Analysis St Kilda FC Financial Results - 2019

[Sir Skid]

It would be nice to actually eliminate the debt.

EFA

 

[George]

EFA

Sounds harsh, what has the debt done to deserve that?

 

[plugger66]

Sounds harsh, what has the debt done to deserve that?

Couldn’t win us a flag so it’s eliminated.

 

[SaintsSeptember]

All creative accountancy aside, how much did the club waste on "Interest Payments" last year?

To me that's the only negative, money that was given to banks instead of spent on footy.

 

[Joffaboy]

We count a facility that is worth zero to anyone but us as an asset. I think premierships show that profits are very important.

The one thing I will say is at the moment being in huge debt doesn’t matter whilst the afl want all the clubs but in the long run it’s better to have little debt if they do decide they don’t want all the clubs. It would be nice to actually eat into the debt.

Lol it is not worth zero, that is a ridiculous statement. It has been valued through a capitalisation process and is thus depreciated over the life. Za

How do premierships show 'profit' is important.
Profit is an accounting concept which I am afraid you have a tenuous grip on.

 

[sunny3193]

All creative accountancy aside, how much did the club waste on "Interest Payments" last year?

To me that's the only negative, money that was given to banks instead of spent on footy.

Finance Costs (which would include both interest and lease costs)
2019 = $292k
c/w
2018 = $289k

On a $40mill turnover that’s ~ 0.5%.

 

[plugger66]

Lol it is not worth zero, that is a ridiculous statement. It has been valued through a capitalisation process and is thus depreciated over the life. Za

How do premierships show 'profit' is important.
Profit is an accounting concept which I am afraid you have a tenuous grip on.

Is our asset saleable? No. Look at Seaford to see that. Yes there are weights and other stuff in there but the building is worth zero otherwise we would have 10 million on our books from Seaford. My house is asset because I can sell it and get the money. And please don’t tell me what I do and don’t know about accounting. I may not be an accountant like you but owned and ran a business for a fair few years back in the late 80’s. Are you actually telling me it was accounting concept that made the tigers over 4 million the last 2 years. It had nothing to do with memberships and sponsorships? What is an accounting concept is saying we have a 30 million dollar asset even though probably less than a million in stock is actually saleable.

 

[plugger66]

All creative accountancy aside, how much did the club waste on "Interest Payments" last year?

To me that's the only negative, money that was given to banks instead of spent on footy.

Jb will probably able to confirm but our finance costs are 292k. I gather that means interest on borrowing

 

[SaintsSeptember]

The way i see it , profit is not so important for a footy club.
Are you better off making a few million , or spending that money on improved facilities or better/more staff?

Obviously servicing the debt is money down the drain, i wouldn't want to see it blow out to the extent that its costing a million a year or so.

In context, Collingwood are reputed to get around $3Million per year from their deal with Holden.
(( I wonder how long this will continue -- $100 from each Holden sold must go to Collingwood, i'd be asking the dealer for the 100 and *&^$ Collingwood , during the early 00's such a sponsorship would have cost Holden around $20 per vehicle. )).

 

[plugger66]

The way i see it , profit is not so important for a footy club.
Are you better off making a few million , or spending that money on improved facilities or better/more staff?

Obviously servicing the debt is money down the drain, i wouldn't want to see it blow out to the extent that its costing a million a year or so.

In context, Collingwood are reputed to get around $3Million per year from their deal with Holden.
(( I wonder how long this will continue -- $100 from each Holden sold must go to Collingwood, i'd be asking the dealer for the 100 and *&^$ Collingwood , during the early 00's such a sponsorship would have cost Holden around $20 per vehicle. )).

The problem is most of the successful clubs spend more or the same as us and also make a profit. Let’s face it we are playing in China for only one or maybe 2 reasons. One we need the money and 2 the afl most likely suggested we do so considering we get the third most money off them.

 

[SaintsSeptember]

The problem is most of the successful clubs spend more or the same as us and also make a profit. Let’s face it we are playing in China for only one or maybe 2 reasons. One we need the money and 2 the afl most likely suggested we do so considering we get the third most money off them.

Yeah its good not to bight the hand that feeds you.

 

[Mowman]

Is our asset saleable? No. Look at Seaford to see that. Yes there are weights and other stuff in there but the building is worth zero otherwise we would have 10 million on our books from Seaford. My house is asset because I can sell it and get the money. And please don’t tell me what I do and don’t know about accounting. I may not be an accountant like you but owned and ran a business for a fair few years back in the late 80’s. Are you actually telling me it was accounting concept that made the tigers over 4 million the last 2 years. It had nothing to do with memberships and sponsorships? What is an accounting concept is saying we have a 30 million dollar asset even though probably less than a million in stock is actually saleable.

Its not ours is it ? Council own it we lease it ?

 

[plugger66]

Its not ours is it ? Council own it we lease it ?

Agreed but we have it as an asset. I think we own the building. They own the land. Makes it pretty hard to sell.