PAFC Financial Stability

[Spoofa]

I hope I am wrong but I am really concerned with the clubs financial position and particularly the direction its going. I cant guess the $$$ but it seems to be going the wrong way

Big spending if you think about it and lots of lost revenue
- Hocking and Laidley
- Matthew Richardson
- New GMs all over the place ie HR, PR< Marketing, Corporate, Membership
- No replacements for Vodafone, Bianco and big Allan
- Membership and attendances
- New guernsey (is that a cost? or a positive re all old stock)
- No stadium deal

Note- Luke Ball could be $500k per year versus a kid at $70k a year

On the positives
- Choco pay cut
- Darwin away games (gate takings but % unclear)
- $5 million to spend on facility from 2007/08

12 months ago we were unsustainable and now we are???

I hope I am wrong although Chocos cut may be funding everything????!!!! Maybe there is something they know and we dont re a new stadium deal, lets hope so! Otherwise we are rolling the dice ie spending money and hoping for a return (I hope we have not put the house on it)

 

[5um0F1]

Matthew Richardson

have I missed something here?!?

 

[Macca19]

Former Port Magpies CEO, not the player.

 

[Malibu#27]

I hope I am wrong but I am really concerned with the clubs financial position and particularly the direction its going. I cant guess the $$$ but it seems to be going the wrong way

Big spending if you think about it and lots of lost revenue
- Hocking and Laidley
- Matthew Richardson
- New GMs all over the place ie HR, PR< Marketing, Corporate, Membership
- No replacements for Vodafone, Bianco and big Allan
- Membership and attendances
- New guernsey (is that a cost? or a positive re all old stock)
- No stadium deal

Note- Luke Ball could be $500k per year versus a kid at $70k a year

On the positives
- Choco pay cut
- Darwin away games (gate takings but % unclear)
- $5 million to spend on facility from 2007/08

12 months ago we were unsustainable and now we are???

I hope I am wrong although Chocos cut may be funding everything????!!!! Maybe there is something they know and we dont re a new stadium deal, lets hope so! Otherwise we are rolling the dice ie spending money and hoping for a return (I hope we have not put the house on it)

I dont think we are as badly placed as we maythink - ie MArk is probably having to throw everything out there and highlight the issues to make the SANFL sit up and take notice.

 

[Papa G]

Of what you listed, the only 2 I really see as negatives (and they are big ones I grant you) are the stadium deal and no major sponsor.

Start playing good football and the attendances will increase.

 

[Macca19]

I understand and agree with the premise of the OP. We did go on a fairly big spending spree this year with staff etc.

Im sure a fairly significant amount of the moneys we recieved as grants etc. did go towards servicing our debt. We wont really know our situation until the report comes out.

 

[Ford Fairlane]

Certainly concerns well worth keeping front and centre for supporters so there's no complacency.

I read an interview with Haysman a couple of weeks back and they have a few strategies on the go for sustainable wealth generation (so add to the positives).

• The new stadium deal
• Shifting pokies out of Alberton, hopefully into an area where we can prey on the vulnerable like North and Centrals do (personally I think there's a real contradiction around football clubs promoting themselves as community-building organisations, while draining the life out of that community thru pokies, but that's another debate)
• A bequest and donation fund
• Utilising the SANFL-bestowed footprint at Footy Park to establish a commercial venture
• Using the pokie-free space at Alberton for community ventures (maybe some commercial realisation there).

Haysman thought the big three - stadium deal, pokie empire out in the burbs, and FP footprint - would, in time, realise around an extra $2M a year.

 

[FishingRick04]

Personally speaking without knowledge but just gut instinct, perhaps Mark took a pay decrease so he could facilitate a BigFooty department?

Perhaps he identified the need for more knowledge in the box and the club said for this to occur you need to drop X amount of $$$ in return we can contribute, this much enabling him to get what we wanted.

Sponsors is a concern but they will come, the longer the sponsors wait the better deal they may get, but a company will realise the exposure in the Adelaide market they will get. Chattax would sponsor if we had an extra 10 mil in revenue lol

 

[Forzaport]

Have to spend money to make money and be successful on field.

If we hadn't started spending more on the football department and other off field areas, there's a fair chance we'd be cemented at the bottom of the ladder which would only fuel a continuous cycle of destruction - lower crowds, bigger financial losses, etc.

My biggest concern by far is our stadium deal. If things stay as they are we'll be something like $2-4 million behind the 15th ranked club in terms of stadium revenue. Hopefully a new deal will improve our bottom line by a few million and we won't be bleeding to death anymore!

 

[FishingRick04]

Forza I will continue on with this, that I feel that our biggest weakness last year was our coaches box. Our cattle was alot better than where they finished but we were out coached in so many games.

When we can't stop 10 goal run on in so many games, there is something wrong with our strategy. I know the players cop alot of the flack but plain and simply we were out coached too many times. Hence the spending is even more important.

 

[Spoofa]

We just need the basics right, I am not sure adding more people is a sound strategy (which is what PAFC seem to be doing)

If we cant get a major sponsor then we have the wrong people there, Vodafone advised of their termination a long time ago.

Seems to be some pipe dream stuff in the public statements ie "moving gaming machines", no guaranteed return on that. "Commercial property development" you must be kidding- we are a football club. Thats high risk stuff, if we stuff it up we lose everything.

Get some sponsors (get a stadium fix) and focus on the core business, it sounds like "spin" to me

 

[FishingRick04]

We just need the basics right, I am not sure adding more people is a sound strategy (which is what PAFC seem to be doing)

If we cant get a major sponsor then we have the wrong people there, Vodafone advised of their termination a long time ago.

Seems to be some pipe dream stuff in the public statements ie "moving gaming machines", no guaranteed return on that. "Commercial property development" you must be kidding- we are a football club. Thats high risk stuff, if we stuff it up we lose everything.

Get some sponsors (get a stadium fix) and focus on the core business, it sounds like "spin" to me

How much does a major sponsor pay? 500k, 1 mil? We aren't talking small money here so we are talking big business, which is generally Eastern Seaboard based.

The credit crunch has made these same businesses more frugal. I am sure the club is trying everything in their powers (pardon the pun) as supporters we need to probably be a little more patient.

The stadium deal is where we should be up in arms and outspoken, it's a disgrace this is still going! it's almost as long winded as the Teachers/Govt salary increase which is no heading into it's third year.

 

[Portology]

Forza I will continue on with this, that I feel that our biggest weakness last year was our coaches box. Our cattle was alot better than where they finished but we were out coached in so many games.

When we can't stop 10 goal run on in so many games, there is something wrong with our strategy. I know the players cop alot of the flack but plain and simply we were out coached too many times. Hence the spending is even more important.

yeah we managed that only against Brisbane...

 

[FishingRick04]

yeah we managed that only against Brisbane...

You know what I mean thought how many games, even when in control did we leak a large amount of goals without influencing the game?

Brissie in Brissie Loss
West Coast here (even though we won)
West Coast there Loss
Adelaide Loss
Collingwood in Vic Loss
Essendon here won
Melbourne here won
Carlton here lost
Richmond here won just

Really we should have at least put Brisbane, Collingwood and Carlton away

 

[Forzaport]

We just need the basics right, I am not sure adding more people is a sound strategy (which is what PAFC seem to be doing)

If we cant get a major sponsor then we have the wrong people there, Vodafone advised of their termination a long time ago.

Seems to be some pipe dream stuff in the public statements ie "moving gaming machines", no guaranteed return on that. "Commercial property development" you must be kidding- we are a football club. Thats high risk stuff, if we stuff it up we lose everything.

Get some sponsors (get a stadium fix) and focus on the core business, it sounds like "spin" to me

We're still feeling the effects of the GFC so attaining a major sponsor is no easy task at the moment. I do have the confidence in Haysman to find one though.

We are a football club and revenue from football activities is volatile, having stable off field revenue streams will help to protect us against times like these and ensure the future of the club. I don't understand how having some land at AAMI stadium that we will rent out can be high risk; we won't be opening any business (at least I don't think we will be).

If anything I'd say there's been less spin since haysman has been in charge. I also suspect JJ would've liked a stab at changing the stadium deal but was probably shot down by the SANFL behind closed doors. It's taken multi-million dollar losses and disastrous crowd figures to even start getting the SANFL's attention and even still we don't have a new stadium deal.

Even with a new stadium deal, I'm expecting us to still be sucked dry, but not as much as we are now. We'll probably get just enough out of it to survive.

 

[Phhht]

We just need the basics right, I am not sure adding more people is a sound strategy (which is what PAFC seem to be doing)

If we cant get a major sponsor then we have the wrong people there, Vodafone advised of their termination a long time ago.

Seems to be some pipe dream stuff in the public statements ie "moving gaming machines", no guaranteed return on that. "Commercial property development" you must be kidding- we are a football club. Thats high risk stuff, if we stuff it up we lose everything.

Get some sponsors (get a stadium fix) and focus on the core business, it sounds like "spin" to me

Whilst this is true to a point I am sick of the PAFC being the organisation that has to do all the hard yards in creating a sustainable business only to see significant chunks of that sustainability siphoned off by a greedy overseer.

If the SANFL have to prop us up (including the spending of money in areas that we seem to lag behind in)... each and every year then so be it.

Sooner or later Mr Greedy will relent and come to an agreement that will allow PAFC to realise the rewards of its efforts....

 

[PowerKat]

We're still feeling the effects of the GFC so attaining a major sponsor is no easy task at the moment. I do have the confidence in Haysman to find one though.

We are a football club and revenue from football activities is volatile, having stable off field revenue streams will help to protect us against times like these and ensure the future of the club. I don't understand how having some land at AAMI stadium that we will rent out can be high risk; we won't be opening any business (at least I don't think we will be).

If anything I'd say there's been less spin since haysman has been in charge. I also suspect JJ would've liked a stab at changing the stadium deal but was probably shot down by the SANFL behind closed doors. It's taken multi-million dollar losses and disastrous crowd figures to even start getting the SANFL's attention and even still we don't have a new stadium deal.

Even with a new stadium deal, I'm expecting us to still be sucked dry, but not as much as we are now. We'll probably get just enough out of it to survive.

...and on top of that, it still needed a 'fair old prod' from the AFL

I wonder what the impact of our limited FTA coverage has on sponsorship considerations? It can't help, surely? For any company looking to maximise their sponsorship ROI, the fact that the majority of our games are on Fox has to hurt.

 

[Spoofa]

Do you really think the SANFL will give us land to build commercial premises there...........? Come on

Quote me- "Whicker will explain that land was always promised for football purposes and not commercial purposes"

This is a "pipe dream"

They dont even allow us to make money from our own games,

 

[Steve Dore]

..... If the SANFL have to prop us up ...... each and every year then so be it. ....

The SANFL does not prop us up, they simply bleed us a little less dry. The SANFL allowing the PAFC to retain a larger percentage of the revenue that the PAFC generates is NOT the SANFL propping up the PAFC.

 

[Forzaport]

I wonder what the impact of our limited FTA coverage has on sponsorship considerations? It can't help, surely? For any company looking to maximise their sponsorship ROI, the fact that the majority of our games are on Fox has to hurt.

You'd have to say there would be an impact due to many of our games being on fox - although in SA at least we still get FTA. Being only one of two clubs in SA would hopefully offset (at least in part) our FTA issues.

 

[Papa G]

Do you really think the SANFL will give us land to build commercial premises there...........? Come on

Quote me- "Whicker will explain that land was always promised for football purposes and not commercial purposes"

This is a "pipe dream"

They dont even allow us to make money from our own games,

Hopefully we are away from that dung heap soon and the only footprint at footy park will be that of the wrecking ball.

 

[Phhht]

The SANFL does not prop us up, they simply bleed us a little less dry. The SANFL allowing the PAFC to retain a larger percentage of the revenue that the PAFC generates is NOT the SANFL propping up the PAFC.

I dont particularly care whether it is seen as the SANFL propping us up or them letting us keep a larger % of the rewards of our efforts (as my last post intended to portray).....

all I care about is the end result. If the SANFL have to give us a cheque each and every year so that we can pay our bills.....so be it. (Yes wharfie...I do realise the cheque they give us is essentially the money they 'siphoned' from us initially).

Point is we shouldn't compromise our spending because we need to make sure we survive on the scraps Mr Greedy leaves us. The more we tighten our belt, the more we find 'white knights' the more Mr Greedy (and his cohorts) believe that they are on the right path.

Bugger 'em. Spend the money and then lets go cup in hand to ask for some of our money back.

 

[Papa G]

You'd have to say there would be an impact due to many of our games being on fox - although in SA at least we still get FTA. Being only one of two clubs in SA would hopefully offset (at least in part) our FTA issues.

In SA, every match of ours is on free to air, which if we are taliking about coverage in your own state market, is better than even Collingwood get. Nationally it is a different story ofcourse.

 

[FishingRick04]

In SA, every match of ours is on free to air, which if we are taliking about coverage in your own state market, is better than even Collingwood get. Nationally it is a different story ofcourse.

The question is based on a predominant SA market who would be our targets?

Macca's? HJ's? KFC?, Optus? Another telco or net provider?

We don't have many corporates here.

Can Alcohol be permitted or is that banned also?

 

[Forzaport]

In SA, every match of ours is on free to air, which if we are taliking about coverage in your own state market, is better than even Collingwood get. Nationally it is a different story ofcourse.

Yep, so we'd be very appealing to business that operate mainly in SA and less so to national businesses.