouldn't have a clue when payments for anything are due. Notably it worried the Crows enough that they got a temporary $1M overdraft (note 15) which also they didn't have to use - possibly helped because of the extra memberships paid up front. Even more interesting, the $5M loan is in two parts, $2M (due 30 June 2107) and $3M (due 28 February 2016 - so yeah, already gone, presumably without any trouble).

Also, lots of long service leave got paid out.

Also, can anyone assist with Note 19 - i see the Port Lincoln Hotel as a director-related entity ballooned from $3K in payments to, to $47K - that's an enormous jump and I'd like to know what commercial arrangement we had with them that would cost that much.

Finally, the cashflow statement

Cash receipts from customers are up $8M (!!!) although we spent $4M more than last year, and interest paid was up due to the $5M loan - basically, Operating Cash Flow was $4M better. $4M!!!! People would sell their grandmothers for that. Although the end of year cash was low - $163K - if you've got that kind of positive cashflow you should be dancing, it will get you out of trouble most times.

As for Investing activities, we spent $400K more than last year, so it sounds like we went and whacked a bunch of money into facilities for the players, which sounds great to me. The game development grant for the SANFL was up too by $145K but i don't know what that's contingent upon. Meh.

Reading it now, it really just shows me how bad our cash situation was last year. Last year: we increased cash by $594K, aren't we great? No, because you borrowed $5M to do it! This year: cash went down $671K, but two-thirds of that was facility investment, and we repaid $556K in debt from last year's loans as well as paying $123K more in interest on those loans, and got a better baseline revenue by $8M. Yup, sounds good. Keep it up.

That's all from me. Anyone got anything I missed?
 
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Runnin Blue

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#11
You wily old coot, you can read



During


Okay, I've had a chance to actually read it properly now.

I see lots of positive movement for the club.

Overall revenues up from $39.367M to $44.492M - that's $5.125M or 13%, especially sponsorship revenue, that's up 22% (!!!)

Odd that Prepayments in Other Current Assets should be so different from the year before.

Trade Payables has jumped.

Unearned Income, that's an interesting one. In this context - and I'm sure I read it in there somewhere - it would have to be Membership Revenue taken up before it's been earned, i.e., probably before the game has been played (perhaps they divide the membership fee by 11 and bank 1/11th at every home game or something). If the balance date is 31/10, then any amount in the Unearned Income would be Membership money paid for the 2016 season - but it's jumped from $79K to $339K, so waaaay more people got on board in the off-season. If you used a $500 basis for a membership, we went from 160 people paying in advance, to 680! A four-fold increase in people paying upfront is great, especially when we get to cashflow issues...

...so cash-flow. The big scary item in the results is the drop in cash - $833K to $163K, a drop of $670K. That would make me nervous ordinarily, although obviously i don't get to see the Crows' internal cash flow graphs so i wouldn't have a clue when payments for anything are due. Notably it worried the Crows enough that they got a temporary $1M overdraft (note 15) which also they didn't have to use - possibly helped because of the extra memberships paid up front. Even more interesting, the $5M loan is in two parts, $2M (due 30 June 2107) and $3M (due 28 February 2016 - so yeah, already gone, presumably without any trouble).

Also, lots of long service leave got paid out.

Also, can anyone assist with Note 19 - i see the Port Lincoln Hotel as a director-related entity ballooned from $3K in payments to, to $47K - that's an enormous jump and I'd like to know what commercial arrangement we had with them that would cost that much.

Finally, the cashflow statement

Cash receipts from customers are up $8M (!!!) although we spent $4M more than last year, and interest paid was up due to the $5M loan - basically, Operating Cash Flow was $4M better. $4M!!!! People would sell their grandmothers for that. Although the end of year cash was low - $163K - if you've got that kind of positive cashflow you should be dancing, it will get you out of trouble most times.

As for Investing activities, we spent $400K more than last year, so it sounds like we went and whacked a bunch of money into facilities for the players, which sounds great to me. The game development grant for the SANFL was up too by $145K but i don't know what that's contingent upon. Meh.

Reading it now, it really just shows me how bad our cash situation was last year. Last year: we increased cash by $594K, aren't we great? No, because you borrowed $5M to do it! This year: cash went down $671K, but two-thirds of that was facility investment, and we repaid $556K in debt from last year's loans as well as paying $123K more in interest on those loans, and got a better baseline revenue by $8M. Yup, sounds good. Keep it up.

That's all from me. Anyone got anything I missed?
 

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#13
Also, can anyone assist with Note 19 - i see the Port Lincoln Hotel as a director-related entity ballooned from $3K in payments to, to $47K - that's an enormous jump and I'd like to know what commercial arrangement we had with them that would cost that much.
Out of my comfort zone here in finances, but would this be related to the NAB Cup game/NAB Community Camp and associated activities (shark cage diving) held in Port Lincoln last year?
 

deaneus

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Out of my comfort zone here in finances, but would this be related to the NAB Cup game/NAB Community Camp and associated activities (shark cage diving) held in Port Lincoln last year?
You could be exactly right. We send say fifty people there for a four day camp (for example) that's three nights for fifty people = one hundred and fifty nights at $300 / night gets you $45K. Not sure how the camp was organised obviously but it can be explained on the back on an envelope quickly - nice work Candyman.
 

AFC3000

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#17
Out of my comfort zone here in finances, but would this be related to the NAB Cup game/NAB Community Camp and associated activities (shark cage diving) held in Port Lincoln last year?
This is it, dozens of rooms, meals, function room etc. for 3 days. Interesting to know part of what it costs to go away for a few days.
 

little graham

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You could be exactly right. We send say fifty people there for a four day camp (for example) that's three nights for fifty people = one hundred and fifty nights at $300 / night gets you $45K. Not sure how the camp was organised obviously but it can be explained on the back on an envelope quickly - nice work Candyman.
i would of thought that if you stay at an establishment a board member had financial interests in, you would get it cheaper.
 

deaneus

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Thread starter Moderator #20
i would of thought that if you stay at an establishment a board member had financial interests in, you would get it cheaper.
And certainly you can think that, but there's also a counter-argument: Roo could rent out those rooms to normal paying customers, why should he give a discount? It's all well and good he gives up his time to the club, they shouldn't also expect him to give up rooms in his hotel for free.

Also, maybe they did get it cheaper.
 

deaneus

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Thread starter Moderator #21
So half of our loss was handouts to broke Victorian clubs,

Frack did we get screwed when Oakley played port against the SANFL.............
...more than half: $793K of $1.29M

in fact, you add back the Equalisation and the Adelaide Oval Underwriting, and we made a profit
 

little graham

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And certainly you can think that, but there's also a counter-argument: Roo could rent out those rooms to normal paying customers, why should he give a discount? It's all well and good he gives up his time to the club, they shouldn't also expect him to give up rooms in his hotel for free.

Also, maybe they did get it cheaper.
If we went during Tunarama, then all is good. If we didn't go during Tunerama, i would like to see the normal occupancy rates for the establishment. if we filled empty rooms, it would want to be cheaper.
 

Iron

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#25
There's some things in there that don't look amazing on the face of it but it's hard to tell without all the notes.

Where did you find this? Looks like we're doing some nice things but we aren't converting to runs on the board.
 
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