Sturt in Financial Trouble?

[Dutchy]

Can you post the Financial Report on here?

[Jim05]

That doesnt sound good at all.
Is a move to the Hills viable and would it secure your long term future?

[whufc]

8 team comp in near future then?

[csbowes]

I don't think a move to the Adelaide Hills is the panacea to the clubs problems.

My problem is that I just don't understand what the problems have been at the club over the years. When the AGMs have been held, there's always been some criticism about the financial performance (or lack thereof) and what the club is going to do about it, but those criticisms are often not very constructive. On the other hand, I don't remember the club explaining its situation in any great detail at any of the AGMs.

The AGM in 2010 was a breakthrough AGM with powerpoint presentations that were excellent and I believe they did that again in 2011, though I know there was a preference for members to not ask so many questions like they had done before. Personally, I find that a bit of an odd attitude. I run a software / hardware upgrade program that spends more money than Sturt does and I don't get to tell my bosses to keep their questions to themselves!



Anyway, my point is, I've never really understood why we continually make losses. I know there are difficulties in this climate and that climate, but I'm a simple man (so I'm told) and very much of the belief that you live within your means and don't be overly optimistic with regards targets and so on. You can't be pessimistic, but you can't be optimistic and sometimes I wonder whether the club has been the latter more often than not.

I don't actually know if that is the case, but can't help but wonder...

... how else do you make losses year after year after year and never seem to improve the bottom line.

In some ways I'd like to analyse the clubs finances myself, just to convince myself one way or the other about whether the club is doing its best or whether its repeating the same mistakes from the past today...

[csbowes]

8 team comp in near future then?

Maybe.

I don't know what the financial situation is with other clubs, its one reason why I think all clubs should have to publicise their financial reports to the public, as it would be an interesting read to see where everyone lies.

Has anyone done that in recent memory? As I'm sure between all the posters on here, we could get all of the financial reports of all clubs and have a good look at who is doing well and who isn't...

My general understanding has been...

Centrals - very strong
Glenelg - not sure, maybe just ticking things over
Torrens - ok
South - very strong
North - ok
West - was very strong, but I get the impression they've fallen away
Port - poor
Sturt - poor
Norwood - ok

[whufc]

8 team comp in near future then?

Maybe.

I don't know what the financial situation is with other clubs, its one reason why I think all clubs should have to publicise their financial reports to the public, as it would be an interesting read to see where everyone lies.

Has anyone done that in recent memory? As I'm sure between all the posters on here, we could get all of the financial reports of all clubs and have a good look at who is doing well and who isn't...

My general understanding has been...

Centrals - very strong
Glenelg - not sure, maybe just ticking things over
Torrens - ok
South - very strong
North - ok
West - was very strong, but I get the impression they've fallen away
Port - poor
Sturt - poor
Norwood - ok

Worry for Sturt is in the current state i dont think they will get an overly lot of help from the SANFL or AFL and while some clubs arent as stable as they would like there is very thin chance of a merger option.

No one wants to see Sturt die as imho they are going to have to rebuild on their own. Is Sturt the way through for the Crows to have a reserves side in the SANFL.

Also i would probably have Central as ok and North as very strong.

[csbowes]

Worry for Sturt is in the current state i dont think they will get an overly lot of help from the SANFL or AFL and while some clubs arent as stable as they would like there is very thin chance of a merger option.

No one wants to see Sturt die as imho they are going to have to rebuild on their own. Is Sturt the way through for the Crows to have a reserves side in the SANFL.

I must say if we became a Crows reserves team, that'd be it for me...

... I'd find it hard to barrack for that type of team.

I'd have to consider following Port or South if that happened.

That said, I think you talk sense, it'd be an obvious way of getting a reserves team. They take over the club and all their fringe players play there, that'd turn Port into the same sort of feeder club obviously.

[whufc]

Worry for Sturt is in the current state i dont think they will get an overly lot of help from the SANFL or AFL and while some clubs arent as stable as they would like there is very thin chance of a merger option.

No one wants to see Sturt die as imho they are going to have to rebuild on their own. Is Sturt the way through for the Crows to have a reserves side in the SANFL.

I must say if we became a Crows reserves team, that'd be it for me...

... I'd find it hard to barrack for that type of team.

I'd have to consider following Port or South if that happened.

That said, I think you talk sense, it'd be an obvious way of getting a reserves team. They take over the club and all their fringe players play there, that'd turn Port into the same sort of feeder club obviously.

Worse part is if Sturts financial situation gets worse they wont have much choice if the Crows come knocking, either die or be a feeder club.

Unfortunatly it wouldnt surprise me if the Crows took advantage of a situation like this.

[Dutchy]

Thanks for sending the reports thru csbowes, had a quick look and have a closer look tomorrow but on the surface some worrying signs including breaching their banking covenants and negative commentary from PKF.

One thing I found interesting is their debts are secured by a guarantee from the SANFL, Im not aware of any other clubs having this, other than the AFL clubs of course.

[Sojourner]

Anyway, my point is, I've never really understood why we continually make losses. I know there are difficulties in this climate and that climate, but I'm a simple man (so I'm told) and very much of the belief that you live within your means and don't be overly optimistic with regards targets and so on. You can't be pessimistic, but you can't be optimistic and sometimes I wonder whether the club has been the latter more often than not.

Couple of points,

First off, congratulations for having the guts to tackle the problem head on, you could easily pretend otherwise, yet by tackling the issue head on, its the chance to actually do something about it than standing back and watching as it sinks.

IMO Sturts main problem with these balance sheets is that they have no real asset base to leverage debt against and are more exposed than the other clubs in that regard. My understanding is that Banks don't consider the 1/8th share of Football Park and asset because it lapses should a club fall over. The Castle and Barzaar are both leased as opposed to being property under the clubs ownership. Whilst both can turn over good money, they are not the cash cows that people think they are and cost a lot to run and maintain.

The move to Mt Barker or another location could work with the State Government and the SANFL behind it and I would rather see the SANFL support Sturt and get them set up in the Hills with a local venue/s of their own. to keep them cashed up and competitive.

Unley Oval needs a lot of money spent on it to improve the training and spectator facilities this is no secret and recognized by the SFC, the issue being Sturt need all the coin they can find to survive the global crisis that is happening.

Its all good to hear that as far as the club is concerned the future of Sturt is at Unley and so on, yet on that basis it would not be unreasonable for the club to have a forward plan available to members stating openly how the debts will be repaid and the required investment put into the club. If the club need the help of its members and the wider SANFL community to make that happen, asking is a good start. I think Sturts board will find that there is a lot of support for them if they are prepared to put something on the table and genuinely work towards taking some action over it.

[eddie eagle]

Buying the clubrooms back could be a good investment, subject to usual NPV analysis.

To enhance their revenue stream sturt should convert some of their 19 "assets" to export income. Only problem is the way they manage things financially. They would probably decide to reduce the collection of useful utensils, to the lower value commodity of woodchips.

[am Bays]

I hope Sturt turn it around soon, we might have some more reserve graders they might want to pay $20 000 for at the end of this year.

[CUTTERMAN]

Can you post the Financial Report on here?

Let's have all of them from every club maybe.

[am Bays]

Can you post the Financial Report on here?

Let's have all of them from every club maybe.

Most clubs had there's up over two months ago on their websites: http://www.glenelgfc.com.au/the-club/annual-reports

[FOURTH ESTATE]

Can you name a club that is not struggling in todays world..?

South Adelaide

Debt free are you - should check your financials and see what you owe then come back?

Lucky you got an almost free rent deal with your Oval as well for 99 years - wish we all had the Premier to pull strings! And before you fly off in a hissy fit we had John Bannon when he was Premier as our No. 1 ticket holder and we got diddly squat!

So did the rest of South Australia!!!!!!!

[Dutchy]

Can you post the Financial Report on here?

Let's have all of them from every club maybe.

They are all publicly available documents, most clubs have had their financials displayed and discussed on here.

Might try to track them all down and put them all in one thread for easy reference.

[Wedgie]

I dont take any notice of "Sturt in Financial trouble" threads anymore as there tends to be one every year and yet they keep on keeping on.

[Dutchy]

I've just read the financial report (as opposed to the annual report which was released a while back)...

... the financial report seems to indicate that in 2011, Sturt took out around $2.5m in loans, which in the end puts the club in a position whereby liabilities are around $250K more than assets. The loss for the year was $412K.

There are notes there suggesting we've written off $170K in unpaid sponsorship... I remember this being spoken about months back, but I haven't heard any details on how it happened, what happened and who it was?

Does anyone know what this loan was for? (or am I reading it wrong)

Did anyone go to the AGM this year and ask about it? (this year was the first time I've missed one in ages)

Also, the final paragraph or so of the financial report indicated that the club might not be able to survive as an ongoing entity, which tells me there are concerns that the club is capable of surviving.

... considering the club was planning on asking the supporters to dip into their wallets and bail the club out by $250K this year, its all starting to point to the same thing, that somehow, we've managed to go belly up in one year?

Help from anyone would be appreciated here?

Had a closer look this morning, the $2.6m loan went from Non Current to Current liabilities, no commentary why this was the case, but I presume the bank is reviewing its position annually now making it current. It wasnt a new loan.

Reading a bit more it seems in 2011 they have written off some bad debts (sponsorships) and indicates these maybe from past years not just 2011.

Sponsorship, fundraising, membership and match day income all significantly down which while a worry can all be fixed with good management.

While not an ideal position they are OK but 2012 is a huge year, they would not want another similar result otherwise they will be in trouble IMO.

But it is a real tough environment for any business at the moment, those that are going well are the ones that have cash reserves or low debt levels achieved during the good times.

[Spargo]

Remember being at unley a few years back and going to a beer tent next to the stands to buy some cans.
"Members only" was the response, with which I produced my GFC badge.
"Sturt members you dickhead" was the next pearl. Stupidly I asked where the closest "public" beer outlet was, to which he replied "don't know, don't care".
We smuggle our own grog into the playground now.
Little things like this dig your own grave.....

[CUTTERMAN]

Funny, I've bought beer from there heaps of times and never been asked, as have mates from other clubs.