Strategy DEBT DEMOLITION CAMPAIGN

The Burger King

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Jun 21, 2019
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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.
If we are worried about the Port Club crowd and The Prince crowd we are f’ed.
 

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RussellEbertHandball

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If we are worried about the Port Club crowd and The Prince crowd we are f’ed.
It's all part of the mix. It's also used as a contrast to Richmond.

They got a shiny new facility, close to the MCG which has helped drive new revenue as their people could wonder over there post game, plus being close to the middle of Melbourne was easy to get to mid week, whilst still doing a debt reduction program.

It's there to show why we can't just do a carbon copy of what Richmond did and expect it to work the same way.
 

bomberclifford

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If we are worried about the Port Club crowd and The Prince crowd we are f’ed.
I agree with this in principle, but this s**t should have been sorted with profits from 2000 - 2005, instead we funded maxi LED screens at West Adelaide etc

We need to bed down our base and right now, that is at Alberton. That should be the first step in our future growth. ESPECIALLY now that the Port area is starting to gain some economic traction.
 

TeeKray

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At the end of the day, the discussion is where it's always been - our core business is putting on games of football and because of a terrible stadium deal we're unable to make sufficient profit out of this arrangement. Until this changes, we'll always be battling to keep our heads above water.
 

Lockhart Road

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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.
Norts, eh. Oh boy. Why am I not surprised.

He won’t be supportive of anything new or progressive that sounds like extra brainwork and toil for him.

And that judgement applies to far too many oppos at the Club.

They see quicksand everywhere it isn’t.
 

Waspy79

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But also, do we really ******* believe the afl couldn’t/shouldn’t pay off that debt. The salary cap is over 10 million per club, and how many millions are going to GC?

It’s just a way of keeping the powerful clubs powerful, and the small clubs small.
In 2018 the AFL distributed $22.8m to both GWS and the Suns. Port was 8th on the list, with a sum of $14.7m.
 

Enviable Tradition

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Oct 12, 2007
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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.
They could literally loudly declare that they will "never give in" on the prison bars and promise to fight for it every year and get more support from the members without ever achieving actual change on the prison bars issue.

The members want to be heard and know that they are fighting tooth and nail for it.

We don't necessarily expect them to win and certainly not in the short term but we want to know they are fighting.

"we concede that there can be honour in defeat, but to each of us, honourable defeat of our club AND GUERNSEY can only come after human endeavor... is completely exhausted".
 

bomberclifford

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They could literally loudly declare that they will "never give in" on the prison bars and promise to fight for it every year and get more support from the members without ever achieving actual change on the prison bars issue.
You get it.
 

Enviable Tradition

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You get it.
It's not that hard.

My co-director and I have just added to our companies strategic plan that each of us get enough strategy and governance training and experience over the next 3-5 years that we are sufficiently qualified to run for a role on the board of our respective teams.
 

El_Scorcho

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They could literally loudly declare that they will "never give in" on the prison bars and promise to fight for it every year and get more support from the members without ever achieving actual change on the prison bars issue.

The members want to be heard and know that they are fighting tooth and nail for it.

We don't necessarily expect them to win and certainly not in the short term but we want to know they are fighting.
You've absolutely nailed it, and the antithesis of this is the current regime's MO of expectation management. We don't think we can achieve something so we'll try to tell our members it's not a reasonably achievable or important achievement.

Just go into bat for us. That's all we ask.
 

Kenny_Powers

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Oct 11, 2017
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Hi all, long time bigfooty lurker, but thought I'd make comment on this thread. I'm a member and FWIW I'd be right behind this debt demolition campaign if it's to get off the ground.

The current club admin obviously has a fair bit to answer for as to why we're in $11m in the hole. I'm sure there's some complexity to the issue, as well as some extenuating circumstances, but the buck stops with a few individuals and some will have to fall on their sword.

Hinkleys big bucks contract and the failure to make finals, and any finals dollars, year after year, would surely also be contributing, not to mention the drop off in crowds.

Fact is though that the big successful clubs have $$ to spend, I don't wanna see Port hamstrung by money going forward.

I'd like to think, despite the feeling of utter frustration & disenchantment among the faithful, that we could all really help the club out. It belongs to us at the end of the day.
 

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RussellEbertHandball

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We struggled to raise more that $1.1m in 2011 when we did a Back in Black debt demolition plan and big footy members contributed to it with $6,500 contribution - and the SANFL tried to make us use it for normal expenditure. The aim was to wipe out $3m of debt.

Richmond took 3 years to pay off $4.5m.

We will need to take 4 or 5 or 6 years to pay off $8m. I'm all for an effort but lets not kid ourselves that we can do it over 1 or 2 years.

I did suggest that we pitch it as pay 1 extra years membership of $400 and 20,000 adult members would raise $8mil. But getting 20,000 adult members to contribute in one year ain't easy.
 

chiwigi

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Apr 9, 2009
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They could literally loudly declare that they will "never give in" on the prison bars and promise to fight for it every year and get more support from the members without ever achieving actual change on the prison bars issue.

The members want to be heard and know that they are fighting tooth and nail for it.

We don't necessarily expect them to win and certainly not in the short term but we want to know they are fighting.

"we concede that there can be honour in defeat, but to each of us, honourable defeat of our club AND GUERNSEY can only come after human endeavor... is completely exhausted".
That’s literally all we’ve ever asked!
 

The Burger King

Debutant
Jun 21, 2019
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We struggled to raise more that $1.1m in 2011 when we did a Back in Black debt demolition plan and big footy members contributed to it with $6,500 contribution - and the SANFL tried to make us use it for normal expenditure. The aim was to wipe out $3m of debt.

Richmond took 3 years to pay off $4.5m.

We will need to take 4 or 5 or 6 years to pay off $8m. I'm all for an effort but lets not kid ourselves that we can do it over 1 or 2 years.

I did suggest that we pitch it as pay 1 extra years membership of $400 and 20,000 adult members would raise $8mil. But getting 20,000 adult members to contribute in one year ain't easy.
100%.

This would not be a one year thing. It would have to be pitched, for example, as a 5 year goal.

Raising $1.1m in 2011 is actually staggering and impressive considering how few people were engaged at the time.

Money raised for the campaign would have to be specifically targeted at the debt. In no way could it be used for regular expenditure.

Every membership sold would come with an optional donation to the debt campaign. One game of the year could be a "demolish the debt" game. You could have an annual raffle to demolish the debt. Auction to have some players over for a BBQ. These are just ideas off the top of my head. Redirect the bequests to the debt as they are unpredictable and should not be factored into cash flow.
 

JUSTWORK

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We could hold a debt demolition lottery. Possibly members only, or maybe some member only prizes.

Approach current and previous sponsors (e.g. renault, ideally cars, maybe a F1 package given they have a F1 team) or possibly new 'one off' lottery partner/sponsors (such as other manufacturers, not necessarily cars.) to see if they'd donate prizes (or maybe sell at a significantly reduced price such as a car). What these companies would actually get for their donations we'd have to consider to make it appealing, plaster them over social media, logos around the club ect as spots on the guernsey obviously not an option here.

Game day prizes, go into the rooms pre game, speak to coaches. other possibility that may not work because of sensitive information maybe listen to pre game addresses, 1/4 time adress (JLT only) sitting in the coaches box (JLT or an U23 only style game, but the club probably wouldn't want to do this because of strategy being discussed)

Package to attend the china game.

Include 'tickets' to watch a SANFL game from the balcony with the players at SANFL matches

limited edition 150yr anniversary memorabilia, golf with players and/or coaches, dinner with players, being involved with training, membership upgrades, tickes to game day functions. etc.

Very optimistically speaking, average 1 ticket per member @ $100 going to bring in over 5 Mil. Clearly thats very very ambitious but you get the idea.

How many tickets we could sell would largely depend depend on what quality of prizes we could organise. Realistically, the above is probably asking too much and everyone wouldn't but tickets. If we could sell 20K tickets at 50 a ticket that still 1 Mil.
 

Interstater

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Jun 7, 2015
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Here's an idea for you.

Hold a silent auction to toss the coin at a home game.
Top 11 donators win the honour, with #1 being at our last home game.
 

Forzaport

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We struggled to raise more that $1.1m in 2011 when we did a Back in Black debt demolition plan and big footy members contributed to it with $6,500 contribution - and the SANFL tried to make us use it for normal expenditure. The aim was to wipe out $3m of debt.
Haha, I had forgotten.

That's why a debt demolition won't work. Any money raised and the SANFL will try to appropriate it. We're better off going hard in the other direction. Leave Hinkley coach and let our AFL-appointed and conflicted board deal with the debt. Port supporters shouldn't be tasked with quenching the SANFL's thirst.
 

The Burger King

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Haha, I had forgotten.

That's why a debt demolition won't work. Any money raised and the SANFL will try to appropriate it. We're better off going hard in the other direction. Leave Hinkley coach and let our AFL-appointed and conflicted board deal with the debt. Port supporters shouldn't be tasked with quenching the SANFL's thirst.
We have administrative independence from the SANFL now.
 

chiwigi

I’ll make tears from your Wines.
Apr 9, 2009
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I will not put a penny into any debt demolition without some strong caveats as we seem to just keep getting into debt over and over again, no matter what we do!

The caveats would be a huge increase in the fans voice, regarding primarily the issues over heritage and identity, as well as promised transparency on any issues that may get us into debt again.

Those running the club who believe they know better have proven themselves wrong over and over and over and I’m sick of it.
 

The Burger King

Debutant
Jun 21, 2019
113
392
AFL Club
Port Adelaide
I will not put a penny into any debt demolition without some strong caveats as we seem to just keep getting into debt over and over again, no matter what we do!

The caveats would be a huge increase in the fans voice, regarding primarily the issues over heritage and identity, as well as promised transparency on any issues that may get us into debt again.

Those running the club who believe they know better have proven themselves wrong over and over and over and I’m sick of it.
Fan caveats for handouts would be a lot better than potential worst case scenario AFL House caveats.
 

RussellEbertHandball

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Interesting from Rucci today.

"PAFC gets $2.40 from catering for every fan who comes through the turnstiles at Adelaide Oval."
John Olsen stated that in his submission to the Parliament Select Committee inquiry into the hotel at the AO in late March and Rucci reported it this article a month later.


It was $2.00 when the 2015 stadium deal review was implemented and went up to $2.40 after the 2017 season review.
 

RussellEbertHandball

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100%.

This would not be a one year thing. It would have to be pitched, for example, as a 5 year goal.

Raising $1.1m in 2011 is actually staggering and impressive considering how few people were engaged at the time.

Money raised for the campaign would have to be specifically targeted at the debt. In no way could it be used for regular expenditure.

Every membership sold would come with an optional donation to the debt campaign. One game of the year could be a "demolish the debt" game. You could have an annual raffle to demolish the debt. Auction to have some players over for a BBQ. These are just ideas off the top of my head. Redirect the bequests to the debt as they are unpredictable and should not be factored into cash flow.
The issue with the 2011 Back in Black campaign was that it started with the club wanting $5,000 pledges to try and make a big impact early and people/businesses would be acknowledged in several ways including on an honour board which is in the stair area at the Port Club when you go to the upstairs function area.

People on the BigFooty Port wanted to get involved and we put in $200 and we had about 30 contributors, someone put in $500 and we became part of the group that got officially honoured as we donated $6,500. This was the start of BigFooty people and the club talking.

I had some discussion with the club how they could use the Big Footy model to look at syndicates being formed to contribute.

The club then looked at those who could pledge $1,000 and a few of the Supporter Groups from around Oz who couldn't raise $5,000, raised $1,000 and were acknowledged.

The club was going to extend it for smaller amounts for the average members as the goal was $3m, but then the s**t hit the fan on the field where we started losing badly and then the SANFL wanted to shut us down.

This time round the club has to start with the average fan/member and run a two or three track strategy with the corporates and wealthier supporters contributing at the same time - we have a lot more debt to demolish.
 

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