News Crows buy professional eSports team

crowtricolours

Team Captain
Aug 12, 2002
531
237
adelaide
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/


 

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Sanders

Brownlow Medallist
Nov 1, 2012
26,962
36,548
AFL Club
Adelaide
A few new sponsorship deals ........

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


Wow

Let it rain
 

GreyCrow

Hall of Famer
Mar 21, 2016
48,406
71,278
Down South Corvus Tristis
AFL Club
Adelaide
Other Teams
Sturt, Redskins , White Sox
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
 

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WaynesWorld19

TheBrownDog
Nov 6, 2003
73,474
71,198
Baghdad
AFL Club
Adelaide
Other Teams
West Adelaide, Baghdad Bombers
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

Debutant
Feb 3, 2019
138
217
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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