Toast Crows 2015 Profit: $1.5 million

[1970crow]

True. But if we're having a bad year, reduce the life of those assets to 5 years. If you're gonna make a loss make it big. People will forget in 12 months anyway. Then you can revise again 12 months later and extend out that life, book a lower depreciation and voila, profit.

Mucking around with your depreciation rates to manipulate profit will get you caught out. That's why they report pre depreciation surpluses, but it's an important component of financial performance which is why they don't screw around with the rates.

But if the previous owners of Dick Smiths can get away with something similar, then the AFC should be fine. But no self respecting club board or CEO would. And there's no $500m payday at the end of it, just embarrassment.

 

[relapse]

We charge less for memberships, you charge less for coaches.

Yet last year the Port supporters were trying to claim that we were supposedly paying Phil Walsh $1,000,000 a year to coach us, now it's apparently that we're saving money by spending less on coaches ??

I swear half the time that you guys just make up whatever suits your argument at the time.

 

[hey shorty]

Yet last year the Port supporters were trying to claim that we were supposedly paying Phil Walsh $1,000,000 a year to coach us, now it's apparently that we're saving money by spending less on coaches ??

I swear half the time that you guys just make up whatever suits your argument at the time.

One would argue we get faaaaaar better value for money on that front.

No one wants to go there unless they're paid a mint.

 

[Kane McGoodwin]

Yet last year the Port supporters were trying to claim that we were supposedly paying Phil Walsh $1,000,000 a year to coach us, now it's apparently that we're saving money by spending less on coaches ??

I swear half the time that you guys just make up whatever suits your argument at the time.

Only half the time?

 

[Kane McGoodwin]

One would argue we get faaaaaar better value for money on that front.

No one wants to go there unless they're paid a mint.

It's how they claim to be a "destination" club...

 

[SydCrow]

We are the fifth most profitable football club in Australia according to the AFR.

 

[Kane McGoodwin]

We are the fifth most profitable football club in Australia according to the AFR.

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Back where we belong as a power club... But we have some catchup to do on the weagles, who are miles in front. That's where we used to be prior to the complacent Trigg years.

 

[hey shorty]

Melbourne Victory doing pretty well, far better than any other A League club

 

[Eagleboy2011]

We are the fifth most profitable football club in Australia according to the AFR.

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Ports revenue is significantly higher than the AFC yet they just made a profit. If they could reduce spending to AFC level their profit line would be the best in the AFL.

 

[Pdub]

I still think profit is a pointless way of measuring non-profit organisations like football clubs.
West Coast made 5.5m profit but if they thought spending that money would improve the football club, they would and they would be down near port on that list, despite being in arguably a better position than they are now.

It's no co-incidence that the two clubs with the biggest profits are two clubs planning new training facilities, because they have planned to spend money in the future rather than the present. I would bet Collingwood could post equal profits to Hawthorn and WCE if they wanted, but since they aren't planning on moving training bases, they spend their money as it comes in on improving their existing facilities and improving staff.

A well run football club should post a small profit, because they accurately predicted what their income would be and used every dollar they could to improve the club. Unless of course they are saving for a large purchase in the coming years.

Money in the bank doesn't win premierships.

 

[Kane McGoodwin]

I still think profit is a pointless way of measuring non-profit organisations like football clubs.
West Coast made 5.5m profit but if they thought spending that money would improve the football club, they would and they would be down near port on that list, despite being in arguably a better position than they are now.

It's no co-incidence that the two clubs with the biggest profits are two clubs planning new training facilities, because they have planned to spend money in the future rather than the present. I would bet Collingwood could post equal profits to Hawthorn and WCE if they wanted, but since they aren't planning on moving training bases, they spend their money as it comes in on improving their existing facilities and improving staff.

A well run football club should post a small profit, because they accurately predicted what their income would be and used every dollar they could to improve the club. Unless of course they are saving for a large purchase in the coming years.

Money in the bank doesn't win premierships.

We need to start making healthy profits to save up for our next training facility in town... As well as somewhere for the fans to congregate before & after home games, during away games & other occasions.

Ie. To build up our balance sheet with useful asset base which further the club & supporter base, as currently we are asset poor, except our training facility.

 

[Paladin]

Ports revenue is significantly higher than the AFC yet they just made a profit. If they could reduce spending to AFC level their profit line would be the best in the AFL.

It's an irrelevant comparison because over 10million of Ports revenue is it's 2 hotels which provide no profit. I'm sure if they could cut spending or increase profit they would at the pubs but it's not happening. Location is awful, Alberton oval!

Take them out of the equation the AFC has higher revenue, higher sponsorship, membership $ and is more profitable. No point having all that extra revenue when it doesn't bring in a dollar, just risk and extra debt on the balance sheet.

 

[Papa G]

It's an irrelevant comparison because over 10million of Ports revenue is it's 2 hotels which provide no profit. I'm sure if they could cut spending or increase profit they would at the pubs but it's not happening. Location is awful, Alberton oval!

Take them out of the equation the AFC has higher revenue, higher sponsorship, membership $ and is more profitable. No point having all that extra revenue when it doesn't bring in a dollar, just risk and extra debt on the balance sheet.

This is true, but the value of having Alberton is not just about making money.

 

[Iron]

This is true, but the value of having Alberton is not just about making money.

Feel good factor isn't what's being discussed. Financial stability is.

 

[Papa G]

You do realise these figures are largely bullshit any rate. I mean Melbourne, North and Footscray have declared a profit for Pete's sake.

 

[Kane McGoodwin]

You do realise these figures are largely bullshit any rate. I mean Melbourne, North and Footscray have declared a profit for Pete's sake.

Yes, because we paid them money...

 

[Paladin]

This is true, but the value of having Alberton is not just about making money.

Correct and it's good for you guys to have. Just saying it's not as simple as Port cut costs = massive profit because of greater revenue. Membership and sponsorship revenue is very different to awkwardly located pub revenue. Collingwood lost 8 million on hotel investments not long ago.

 

[On The Crouch]

I still think profit is a pointless way of measuring non-profit organisations like football clubs.
West Coast made 5.5m profit but if they thought spending that money would improve the football club, they would and they would be down near port on that list, despite being in arguably a better position than they are now.

It's no co-incidence that the two clubs with the biggest profits are two clubs planning new training facilities, because they have planned to spend money in the future rather than the present. I would bet Collingwood could post equal profits to Hawthorn and WCE if they wanted, but since they aren't planning on moving training bases, they spend their money as it comes in on improving their existing facilities and improving staff.

A well run football club should post a small profit, because they accurately predicted what their income would be and used every dollar they could to improve the club. Unless of course they are saving for a large purchase in the coming years.

Money in the bank doesn't win premierships.

Just because clubs are posting big profits doesn't mean it is as simple as cash in bank. Those profits will be reinvested back into the clubs. The profits could be used to pay down significant debts, pay creditors, upgrade facilities or even new facilities. In addition, the AFL have brought in a cap on Football Department spending so it may be difficult for the bigger clubs to spend more as they may exceed that cap.

If you are making big profits you can increase your net assets and improve the financial stability of the club going forward.

Now that the AFC is buying back its AFL licence from the SANFL we will now be able to reinvest our profits into our club. There was a 13 year period where the AFC would keep making $1m plus profits however, most of the profits were distributed back into the SANFL. At least now we can look after the AFC's own interests and put the money to good use to turn ourselves back into a powerhouse again.

 

[Geoffa32]

Correct and it's good for you guys to have. Just saying it's not as simple as Port cut costs = massive profit because of greater revenue. Membership and sponsorship revenue is very different to awkwardly located pub revenue. Collingwood lost 8 million on hotel investments not long ago.

Port also increased their debt by $4.75m by way of a secured bank loan. Oddly enough their Assets decreased in 2015, mainly a decrease in Accounts Receivable/Trade Creditors. However Non Current Liability also decreased in that period.

http://footyindustry.com/files/2015 Reports/Port Adelaide Football Club Limited 2015 Annual Report.pdf



Hope they did not take out a bank loan to pay some bills that fell due.



Just on Footy clubs and pubs. A couple of years ago I was all for us getting a licenced facility, however the pub market in Adelaide is struggling at the moment. Not something I want us exposed to right now. A partnership with an established licence facility would be good though.

 

[Deaneus!]

Just on Footy clubs and pubs. A couple of years ago I was all for us getting a licenced facility, however the pub market in Adelaide is struggling at the moment. Not something I want us exposed to right now. A partnership with an established licence facility would be good though.

Partnership is the way to go. No sense in tying up our cash in an asset that won't perform. I've wondered if the Casino redevelopment has something in it for us, or if we've had chats with the Convention Centre to create a space for us.

 

[Pdub]

Just because clubs are posting big profits doesn't mean it is as simple as cash in bank. Those profits will be reinvested back into the clubs. The profits could be used to pay down significant debts, pay creditors, upgrade facilities or even new facilities. In addition, the AFL have brought in a cap on Football Department spending so it may be difficult for the bigger clubs to spend more as they may exceed that cap.

If you are making big profits you can increase your net assets and improve the financial stability of the club going forward.

Now that the AFC is buying back its AFL licence from the SANFL we will now be able to reinvest our profits into our club. There was a 13 year period where the AFC would keep making $1m plus profits however, most of the profits were distributed back into the SANFL. At least now we can look after the AFC's own interests and put the money to good use to turn ourselves back into a powerhouse again.

If they spend it, it won't be profit. So if they are up 1.5mil this year and they spend it all next year, then they will post a loss of 1.5mil next year because they spent 1.5 mil more than they earned.

They do a budget at the start of the year and decide how much to spend, and how much to save. The end of year profit/loss statement is just a decision made by the people running the club.

We posted a $1.4mil profit, but could easily have spent that money on some new fancy gym equipment, an altitude room or a couple assistant coaches and not post a profit and that would somehow mean our club is not doing as well?

 

[Kane McGoodwin]

If they spend it, it won't be profit. So if they are up 1.5mil this year and they spend it all next year, then they will post a loss of 1.5mil next year because they spent 1.5 mil more than they earned.

They do a budget at the start of the year and decide how much to spend, and how much to save. The end of year profit/loss statement is just a decision made by the people running the club.

We posted a $1.4mil profit, but could easily have spent that money on some new fancy gym equipment, an altitude room or a couple assistant coaches and not post a profit and that would somehow mean our club is not doing as well?

If we spent our spare cash on building upgrade or equipment, then only some of this would be depreciated this year in the p&l. Most would be capitalised as an asset.

 

[Cleric]

Back where we belong as a power club... But we have some catchup to do on the weagles, who are miles in front. That's where we used to be prior to the complacent Trigg years.

Agreed. One of the things about us that stuck in my craw was us falling from the most powerful AFL club down to treading water.
In the 90's we were it. The first club to make a mill profit, the first club to 50,000 members, the biggest sponsorship deals, the best player facilities. It was unacceptable how we fell.
For me theres no more tollerance for it.
Im happy with where we have gone in the last year. Its very positive and I want it to continue.

 

[Iron]

You do realise these figures are largely bullshit any rate. I mean Melbourne, North and Footscray have declared a profit for Pete's sake.

Yeah and they're financially audited so they're fine. It might be in Ports best interest to keep things small and steady to make sure you're still getting your tax handouts, but clubs care about different things and so long as no standards are broken, play on.

More importantly is that a teams statements are comparable on a year to year basis. They aren't built for dick measuring contests between clubs.

 

[On The Crouch]

If they spend it, it won't be profit. So if they are up 1.5mil this year and they spend it all next year, then they will post a loss of 1.5mil next year because they spent 1.5 mil more than they earned.

They do a budget at the start of the year and decide how much to spend, and how much to save. The end of year profit/loss statement is just a decision made by the people running the club.

We posted a $1.4mil profit, but could easily have spent that money on some new fancy gym equipment, an altitude room or a couple assistant coaches and not post a profit and that would somehow mean our club is not doing as well?

That is not necessarily the case. For example, the AFC could make a loan repayment of $1m but that does not reduce our profit by $1m as you can't claim the $1m loan repayment as a tax deduction. This would not affect the Profit & Loss Statement however it would affect the Cashflow Statement and the Balance Sheet.

The Profit & Loss Statement can also include non-cash items such as depreciation and provisions for annual leave and long service leave.

If you spend the money on new gym equipment you won't get a tax deduction for the full amount you have expensed. You could spend $1m on the equipment and that would have to be depreciated so you may only get a tax deduction of say $200k. The balance of $800k would be recorded as non-fixed assets and would not make it into the P & L statement until subsequent years when it is depreciated in those years.