Does anyone know if we have or will release an official statement about our financial situation this season?

Hawthorn have been pretty forward about theirs as they've set a record for the biggest profit ever & Collingwood's was out recently mainly focusing on their losses from their Hotels and a few others i've heard of, but nothing from us. Does anyone know when we're planning to make an announcement? Is it an AFL requirement to do this?

After so many people dipping into their pockets for the club i'd be disappointed to not hear anything from the club. Because i for one have NFI where we are at after the debt demolition and i'd really like to hear from the club where we are, even just a ball park figure, after those efforts.

Before anyone gets stuck in, this isn't a dig at the club, i was just wondering. Maybe it's something we'd do at the AGM?

  Golgothan said:

Does anyone know if we have or will release an official statement about our financial situation this season?

Hawthorn have been pretty forward about theirs as they've set a record for the biggest profit ever & Collingwood's was out recently mainly focusing on their losses from their Hotels and a few others i've heard of, but nothing from us. Does anyone know when we're planning to make an announcement? Is it an AFL requirement to do this?

After so many people dipping into their pockets for the club i'd be disappointed to not hear anything from the club. Because i for one have NFI where we are at after the debt demolition and i'd really like to hear from the club where we are, even just a ball park figure, after those efforts.

Before anyone gets stuck in, this isn't a dig at the club, i was just wondering. Maybe it's something we'd do at the AGM?

Depends on whether the club includes the proceeds of the debt demolition in the figures.

While I take your point and it would be nice to know the financial position of the club right now, I think we will all have to wait until the Annual Report is released, including audited financial statements.

What would be interesting is the actual debt to equity ratio.

Cheers

  iv said:

What would be interesting is the actual debt to equity ratio.

Any info would be nice to tell the truth, there have been some conflicting reports about where our financial situation is at since the debt demolition, but nothing to confirm or deny those from the club. Obviously the club can't respond to everything, but our financial statement should clear things up a bit.

I also just noticed that Essendon's financial report is out announcing a profit.

MFC is playing it smart, why release bad news to the public when we are about to get so much positive exposure through the upcoming draft. Wait until as late as possible I say.

  Stylus said:

MFC is playing it smart, why release bad news to the public when we are about to get so much positive exposure through the upcoming draft. Wait until as late as possible I say.

Correct-No Bad Press Before Draft day please.

  Stylus said:

why release bad news to the public when we are about to get so much positive exposure through the upcoming draft. Wait until as late as possible I say.

I agree.

Let it be buried under cricket news later in the year when we have our AGM.

If its bad news it should be released very late the day before a one dayer in Melbourne.

Bury it as much as possible.

from memory accounting standards would dictate that the debt demolition funds be included in the year's profit...

therefore we should be headed for about a $1 million profit... with $2 million of debt remaining...

  vanlo said:

from memory accounting standards would dictate that the debt demolition funds be included in the year's profit...

therefore we should be headed for about a $1 million profit... with $2 million of debt remaining...

Wishful thinking. I heard recently that even with the debt demolition proceeds, we'll still incur a loss.

New Years Eve

  mo64 said:

Wishful thinking. I heard recently that even with the debt demolition proceeds, we'll still incur a loss.

surely not? earlier in the season we were headed for a $1m loss which blew out to $2m, which would've resulted in our debt reaching $5m... however you add debt demolition of $3m to our $2m loss, and you have a profit of $1m, and a remaining debt of $2m...

our operating loss couldn't have blown out past $2m could it?

  vanlo said:

surely not? earlier in the season we were headed for a $1m loss which blew out to $2m, which would've resulted in our debt reaching $5m... however you add debt demolition of $3m to our $2m loss, and you have a profit of $1m, and a remaining debt of $2m...

our operating loss couldn't have blown out past $2m could it?

It's not quite as simple as that unfortunately. But I don't want to start an accounting debate where everyone becomes accountants all of a sudden

  45hotgod said:

New Years Eve

New Years Day... everyone is way too hungover to care, or possibly sleeping in a gutter and using the day's headlines as a blanket :D

  vanlo said:

surely not? earlier in the season we were headed for a $1m loss which blew out to $2m, which would've resulted in our debt reaching $5m... however you add debt demolition of $3m to our $2m loss, and you have a profit of $1m, and a remaining debt of $2m...

our operating loss couldn't have blown out past $2m could it?

You are right. Debt proceeds go through the Profit and Loss.

Whether we disclose a profit or loss will depend upon the size of debt demolition proceeds and the operating loss for the year.

Either way the Press release should be issued in Siberia on New Years Eve.

If we make (a small) profit, it will derided as a stunt due to passing around the hat and the Club will be accused of misleading supporters!

If we make a loss, its another excuse for the media to kick us and for whinging posters to say "When then arent we hopeless!" :angry:

No press release thanks.

Rule it off and lets move forward.

  Rhino Richards said:

You are right. Debt proceeds go through the Profit and Loss.

Whether we disclose a profit or loss will depend upon the size of debt demolition proceeds and the operating loss for the year.

Either way the Press release should be issued in Siberia on New Years Eve.

If we make (a small) profit, it will derided as a stunt due to passing around the hat and the Club will be accused of misleading supporters!

If we make a loss, its another excuse for the media to kick us and for whinging posters to say "When then arent we hopeless!" :angry:

No press release thanks.

Rule it off and lets move forward.

According to the papers today we're asking the AFL for $2 million which should just about cover our operating loss for 2008 and fair enough given the aweful roster they hand out to us every year. I wouldn't hide the fact though - it's an important part of proper corporate governance that the stakeholders are aware of the true financial position (unlike some other clubs which transact their business through paper bags and cardboard boxes ).

  Rhino Richards said:

Either way the Press release should be issued in Siberia on New Years Eve.

I think you'll find it will happen in early January. Not that I think it will provoke much reaction anyway. Those who have beaten done on us all year would be exhausted by this stage in time.

Ok...........

I might be totally wrong but i feel confused and embarrassed atm.

I read this mourning that we are asking for 2 million dollars in funding from the AFL next year?

Why?

I thought the whole point of debt demolition was to get out of debt so we can stand on our own two feet?

So why ask for a further 2 million dollars to get us more in debt? ( im under the impression we would have to pay this back)

I would of thought we would be motivated to keep plugging away at the debt that was known to us and try operate at a profit or even?

Help in some sort of way from the AFL would be greatly appreciated but to the sum of 2 million dollars?

seriously???????

I am worried!

Am i wrong feeling like this?

  mousey said:

Ok...........

I might be totally wrong but i feel confused and embarrassed atm.

I read this mourning that we are asking for 2 million dollars in funding from the AFL next year?

Why?

I thought the whole point of debt demolition was to get out of debt so we can stand on our own two feet?

So why ask for a further 2 million dollars to get us more in debt? ( im under the impression we would have to pay this back)

I would of thought we would be motivated to keep plugging away at the debt that was known to us and try operate at a profit or even?

Help in some sort of way from the AFL would be greatly appreciated but to the sum of 2 million dollars?

seriously???????

I am worried!

Am i wrong feeling like this?

NO MAJOR SPONSOR = BIG TROUBLE

  montasaurus said:

NO MAJOR SPONSOR = BIG TROUBLE

Has anyone actually played a season without a major sponsor?

Surely there must be someone out there!!! lol

  mousey said:

Has anyone actually played a season without a major sponsor?

Surely there must be someone out there!!! lol

I have.

& are you sure the Special Assistance payment has to be payed back?? I was always under the impression it was a hand-out, ie. no repayment.

Otherwise we might as well get the money from a bank.

My understanding is that it is a concession made by the AFL that some teams are disadvantaged by things like the fixture & other special terms set for some interstate teams, & this is their attempt to even it all out - by giving money to teams in desperate need.

I could be hopelessly wrong though.

  TheShaft said:

I have.

& are you sure the Special Assistance payment has to be payed back?? I was always under the impression it was a hand-out, ie. no repayment.

Otherwise we might as well get the money from a bank.

My understanding is that it is a concession made by the AFL that some teams are disadvantaged by things like the fixture & other special terms set for some interstate teams, & this is their attempt to even it all out - by giving money to teams in desperate need.

I could be hopelessly wrong though.

We don't have to pay it back, but it might be one of the last payments we get from the AFL. As for a sponsor, we'll have one, it's just whether they pay us what a top sponsor should.

  Roost It said:

We don't have to pay it back, but it might be one of the last payments we get from the AFL. As for a sponsor, we'll have one, it's just whether they pay us what a top sponsor should.

Yeah, i'm sure you're right on the assistance payments.

Sponsor-wise you're spot-on also. If we don't have a couple of options lined up as we speak, the club must be in such bad shape it will be dead before the year is out.

And i'm confident that is not the case. Its more the negotiating an appropriate fee that is holding up proceedings.

This is why i see the sponsor being named at the same time as an early pick announcement. Maximum exposure for the new sponsor, meaning max dollars for the club.

Everybody wins.

... cept the NAB.

  TheShaft said:

My understanding is that it is a concession made by the AFL that some teams are disadvantaged by things like the fixture & other special terms set for some interstate teams, & this is their attempt to even it all out - by giving money to teams in desperate need.

I could be hopelessly wrong though.

I don't think you are wrong. I believe it is an assistance fund or a concession by the AFL in order to maintain balance and somewhat maintain a level playing field amongst the clubs - in some shape or form when a club(s) seeks assistance, but the club(s) in question must prove their 'business model' to support their need or show the AFL their business plan as such to seek approval of this 'assistance fund'.

  High Tower said:

I don't think you are wrong. I believe it is an assistance fund or a concession by the AFL in order to maintain balance and somewhat maintain a level playing field amongst the clubs - in some shape or form when a club(s) seeks assistance, but the club(s) in question must prove their 'business model' to support their need or show the AFL their business plan as such to seek approval of this 'assistance fund'.

Correct. The attempts to show a viable enitity and business models in the past have been neglegeble. Glossed over by far-fetched attempts at advancing the club through China and the Bubbledome and quite possibly the exploration of Mars.

The club warrants the assistance at this point in time more than ever as the club is evidently making a concerted effort to right the wrongs of the past and proove to the afl that the MFC is a productive, positive, proud and passionate entity.