Tigers $2.2m in red
27 November 2004 Herald Sun
Jon Pierik
RICHMOND last night acknowledged several mistakes had contributed to its $2.19 million operating loss this year, but president Clinton Casey remains confident of a dramatic turnaround.
In an e-mail to club members, Casey said the heavy loss was "totally unacceptable" and tried to smooth the waters by saying it had been forecast in March.
Now facing a board challenge at the December annual general meeting from the rebel Charles Macek-Brendan Schwab faction, Casey said the club had begun to rectify the situation.
"The board erred in budgeting for continued growth in revenues, particularly corporate sponsorships," he said.
"That budget was based on more on-field success and a lot more growth in the marketing field.
"It also provided for a relatively high-cost football department budget, to get the club back on track with on-field success."
Football department costs amounted to $10.6 million last season, $500,000 over budget, but the 2005 forecast has been cut to $9.8 million.
In a crippling blow, football, membership, corporate, event and function incomes were all down last season.
"In summary, we were over-optimistic on revenue," Casey said last night.
"That, along with a significant fall in revenue from our gaming venues, sponsorship and coterie groups, led to our financial plight.
"But having promptly recognised the challenges, we subsequently made changes with the CEO, to the administration, and in the football department structure, to make sure such financial problems don't arise again at Tigerland."
Casey said $1.5 million in savings had already been identified.
"Those cost-savings are virtually set in concrete already because they're in player contracts, membership fulfilment and other areas that we can actually control," Casey said.
While Casey is confident of being re-elected at the December 22 annual general meeting, it's understood legendary former captain and coach Francis Bourke has joined the call for change.
http://www.heraldsun.news.com.au/footy/common/story_page/0,8033,11511200%5E20322,00.html
27 November 2004 Herald Sun
Jon Pierik
RICHMOND last night acknowledged several mistakes had contributed to its $2.19 million operating loss this year, but president Clinton Casey remains confident of a dramatic turnaround.
In an e-mail to club members, Casey said the heavy loss was "totally unacceptable" and tried to smooth the waters by saying it had been forecast in March.
Now facing a board challenge at the December annual general meeting from the rebel Charles Macek-Brendan Schwab faction, Casey said the club had begun to rectify the situation.
"The board erred in budgeting for continued growth in revenues, particularly corporate sponsorships," he said.
"That budget was based on more on-field success and a lot more growth in the marketing field.
"It also provided for a relatively high-cost football department budget, to get the club back on track with on-field success."
Football department costs amounted to $10.6 million last season, $500,000 over budget, but the 2005 forecast has been cut to $9.8 million.
In a crippling blow, football, membership, corporate, event and function incomes were all down last season.
"In summary, we were over-optimistic on revenue," Casey said last night.
"That, along with a significant fall in revenue from our gaming venues, sponsorship and coterie groups, led to our financial plight.
"But having promptly recognised the challenges, we subsequently made changes with the CEO, to the administration, and in the football department structure, to make sure such financial problems don't arise again at Tigerland."
Casey said $1.5 million in savings had already been identified.
"Those cost-savings are virtually set in concrete already because they're in player contracts, membership fulfilment and other areas that we can actually control," Casey said.
While Casey is confident of being re-elected at the December 22 annual general meeting, it's understood legendary former captain and coach Francis Bourke has joined the call for change.
http://www.heraldsun.news.com.au/footy/common/story_page/0,8033,11511200%5E20322,00.html
