Analysis AFC finances - Rich Club, Port Club?

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deaneus

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Thread starter Moderator #105
Okay, Tracey at the club was nice enough to send me the financial statements today, so i've thrown it against all results since 2012 so we can see how the club has evolved.

PL1.PNG


The green line is the last year Stephen Trigg ran the show, and i think the last year we had the SANFL sucking blood.

Take-aways:
Revenue up 15% on last year and 44% since 2014, outstanding. Season tickets/AFL membership up 6% on last year, and 43% on 2014. Sponsorship, 17% and 54%, just fantastic in three years. Funnily enough, corporate boxes/reserved seating up 9% on last year but down 6% since 2014... huh? Grant revenue is lower, perhaps there were less grants available? The always vague Sundry Income was up 18%.

Merchandise - ah, some funny business. Oddly, the 2016 accounts have been re-organised for the 2017 FS - the online merchandise was split out this year, so the 2016 online merch was split out too. Which also means that we can see that online merch is down more than half!! Because some of it is gross and some is net, we can't see what the real gross revenues are, but we can figure that it's probably the highest it's ever been, so that's cool. Also means we can't see the margins, but they're probably stable.

PL2.PNG


There's a jump in other football expenses, travel & training, and admin - i expect this is due to the AFLW team (and probably why our sponsorship was up more this year). AFL Revenue Sharing & Equalisation disappeared this year. Depreciation is the same, SANFL fee is the same, Adelaide Oval fee is the same.

Nothing else really stands out. Basically, it's a $2M turnaround from last year, with an extra $6.5M in revenue and $4.5M in expenses.

Oh, and Legacy eSports is in there now, but it isn't split in any way, so we can't see what it's doing.

BS.PNG


Balance sheet - we've got a healthy cash balance again, a far cry from a couple of years ago; PP&E is the same, Trade Payables is a little higher, liabilities overall down by $700K. We're nowhere near the net asset position of give years ago, but this year's result (+$678K) is a great step forwards (EDIT: i wrote backwards here, WTF). I'm pretty happy with our results, but like the board i wonder about expanding the revenue base.

I'll be very interested to see how the other big clubs did this year.
 
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Cleric

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I remember discussing a few years ago here how I expected the club to grow by double digits each year, as that is what most companies expect in growth. A number said that was totally unreasonable and it could not be an expectation.
Well, it was and it happened.
Good work AFC.
 

Sanders

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Okay, Tracey at the club was nice enough to send me the financial statements today, so i've thrown it against all results since 2012 so we can see how the club has evolved.

View attachment 465466

The green line is the last year Stephen Trigg ran the show, and i think the last year we had the SANFL sucking blood.

Take-aways:
Revenue up 15% on last year and 44% since 2014, outstanding. Season tickets/AFL membership up 6% on last year, and 43% on 2014. Sponsorship, 17% and 54%, just fantastic in three years. Funnily enough, corporate boxes/reserved seating up 9% on last year but down 6% since 2014... huh? Grant revenue is lower, perhaps there were less grants available? The always vague Sundry Income was up 18%.

Merchandise - ah, some funny business. Oddly, the 2016 accounts have been re-organised for the 2017 FS - the online merchandise was split out this year, so the 2016 online merch was split out too. Which also means that we can see that online merch is down more than half!! Because some of it is gross and some is net, we can't see what the real gross revenues are, but we can figure that it's probably the highest it's ever been, so that's cool. Also means we can't see the margins, but they're probably stable.

View attachment 465491

There's a jump in other football expenses, travel & training, and admin - i expect this is due to the AFLW team (and probably why our sponsorship was up more this year). AFL Revenue Sharing & Equalisation disappeared this year. Depreciation is the same, SANFL fee is the same, Adelaide Oval fee is the same.

Nothing else really stands out. Basically, it's a $2M turnaround from last year, with an extra $6.5M in revenue and $4.5M in expenses.

Oh, and Legacy eSports is in there now, but it isn't split in any way, so we can't see what it's doing.

View attachment 465468

Balance sheet - we've got a healthy cash balance again, a far cry from a couple of years ago; PP&E is the same, Trade Payables is a little higher, liabilities overall down by $700K. We're nowhere near the net asset position of give years ago, but this year's result (+$678K) is a great step backwards. I'm pretty happy with our results, but like the board i wonder about expanding the revenue base.

I'll be very interested to see how the other big clubs did this year.
Doesn’t the income growth really start in 2014, and just carry on?

Year on year growth looks as high as any year in 2014?

Did Trigg set the scene with the growth he oversaw just carrying on?

Sponsorship looks the only thing that really gets bigger. Membership and Corp boxes are more the AO effect aren’t they?

Don’t really understand much of the rest
 

deaneus

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Thread starter Moderator #108
Doesn’t the income growth really start in 2014, and just carry on?
Yes - in Trigg’s last year there was quite a bump, split between season ticketing and sponsorship.

Year on year growth looks as high as any year in 2014?
Maybe later I’ll make some graphs for fun but yes it’s been a constant ride

Did Trigg set the scene with the growth he oversaw just carrying on?
Ordinarily I’d agree, but I recall Fagan’s hissyfit about the Oval deal when he arrived. Truth is, if we can’t see the interplay of the various contractual arrangements etc we can’t tell who did what. It would be easy (and satisfying) for me to claim that Fagan was God and Trigg was terrible but it wouldn’t explain how Trigg raised revenues in his last year... maybe there was a pre-move bump? We can certainly say that whatever Fagan’s been doing, it’s been working.

Sponsorship looks the only thing that really gets bigger. Membership and Corp boxes are more the AO effect aren’t they?
Yeah, the AO effect most likely. I forgot all about having moved, Footy Park is like a distant memory.

Don’t really understand much of the rest
Sure.
 

1970crow

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Okay, Tracey at the club was nice enough to send me the financial statements today, so i've thrown it against all results since 2012 so we can see how the club has evolved.

View attachment 465466

The green line is the last year Stephen Trigg ran the show, and i think the last year we had the SANFL sucking blood.

Take-aways:
Revenue up 15% on last year and 44% since 2014, outstanding. Season tickets/AFL membership up 6% on last year, and 43% on 2014. Sponsorship, 17% and 54%, just fantastic in three years. Funnily enough, corporate boxes/reserved seating up 9% on last year but down 6% since 2014... huh? Grant revenue is lower, perhaps there were less grants available? The always vague Sundry Income was up 18%.

Merchandise - ah, some funny business. Oddly, the 2016 accounts have been re-organised for the 2017 FS - the online merchandise was split out this year, so the 2016 online merch was split out too. Which also means that we can see that online merch is down more than half!! Because some of it is gross and some is net, we can't see what the real gross revenues are, but we can figure that it's probably the highest it's ever been, so that's cool. Also means we can't see the margins, but they're probably stable.

View attachment 465491

There's a jump in other football expenses, travel & training, and admin - i expect this is due to the AFLW team (and probably why our sponsorship was up more this year). AFL Revenue Sharing & Equalisation disappeared this year. Depreciation is the same, SANFL fee is the same, Adelaide Oval fee is the same.

Nothing else really stands out. Basically, it's a $2M turnaround from last year, with an extra $6.5M in revenue and $4.5M in expenses.

Oh, and Legacy eSports is in there now, but it isn't split in any way, so we can't see what it's doing.

View attachment 465468

Balance sheet - we've got a healthy cash balance again, a far cry from a couple of years ago; PP&E is the same, Trade Payables is a little higher, liabilities overall down by $700K. We're nowhere near the net asset position of give years ago, but this year's result (+$678K) is a great step backwards. I'm pretty happy with our results, but like the board i wonder about expanding the revenue base.

I'll be very interested to see how the other big clubs did this year.
That BS doesn’t look that strong. Working capital still non-existant. And what are the $6m worth of non-current trade and other payables?
 

Coopers

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Okay, Tracey at the club was nice enough to send me the financial statements today, so i've thrown it against all results since 2012 so we can see how the club has evolved.
Great post. Awesome.

That's awfully nice of them to give out that. Is it a requirement of the AFL for the clubs to have this available to the public?

Not that I can see anything devastating in there. Really interesting to see the "SANFL not sucking blood" drop, and that we've subsequently spent a lot of that too.
 

Tex Danger

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Find it very interesting how steady merch sales are. Variations really only also match variations in cost of product to make (I assume that means we sell a similar amount and the cost of item changes to reflect cost of production).

Would have expected in a GF year those numbers would have spiked.
 

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Sanders

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It would be easy (and satisfying) for me to claim that Fagan was God and Trigg was terrible but it wouldn’t explain how Trigg raised revenues in his last year... maybe there was a pre-move bump? We can certainly say that whatever Fagan’s been doing, it’s been working.
I think it would be tough to say Fagan ‘s been doing a bad job, he’s clearly doing at least a good job

What I think he has done really well is bring the club together, and make supporters feel like the club is on its side. Trigg sucked at that and left people believing he wanted to please the Afl more that the fans

I doubt it was true but he left room for people to think it might be
 

deaneus

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Thread starter Moderator #113
That BS doesn’t look that strong. Working capital still non-existant. And what are the $6m worth of non-current trade and other payables?
I thought I'd written it was strong, glad i didn't - it's not strong at all, as you mention the working capital ratio* is terrible, for a laugh i should put up Apple's balance sheet.

Great post. Awesome.

That's awfully nice of them to give out that. Is it a requirement of the AFL for the clubs to have this available to the public?
Yes it is - as a not-for-profit association, it's a requirement they provide such to any member of that organisation. Same as the annual report for a listed company. If you DM me your email I will send you a copy (3Mb)

Find it very interesting how steady merch sales are. Variations really only also match variations in cost of product to make (I assume that means we sell a similar amount and the cost of item changes to reflect cost of production).

Would have expected in a GF year those numbers would have spiked.
Ah, that's now they're presented. It's probably not what actually happened. It's actually a very sneaky way of presenting the results from sales, IMHO...

Originally, we had only Gross Sales - Cost Of Sales = Net Profit, then you could divide Net Profit by Gross Sales for the Gross Margin, which on average was 30.4% between 2012-2014.

Since 2015 we've presented a bit different: Now we're Gross Sales - Cost Of Sales = Net Profit plus some other Net Profit we got from Game Day and Online sales.

...which is fine, but it means we can't compare Gross Sales year-on-year anymore, especially since we don't know if the Game Day and Online gross margin % is the same as the 'normal' gross margins (there's no reason it wouldn't be, the product hasn't changed, just the sales channel)

So, if we apply the GM% for any given year against the total Net Profit, we get this instead:

grosssales.PNG


so i'd expect that the full year merch sales for 2017 were probably around $1.8M (the assumption being our merchandise isn't any more expensive to produce for sale than usual)


* working capital ratio a.k.a. quick ratio -> current assets divided by current liabilities, it's a measure of how able a company is to pay the debts which fall in the next twleve months (i.e., the immediate future)
 

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Ah, that's now they're presented. It's probably not what actually happened. It's actually a very sneaky way of presenting the results from sales, IMHO...

Originally, we had only Gross Sales - Cost Of Sales = Net Profit, then you could divide Net Profit by Gross Sales for the Gross Margin, which on average was 30.4% between 2012-2014.

Since 2015 we've presented a bit different: Now we're Gross Sales - Cost Of Sales = Net Profit plus some other Net Profit we got from Game Day and Online sales.

...which is fine, but it means we can't compare Gross Sales year-on-year anymore, especially since we don't know if the Game Day and Online gross margin % is the same as the 'normal' gross margins (there's no reason it wouldn't be, the product hasn't changed, just the sales channel)
The BLK effect
 

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I think the issues surrounding BLK are deeper than first mentioned , and earlier. There was discussion last year about how the financials looked fudged around merchandise because of uncertainty how BLK was written off.

The change in reporting method without an accompanying explanation should always be a matter of concern. Did the change come with an explanation? Going by your post it seems not
 

deaneus

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Thread starter Moderator #117
I think the issues surrounding BLK are deeper than first mentioned , and earlier. There was discussion last year about how the financials looked fudged around merchandise because of uncertainty how BLK was written off.

The change in reporting method without an accompanying explanation should always be a matter of concern. Did the change come with an explanation? Going by your post it seems not
It's been going on for a couple of years, so I'd have to look at the 14/15 statements i think.

Thanks for the explain RE BLK
 

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I thought I'd written it was strong, glad i didn't - it's not strong at all, as you mention the working capital ratio* is terrible, for a laugh i should put up Apple's balance sheet.
Our working capital along with cash & liquid investments were last robust in 2008, at which time, we had a positive working capital of $6,222,209 (a current ratio of 176%) along with cash & equivalents of $13,528,058.

Since 2008 our cash & equivalents was highest in 2014 at $833,205 and our current ratio has ranged between 24% & 53%. If I analyse 14 other clubs for 2017 (3 clubs still to report) only Collingwood, Hawthorn, Richmond & West Coast have current ratios that are positive or close to, that is close to or a positive working capital. Each of those 4 clubs have been positive for at least the last 4 years. In 2017 these 4 clubs had cash & equivalents that on balance day ranged from $9,881,528 for Richmond up to $63,863,163 for West Coast. The AFL itself on its 2016 figures had cash & equivalents of $86,821,000 and a current ratio of 189% or positive working capital of $69,001,000.
 

Lagi

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Only 4 clubs have positive ratios

Yikes

*must remember to look up North Melbourne*
To be precise its just 3 as Collingwood for 2017 was 95% but over ten years they are ok.

Yet to lodge for 2017 but it was 36% in 2016 which represents part of a gradual improvement since 2010 of 8%.
 

Iron

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I think the issues surrounding BLK are deeper than first mentioned , and earlier. There was discussion last year about how the financials looked fudged around merchandise because of uncertainty how BLK was written off.

The change in reporting method without an accompanying explanation should always be a matter of concern. Did the change come with an explanation? Going by your post it seems not
It could be that they wanted it to fit on one page.

And I'm only half joking.
 

deaneus

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Thread starter Moderator #123
The AGM is tonight

I emailed the club and got this:

******************

crows@afc.com.au


Fri, 15 Feb, 12:16 (13 days ago)

to me



Dear deaneus,

Thank you for your email to the Adelaide Football Club.

Both the AGM and Annual Members Meeting (6.00 pm) are being held on Thursday, 28th February 2019.

2018 Financial results will be released then and be available for members on the Club website shortly thereafter.

Kind regards
ADELAIDE FOOTBALL CLUB
******************************

So, first we'll hear of the results are tonight... AGM day, my favourite day of the year!

Who's going? Geoffa32 ?
 

Geoffa32

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The AGM is tonight

I emailed the club and got this:

******************

crows@afc.com.au


Fri, 15 Feb, 12:16 (13 days ago)

to me



Dear deaneus,

Thank you for your email to the Adelaide Football Club.

Both the AGM and Annual Members Meeting (6.00 pm) are being held on Thursday, 28th February 2019.

2018 Financial results will be released then and be available for members on the Club website shortly thereafter.

Kind regards
ADELAIDE FOOTBALL CLUB
******************************

So, first we'll hear of the results are tonight... AGM day, my favourite day of the year!

Who's going? Geoffa32 ?
Wont be going. Got to wash my hair.....


The best part about today is when we release the financial result and learn all about accounting from the Port Board.

It is like a CPA event.

Sent from my SM-G930F using Tapatalk
 
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Wont be going. Got to wash my hair.....


The best part about today is when we release the financial result and learn all about accounting from the Port Board.

It is like a CPA event.

Sent from my SM-G930F using Tapatalk
Hopefully they tell us why releasing the financials at 5pm on Friday would have been a better way to go.
 
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