Strategy DEBT DEMOLITION CAMPAIGN

RussellEbertHandball

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what is our total debt currently?
The club hasn't released that, and nobody really knows unless they have access to the club's general ledger, but Rooch reckons its $11m.

That's consistent with $8m debt on the books in the 2018 accounts, and the 2019 automatic renewal membership fees being paid in advance on 17 October since 2017 rather than on 17 November. Take away that $3.5m paid in advance and our small $700k cash at bank becomes an over draft of $2.8m on 31st October 2018. [Note there is $4m cash sitting in the a bank trust a/c but these monies are a government grant to only be used to build the ACE]
 

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RussellEbertHandball

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Damn. What do we know about the breakdown of our revenue streams?
Not much. This is the minimalist crap the club hands out at the AGM I scanned into the AGM thread


And if you pay ASIC $19 maybe it was $38, you get the official full accounts but they limit that info on revenue breakdown to the following

731660
 

Sleezy

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Not much. This is the minimalist crap the club hands out at the AGM I scanned into the AGM thread


And if you pay ASIC $19 maybe it was $38, you get the official full accounts but they limit that info on revenue breakdown to the following

View attachment 731660
So revenue from AFL, Matchday & Merch is $19.8m.

Assume football revenue is memberships, sponsorships etc.

We know what our AFL distribution is (~$14m from memory), so ~$6m is Matchday/Merch.

Our home crowds in 2018 were 420500, which means our $/attendee is presumably less than $14 a head.
 

The Burger King

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But that doesn't mean Ross Wait, Pauly V and directors of the PCL, who aren't directors on the footy club board cant spend time trying to find these funds. They don't take away from the footy department effort.
Any money that these guys find isn't taking away from the football department in any way.

This money would never be given to the football department in the first place.

Important to keep in mind before attacking Pauly and Ross.
 

RussellEbertHandball

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as requested transferred to this thread- I was looking for something for Sleezy in the Debt Demolition thread and read the following stuff I wrote on page 10. Koch said a whole lot of stuff was unacceptable in February. Well it has hasn't improved.

Lets see if they back up their strong words with strong action.


..... Spent a bit of time going on about debt levels being stabilized, put up a bar chart graph on the slide with no real increase for 4 years, but I had to laugh as the Current + Non Current Liabilities items of Interest bearing loans and borrowings, had gone up from $6.261m in 2017 to $8.279m yet in the cash flow statement it said we paid off $182k of short term borrowings and finance lease. Absolutely no explanation of this discrepancy. See my comments below.

Said we had no room for error.

Said not getting a second Joint Major Sponsor was a MAJOR FAILURE and was a big driver in our poor financial result.

Said they had got a strong message about both on field and off field results and it was kick up the back side from the supporters.

Said we couldn’t absorb the loss of a 2nd JMS and our lower crowds. Said On Field results impacted our Off Field results.

Talked about the $3 million we have had to pay to the SANFL to underwrite the move to AO for 5 years and that was renegotiated with the SANFL ( ie as part of the 2017 review) and 2018 year was the last year of paying $600k, so in 2019 that $600k cash will be applied to debt reduction which they are budgeting for $1 mil reduction per year for the next few years.

Finished off his speech the strong point we had 61,460 paid up members in 2018, not free members and made up members, without mentioning names.

Koch’s tone was quiet forceful I thought. Said the club is not happy with the past year, it’s not acceptable, we have made big changes to improve things. I would have liked to have been around, to hear the tone of the questions and responses, and to Ken’s talk.........
 
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RussellEbertHandball

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Any money that these guys find isn't taking away from the football department in any way.

This money would never be given to the football department in the first place.

Important to keep in mind before attacking Pauly and Ross.
I hope it didn't come across as I was attacking Pauly or Ross. That's wasn't my intention as what they do is great and they don't take anything away from the footy department - they add significantly to our club.

People attack the community stuff because Koch and KT make it look like the footy department is funding them, which as you wrote, isn't the case.

My comment was about the CEO and board spending time trying to find $15m to fund this non core activity to build the ACE. Now isn't the time for them to devote their energies to it. They have to fix up core business first.

My comment was that whilst CEO and board are looking after footy, Pauly, Ross and the PCL board should still be out there chasing funds to build the ACE. Pauly is talking to a colleague of mine about private sector and government funding.
 

The Burger King

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I hope it didn't come across as I was attacking Pauly or Ross. That's wasn't my intention as what they do is great and they don't take anything away from the footy department - they add significantly to our club.

People attack the community stuff because Koch and KT make it look like the footy department is funding them, which as you wrote, isn't the case.

My comment was about the CEO and board spending time trying to find $15m to fund this non core activity to build the ACE. Now isn't the time for them to devote their energies to it. They have to fix up core business first.

My comment was that whilst CEO and board are looking after footy, Pauly, Ross and the PCL board should still be out there chasing funds to build the ACE. Pauly is talking to a colleague of mine about private sector and government funding.
I understand where you were coming from. Others are far less nuanced.
 

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TeeKray

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RussellEbertHandball what is the possibility of this being a pinned thread. It's arguably the most important issue at the club for the mid and long term future.
Admin don't like us to pin more than 4-6 threads at a time.

This is a good and important discussion but at this point it's just that - a discussion. If it evolved into some sort of concerted and organised campaign at some point, I'd be happy to sticky it.
 

Adz2332

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:whitecheck: INDEPENDENCE FROM SANFL
:whitecheck: LEAVE FOOTBALL PARK
:whitecheck: REUNIFY CLUB
:circle: REMOVE DEBT TO AFL HOUSE

I'd prefer to fork out extra money now to avoid being an also ran for decades to come. The administrators need to swallow their pride and go to the fans to "Demolish the Debt" like Richmond and the Western Bulldogs.

Added to start of thread.
what did WB and Rich specifically do?
simply just ask the members for donations?
 

The Burger King

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what did WB and Rich specifically do?
simply just ask the members for donations?

"THE Western Bulldogs are set to launch an aggressive bid to wipe off their $5 million debt.
Supporters will soon be asked to contribute to a "Bulldoze the debt" appeal, with the club hopeful of clearing its books within three years.
Bulldogs chief executive Campbell Rose yesterday described the task as a "mountain of gigantic proportions", but is confident it is achievable.

Servicing the $5 million debt costs the Dogs about $480,000 a year in interest, hampering the clubs' ability to keep up with others clubs' football budgets."
 

Lockhart Road

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Admin don't like us to pin more than 4-6 threads at a time.

This is a good and important discussion but at this point it's just that - a discussion. If it evolved into some sort of concerted and organised campaign at some point, I'd be happy to sticky it.
In my mind it goes hand in glove with the BBTB Campaign, as demolition of our debt makes our Club stronger, our voice louder, and our foot bigger in the AFL’s door and heavier up Eddie’s backside.

chiwigi bomberclifford
 

Enviable Tradition

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:whitecheck: INDEPENDENCE FROM SANFL
:whitecheck: LEAVE FOOTBALL PARK
:whitecheck: REUNIFY CLUB
:circle: REMOVE DEBT TO AFL HOUSE

I'd prefer to fork out extra money now to avoid being an also ran for decades to come. The administrators need to swallow their pride and go to the fans to "Demolish the Debt" like Richmond and the Western Bulldogs.

Added to start of thread.
Launching a debt demolition with Ken as coach, 2 captains and no prison bars beyond 2020 is a waste of time.

Launching a debt demolition on the back of a new coach, single captain and a promise to "never give in" on the bars...

Take my money.

On SM-G960F using
BigFooty.com mobile app
 
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The Burger King

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$50 million in turnover and we’re basically insolvent thanks to the stadium deal. Another great result for the club’s leadership.
It is no suprise that the bar was set higher at Adelaide Oval and the marker was basically our largest ever home average at Football Park and the Crows lowest ever average.

If a little bit of leeway was given at Adelaide Oval that made us profitable with 30,000 crowds instead of 35,000 then we would have made substantial money in 2014 and 2015.
 

bomberclifford

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In my mind it goes hand in glove with the BBTB Campaign, as demolition of our debt makes our Club stronger, our voice louder, and our foot bigger in the AFL’s door and heavier up Eddie’s backside.

chiwigi bomberclifford
Our issue here is the powers that be within the club, don't see the nuanced scope of the BBTB campaign. They just see antagonistic supporters asking for something that they can't deliver, so they want to quell us with 'surface' change and the appearance of action.

From our meeting, the one I'm most concerned about is Daniel Norton. He seemed the one who was least able to grasp the concept that the issue isn't a literal one of 'we either wear the bars every week or it's a fail'. I think if I can get into a one on one with him to talk about long term strategy, I might be able to convince him.

I've said this many times before, but the value in BBTB is the galvanising effect of supporters, both committed and latent, having a banner under which to voice their concern for what is happening to our club. The PBs have the potential to become a very potent symbol of the fight for our self-determination within the constraints of the AFL system, as per every other club.

That our media manager and ex 'brand manager' couldn't see this as a thing to be supported and harnessed is an indictment on them.

I am confident though that Richo and Ben do see the value in it, and once the intensity of the coaching situation, and our dead season, is over, I'll reconnect and see what I can make happen.
 

RussellEbertHandball

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what did WB and Rich specifically do?
simply just ask the members for donations?
Here is something from Richmond at end of year 1 of a 3 year campaign.

At the end of 2017 I did a 11 year spreadsheet of Richmond's key financial data as The Wookie linked their annual reports going back to 2007 with 2006 comparable figures.

They had $4.9m debt in 2009. They paid off $400k in 2010 and launched the campaign at the end of 2010. The above story is in September 2011. They paid off $1m in 2011, $1.53m in 2012 and the balance of $1.97m in 2013 and have been debt free since then.

But 2 important things happened in that period and before those 3 big years of debt demolition.

Richmond were already making solid profits - $0.95mil in 2007 and $1.03mil in 2008.

Then they built their new facility at Punt Road. In the middle of 2006 the AFL announced 8 of the Vic based clubs would get facilities upgrade as the AFL had negotiated with the Vic government and councils to make significant contributions, the AFL chipped in at least $1m per club, and the clubs all chipped in between $1m and $3m. Geelong didn't get any as they had their recently completed Kardinia Park upgrade and the Bulldogs negotiated $10m out of Howard government in lead up to 2004 election for their facility.

Richmond's was initially a $6.5mil new facility, which they made it a $17mil redevelopment and got about $14m from government grants. Start building it at end of 2009 season. So it gave them a shiny new facility close to the centre of Melbourne that they could use for functions to drive corporate revenue, fundraising functions and an improved revenue generating facility in general.

They were still making $1m profits in 2008 and 2009 and 2010 when being poor on the field, and before adjustment for the government grants and writing off buildings to be demolished at Punt Road and the license of their pokies venue. They continued to make $1m profits before the debt reduction funds added to the bottom line.

Richmond were able to run a debt reduction program, plus add to their general profitability between 2010-13 years and then have become a very profitable club.

That is part of Port's problem. If we have a debt demolition drive, do we cannabalise our normal revenue streams from members re buying memberships, merchandise, attend Maggies games, spend money at the Port Club and The Prince, etc that we need to just break even.
 

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