Pies to post 2-3 Million $ loss this year

[Kirby]

This is according to Hutchy on the Footy Show just now.

This is due to the large losses they made on the sale of The Beach Hotel in Albert Park. Bought for 7 million and sold for much less. They are going to wear the loss on this years books.

The clubs coffers are good but this investment was a monumental stuff up!

Swanny's departing present?

 

[Dave The Man]

This is according to Hutchy on the Footy Show just now.

This is due to the large losses they made on the sale of The Beach Hotel in Albert Park. Bought for 7 million and sold for much less. They are going to wear the loss on this years books.

The clubs coffers are good but this investment was a monumental stuff up!

Swanny's departing present?

Wouldn't suprise me if that Idiot Swann brought it with the club

 

[hellfire]

I thought we still owned it? We've just made losses it on it? I could be wrong though.

 

[gandaal]

Swan's been gone for almost two years. Only politicians can get away with blaming previous administrators after two years.

 

[Kirby]

Swan's been gone for almost two years. Only politicians can get away with blaming previous administrators after two years.

He been gone about 16 months and the hotel was bought about 3 years ago from memory. It's largely his stuff up as he was CEO. The club had to bail recently as it was a money pit.

 

[Ron]

Meh, it's a lot of money but the club can take the hit without much drama.

 

[Kirby]

I though we sold it?

Anyway, It's been bleeding massively.

 

[FIGJAM]

Given we'd probably make at least a couple of mill on operations, we'd be nearly writing the whole things off to finish a that far in the red!

It doesn't add up. We did buy at the peak of the hotel market though, but that all sounds a bit rich.

 

[tess]

I think the spin is starting to unspin.

 

[FIGJAM]

And didn't Arocca have a bit to do with the pubs??

 

[Kirby]

Yeah, it indicates a good 3-4 million loss just from this year (if you estimate the usual 1-2 M profit). It seems pretty amazing.

That's why I assume we sold it.

 

[Kirby]

And didn't Arocca have a bit to do with the pubs??

Yes, he was the Operations Manager and controlled all the licensed premises before he left. He would be partially responsible too, but the buck rests with the CEO.

 

[deck]

Gold Coast here we come

 

[pongo_3931]

Im pretty certain we sold the one out diamond creek way?

This one i think we still own.

Given that, the value of the property will have dropped and will have dragged our asset value down.

Personally I'd keep it, try and maximise income from the business and wait 5 years for property values to go back up again.

In the mean time, i suspect it will keep going down in value as inflation is still volatile.

 

[deck]

Im pretty certain we sold the one out diamond creek way?

My old man used his membership for a discount a few weeks back at the Diamond Creek pub. So at a guess I would say we still own it.

 

[Paddywhackers]

Who cares the club prints money and this will be a one off. I mean it definately deserves a thread and for that, but this is a random one off.

 

[RRRooocccaaa]

The official line was 'We wanted to sell them but we wouldn't have made enough to make it worth while. So we kept them.'

Big deal. It make a loss now. It makes a profit in a year or two. Nothing too much to worry about there.

 

[deck]

Also with at least a few of the venues they only own the management rights not the venue itself.

 

[magpies42]

This is according to Hutchy on the Footy Show just now.

This is due to the large losses they made on the sale of The Beach Hotel in Albert Park. Bought for 7 million and sold for much less. They are going to wear the loss on this years books.

The clubs coffers are good but this investment was a monumental stuff up!

Swanny's departing present?

The way the property market is going at the moment, it would have been stupid to sell unless they really had too!!!!

Everybody makes mistakes, look at carlton. there ex president had them bankrupt...

 

[Jabso]

The way the property market is going at the moment, it would have been stupid to sell unless they really had too!!!!

Everybody makes mistakes, look at carlton. there ex president had them bankrupt...

Pratt isn't out of hot water yet either. http://www.news.com.au/story/0,23599,23893497-2,00.html (nothing will come out of it though, it's a word vs. word thing).

I need some clarification before I really make any judgments.

Is it a net loss on the sale of the pub?

I think most people realise if we report a loss it doesn't mean we are in debt, it just means that for the year our expenses outweighed our revenue. Profit is a far less important figure than cashflow, especially in a not-for-profit organisation.

Either way we are a liquid club and have money coming out of the wazoo, we tried to generate some more cash and asset growth through pubs but one of them didn't work. It's the classic high risk high return stuff. Stupid not to invest the money and every investment has some sort of risk involved.

 

[frantelle]

as far as i understood what hutchy said (i wasnt paying that much attention)
they are revaluing it
which means up to this point in time its still been in their books worth 7million but now they are valuing it down to whatever

the way it works that a change in assets (upward is revenue, a negative change is an expense) which means by decreasing the asset to its true market worth their 'expenses' are going up

all our cashflows (money coming in and money going out) are exactly the same, with this difference being much more important

dw the way it works is say if we post a 3million loss....then we can claim back 10%=300k...but u can only claim that back once uve made a profit which i would assume is next year

like i said i wasnt listening that well to hutchy so i might be wrong but thats what i thought i heard


jabso u did corporate acct didnt u?
is that what hutchy said?

 

[magpies42]

Pratt isn't out of hot water yet either. http://www.news.com.au/story/0,23599,23893497-2,00.html (nothing will come out of it though, it's a word vs. word thing).

I need some clarification before I really make any judgments.

Is it a net loss on the sale of the pub?

I think most people realise if we report a loss it doesn't mean we are in debt, it just means that for the year our expenses outweighed our revenue. Profit is a far less important figure than cashflow, especially in a not-for-profit organisation.

Either way we are a liquid club and have money coming out of the wazoo, we tried to generate some more cash and asset growth through pubs but one of them didn't work. It's the classic high risk high return stuff. Stupid not to invest the money and every investment has some sort of risk involved.

i agree that it would be stewpid to have money just sitting around, it needs to be invested! I dont think that buying property is high risk however! It wasnt the best idea to buy such a large commercial property down that way, it really needed to be unique or more central...

 

[King Woodie]

as far as i understood what hutchy said (i wasnt paying that much attention)
they are revaluing it
which means up to this point in time its still been in their books worth 7million but now they are valuing it down to whatever

the way it works that a change in assets (upward is revenue, a negative change is an expense) which means by decreasing the asset to its true market worth their 'expenses' are going up

all our cashflows (money coming in and money going out) are exactly the same, with this difference being much more important

dw the way it works is say if we post a 3million loss....then we can claim back 10%=300k...but u can only claim that back once uve made a profit which i would assume is next year

like i said i wasnt listening that well to hutchy so i might be wrong but thats what i thought i heard


jabso u did corporate acct didnt u?
is that what hutchy said?

No, you can claim back 30%, which is the corporate tax rate. The capital loss sits on your books and can be used to offset profits up to the same amount.

As has been stated, we will not post an operating loss or (importantly) cash loss, so there is nothing to worry about.

 

[Thommo 42]

so do we get part of the annual special distribution now?

 

[Snag Breac]

We still own the Diamond Creek Hotel. And our president isn't up on criminal charges.