Toast Dees achieve second profit in a row

[RandB]

Well here it is, the annual report (link at bottom of article), and it looks like a solid result.

THE MELBOURNE Football Club is pleased to announce its second successive profit with a 'normalised' operating profit of $724,458 for the year ended 31 October 2010. This follows last year’s operating profit of $20,051.

I haven't gone through all the statements yet but they should be an interesting read and comparison to other clubs.

 

[cannons]

Does this include the debt demolition money?

 

[RandB]

Does this include the debt demolition money?

No

Our Net Profit as per SCI is $3,525,345 which includes $1,311,925 of DD funds.

After DD, stadium income and grants are deducted we are left with that figure of $724,458.
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Of note is our turnaround from having -ve equity of (3,210,403) to being in the black to the tune of $314,942. By our standards this is a huge step in the right direction but the hard work to building our asset base begins now. To give an idea, Hawthorn (unconsolidated) have total equity to the tune of $19.5 million.

 

[Demonheart]

It's a good news story from start to finish. Increase in total revenue ($6m), balance sheet bottom line increased by $3.5m, cashflow improved etc.
Basically the club is stronger in every aspect compared to the previous year.

Oh, and obviously the profit!!

 

[RandB]

It's a good news story from start to finish. Increase in total revenue ($6m), balance sheet bottom line increased by $3.5m, cashflow improved etc.
Basically the club is stronger in every aspect compared to the previous year.

Oh, and obviously the profit!!

Yep, very important.

Part of that increase was due to a grant of $1.6mill which we didn't receive the period before but pleasingly a big chunk of it was due to increased gate takings of $2.6 mill and membership and reserved seating of $800k

We don't have the best draw next yr from a corporate pov but hopefully we can at least break even with more members and continue to grow other revenue streams so that our overall net profit remains healthy.

 

[TheBoss]

We don't have the best draw next yr from a corporate pov

On what basis are you drawing that conclusion from? We have more night games in 2011

 

[RandB]

On what basis are you drawing that conclusion from? We have more night games in 2011

On the rough chance that you are actually interested and not just doing the rounds:

The comment was squarely in context of gate takings.

First and foremost, 7 of our 11 home games are against interstate teams - one of them being played in Darwin.

Second, the Thursday night game and 2 of our 3 Friday night games (which are the money makers) are away games. Our Saturday night home game is against Port in Darwin - hardly a money spinner apart from the obvious proceeds for playing there.

Thirdly, 2 of our 7 "night" games are sunday twilight matches with 1 being a home game - hardly money spinners.

Of our 7 "night" games there is only 1 game where the club could pencil in a significant gate taking and that is our Friday night home game against Carlton in round 10 which should be a cracker of a game.

This year we played I think at least 2 more Vic teams as home games. If we end up on par next year with this year we would have done very well.

From a competitive pov our draw is fantastic and we will admittedly get exposure from the Friday night games but gate takings will struggle to a certain extent.

 

[Punchy Demons]

Great news to see a second consecutive profit.
The plaudits should be with Jimmy, Schwabby and the Melbourne members.
Bring on 2011.

 

[demonfan9]

A couple of interesting notes:

- We officially made $4.3 million from DD over the past three years, once you deduct outstanding pledges and related expenses. So terrific effort that by all supporters and Foundation Heroes.

- We increased football department spending by $1.7 million this season, which is vital in the development and improvement of our team. I'm sure we're still in the lowest quartile across the league, and if we want to be the best then we need to keep spending.

- Our revenue from memberships, merchandise, reserved seating and corporate sponsorship increased $1.7 million from last year. All good signs, but we need to build on this momentum and increase our revenue streams even more.

 

[Demon 16]

On the rough chance that you are actually interested and not just doing the rounds:

The comment was squarely in context of gate takings.

First and foremost, 7 of our 11 home games are against interstate teams - one of them being played in Darwin.

Second, the Thursday night game and 2 of our 3 Friday night games (which are the money makers) are away games. Our Saturday night home game is against Port in Darwin - hardly a money spinner apart from the obvious proceeds for playing there.

Thirdly, 2 of our 7 "night" games are sunday twilight matches with 1 being a home game - hardly money spinners.

Of our 7 "night" games there is only 1 game where the club could pencil in a significant gate taking and that is our Friday night home game against Carlton in round 10 which should be a cracker of a game.

This year we played I think at least 2 more Vic teams as home games. If we end up on par next year with this year we would have done very well.

From a competitive pov our draw is fantastic and we will admittedly get exposure from the Friday night games but gate takings will struggle to a certain extent.

Good posting RB - all your points are good ones.

The one thing Ill say about this draw is that it appears favourable from a win/loss perspective, and if that ultimately gets us into the finals that would be a bigger financial windfall than most of the above.

 

[SweetLeftFoot]

Great work.

Quick question: how much a year do you now save/have added to the bottom line having wiped out your debt ... as in the interest payments?

 

[Ageing Demon]

Great news to see a second consecutive profit.
The plaudits should be with Jimmy, Schwabby and the Melbourne members.
Bring on 2011.

Agree 100% PD, heard Schwabby on SEN this morning.
What a gem he is, with him at the helm I feel confident we will prosper over the next ten years.
when you compare him to a couple of the previous CEO's you get an inner glow.
Makes me glad JS got rid of his predecessor so quickly.

 

[Captain Jack]

Great work.

Quick question: how much a year do you now save/have added to the bottom line having wiped out your debt ... as in the interest payments?

From what I can decipher (not a financial person by any stretch) about 10k in the past FY...

Finance costs 09-10 (74,472) 08-09 (84,492).

Doesn't seem like much, but I reckon it would have been heaps more in 07-08 and earlier... it all adds up I guess.

And apparently the MFC's financial year ends on Oct 31... makes sense.

 

[Captain Jack]

or otherwise....

Financial Liabilities

Bank overdraft - 89,038
​

Commercial bills (floating interest rate) - 1,530,000
Total liabilities - 1,619,038
​

Net exposure 807,777 (1,249,665)


1.5 million in interest payments saved ??? ... someone with more nous step in to sort this out lol

 

[RandB]

Great work.

Quick question: how much a year do you now save/have added to the bottom line having wiped out your debt ... as in the interest payments?

Well the debt was paid off over 3 yrs and this year's report discloses cash outlays on interest baring liabilities as (74,472) for the reporting period and (84,492) for the previous period.

At the start of the reporting period (1/11/09) the interest bearing liability was $1,530,000 and the DD website stated remaining debt as $767,000 and I'm pretty sure that was updated first (stand to be corrected) so not sure what's going on there - guessing the DD website was more liberal and included pledges and payments which hadn't yet been paid on the liability.

Total Finance costs for this year is listed as the same as the cash outflow component so they must be the actual interest amounts for the period.

I can't find the annual reports for '07 and '08 (someone on here might have them) but they would give a good before and after snapshot of the influence DD had in the first year when over $2 mill was raised.

Edit: Just found the 09 annual report. Interest bearing liabilities as at 31/10/08 were $2,045,000 and finance costs for the period were $272,095. When you consider that the DD launch made over $2 mill on 6th August 2008 and assumably most of that would have been paid asap we're talking nearly 3 months worth of interest being deducted so I think it is fair to say before DD we were looking at well over 300k per year.
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On a side issue, the club has updated its corporate page - much better.

 

[SweetLeftFoot]

Cheers for that. That's money you can plough straight into the footy dept or revenue raising efforts. Hope our debt reduction is a successful as yours.

 

[RandB]

Cheers for that. That's money you can plough straight into the footy dept or revenue raising efforts. Hope our debt reduction is a successful as yours.

As long as you keep reducing it over time is the main thing. Whether it takes 3 yrs or 4yrs is academic as long as you take out a big chunk initially which really helps.