Joe running low - are Dees gonna go?

[Mudholian]

Well, it seems Joe is going broke which is bad news for the dees. What I don't get is if he's put millions into the club last year, how come they just made a a $100,000 profit? I mean, good on them, but what's going to happen this year when he goes bankrupt?

AS for Joe, he says that even if he does go broke, he will still contribute passion and education.

Which do you need most?
Mud

 

[Dan26]

Melbourne's profit is an "operating profit"

In other words it doesn't take into account abnormal itmes like Joes' contributions. All footy clubs get contributions from wealthy supporters, yet these contributions do not count towards a profit/loss. The profit or loss of a footy club refers to its operating profit i.e it relates to football, and football only.

Melbourne Fotball clubs overall profit, would be well over 1 million, but this wouldn't be listed in its annual report as part of it's normal profit. The money he is contributing still goes to the club though and that's the main thing.

So, don't worry about the Dees. That $100,000 profit they made was legitimate and doesn't include any of Diamond Joe's contributions.

 

[THE ICON]

I WONDER WHETHER JOE WILL BE REMEMBERED AS WELL AS THE OTHER RICH MEN WHO POURED HEAPS OF IT INTO FOOTY CLUBS?

SKASE , EDELSTON ,ANSETT ,BOND

THE ICON

 

[dees01]

Yes it only means his personal worth is valued at around $800 million now. We might get by.

 

[BRW]

$800 million lol

His personal wealth is under $10 million and shrinking daily.

Business sources say he'll be broke by the end of 2001 if things continue on as is.

 

[BUBBALOUIS]

Originally posted by Dan24:
Melbourne's profit is an "operating profit"

In other words it doesn't take into account abnormal itmes like Joes' contributions. All footy clubs get contributions from wealthy supporters, yet these contributions do not count towards a profit/loss. The profit or loss of a footy club refers to its operating profit i.e it relates to football, and football only.

Melbourne Fotball clubs overall profit, would be well over 1 million, but this wouldn't be listed in its annual report as part of it's normal profit. The money he is contributing still goes to the club though and that's the main thing.

So, don't worry about the Dees. That $100,000 profit they made was legitimate and doesn't include any of Diamond Joe's contributions.

Dan are you sure? I know all clubs accounting practices are different, for example Hawthorn didnt list the money they recieved from Channel 7 last rites bid, but other clubs did. I was under the impression the Melbourne figures included Joes donation, if it doesnt then they are line ball with most clubs, if it does there in strife.

 

[ptw]

I might be wrong, but I recall the financial assistance given by Gutnick was in the form of loans, not "donations".

If Gutnick goes under then these loan's will be chased by the receivers....nasty business that.

ptw

 

[Shinboners]

I haven't seen the Melbourne Football Club accounts, but ptw is correct about the problems that will face Melbourne if the money is "loaned". If Gutnick has "loaned" money to Melbourne, then the amounts will appear as a liability in the balance sheet. The only way the loan will affect Melbourne's profitability is if Melbourne has to pay interest on the loan, therefore the interest paid (or owing if it's accrued) will appear on the profit and loss.

But I don't think Gutnick will be looking to eat at the Fitzroy Street soup kitchen anytime soon, so Melbourne fans should sleep easy for the time being.

Cheers
SB

p.s. Has anyone else noticed that there's only been ONE contribution to this thread by a Melbourne fan, and that contribution was only one line anyway? It begs the question, to get Melbourne fans into talking about footy, does this mean that we can only talk about which player has the cutest butt?

[This message has been edited by Shinboners (edited 15 February 2001).]

 

[Mudholian]

Originally posted by dees01:
Yes it only means his personal worth is valued at around $800 million now. We might get by.

Well, don't get me wrong, I think any club would want someone like Gutnick loaning millions, but he has already said "the bulk of my money has gone into the club"- hence his comment about what he can "still give".
Mud