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MFC Fourth Consecutive Profit


Lucifers Hero

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http://www.melbournefc.com.au/news/2017-11-23/melbourne-makes-fourth-consecutive-profit

Key Stats:

  • Profit of $1.3m
  • Debt reduced by $1.3m to $4.1m (Was $8.1m when Barlett and Jackson arrived)
  • Revenue up by $2.m over 2016 ie 9%
  • “A key factor in the financial result was the support of members. A Club record 42,233 signed up for the 2017 season, with the Club also breaking its attendance record with over 830,000 people watching the team play this year – an increase of more than 146,000 from 2016.
     

An incredible turnaround in 4 years to go from a financial basket case to one that is financially stable, thanks primarily to Jackson.

Fair to say In-Jackson-We-Trust   :pj:

Edited by Lucifer's Hero
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Had forgotten how big the debt had become prior to Jackson. 

Scary.

A remarkable turnaround. 

Prudent financial management by Jackson.

Highlights the key role of a capable CEO with his hands on the clubs financial levels. The fact that Jackson has achieved this with a minimum of fuss and without ripping the guts out of the club speaks volumes for his management strategy and style.

Also a reminder that significant financial improvement can only come by long term sustained success on the field over a 5 to 10 year period. 

Better take out that membership again for 2018.

 

 

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11 minutes ago, Cards13 said:

Lucifer, I didn’t realise you were European?

Oh and well done Dees.

...and the tell sign is...:huh:?

 

To answer your question - Melbourne born to Italian parents so I guess that sort of makes me European and an Aussie - equally proud of both.

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1 minute ago, Lucifer's Hero said:

...and the tell sign is...:huh:?

 

To answer your question - Melbourne born to Italian parents so I guess that sort of makes me European and an Aussie - equally proud of both.

Because consecutive is spelt without a q. Maybe thats the French spelling.?

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3 hours ago, faultydet said:

Because consecutive is spelt without a q. Maybe thats the French spelling.?

LOL - just a brain fade...:)

Fixed the title...

Edited by Lucifer's Hero
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58 minutes ago, hemingway said:

Had forgotten how big the debt had become prior to Jackson. 

Scary.

A remarkable turnaround. 

Prudent financial management by Jackson.

Highlights the key role of a capable CEO with his hands on the clubs financial levels. The fact that Jackson has achieved this with a minimum of fuss and without ripping the guts out of the club speaks volumes for his management strategy and style.

Also a reminder that significant financial improvement can only come by long term sustained success on the field over a 5 to 10 year period. 

Better take out that membership again for 2018.

 

 

Pretty sure the debt only came about from the takeover of the Bentleigh club. We took over their debt and poker machine obligations but obtain the asset and future revenue. Either way the on-going profit is a great result. 

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We weren't a financial basket case 4  years ago.  In fact, we were in quite a decent financial position with excellent ongoing revenue streams.  The ship just needed to be righted - Peter Jackson made special mention of that when he arrived in 2013.  On field - we were deplorable.  Mixing up the 2 areas (Financial & on-field) is a common misrepresentation. 

It's true that we posted a loss in 2013 but we had previously posted profits in the 4 years prior to 2013.  And that one poor financial return can be put down to our gate returns hitting rock bottom after an equally deplorable year in 2012.  PJ obviously righted the ship but let's not forget to acknowledge the financial turnaround that we all witnessed during the Jimmy Stynes era. 

In 8 of the last 9 years the club has posted a profit.  It's all there in black & white in the annual reports. 

 There are 4 main reasons why we've posted profits since 2009 (other than the increased dividend that all the clubs are now receiving from the AFL)

  • Pokies (the profitability of our 2 venues has matured & increased year-by-year)
  • NT (800k per game)
  • Foundation Heroes (large sums of money were raised initially & 3 - 4 years hence)
  • Increased Membership

We can now add the increased revenues from our home fixtures against other big clubs apart from Collingwood (ANZAC eve,  vs Cats season opener etc)

Considering how unsuccessful we've been in the recent past,  it's a minor miracle that we have posted a profit in 8 of the last 9 years.

In real terms, having a debt of only 4.1 million is not an issue when considering our more-than-solid revenue streams and cash-flow.

 

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Fantastic result.  I'm now fully over the malaise prompted by our late season crap football, looking forward with anticipation to tomorrow's  draft, and genuinely excited about what 2018 might bring on the field.  Seriously, strong plaudits to PJ and his team!

PS.  My current exuberance is only slightly enhanced by a by what I've used as a thirst quencher in the last hour or so.

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33 minutes ago, Macca said:

We weren't a financial basket case 4  years ago.  In fact, we were in quite a decent financial position with excellent ongoing revenue streams.  The ship just needed to be righted - Peter Jackson made special mention of that when he arrived in 2013.  On field - we were deplorable.  Mixing up the 2 areas (Financial & on-field) is a common misrepresentation. 

It's true that we posted a loss in 2013 but we had previously posted profits in the 4 years prior to 2013.  And that one poor financial return can be put down to our gate returns hitting rock bottom after an equally deplorable year in 2012.  PJ obviously righted the ship but let's not forget to acknowledge the financial turnaround that we all witnessed during the Jimmy Stynes era. 

In 8 of the last 9 years the club has posted a profit.  It's all there in black & white in the annual reports. 

 There are 4 main reasons why we've posted profits since 2009 (other than the increased dividend that all the clubs are now receiving from the AFL)

  • Pokies (the profitability of our 2 venues has matured & increased year-by-year)
  • NT (800k per game)
  • Foundation Heroes (large sums of money were raised initially & 3 - 4 years hence)
  • Increased Membership

We can now add the increased revenues from our home fixtures against other big clubs apart from Collingwood (ANZAC eve,  vs Cats season opener etc)

Considering how unsuccessful we've been in the recent past,  it's a minor miracle that we have posted a profit in 8 of the last 9 years.

In real terms, having a debt of only 4.1 million is not an issue when considering our more-than-solid revenue streams and cash-flow.

Financial basket case may have been a tad colourful but I suggest we weren't in a good place financially when Jackson et al took over. 

Certainly Jimmy deserves great accolades for saving our club and turning the ship around.  But sadly it wasn't sustained.   While huge work went into fund raising/selling games (Brisbane then NT) our 'core revenue' was in decline.  And I suggest that one of the main reasons we posted profits in 2009 to 2012 (the 'minor miracles' as you put it) was because we grossly underfunded the football department, football facilities and player development.  This under funding wasn't sustainable. 

When Jackson et al took over we didn't have a major sponsor(s).  We had very low and decreasing membership .  People didn't come to our games.  So 3 of the 'core revenue' streams were on heart support post Jimmy/McLardy.  The precious fund raising during Jimmy's reign, while desperately needed had papered over the financial cracks. 

I'm with you in praising the work Jimmy did but I hold a different view to the years that followed.  The business model and spending priorities we have now is vastly different to that pre Jackson/Barlett.  

This 're-engineered' business is now a sustainable and financially stable club.  FWIW, my view is we would not be where we are without Jackson.  He had a vision and slowly put the building blocks in place to fulfill it.  

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2 hours ago, Lucifer's Hero said:

...and the tell sign is...:huh:?

 

To answer your question - Melbourne born to Italian parents so I guess that sort of makes me European and an Aussie - equally proud of both.

The way consequtive was spelt.. 

sorry I’ll show myself out.. 

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9 minutes ago, Lucifer's Hero said:

Financial basket case may have been a tad colourful but I suggest we weren't in a good place financially when Jackson et al took over. 

Certainly Jimmy deserves great accolades for saving our club and turning the ship around.  But sadly it wasn't sustained.   While huge work went into fund raising/selling games (Brisbane then NT) our 'core revenue' was in decline.  And I suggest that one of the main reasons we posted profits in 2009 to 2012 (the 'minor miracles' as you put it) was because we grossly underfunded the football department, football facilities and player development.  This under funding wasn't sustainable. 

When Jackson et al took over we didn't have a major sponsor(s).  We had very low and decreasing membership .  People didn't come to our games.  So 3 of the 'core revenue' streams were on heart support post Jimmy/McLardy.  The precious fund raising during Jimmy's reign, while desperately needed had papered over the financial cracks. 

I'm with you in praising the work Jimmy did but I hold a different view to the years that followed.  The business model and spending priorities we have now is vastly different to that pre Jackson/Barlett.  

This 're-engineered' business is now a sustainable and financially stable club.  FWIW, my view is we would not be where we are without Jackson.  He had a vision and slowly put the building blocks in place to fulfill it.  

What I like most about the club circa 2017 is our willingness to work with the AFL, take what we are given and get on with it.

Keep up the great work MFC

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27 minutes ago, Cards13 said:

Hang on, I thought we were a financial basket case thus the parachuting of Roos and PJ with the AFL giving us cash to do so?

Also as an FYI North has $0 debt (from their own words) and no pokies revenue even with their [censored] poor member base.

Yeah North have done a fantastic job with zero debt & no poker machines revenues - but their ladder position is a bit of a concern. 

I prefer our position, slow reduction of debt, maintaining & increasing our FD spend and moving up the ladder. Hoping, optimisticly the AFL supports and works us on PM revenues

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Have to see the financials to verify it, but as I recall the majority of our debt was from purchasing the Poker machine licenses, which are being paid off from the poker machines themselves.  I think it was anticipated that would be achieved within 2 years.

So we will be in a better position than North, once that happens, as we will have an unencumbered revenue source, and they still will not.

 

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2 hours ago, Lucifer's Hero said:

FWIW, my view is we would not be where we are without Jackson.  He had a vision and slowly put the building blocks in place to fulfill it.  

It is well known that Jackson won't be with us long-term, but it would be great if we could sign him up for at least the short and mid-term.

Another 3 years after 2018 would be great. Gives us enough time to either really develop our own from within, or plenty of time to find a more than acceptable replacement.

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3 hours ago, george_on_the_outer said:

Have to see the financials to verify it, but as I recall the majority of our debt was from purchasing the Poker machine licenses, which are being paid off from the poker machines themselves.  I think it was anticipated that would be achieved within 2 years.

So we will be in a better position than North, once that happens, as we will have an unencumbered revenue source, and they still will not.

 

I remember reading on Demonland that we'd purchased the Poker machine licenses, but it always seemed at odds with something else I recall reading on AFL.com.au and Demonland, regarding how we, along with the majority of the other clubs (excluding Hawthorn), had signed an anti-betting or anti-pokies agreement. Did I dream this?

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Just putting it out there but the continued reliance upon pokies could have an adverse impact upon memberships in the future.

It troubles me as I am sure it troubles others. I would like to see a long term strategy (5-10 years) for their removal.

They may be legal but that does not mean that I have to support their insidious impact upon vulnerable members of the community.

In reality this is only moving with community opinion. Twenty years ago concepts of ethical investment were laughed at and now they are mainstream.

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55 minutes ago, Diamond_Jim said:

Just putting it out there but the continued reliance upon pokies could have an adverse impact upon memberships in the future.

It troubles me as I am sure it troubles others. I would like to see a long term strategy (5-10 years) for their removal.

They may be legal but that does not mean that I have to support their insidious impact upon vulnerable members of the community.

In reality this is only moving with community opinion. Twenty years ago concepts of ethical investment were laughed at and now they are mainstream.

Is this code for dopes who make poor decisions and lack personal responsibility ?

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1 hour ago, Diamond_Jim said:

Just putting it out there but the continued reliance upon pokies could have an adverse impact upon memberships in the future.

It troubles me as I am sure it troubles others. I would like to see a long term strategy (5-10 years) for their removal.

They may be legal but that does not mean that I have to support their insidious impact upon vulnerable members of the community.

In reality this is only moving with community opinion. Twenty years ago concepts of ethical investment were laughed at and now they are mainstream.

The morals police are out again.

ffs, have your EVER heard of personal responsibility?

Tell me what difference it will make to a gambling addict, if we remove our machines? The only thing that it would impact positively is your "feelings"

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11 hours ago, Demon Disciple said:

It is well known that Jackson won't be with us long-term, but it would be great if we could sign him up for at least the short and mid-term.

Another 3 years after 2018 would be great. Gives us enough time to either really develop our own from within, or plenty of time to find a more than acceptable replacement.

Couldn't agree more. 

His contract expires @ end of 2018.  Not really confident about he extending it or for how long if he does.  I suspect not long as I recall a recent interview where he talked succession, in a general sense.  He is big on grooming successors and hinted that he will do so with his position.  He may already have that process in train.

What he has built is sustainable.   When he goes, I am very confident he will choose someone he trusts to build on that and who will not let us go backwards again.

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