News Crows buy professional eSports team - Update: SOLD

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crowtricolours

Team Captain
Aug 12, 2002
531
237
MORPHETT VALE
AFL Club
Adelaide
Other Teams
adelaide crows
A few new sponsorship deals ........

https://ministryofsport.com.au/adelaide-crows-bolster-esports-operations-with-two-new-deals/


 

Sanders

Horne of plenty
Nov 1, 2012
32,261
46,896
AFL Club
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A few new sponsorship deals ........

https://ministryofsport.com.au/adelaide-crows-bolster-esports-operations-with-two-new-deals/


Wow

Let it rain
 

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GreyCrow

TheBrownDog
Mar 21, 2016
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Would you expect that they have made a profit or loss on this?
After two years involved in esports, the transfer and sale of the Bombers’ OPL licence to Pentanet have importantly enabled the club to recognise an increase in the enterprise value of the asset.

I cant translate this - but it seems to me that its not a direct profit but the peripherals such as sponsorship money and fan engagement money

But I could be wrong
 

WaynesWorld19

Moderator
Nov 6, 2003
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Melbourne
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🇦🇺 🇦🇺 🇦🇺 West Adelaide
After two years involved in esports, the transfer and sale of the Bombers’ OPL licence to Pentanet have importantly enabled the club to recognise an increase in the enterprise value of the asset.

I cant translate this - but it seems to me that its not a direct profit but the peripherals such as sponsorship money and fan engagement money

But I could be wrong
Looks like trading profit, no .....but by reselling the license, they realised an asset profit, which also covered any trading losses
 

Relaxed

Senior List
Feb 3, 2019
197
374
AFL Club
Adelaide
Looks like trading profit, no .....but by reselling the license, they realised an asset profit, which also covered any trading losses
Sounds like they sold the asset/license for more than they paid, but lost money on the operations side.

Eg (figures made up)
Buy license for $500k
Operating cost per annum $250k (500k over 2 years)
Sponsorship income per annum $200k (400k over 2 years)
Sell license for $550k

Enterprise value of license $50k increase
Operating losses over 2 years $100k
Net loss $50k

If they made both a profit on the license side and from operations/sponsorships/engagement, they wouldn't bother selling, plus they would be screaming WE MADE A PROFIT in bold all over their press release.

"After two years involved in esports, the transfer and sale of the Bombers’ OPL licence to Pentanet have importantly enabled the club to recognise an increase in the enterprise value of the asset."

Just using accounting terminology re: ev of the asset to hide that they were making operational losses.
 

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