Freo in Financial trouble

[ImperialPurple]

Unfortunately that is also true

What that we a) sat our trade week, or that b) had we not made other "improvements" (ie to the coaching staff) that the club would have been canned for it? That wasn't clear.

If you mean the former - well yes. We sat out trade week. Nothing new in stating that.

If you meant the latter - a deficiency was noted, they addressed that deficiency and it was not cheap. Profit has been recorded two years in a row, we have a growing membership, record sales of merchandise, new sponsors....

The thing that shytes me, is that FFC have to pay as much as WCE for rental for Subi from 2007. WHY???

 

[Freo Big Fella]

The thing that shytes me, is that FFC have to pay as much as WCE for rental for Subi from 2007. WHY???

You have to love the logic of the WA Football Dons, charge the clubs the same rent when one club makes three times as much use of the oval.

 

[Slacker]

So basically the WAFC is worried that increased operating costs of their subsidiary will reduce revenue.

Wow, this is unprecedented!

 

[- PC -]

What that we a) sat our trade week, or that b) had we not made other "improvements" (ie to the coaching staff) that the club would have been canned for it? That wasn't clear.

Getting canned for not doing anything. Fremantle are in a no win situation. Until they win finals consistently then respect will only be a word in the dictionary.

 

[theferrett]

The standards within the this state is incredible. Drama with the yellow bellies and the booze bus and out of the blue comes this crap. Let the season begin.

 

[Dr Ralph Dagg]

It got leaked to everyone in the media.
Went out as a press release accidentally. Major stuff-up by the WAFC.

So the question I have is if the WAFC can't operate a fax machine/e-mail distribution list, how well qualified are they to make judgements about financial viability?

ATEOD, I think this is just an unfortunate incident. I'm not sure the club has not brought this on themselves by not submitting financial information. The club does have an agreement with its owners, the WAFC, to pay a certain level of rent, and have received concessions up to this point. I think its completely appropriate the WAFC would want to monitor the club's ability to meet the extra $500K in the future.

That's a different issue to the way its reported. Look at the title of the thread. Freo in financial trouble? I don't think so. But you could get that picture from the West report. For example, the article uses the term "lavish spending" but there is nothing in the article to substantiate such a term. In fact there is nothing in the article to suggest the WAFC is all that worried.

I didn't see 46's reporting but I'd bet it didn't include a response from the club. Balanced? Draw your own conclusions?

What can you expect really? In yesterday's West there was a small report about a 13 year old presumably Aborginal girl being accidentally shot in Laverton. In anyone's language an absolute tragedy. But the first five pages of the West are devoted to a how a wealthy, conceited, young footballer ran to avoid a drink-driving offence. Which is the most important, really?

 

[ThePope]

Interestingly, the article which I grabbed from the website was a bit different from the article that was in the paper yesterday on page 206.
It ended with the following quote from Fong.
"But our job is to receive a budget and a business plan for each of the AFL clubs and when we received the budget from Fremantle it was in the context of spending more money this year to ensure on-field success, that is obvious, with the coaching staff"

So our lavish spending is to ensure on-field success? Then good on you Schwabby and Hart. To me the WAFC would prefer us to spend $1 and try to make $1.20. Schabby seems to be the sort of guy who'd spend $10 to try to make $20.

And this budget review (seriously, which subsidary of ANY company hasn't had the parent company try to crack on their spending) was important enough to make the top of the front page too!

"Freo Furore: Dockers see red as Football Commission queries the club's financial management"

 

[MightyFighting]

Correct me if I'm wrong, but hasn't the presence of Freo increased interest in West Coast as well (in the same way as Adelaide's crowds increased after Port was brought in)?

In which case you can't just judge Freo's financial value by looking only at its own bottom line.

 

[ThePope]

Not sure about that, the Wiggles following follows their fortunes.
Our financial benefit to the WAFC is almost entirely as a mechanism to at lest almost fill Subiaco Oval every week, rather than only every 2nd week. The redevelopment of Subi could never have happened without a big crowd there for 22 weeks, not just 11.

 

[masai]

Getting canned for not doing anything. Fremantle are in a no win situation. Until they win finals consistently then respect will only be a word in the dictionary.

The way I look at this article is that Freo is being queried over the increased expentiture. eg. coaches.

In business companies will spend up big on advertising a product, if it sells well, the revenue rolls in and all are happy. With Freo they have spent money on coaches, if it works the revenue will roll in and all will be happy.

Who is the WAFC's office manager?, very dubious security of documents.

 

[iscah]

I hope that these statements about our financial management are not true. Last season I raised the issue about the past performance of Schwab at other clubs and how the jury was still out seeing as he had taken a lot of upfront sponsorship money. This was either a master stroke or robbing Peter to pay Paul.

I won't pass judgement yet but just hope that the reports I have heard are not correct and that our cash flows are taking into account the extra costs for next season and the reduced sponsorship income from previous decisions.

In a way the behaviour of players and weak management at the West Coast club should by default help us attract more sponsors in the short term if (a BIG if) our group is managed better.

 

[melbdocker]

how could we be in cash trouble i mean there is a salary cap we had over 33k members sell out crowds a few times and a good major sponsor well untill last season i dont know where ppl get this bull crap from

 

[iscah]

how could we be in cash trouble i mean there is a salary cap we had over 33k members sell out crowds a few times and a good major sponsor well untill last season i dont know where ppl get this bull crap from

We have taken future years of the CUB cashcow sponsorship upfront to retire some of our debt so that it is no longer coming in, we have lost a number of major sponsors, we have taken on additional coaching costs (not part of the salary cap) and we from next year have to start paying fees to the football commission that we have been exempt from over the last few seasons.

It is essential for any responsible organisation to consider the implication of all these and formulate a sensible strategy not just for this season but for future years. That is the test of good management and is what has concerned the WAFC. I believe we have missed deadlines already in providing acceptable figures to them.

 

[Freo Shark]

We have taken future years of the CUB cashcow sponsorship upfront to retire some of our debt so that it is no longer coming in

Seriously what are you on ?

What happened to the debt repayments that would have been required to be paid out last yr, now and next yr etc ? In an environment where the next move is up in rates.

 

[Ripper]

Another Gold sponsor!!

Fremantle secure bank sponsership until 2008

Who looks a bit silly now , Wayne Bradshaw?

 

[Reveler]

good work. Always liked those members equity bank bunch. Top people =)

 

[Freo Shark]

Another Gold sponsor!!

Fremantle secure bank sponsership until 2008

Who looks a bit silly now , Wayne Bradshaw?

I wonder what thats worth each year.

O/T was there any prizemoney for being a losing semi-finalist in the nab cup ?

 

[ImperialPurple]

O/T was there any prizemoney for being a losing semi-finalist in the nab cup ?

IIRC it was about $50K.

 

[Freo Shark]

IIRC it was about $50K.

Thanks IP!

 

[Ripper]

I wonder what thats worth each year.

$700k over three years apparently.

Better than a poke in the eye with a sharp stick.

 

[Freo Shark]

$700k over three years apparently.

Better than a poke in the eye with a sharp stick.

Geez not bad at all.

 

[ImperialPurple]

I saw on the Ch9 news last night, in that rolling sub-script they have with just headlines, that "STW 9 have renewed their Diamond Sponsorship of Fremantle for a further 3 years".

Two things - I didn't realise that Ch9 sponsored Freo; and I wonder what a Diamond sponsorship is worth??

 

[Ripper]

Surpised me as well when I found it here yesterday when checking out the ME thing.

I see Ch 10 is a 'gold" sponsor as well and Ch eagle is missing.

 

[ThePope]

Add Western QBE as well to the list of silver sponsors. I knew that they had just dropped the Glory sponsorship, I just googled to find that they did it because Zurich Insurance became the league sponsor, and they wanted exclusivity.

Funny that Mazda don't feel the same way in the AFL.

Imagine the headlines in the West if, say Alinta dropped off Freo to sponsor the Glory/Force/Wildcats instead!

 

[Freo Shark]

We have taken future years of the CUB cashcow sponsorship upfront to retire some of our debt so that it is no longer coming in, we have lost a number of major sponsors, we have taken on additional coaching costs (not part of the salary cap) and we from next year have to start paying fees to the football commission that we have been exempt from over the last few seasons.

It is essential for any responsible organisation to consider the implication of all these and formulate a sensible strategy not just for this season but for future years. That is the test of good management and is what has concerned the WAFC. I believe we have missed deadlines already in providing acceptable figures to them.

Hey whiteant whacha gonna say bout ME and QBE joining up ?

Probably sold ourselves too cheap eh ??