Richmond's 2011 Operating Profit

[Tiger Titus]

Re: Profit

Hmmmmm 1 mill off the debt , 51K profit

http://www.heraldsun.com.au/sport/afl/tigers-operating-in-the-black/story-e6frf9jf-1226203883217


What happened to the other 2.5 mill?

I wouldn't get your knickers in a knot. These articles are puff pieces with very little actual content.

Without proper access to the club's financial statements and the accompanying notes these are just numbers to make supporters feel better and pad out journo's word counts.

We don't know how the club classifies it's income (are handouts from the AFL "operating income"?) and we don't know the club's total profit (from all activities).

The actual positive takeaway is the increase in our net assets (assets minus liabilities), but even then without seeing the club's statements we can't see if the increase is due to better cash management or other factors (revaluation of property etc).

 

[telsor]

Re: Profit

Hmmmmm 1 mill off the debt , 51K profit

http://www.heraldsun.com.au/sport/afl/tigers-operating-in-the-black/story-e6frf9jf-1226203883217


What happened to the other 2.5 mill?

Net assets increased from 13.3->16.05M

So clearly they bought/developed assets....

“The Fighting Tiger Fund (FTF) was incredibly important for us this year and will continue to be so in 2012. The FTF has been the key to us reducing our debt and it will deliver us a superb Punt Road Oval for the players to train on. I thank each and every Richmond member and supporter who donated to the FTF.

“As we have said from the outset, the FTF is about simultaneously reducing debt and investing in football. It is not about being a competitive Club, it is about being a great Club, and it enabled us to take some important steps forward this year.

 

[theflea]

I will step in, as a Fellow (chief cardigan wearer) of the Institute of Chartered Accountants in Australia and New Zealand, you're part right. Effectively our result from football operations was $51k profit. Add to that the fundraising (FTF) and gaming, our overall net profit was around the $2.7million mark. Accounting is about double entry. For a reduction in debt (debit to balance sheet liabilities), there's a corresponding credit (revenue - profit and loss) and that's Fundraising Revenue. Bottom line number after everything is a $2.7million profit I believe.

Haere Ra

that net profit shows more of the me bank centre appreciation of the building itself. without seeing the statements its a bit underwelming for me considering record membership, better sponsorship. i guess its better than a loss. as i said this is without viewing our expenditure from increases in footy debt spends.

 

[Martin#4]

I will step in, as a Fellow (chief cardigan wearer) of the Institute of Chartered Accountants in Australia and New Zealand, you're part right. Effectively our result from football operations was $51k profit. Add to that the fundraising (FTF) and gaming, our overall net profit was around the $2.7million mark. Accounting is about double entry. For a reduction in debt (debit to balance sheet liabilities), there's a corresponding credit (revenue - profit and loss) and that's Fundraising Revenue. Bottom line number after everything is a $2.7million profit I believe.

Haere Ra

Wouldn't the corresponding CR be 'Cash at Bank'?, since we're reducing our bank balances (reducing asset=DR) to pay off the debt which would correspond to the DR of interest bearing liabilities (reduction in liabilities). I find it strange that we're reducing liabilities via a CR to a revenue account in the P&L, I've been accustomed to debts being paid off via a reducing asset (ie bank)

Anyway I digress, I'm only a completed first year and it's all good revision

I do hold the view that clubs should be publishing financial statements for transparency to the members who are essentially the shareholders (since AFL clubs have a set up with members as the owners essentially if I'm not mistaken?) as if we were a publicly listed company on the asx

 

[SleepingGiant]

I would challenge the above figures and say that our profit of 2.7 million is the true profit when comparing with other clubs as it includes what other clubs would include in their profit?

 

[THE_GUN]

Irelevent to what the profit balance sheet shows, What i would like to know is how much was raised through the FTF so far and we were supposed to wipe out this 4.5 mil debt in 2 years

I am sick of the club being in debt & want this bloody debt retired asap. I am not trying to have a hissy fit but in all honesty I contributed $1000 with the sole intention that my club would be debt free if i did my bit.

 

[theflea]

Irelevent to what the profit balance sheet shows, What i would like to know is how much was raised through the FTF so far and we were supposed to wipe out this 4.5 mil debt in 2 years

I am sick of the club being in debt & want this bloody debt retired asap. I am not trying to have a hissy fit but in all honesty I contributed $1000 with the sole intention that my club would be debt free if i did my bit.

i think it got to 3m this year. i think they also wanted to fix the groud but that has been delayed bc of drainage issues which is why there is still prob 2m left in the ftf accounts.

 

[Infamy]

Irelevent to what the profit balance sheet shows, What i would like to know is how much was raised through the FTF so far and we were supposed to wipe out this 4.5 mil debt in 2 years

I am sick of the club being in debt & want this bloody debt retired asap. I am not trying to have a hissy fit but in all honesty I contributed $1000 with the sole intention that my club would be debt free if i did my bit.

They have NEVER said they intended to wipe out 4.5 million of debt in 2 years, that isn't due until the end of the 3-0-75 plan in 2015
The FTF was to REDUCE debt, not eliminate it

 

[DerpWerls]

There was talk of eliminating the interest cost but investment into facilities is more important as we should forecast growth for the next several years.

 

[Ned_Flanders]

Re: Profit

Hmmmmm 1 mill off the debt , 51K profit

http://www.heraldsun.com.au/sport/afl/tigers-operating-in-the-black/story-e6frf9jf-1226203883217


What happened to the other 2.5 mill?

Assuming a big chunk of that is the funds needed to pay off the PRO refurbishment

Also some of the gap may be payments on the works for the ME Centre. Remember we received the Govt grants in earlier years (which massively inflated our profit figures at the time), but some of the payments for the actual work would have been continuing into this year I'd image.