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Gaming - we are out!



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Some more info in the Age article, gaming only makes up 10% of overall revenue, also Jackson said we wouldn't be repaying debt from the sale, as they expect the $5 million debt to naturally be repaid in the next 3-4 years. 

https://www.theage.com.au/sport/afl/demons-announce-gaming-industry-exit-20180404-p4z7p7.html

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1 minute ago, praha said:

The club needs ongoing revenue opportunities. Bulldozing a revenue generating venue for immediate financial gain probably isn't the best move.

Really depends on what they could use those funds on? They seem to have a plan in place to replace that revenue, because they've said it won't be to repay debt. 

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Very happy with this move.

Pokies are a blight on our state. They have wrecked many a good pub, driven many financially disadvantaged people to the wall (while Oakleigh and Bentleigh are in the south east, look where most pokies are situated) and have become a teat which pollies suck on but also warps their judgement.

I'm glad that our club is now starting to stand for something on field and off field besides dusty nostalgia. We have embraced inner city Melbourne and the diverse populations that live there.  We launched the AFLW and gave women a chance to compete in an elite league. I also think we are playing a more resilient brand of football (though our notorious flakiness remains in patches). Now we have decided that we want no more from this predatory industry.

I echo others view however that we also need a plan moving forward. This will cause backlash of we can't find an alternative revenue stream going forward.

But top marks for taking a stand MFC!

Edited by Colin B. Flaubert
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34 minutes ago, daisycutter said:

is there gaming entitlements at the leighoak venue like there are at the bentleigh club?

if so, what %  of gaming do we lose this July with the sale of leighoak?

According to the gaming regulator's website, the Leighoak has 92 pokies entitlements (and therefore 92 poker machines) and the Bentleigh Club has 88. Pokies revenue (which means player losses and is before tax and other operating costs) was $7.7 million in 2016/17. At the Bentleigh Club, revenue was just over $2.5 million. You can find all that data here.

A side note of interest is that one of our Directors is Mohan Jesudasson, who used to run the pokies business for Tabcorp. If anyone knows the value of the entitlements and hopefully what the future holds for that business, he should be as well informed as anyone.

Edited by La Dee-vina Comedia
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8 minutes ago, Red and Blue realist said:

Few people jumping to conclusions, around lost revenue etc. without knowing, what the exact revenue and profits were for each venue, what sale proceeds they expect and what they will use those funds for. So far this administration has been pretty spot on with most of their moves (that's publicly visible) so happy to back them in until further info is provided.

Have heard some talk that the venue in Bentleigh would be worth a whole lot more if bulldozed and housing/units built. Maybe they'll enter into some sort of property development opportunity? 

I like it when people unwittingly or not use a betting term when discussing gambling.

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So all these machines are going to the tip ? 

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1 hour ago, ProDee said:

Seemingly, some supporters like how this makes them "feel" even though nothing will change for the customers of these machines.  

In some ways, a football club, which in essence survives through social cohesion, is better placed to support those who may end up having a problem with gambling than a profit-driven entity.  

That said, it's a legal product, a great revenue stream, and the club won't necessarily always be well managed. 

Unless there's a bigger game happening that I'm not privy to I think it's a poor and potentially short-sighted move.

Just think of it as getting rid of Jack Watts.

Short-term pain of losing a much-loved and skilled player for the long-term gain of ridding the club of a bad influence.

There will no doubt be a revenue equivalent of Bayley Fritsch waiting in the wings.

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I would just like us to take advantage of such a decision and market ourselves in positive way - I wonder how some of the other bigger clubs would cope without gambling profits?

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1 hour ago, Tricky said:

Neither was slavery once - but there's always been right from wrong.

Sure. But many people do enjoy Pokies, not sure why, but they do. 

I doubt anyone enjoyed Slavery

As far as i am concerned, considering the AFL pays NO Tax, if they want to rid the clubs of Pokies, then it is the AFL who should be sorting out new Revenue Streams for those inconvenienced clubs. 

 

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2 minutes ago, Sir Why You Little said:

Sure. But many people do enjoy Pokies, not sure why, but they do. 

I doubt anyone enjoyed Slavery

As far as i am concerned, considering the AFL pays NO Tax, if they want to rid the clubs of Pokies, then it is the AFL who should be sorting out new Revenue Streams for those inconvenienced clubs. 

 

people who owned slaves?

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1 hour ago, Red and Blue realist said:

Some more info in the Age article, gaming only makes up 10% of overall revenue, also Jackson said we wouldn't be repaying debt from the sale, as they expect the $5 million debt to naturally be repaid in the next 3-4 years. 

https://www.theage.com.au/sport/afl/demons-announce-gaming-industry-exit-20180404-p4z7p7.html

Sorry, we went into debt to purchase these machines but we won't use the money from the sale to pay off our debt.  Something a bit smelly going on, I will take a stab at it and this is my take only could be way off the mark but makes sense to me.

A month ago we go to the media about establishing a home base and finally bringing our club together.  I reckon the AFL, State and Federal governments have gone OK we are in but you need to contribute X to make this happen.  We don't have X and can't finance the X amount with our current debt.  You know what lets take the Moral high ground sell off an asset get the coverage as a socially responsible community club but more importantly raises the X amount we need to contribute for our home base.

To me if you have the money to pay off your debts you do it and save the interest, to me if what the age is stating is correct it will be money in money out

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3 hours ago, Clint Bizkit said:

They've made profits the last two years from memory.

There are other ways to make money other than gambling.

PLs fwd your ideas to Peter Jackson.....

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56 minutes ago, iv'a worn smith said:

I agree with the principle which led to this decision.  However, I would like to know what will be new in the strategic plan to make up the obvious and inevitable revenue loss.

Meat raffles, Egg and Bacon sandwiches at the MCG, not just Casey.

Rob from the rich, not from the poor.

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8 minutes ago, drdrake said:

Sorry, we went into debt to purchase these machines but we won't use the money from the sale to pay off our debt.  Something a bit smelly going on, I will take a stab at it and this is my take only could be way off the mark but makes sense to me.

A month ago we go to the media about establishing a home base and finally bringing our club together.  I reckon the AFL, State and Federal governments have gone OK we are in but you need to contribute X to make this happen.  We don't have X and can't finance the X amount with our current debt.  You know what lets take the Moral high ground sell off an asset get the coverage as a socially responsible community club but more importantly raises the X amount we need to contribute for our home base.

To me if you have the money to pay off your debts you do it and save the interest, to me if what the age is stating is correct it will be money in money out

I seem to recall State and/or Federal money was provided to the Western Bulldogs to redevelop Whitten Oval on condition that the old poker machine venue there was removed. And maybe something similar down at Kardinia Park, too. It wouldn't surprise me that the decision announced today may be followed by a sequel which announces a new training venue with a significant State and/or Federal financial contribution.

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1 hour ago, beelzebub said:

GOTO i do wonder what the carrot is. Pointless exercise otherwise really.

yeah, just like people choosing to disinvest from coal producers. i mean tge coal is still going to come out of the ground one way or another. so pointless

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4 hours ago, poita said:

Yet another example of a small minority of people not wanting to take responsibility for their actions and hence the majority who do the right thing and have some self control suffer.

 

Please elaborate on your suffering???

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