Preview Lions 2019 Discussion

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briztoon

Norm Smith Medallist
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Possibility that Josh Walker ends up at Gold Coast either as a late draft pick, or picked up as an unsigned free agent.
 

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WhiteLionFeva

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So with the pokies being so important to our bottom line, and given the new home base from 2021 will be a pokies-free zone, will we maintain our social club as a separate enterprise?
 

Section 5

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After a quick scan of figures a couple of items may be of interest.

Capital works in progress $1,683,134 Reserve at Springfield.
Construction commitments (within 1 year) $8,741,683 of which $6,094239 recoverable from Ipswich City Council
Net AFL distribution to Club $22,652,134 (about $950 K less than 2018)
$15 million of the $20 million in the bank earning 1.6% interest the balance at 0.45%

Social Club revenue $17,244,317 ($16,137,792 in 2018).
The main beef i have always had with their Financial Report each year is they do not separate the figures of the Social Club to indicate the Profit/Loss in this area. Members just assume they make a profit.
 

dlanod

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Social Club revenue $17,244,317 ($16,137,792 in 2018).
The main beef i have always had with their Financial Report each year is they do not separate the figures of the Social Club to indicate the Profit/Loss in this area. Members just assume they make a profit.
Uhh they do separate them out each year.

For 2019:
Social Club expenses (13,588,301)
Social Club revenue 17,244,317

Improved from a $3m profit last year.
 

Dlions

Norm Smith Medallist
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Uhh they do separate them out each year.

For 2019:
Social Club expenses (13,588,301)
Social Club revenue 17,244,317

Improved from a $3m profit last year.
It’s pretty much the only thing turning a profit from the Club.

I do have to say though, I went there a couple of weeks ago with about 20 family members and there wasn’t too many that actually enjoyed their meals😮
 

Jason mp

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It’s pretty much the only thing turning a profit from the Club.

I do have to say though, I went there a couple of weeks ago with about 20 family members and there wasn’t too many that actually enjoyed their meals😮
Agree, I was there for the first time in years mid this year and I thought the food wasn't the best, it all seems a bit run down and non appealing to me, just a concrete box to whack some Pokies in and serve up some parmies, mixed grills and seafood baskets, I'm not a Pokies fan though, it's been a long long time since I have put any money into those money guzzlers.
 

briztoon

Norm Smith Medallist
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Agree, I was there for the first time in years mid this year and I thought the food wasn't the best, it all seems a bit run down and non appealing to me, just a concrete box to whack some Pokies in and serve up some parmies, mixed grills and seafood baskets, I'm not a Pokies fan though, it's been a long long time since I have put any money into those money guzzlers.
Pretty much.

Compare it to Easts Leagues club, and that’s what they should be aspiring to at a minimum.
 

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Uhh they do separate them out each year.

For 2019:
Social Club expenses (13,588,301)
Social Club revenue 17,244,317

Improved from a $3m profit last year.
Yes i have seen this figure but i am nowhere near convinced that the true P & L of the Social Club itself is as simple as deducting one figure from another. It all depends where they choose to place other expenses in the total Club report.
I would like to see as a minimum.

Social Club Revenue broken up into

Gaming
Bar & Bottle Shop
Catering if it is not leased out which it could be.
Other revenue

Expenses
Wages
All Loan repayments/rent of property and or gaming machines
Depreciation
Costs of goods
Gaming tax
Promotions & Entertainment
Admin expenses
Outside Management fees if still applicable (They were in years past but not sure now)
Other Expenses

At a quick google search i found another Club (Arana Leagues Club Keperra Brisbane) that had a comparable total Revenue of $19.8 million in 2018(Lions $17.2 million 2019).
They made a profit of $247,000 that year. Below is the first sentence of CEO's report.
Arana Leagues Club
As we enter the new financial year we look forward to increasing our patronage; continuing to look after our existing members; and inviting new members to come and try our club. We have finished the year with a profit of $247,025

I worked in the Club industry for 15 years but not the last 9 years, now retired. Gaming machines are not a guarantee of making the Club lots of money. i was not all that long ago the Broncos Leagues Club was in Administration. I can only assume they have since traded out of that situation However this year check out below.

Brisbane Broncos Social Club made a loss of $800,000 for year 2018/19. Below first sentence from Chairman's report
CHAIRMAN’S REPORT BRISBANE BRONCOS LEAGUES CLUB ANNUAL REPORT 2018/2019 | 5 GENERAL INFORMATION During the year under review the Club recorded a loss of $0.8m (2018: profit $0.42m).

Lots of Social Clubs are profitable i would just like to know if the Lions is one of them.
Wow that was longer than i intended.

Links to both Arana & Broncos annual reports for anyone interested.


 
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dlanod

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Brisbane Broncos Social Club made a loss of $800,000 for year 2018/19. Below first sentence from Chairman's report
CHAIRMAN’S REPORT BRISBANE BRONCOS LEAGUES CLUB ANNUAL REPORT 2018/2019 | 5 GENERAL INFORMATION During the year under review the Club recorded a loss of $0.8m (2018: profit $0.42m).
If you dig into their numbers, they show a gross profit of about $2m. They posted a net loss due to financial considerations, depreciation and court cases that cost them $1.2m.

These are rolled up in our case because financial costs are across the whole business. Depreciation could be split out per department but I assume that's not normal practice when the club is part of a larger company.
 

Section 5

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If you dig into their numbers, they show a gross profit of about $2m. They posted a net loss due to financial considerations, depreciation and court cases that cost them $1.2m.

These are rolled up in our case because financial costs are across the whole business. Depreciation could be split out per department but I assume that's not normal practice when the club is part of a larger company.
Thanks for the reply dlanod.
Yes this is true about the Broncos abnormal costs in 2019. But Clubs have unusual things happen each year. The year before (2018) the Broncos with about the same revenue only made $417,000 profit being a similar result without the court case etc you mentioned. This is a similar result to Arana Leagues Club 2018.
The Broncos keep the Football department separate for reasons the Lions are not required to.

But to my main point,these two Clubs & others i am sure have a much more detailed break up of figures than the Lions.
Internally the Lions would have detailed figures on the Social Club including depreciation.
I am happy for depreciation to be left off. I would even accept a separate line (their are only 2 lines - $ profit figure & Lions exempt to paying tax) in the Directors Report under "Operating & Financial Review" stating the P & L of the Social Club. As long as he/she states that the figure covers all revenue and all expenses relevant to the Social Club operations including Gaming Taxes which are not exempt.

I would be astounded if the Lions made a profit of $3,656,016 being the two lines you mentioned from their Annual Report - Revenue less Expenses.
The Lions profit could very well be in line with the two Clubs i have mentioned, around the $400 K - $600 K mark but i am only guessing.

I just think members should be kept better informed on how this important part of the Club is performing.
............. But still great that the Club has finally made a profit after a good year on field.
 

briztoon

Norm Smith Medallist
Nov 28, 2015
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Thought he might get a 2nd chance at AFL but that might be his level. Sure he'll have a great year.
Puts AFL salaries in to perspective when there’s a discussion about how Box Hill will fit all their players under a $350k salary cap.
 
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