- Jun 21, 2019
- AFL Club
- Port Adelaide
If we are worried about the Port Club crowd and The Prince crowd we are f’ed.Here is something from Richmond at end of year 1 of a 3 year campaign.
Richmond Football Club has confirmed it will wipe about $1million off if its debt this financial year thanks to the establishment of the Fighting Tiger Fund.www.richmondfc.com.au
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.