What is the "highly profitable Skilled Stadium model"?

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Can anyone explain what is involved in the "hugely profitable Skilled Stadium model"? I know it's unique in the league but how is it structured to be highly profitable?

From the Age: http://www.realfooty.com.au/news/ne...o-zone-say-pies/2007/10/22/1192940985127.html
The independently funded Gemba report into the club's future said the Kangaroos could not survive in Melbourne with their current Telstra Dome agreement and without extra AFL support. The club is funded to the tune of $2.6 million a year with $1.2 million of that amount coming from the competition's underwriting of matches played at Carrara. Whether the AFL redevelops Carrara or helps build a new stadium at Palm Meadows, the financial deal would be based on the hugely profitable Skilled Stadium model enjoyed by Geelong.
 

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bigdroppunt

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#2
you would think they are talking about how we pull in about $1 Mil per home game, mabey not just the club but geelong comminity ?? but ATM it is highy profitable as some of the stands and seats are that old, they were brought and paid for long ago.:confused:
 

azyboy

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I could be wrong but I believe its based on the fact that with a crowd of 23k at SS we can generate about 600k profit. I think we need to pull something in the vacinity of 35k at Telstra Dome just to break even. It would have a lot to do with the ability to keep overheads lower at SS than TD.
 
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I believe it has something to do with the difference between getting just a cut of gate receipts at the TD or MCG but in Geelong we get the gate receipts PLUS additional seat sales, a cut of food and beverage sales as well as the extra revenue through Club Cats.
 
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I could be wrong but I believe its based on the fact that with a crowd of 23k at SS we can generate about 600k profit. I think we need to pull something in the vacinity of 35k at Telstra Dome just to break even. It would have a lot to do with the ability to keep overheads lower at SS than TD.
I believe it has something to do with the difference between getting just a cut of gate receipts at the TD or MCG but in Geelong we get the gate receipts PLUS additional seat sales, a cut of food and beverage sales as well as the extra revenue through Club Cats.
Ah yes, starting to make sense now.
 

Brasil2007

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I believe it has something to do with the difference between getting just a cut of gate receipts at the TD or MCG but in Geelong we get the gate receipts PLUS additional seat sales, a cut of food and beverage sales as well as the extra revenue through Club Cats.
On top of all of this there's advertising. Having a "clean" stadium (ie one with no advertising contracts separate to those of the club) is probably the most valuable commodity in sport. It'll be worth even more now we've won the flag - more FTA games = more viewers = more sponsors dollars when contracts are renegotiated. And of course there is naming rights to the ground itself, which is worth a bomb.
 
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On top of all of this there's advertising. Having a "clean" stadium (ie one with no advertising contracts separate to those of the club) is probably the most valuable commodity in sport. It'll be worth even more now we've won the flag - more FTA games = more viewers = more sponsors dollars when contracts are renegotiated. And of course there is naming rights to the ground itself, which is worth a bomb.
Ah yes, forgot that. Good point.
 

Turbocat

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I think most of the points have been covered.

Although we have maintenance costs, the ability to gain revenue a multitude of ways is shown in the profit margins compared to crowd sizes at other venues. Financially we probably should never play at the TD , at KP our profit margin is so much higher due to the rate of reserved seats,the higher take from catering and merchandise. At TD , we probably don't beat KP until a near capacity at TD or around 65,000 at the G. Sure nothing beats the G if we get the crowds like the Pies this year but one can not play them each week. Our high profit is generally made playing interstate teams and low drawing Vic teams.Big games against the Pies etc. are icing on the cake.

At the time of the new Hickey Stand coming online , I remember Cook stating that once the Stand had been paid for , it had the capacity to add 1M extra to our bottom line per annum . The revenue gained from a Premium Stand with a limited capacity guaranties a locked in regular revenue stream. I'm sure we will hear something of that sort again when the figures come out for the new proposed stand that will replace the RossDrew. If we can get our stadium to around 35.000 and retain the locked seat sales we will be become a $ powerhouse of the AFL
 

Copernicus

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#11
It's the one which allows us to be hugely profitable ;)

I'd say one of the biggest factors is the fact that we are the only tenant - no competing interests involved. Plus reserved seats and all the rest of it...
 

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Skeppersap

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With such a profitable stadium there for our use, it really makes you wonder how the previous board and administration could run up an 8 million dollar debt. Add to that the fact that Ablett was playing at this time, and opposition supporters used to pay just to watch him play.
 

The Sim Dog

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With such a profitable stadium there for our use, it really makes you wonder how the previous board and administration could run up an 8 million dollar debt. Add to that the fact that Ablett was playing at this time, and opposition supporters used to pay just to watch him play.
Indeed. I find it surprising too. And we reached that max debt around late 98 to mid 99 I think. Only a year or two on from 97 when we were still a very good team (and had been a very good team since 89).
 
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