Analysis Stadium deals - what, how, when - why we need a new one and the SA footy paradigm shift happening

[Joelg]

SMA equals snouts at the trough. Shameful. Who puts on the product?

 

[PowerBaz]

90% of people just don't give a stuff about the SMA ripping off Port. They need to drink or to eat now! Get up mid game because they cant wait until a score break, just obscure peoples view because they have to consume now!

Yeah then come back holding 8 beers and spill them over everybody they walk past..... part of the footy though I guess!

 

[bomberclifford]

The prices are bad enough, the quality at those prices is what sends me into ragefury.

It's always been the same though, even back at Concrete Park, the quality is pulled down to the absolute base level so the catering corp makes a massive profit on the stale cardboard shit that they pass off as food. Drink options are limited and you're always paying top dollar for the shittest value pre-mixes known to man. $15 for one can of CC & Dry. One can.

I'll ever buy anything there again. Take your own snacks and drink bottles.


On an entirely unrelated note:

Sistema sells 300ml S/S flasks for around $15, that are quite compact and discretely carried in a back pocket or in a deep jacket pocket.

 

[Duckimus Prime]

The prices are bad enough, the quality at those prices is what sends me into ragefury.

It's always been the same though, even back at Concrete Park, the quality is pulled down to the absolute base level so the catering corp makes a massive profit on the stale cardboard sh*t that they pass off as food. Drink options are limited and you're always paying top dollar for the shittest value pre-mixes known to man. $15 for one can of CC & Dry. One can.

I'll ever buy anything there again. Take your own snacks and drink bottles.


On an entirely unrelated note:

Sistema sells 300ml S/S flasks for around $15, that are quite compact and discretely carried in a back pocket or in a deep jacket pocket.

View attachment 1335623

Would a metal flask even be let if you're pulled aside for the random detector check?

 

[bomberclifford]

Would a metal flask even be let if you're pulled aside for the random detector check?

¯\(ツ)/¯

 

[Andre]

What's the need to hide anything taken in? As long as it's not metal or glass they don't care (the security). I've even gone up to 2L drinks (to share) and they don't give a stuff.

 

[bomberclifford]

What's the need to hide anything taken in? As long as it's not metal or glass they don't care (the security). I've even gone up to 2L drinks (to share) and they don't give a stuff.

It's more the content of the bottles that's the issue.

 

[ROBBBO]

Just remember folks the club gets a % of food and drinks sold. Pretty sure it's why AO prices are so high. SMA and AFL clubs both get a cut.
We got kids. We ALWAYS end up buying something

 

[HinkleysHeroes]

Would a metal flask even be let if you're pulled aside for the random detector check?

I take a Thermos of black coffee each game. I could fill that thing up with black liquid of any type and be ok. They see it but never check or open it.

Edit- and it's stainless.

 

[Flash of power]

Just need a couple of weeks when nobody buys a thing and they will adjust their attitude. I have gone a few times and not spent a cent. Take a sandwich or have a couple of beers and a meal at the local pub beforehand, same price as a pies and chips, much better quality and another couple after the game or vice versa. Nothing will change this while people keep paying it is extortion, we just need to get organised people.

 

[RussellEbertHandball]

Just remember folks the club gets a % of food and drinks sold. Pretty sure it's why AO prices are so high. SMA and AFL clubs both get a cut.
We got kids. We ALWAYS end up buying something

No they dont. They get nothing from stuff sold at Kiosks and bars. The sanfl in footy season and saca in cricket season get a commission from these sales which replaces what they received pre 2014 redevelopment. My best guess is in the 20% to 25% range.

The club gets $2.40 per attendee.

Port get catering dollars from certain game day functions plus corporate boxes sold.

This was all confirmed in the various submissions and evidence at hearings by the SA parliament select committee in 2019.


Edit I have copied the transcript pages where Olsen on 26 March 2019 confirmed that $2.40 per attendee is what the SANFL gives the two cubs "in lieu of catering revenue" 3 posts down the page.

 

[Papa G]

Meh. I like drinking beer at the football ill even drink that Superdry shit if I have to. The SANFL will get their pound of flesh one way or another. If they aren't getting it from food and drink they'll devise another way skim the club.

 

[RussellEbertHandball]

Anyway catering dollars and the SANFL Commission on these sales at Port games is now small fry.

The AFL cutting and capping Footy Department spending has effectively turned the stadium deal into a good one for Port and the crows.

As I wrote in the Financial Results thread, Port have to sell all 107 corporate boxes it is allowed to sell, plus Suite ONE, to make sure we had a fully funded Footy Department and broke even between 2014 and 2020. The corporate boxes Port sells are in the $35k to $55k range - lets call it $40k average net of GST, so $4mil net to the club.

The Footy Department spend was cut by $3.5mil. Even if the AFL have lifted it a bit, say to $3mil less than 2019, that should mean we do a lot farken better than just break even.

This is basically why we made a $4mil profit in 2021.

Its why we have to win a flag or two now, make back to back GF's, make sure we keep selling out our corporate inventory at AO, whilst the Footy Department cap is kept in the low $6mil range not $9.7mil, and we can bank some decent dollars.


All clubs potentially can now make bigger profits because of the new low Footy Department cap. But it will depend on each clubs' stadium deals and current and post covid crowd restrictions as well as on field success, especially for the cyclical clubs.

Its hard to tell at the moment what impact it will have, as not all clubs have released their financial statements and the Vic clubs that did, had very small crowds and probably had to refund corporate box fees.

This is what The_Wookie has put in a spreadsheet for clubs that have released their financial statements.



The only clubs on the above spreadsheet that made more than $2mil profits, have large grants and donations for building new facilities and in Brisbane's case, also include Jobkeeper. In their 2020 account Jobkeeper was separated and was $3.97m and grants was $2.46m. 2021 they were lumped together.

Carlton inc in their $20m profit .2021......2020
Philanthropic contributions. 3,649,073 1,396,501
Grant revenue................ 18,532,725 7,052,775

Brisbane inc in their $26m profit ......2021.......2020
Grants and fundraising revenue 22,399,654 6,435,269
+
the AFL distributions both year included about $5mil and $3mil for their new facility at Springfield.
But their great stadium deal at the Gabba, like they had from 2001-2005 and banked $10mil, did see a greater stadium yield as back to back top 4 finishes and membership went to 40k and corporates came back.

Membership and ticket sales..... 8,769,562 4,688,489
Corporate and marketing sales. 9,899,937 6,851,968
Total ...................................18,669,499 11,540,457

Essendon in their $8m profit

.......


St Kilda in their $12m profit
2a. Non-operating revenue ....................................................................2021.......2020
Moorabbin redevelopment funds – government grants and contributions 11,750,000 591,000

Below is the info from the SMA supplied to the SA Parliament Select Committee hearings in 2019, of what corporate inventory Port and the crows can sell at AO and keep all the revenue.

Both clubs were also given a room back in 2011 during the financial modelling period, that can host 100 people and they have the rights to that 365 days a year and can sell the room for cricket and any other events at AO. Ours is called Suite ONE or just ONE and is the SE corner of level 3 boxes of Riverbank Stand and the crows is called the premiership Club i think, and is in SW corner.

Next stadium deal review is at end of 2022 season. First review was after 2014 season, took until March 2015 to finalise, and covered the 2015-17 seasons. Next review was after the 2017 season, and saw the $2.00 per attendee raised to $2.40, and this deal covers 2018-22 seasons.

I suspect Covid has seen some further negotiations the last 2 years, but I have no idea what has changed and how short term it was.

 

[RussellEbertHandball]

From the transcript of

LEGISLATIVE COUNCIL
SELECT COMMITTEE ON THE REDEVELOPMENT OF ADELAIDE OVAL
Watarru Room, Old Parliament House, Adelaide
Tuesday, 26 March 2019 at 11:00am

I downloaded this transcript document and several others from the select committee page on the SA parliament website. can't be arsed digging the link up at the moment.

When i get time I will put up the transcript on some of the AFL's evidence by GM legal affairs Andrew Dillon and one other lackie. Nothing new but some subtle inferences I thought when I read it in mid 2020.

 

[dirty2]

Yeah then come back holding 8 beers and spill them over everybody they walk past..... part of the footy though I guess!

Sorry

 

[ROBBBO]

REH - Crows made a 1.2 million "profit" yet their debt remains at 4.5 million ? Spin on that ?

 

[RussellEbertHandball]

REH - Crows made a 1.2 million "profit" yet their debt remains at 4.5 million ? Spin on that ?

In 2016 when they moved 2017 membership auto renewals from November to October they said they cut debt by $2.6mil ( down from $4.5m to $1.9m) even though the made a statutory loss of $1.3m.

Cash at bank only increased by $160k. Their balance sheet liability - income received in advance, went from $330k to $6m. My guess is $4m of that was receiving auto renewal memberships early and the rest was from sponsors.

So the debt figure on 31/10/16 looked good but was short term as they would have had to spend those early membership $$$ received, in November, when they only had $300k in the bank, so debt would have been drawn down and increased in November back towards the $4.5m figure.

We copied them in 2017 bringing auto renewals from November to October.

In 2017 they made a $600k profit and debt was $1.2m and 2018 they made a profit of $1.5m and debt dropped to $1. But they kept their $5m commercial bill facility open, Income in advance liability had grown to $6.9m and cash at bank was $1.5m.

But the crows and Port - and any other clubs - who had a large chunk of auto membership renewals in October, got caught out in 2020 as the season ended in October and all clubs moved their 2021 auto renewals to November.

So the crows Income in advance liability was only $5.4m on 31/10/20 down from $6.2m, but that could have a lot to do with credits for 2021 memberships rather than collecting cash in October like the previous few years. Similar thing with sponsorships that said keep the cash but give us a credit for 2021.

This similar sort of thing will probably be shown up in WCE and Freo's accounts who supply the most detailed accounts of any clubs and both clarified how many $$$ in membership credits they had carried into 2021.

WCE was a huge example of this. Their unearned income liability from memberships grew from $2mil to $18.8mil, ie this wasn't cash for 2021 memberships it was the cash for 2020 memberships left with WCE, but members elected to have the cash applied as a credit against 2021 membership fees.

That's why WCE's 2020 and 2021 financials will look screwy. That's why in 2020 their cash at bank increased by $12m on only $600k profits and they didn't sell any assets.

If most of the crows 2020 $5.9mil unearned income liability is indeed membership credits against 2021 memberships, rather than cash collected in advance then that is probably a big reason for their 2021 result. In 2020 their cash at bank decreased by $1m and debt blew out from $1 to $4.5m.

So without seeing their financial statements and cash flow statements and the notes in particular, my best guess is the treadmill of receiving funds in advance stopped in 2020, and credits given against 2021 memberships and sponsorships, but retaining the cash in 2020, along with not doing well and corporates and members not coming back as much, is why they can say they have made a profit, but debt hasn't decreased.

 

[Papa G]

If you look at your weirdo mate Wookie's numbers he always has the Clowns as having one of the highest sponsorship dollars and membership revenue. I know we get more from the AFL in distributions and we have the PoW and Port club bringing in a few bucks, but it always surprises me how we almost always have more revenue than them.

 

[RussellEbertHandball]

If you look at your weirdo mate Wookie's numbers he always has the Clowns as having one of the highest sponsorship dollars and membership revenue. I know we get more from the AFL in distributions and we have the PoW and Port club bringing in a few bucks, but it always surprises me how we almost always have more revenue than them.

Problem for us is $7m revenue from The Port Club and The Prince probably only nets $500k profit. $7m extra membership and corporate revenue probably nets them $4.5mil.

That's why the new Precinct ie pub, retail shop and museum has to make some decent $$$ for the club.

 

[bomberclifford]

If you look at your weirdo mate Wookie's numbers he always has the Clowns as having one of the highest sponsorship dollars and membership revenue. I know we get more from the AFL in distributions and we have the PoW and Port club bringing in a few bucks, but it always surprises me how we almost always have more revenue than them.

We've always had more revenue than them in the AFL haven't we?

 

[RussellEbertHandball]

We've always had more revenue than them in the AFL haven't we?

Not going to dig it up, but I reckon 2009-12 years we probably didn't.

 

[VineValerian]

Problem for us is $7m revenue from The Port Club and The Prince probably only nets $500k profit. $7m extra membership and corporate revenue probably nets them $4.5mil.

That's why the new Precinct ie pub, retail shop and museum has to make some decent $$$ for the club.

Would the club consider selling the PoW?
Or is it in their interests to keep it even if it doesn't garner enough $'s to provide massive revenue?

 

[RussellEbertHandball]

Would the club consider selling the PoW?
Or is it in their interests to keep it even if it doesn't garner enough $'s to provide massive revenue?

I think once the Precinct opens and trades for a bit of time, and Covid becomes a flu like disease and we scrap the State of Emergency Declaration, the club will spend some time reassessing things and then make a decision on whether to invest in it or sell the leasehold. That's all the club owns, the leasehold, not the freehold property. Plus the pokie machines in there.

 

[Papa G]

RussellEbertHandball

This is what the Crows revenue was last year.

Revenue
Football operations revenue Season ticket sales and AFL membership 14,777,645
Sponsorship and fundraising 16,555,356
AFL sourced revenue 12,406,511
Corporate boxes and reserved seating 1,749,872
Total 45,489,384

So what are your best guesses on how we compare?

I estimate we have around a $10million shortfall in revenue from these sources compared to them.

In 2020 our AFL distribution was only $1.5 million more than there's. I imagine it may have been a bit more in 2021 but cant fund thise figures but lets say its $2mill.
My guess would be we'd be $3-4 mill down on Ticket sales and the same on sponsorship/fund raising?
I'd assume our corporate boxes might be half of theres?

We never itemise so difficult to tell.

 

[RussellEbertHandball]

RussellEbertHandball

This is what the Crows revenue was last year.

Revenue
Football operations revenue Season ticket sales and AFL membership 14,777,645
Sponsorship and fundraising 16,555,356
AFL sourced revenue 12,406,511
Corporate boxes and reserved seating 1,749,872
Total 45,489,384

So what are your best guesses on how we compare?

I estimate we have around a $10million shortfall in revenue from these sources compared to them.

In 2020 our AFL distribution was only $1.5 million more than there's. I imagine it may have been a bit more in 2021 but cant fund thise figures but lets say its $2mill.
My guess would be we'd be $3-4 mill down on Ticket sales and the same on sponsorship/fund raising?
I'd assume our corporate boxes might be half of theres?

We never itemise so difficult to tell.

Yeah we poorly itemise things so its difficult. Probably should be in the 2021 Financial result thread but will put it here.

Here are our 2020 figures


Here was my short hand summary of what happened in 2021



The crows said revenue for 2021 was $48.11m and their 2020 accounts said 2020 revenue was $33.59m

edit operating revenue was $33.59 but plus Jokeeper and other revenue total was $38.387m and how they get a 25% revenue increase.


In the 2021 Financial Results thread I wrote my best guess at

Official Club Stuff - 2021 Financial Results

And somehow Channel 7 news raised tarps twice. You would think our president could influence the bias in their reporting, or perhaps not. Never mind, I'm sure when the other mob's results are announced Ch7 will make several mentions of them still being stuck at the derelict Football Park...

www.bigfooty.com

I said I reckon Jobkeeper was about $1.5m so other revenue increased by $11.8m as the club said it increased total revenue by $9.6m. I wrote to Richo about Jobkeeper, donations and AFL distribution the day after the AGM. He replied with

* The club received $3.7m in JobKeeper in 2020, $815k in 2021. This is disclosed separately in our full accounts.[so I was out by $700k and other revenue increased by $12.5m]

* From a fundraising perspective there is $500k of donations towards the social club re-development included in the 2021 result – more will be recorded / reported in 2022. [In my post I said $4mil so another $3.5mil is revenue from members and corporates]

* There is no facility funding in the 2021 – most of this will be received in the 2022 FY but would be reported separately from the P&L in any case

* The AFL distribution was a $2.3m increase on 2020, and yes it does relate to the increase in TPP. It’s a little complicated with the other ins and outs

* The increase from membership, match day revenues, partnerships and hospitality was $8.8m in total

* Partnership revenue – record level – Membership – back to within $150k of our highest ever – and tracking well this year also – retail, record in 2020 (150th) and within $100k of that in 2021 (incredible – our retail is flying, esp online. When the new store is fully operational plus we will take back the online store (outsourced currently) in 2023, there is significant opportunity here.

So my best guess is
AFL distribution and matchday..... $18.0 AFL dist $14.5m other $3.5m inc matchday and merchandise
Revenue from Football operations $26.0 ** this is probably where grants for community programs is
Venues........................................$4.0
Jobkeeper....................................$0.8
Donations................................... $0.5
Total .........................................$49.3

Football operations revenue Season ticket sales and AFL membership 14,777,645
Sponsorship and fundraising 16,555,356
Corporate boxes and reserved seating 1,749,872
That totals $32.776m vs Port $26.0m + $3.5mil = $29.5.

If venues income was $5.5 then that is $28.0m and difference is $4.77m. Add another $1.8mil if our community grants were slashed from $2.8mil to $1.8mil in 2020 and stayed that way in 2021. So call it $6.5mil difference.

AFL sourced revenue 12,406,511 - Port probably gets $2mil more.

Edit Actual was
AFL distribution and matchday..... $18.0 AFL dist $14.5m other $3.5m inc matchday and merchandise
Revenue from Football operations $25.7 ** this is probably where grants for community programs is
Venues........................................$4.3
Jobkeeper....................................$0.8
Donations................................... $0.5
Total .........................................$49.3

So difference is $32.8m - ($25.7-$1.8m+$3.5m) = $5.4m + an adjustment for merchandise sale. Crows show net merchandise revenue as $269k whereas we show gross merchandise revenue and cost as a Cost of Sales
in Merchandise & Match Day Expenditure, so maybe another $600k makes the difference $6mil.

You can get info on the Power Community Ltd from this link at the Australian Charities and Not-for-profits Commission (ACNC) website, as well as search others charities info.

Power Community Limited | ACNC

www.acnc.gov.au