Update from the Board

[w00dy 146]

Seems like the members are getting some answers.

I did say some answers

UPDATE FROM THE BOARD

[w00dy 146]

Good point made there that board member Peter Spargo will be doing the job for free, so we will not be paying a CEO for the next two to three months ... therefore we're the money we pay out to McNamee was going to be paid to him anyway, except we have an interim CEO who sees eye to eye with the board.

What I make of all this ... McNamee was a great CEO, but at the wrong time for the MFC ... he'd be great for a club like St. Kilda who have financial stability, and help them become an even stronger club.

While McNamee had a great vision for the club, it wasn't realistic at this point in time. What the club needs now is consolidation of it's financial position, something McNamee didn't seem to have on his agenda so much.

[True Believer 1]

The following is a letter which was sent to all MELBOURNEfc Members on Thursday night.

As an important member of the Red and Blue family, I write to you today to update you on our work to date, and about our future plans.

It was your Board’s decision that, in order to create a sustainable Club, a new CEO would be required. This led to the cessation of Paul McNamee’s contract. We bear Paul no ill, but we do firmly believe that the skills needed for the future of the MFC are to be found elsewhere.

So, the immediate future is about sorting out the finances of the Club.

Cost controls have now been implemented.

Expenditure will be kept to a minimum, and controls are in place.

The new Board has been structured to specifically address the immediate financial issue, and the medium term strategy we need to employ if we are to create the sustainable Club we all so passionately desire.

Following an extensive review, we have identified five pillars that will become our focus, and the basis of our direction. Individual Board members have been assigned to subcommittees to manage these areas. Those five areas are as follows:

FINANCIAL VIABILITY – At the end of this financial year, our debt will have blown out to $5 million. This is unsustainable. Board member, Stuart Grimshaw - an executive of the Commonwealth Bank with extensive financial experience, both here and overseas - along with Vice President Guy Jalland, commercial lawyer and senior executive with Consolidated Press Holdings, will be responsible for the management of our finances.

ON-FIELD – A committee of Board members will be assisting Dean Bailey and Chris Connolly to manage our football operations. This group consists of past player and Club hero, Andrew Leoncelli, along with David Thurin and Peter Szental.

ORGANISATION – This group will address the important issue of ensuring that we find the very best home base for our Club, as well as dealing with matters of governance, remuneration and performance. The Board members assigned to manage these important areas are as follows: Karen Hayes, Peter Szental, Stuart Grimshaw, Guy Jalland and David Thurin.

BRAND STRENGTH – Board member Russel Howcroft - former Chairman of the Advertising Federation of Australia and current Managing Director of George Patterson Y&R, one of the country’s leading advertising agencies - will address the serious questions raised about the Melbourne Football Club brand, and our marketing strategies for the future.

STAKEHOLDERS – Our stakeholder relationships - including our relationships with the MCC, AFL, Sponsors, Members, our Coterie, and Government - will be addressed by Don McLardy, Peter Spargo, Jim Stynes and Guy Jalland.

For a complete list of the Club’s Board members, and details regarding their extensive commercial experience, click here

We believe this clear focus and committee structure will enable the Board to ensure that due diligence is given to every decision we make, and will provide the very best outcomes for our supporters and the Melbourne Football Club.

During this process, we will have to make some difficult decisions, from which we will not shy away.

One of these decisions has been to appoint a new CEO. We are fortunate to have Board member Peter Spargo - an experienced and successful business person in his own right - stepping into this role in an interim capacity, at no cost to the Club. Thanks to Peter’s contribution, the financial implications of replacing the CEO will not have any additional impact on our end of year forecast.

In the short term, we will commence the search for a new CEO. We have identified the qualities we need in the new CEO, and this search will begin shortly.

In addition, everyone at the Club is working hard on the plans to demolish our debt during the month of August, so that we will be here - playing footy and entertaining our fans - for many years to come.

Yours sincerely,

Jim Stynes, President

Peter Spargo, Interim CEO and the Melbourne Football Club Board.

[RedsoxMan 144]

Good point made there that board member Peter Spargo will be doing the job for free, so we will not be paying a CEO for the next two to three months ... therefore we're the money we pay out to McNamee was going to be paid to him anyway, except we have an interim CEO who sees eye to eye with the board.

What I make of all this ... McNamee was a great CEO, but at the wrong time for the MFC ... he'd be great for a club like St. Kilda who have financial stability, and help them become an even stronger club.

While McNamee had a great vision for the club, it wasn't realistic at this point in time. What the club needs now is consolidation of it's financial position, something McNamee didn't seem to have on his agenda so much.

From an article in the Sun (Dean Bailey looking for calmer waters), and a very relevant point why the board let McNamee go:

"McNamee's efforts to sign the triple-premiership star were one of the major sticking points between him and the new board, with the sacked chief executive revealing it "knocked me for six" when Stynes told him to stop pursuing Brown."

How could we really afford J. Brown, and when our young players finally develop in 3-4 years, then Brown would be dropping off the pace. The worst part of this is that "he was knocked for six". He wanted to spend money we did not have, and also what would the cost of Brown do to others players in our Team.

[praha 11,240]

I'm sorry, but I don't need an explanation as to why McNamee was sacked. Anyone who offers any player $1 mill over 5 years deserves to be sacked. I don't care if it's the Michael Jordan of AFL. Clearly the man had no idea about football or the football business.

[Guest melbman]

I agree and it's hats off to Stynes for showing us he has the bollocks to do the job!

[Toad33 57]

From an article in the Sun (Dean Bailey looking for calmer waters), and a very relevant point why the board let McNamee go:

"McNamee's efforts to sign the triple-premiership star were one of the major sticking points between him and the new board, with the sacked chief executive revealing it "knocked me for six" when Stynes told him to stop pursuing Brown."

How could we really afford J. Brown, and when our young players finally develop in 3-4 years, then Brown would be dropping off the pace. The worst part of this is that "he was knocked for six". He wanted to spend money we did not have, and also what would the cost of Brown do to others players in our Team.

Money we do not have..... Are you serious?

We have a salary cap which incidently constrains us to both the maximum we can spend and minimum we must spend, like all other AFL clubs.

Technically you are right we don't have the money right at the moment. But it won't matter if Brown is with us next year or not, we will be paying other players 'that' money anyway.

The real money point is having space left in the salary cap in two to three years time when our burgeoning young talent is looking for new contracts.

Go Dees - building for the future

[Mousey 47]

The following is a letter which was sent to all MELBOURNEfc Members on Thursday night ...

I got the Update from the Board in an email from the club. Going out to all members.

[Jaded No More 68,974]

Words are cheap... but it's nice to be kept in the loop somewhat.

All I've heard from MFC administrations is talk, talk, talk and yet we're still in deep [censored]. I think most members feel the same, we're sick of promises and plans, we just want to see our off-field situation improve. If Jimmy's plans involve bringing Michael Jackson to do membership drives, I don't care, just as long as we see positive results he can do whatever the hell he likes.

[Hulett Packard III 166]

We are fortunate to have Board member Peter Spargo - an experienced and successful business person in his own right - stepping into this role in an interim capacity, at no cost to the Club. Thanks to Peter’s contribution, the financial implications of replacing the CEO will not have any additional impact on our end of year forecast.

I'm happy with the update from the club and more than happy with what's been highlighted.

I don't belive that we need to dwell any further on McNamee. He was a good operator when it came to organising major tennis and golf tournaments but, as his interviews in the media and his comments about recruiting Brown clearly show, he was out of his depth in terms of the running of a football club. The Brown issue showed he was not in touch with the football deparment's strategy which, if he did any homework at all before taking on the job or when he took over, would have been patently obvious.

Let's move on and find a CEO who has the right qualifications.

[Weedster 174]

I'm happy with the update from the club and more than happy with what's been highlighted.

I don't belive that we need to dwell any further on McNamee. He was a good operator when it came to organising major tennis and golf tournaments but, as his interviews in the media and his comments about recruiting Brown clearly show, he was out of his depth in terms of the running of a football club. The Brown issue showed he was not in touch with the football deparment's strategy which, if he did any homework at all before taking on the job or when he took over, would have been patently obvious.

Let's move on and find a CEO who has the right qualifications.

Absolutely correct - a CEO needs to be able to draw up a Business plan and implement it. Quck fixes like the Jonathan Brown solution just demonstrate McNamee was out of his depth - great Marketer ? perhaps...CEO - unfortunately not.

The correct call has been made BUT the next step is critical.

[H_T 3,049]

Words are cheap... but it's nice to be kept in the loop somewhat.

All I've heard from MFC administrations is talk, talk, talk and yet we're still in deep [censored]. I think most members feel the same, we're sick of promises and plans, we just want to see our off-field situation improve. If Jimmy's plans involve bringing Michael Jackson to do membership drives, I don't care, just as long as we see positive results he can do whatever the hell he likes.

Oiii!!!

[Deeoldfart 8,067]

I'm happy with the update from the club and more than happy with what's been highlighted.

Me too DA!!

I actually responded to the Club in a pretty positive light, and indicated that I hoped this would be the forerunner of regular and timely communications to the grassroots membership on the whole range of issues that interest us.

I was delighted to receive a prompt reply, thanking me for my contribution, and indicating that my note had been referred to the Board.

Wouldn't it be fantastic if the Club actually started to listen to our views, and to take them seriously? Maybe they will!!

Go Dees.

[Rflowerwing 0]

From poster "Hal" on Demonology - oh dear!

On 14 February a season opener function was held at the MCG to launch the new season.

Then CEO Steve Harris made a PP presentation. In his presentation he talked about the "4 pillars" on which the Club would build success.

The "pillars" were listed as:

1)Team strength - new coaching appointments, additional $500k invested in footy dept, youth policy in list management and new training facilities esp Casey

2) Brand strength - record membership target, 20k new supporters, 150 celebrations, new logo/livery, focus on Auskick/schools

3)Club strength - new performance management system to assess performance against hard wired KPI's for Directors, management and football department

4)Financial strength - debt reduction, revenue growth, profitable trading

Sounds like Jimma has found the password to Harris'/McNamee's computer.

[H_T 3,049]

From poster "Hal" on Demonology - oh dear!

On 14 February a season opener function was held at the MCG to launch the new season.

Then CEO Steve Harris made a PP presentation. In his presentation he talked about the "4 pillars" on which the Club would build success.

The "pillars" were listed as:

1)Team strength - new coaching appointments, additional $500k invested in footy dept, youth policy in list management and new training facilities esp Casey

2) Brand strength - record membership target, 20k new supporters, 150 celebrations, new logo/livery, focus on Auskick/schools

3)Club strength - new performance management system to assess performance against hard wired KPI's for Directors, management and football department

4)Financial strength - debt reduction, revenue growth, profitable trading

Sounds like Jimma has found the password to Harris'/McNamee's computer.

Thats interesting......ther'e 1 pillar missing though!

[Cards13 9,117]

hhmm was there not a lot of discussions earlier in the year about how great it would be to have a "marquee" player down at the Dees after Macca said he was chasing a star? When we thought we might be better than we are? Now it is jumping all over him saying he has no idea.... interesting

[Blistering 541]

Sounds like Jimma has found the password to Harris'/McNamee's computer.

worth jackshit if it stayed inside the bloody computer

[iw_s 0]

What I make of all this ... McNamee was a great CEO, but at the wrong time for the MFC ... he'd be great for a club like St. Kilda who have financial stability, and help them become an even stronger club.

While McNamee had a great vision for the club, it wasn't realistic at this point in time. What the club needs now is consolidation of it's financial position, something McNamee didn't seem to have on his agenda so much.

Sorry Vanlo, there's no evidence McNamee was a great CEO - he had only run tennis and golf events. He had not run a football club. His comments over the past 48 hours show how out of step he was and how little understanding he had of a club that is $5 million in debt.

He did not have a great vision for the club - he thought Melbourne was about being bluebloods. He also believed that ecruiting, to quote him, a "Federer, Agassi, Graf" in the form of Brown for $1 million a year over five years would fix everything. That merely demonstrates that he has no idea of how a football team operates.

And given that he had opened negotiations with Brown's management without the approval of the football department demonstrated that McNamee was a loose cannon. He had to go...