SA Footy

I wanted to post this earlier but thanks to our toddler my annual report went missing for a few days.

Because of the various questions about them, I have done my own summary of the financial results. I have to say the layout of the information could be improved to make it easier to follow. I don't think the explanations in the reports are what they should be and the commentaries seem to have been written in a rush.

- What I'll call "Football Operations" made a small loss of -$23,000 compared to a small profit of $20,000 the year before
- The Northern Tavern made a big loss of -$391,000 compared to a loss the year before of -$174,000
- The Roosters Club (the Grand North) made a profit of +$238,000 slightly down on the profit the year before of +$264,000
- So, overall, the loss is -$176,000 compared to the previous year's profit of $110,000

The club paid out the previous year's loan to an "outside party" of $1.4m (presume this is Rob?) and replaced it with borrowings from the Roosters Club and the Westpac bank. Debt levels overall remained about the same at $4.4m.

Clearly, the issue is the Northern Tavern. What I don't know is how other similar venues fared with the no-smoking legislation and so how much of the $391K loss was out of the club's control.

If I was at the AGM tomorrow the questions I'd be asking about the financials would be centred on the Northern Tavern. Clearly it's the club's major investment and its financial fortunes are tied in with the Tavern's.

- did the club breach any loan covenants with the Westpac and what action have they taken if we did?
- what is the Westpac's position on extending facilities if next year produces a similar loss?
- did the Tavern meet budget this year? ie, was this loss expected or a surprise?
- what are the short and long term forecasts for the Tavern and how quickly will it become profitable?
- how did the venue benchmark against other venues (ie, did venues across the board in SA suffer a similar downturn?)
- is the club satisfied with the performance of management at the Tavern?
- is Rob Gerrard's ongoing commitment to the club at risk given the financial downturn?

I hope that helps

thanks hondo very informative
Questions i have
The north fans on here have often bragged about how wealthy they are
What happened there
Have the members lost track of the truth or was it the blind leading the blind
We heard that the club was making that much profit that their tax status was in doubt and they had to waste money on football trips to south africa
Which ended us being in canberra

also hondo how much is the loss making tavern valued at on the balance sheet
When was it last valued
Would the club actually get what it is valued at if they sold it
Is it true or a myth that some players are being paid over award wages to work there and if that is true is this one of the reasons it loses so much money

Making money isn't an issue, we'll have the 2 places freehold within 4 years if things continue like they are at the moment.
There are a lot of issues but long term profitability isn't one of them.
Where some of the money is going/being lose is a relevent current question though and how some money is being spent is a big issue too.
Size of the font in the Annual Report was a bloody issue too, needed a magnifying glass, and I have perfect vision!

fairly minor point if its free hold or not if it is a cash drain
Maybe you should sell it to some one who could make a profit

Who would Buy it, Eagles..?

Without analysis, and this goes for all clubs, how does football ops come in at anything other than a $0 balance? It is designed to break even and effectively be a cost centre, yet all clubs manage to bugger that up. Baffles me.

What is their total spend on the footy dept?

smac wrote:Without analysis, and this goes for all clubs, how does football ops come in at anything other than a $0 balance? It is designed to break even and effectively be a cost centre, yet all clubs manage to bugger that up. Baffles me.

Would still have a budgeted spend for that department mate and therefore a variance if over/under ... Sounds like one of the "black hole" spots though for a little burying or re-distribution for clubs to have the accounts suit their intentions.

EAGLES wrote:also hondo how much is the loss making tavern valued at on the balance sheet
When was it last valued
Would the club actually get what it is valued at if they sold it
Is it true or a myth that some players are being paid over award wages to work there and if that is true is this one of the reasons it loses so much money

It's valued at what is cost 2 years ago

I can't answer your other questions accurately as I only have the annual report to go by. The Tavern's main issue seemed to be the drop in revenue from $6.5m to $5.7m. Operating costs reduced from $6.7m to $6.1m so I don't feel that "over award wages" has created the loss. Unless those wages meant the venue's revenues dropped by 12%!.

I don't see it as doom & gloom. I see it as once the venue turns profitable the club will be in a very strong position with the Grand North being profitable. I think the club is well placed for the future, we just need to get the Tavern working.

DUTCHY- "Football Ops" were around $1.9m (revenue and spend)

hondo71 wrote:DUTCHY- "Football Ops" were around $1.9m (revenue and spend)

1.9 Million for Footy Ops??? That is the whole footy club turnover for most other SANFL clubs so that is a broad classification.

The $23 K loss does that include write downs for missing video equipment???

1980 Tassie Medalist wrote:

hondo71 wrote:DUTCHY- "Football Ops" were around $1.9m (revenue and spend)

1.9 Million for Footy Ops??? That is the whole footy club turnover for most other SANFL clubs so that is a broad classification.

The $23 K loss does that include write downs for missing video equipment???

I can't find any costs for additional cleaning either - you think there would be sub columns for "defecation" and "egg on face" cleaning. Also I can't find the costs re the hire of the machine that blows the "smokescreen" across most issues at the NAFC?

They would have bought one drebs, no point hiring something when you use it that often!

smac wrote:They would have bought one drebs, no point hiring something when you use it that often!

Good point smac - at least that can be depreciated at cost each year although the amount of work it does we would need a new model each year!

drebin wrote:

smac wrote:They would have bought one drebs, no point hiring something when you use it that often!

Good point smac - at least that can be depreciated at cost each year although the amount of work it does we would need a new model each year!

And best of all they can hire out the "smokescreen machine" to all the other clubs when they need to hide the skeleton's in their closets, I mean we hire out our well used 2005 edition Mk X coach termination manual when the need arises....

1980 Tassie Medalist wrote:1.9 Million for Footy Ops??? That is the whole footy club turnover for most other SANFL clubs so that is a broad classification.

It's just my term for everything other than the Tavern & the Grand North. Maybe you could sub-classify it further but the report shows it as "North Adel FC Inc".

It includes some revenue called "sponsorship" from the 2 venues which reduces their reported profits. This is fair enough to some extent as the Club needs a return for its promoting & advertising effort.

So it's all inter-twined to some extent. If they didn't have the venues they'd have to find sponsorship from somewhere else.

But I expect every sporting club relies on contributions from non-sport income streams to help fund core sporting operations.

Can't see anything on the video equipment or Drebin's smokescreen!

& to think that us North fans thought that the Northern would be the gold-mine, Grand North the poor cousin...

drebin wrote:

1980 Tassie Medalist wrote:

hondo71 wrote:DUTCHY- "Football Ops" were around $1.9m (revenue and spend)

1.9 Million for Footy Ops??? That is the whole footy club turnover for most other SANFL clubs so that is a broad classification.

The $23 K loss does that include write downs for missing video equipment???

I can't find any costs for additional cleaning either - you think there would be sub columns for "defecation" and "egg on face" cleaning. Also I can't find the costs re the hire of the machine that blows the "smokescreen" across most issues at the NAFC?

LOL!!!!! very funny.

Punk Rooster wrote:& to think that us North fans thought that the Northern would be the gold-mine, Grand North the poor cousin...

Grand North is very much a popular venue! Every time I drive past on the way home from work there are always plenty of cars in the car park, they actually raised the quality and prices of the meals and its usually packed most weekends!

The Dragons bar there isnt bad either!

Punk Rooster wrote:& to think that us North fans thought that the Northern would be the gold-mine, Grand North the poor cousin...

The Northern is a gold mine / cash cow. It is used to "prop up" other parts of the club and it was explained at the AGM why it does not retun an "actual profit". At the end of trading it was $600k in operating profit but that was all used up on other things to "balance" up the books including the club paying $900K above it's budgeted debt to the borrowings as part of the '08 financials.

Tyring to work all that out with the current financials is near impossible but I'm sure the club has it's reasons for being coy on certain things?