Demons announce trading loss of $0.549m

[Guest melbman]

http://melbournefc.com.au/tabid/7415/Defau...px?newsid=71061

The club has titled the first step in the rebuilding of the Melbourne Football Club as ‘Facing our Demons’, the process of bottoming out, honest assessment and communication of the true position of the Club, as well as implementing measures to stabilise the business

[montasaurus 0]

Better then expected, although it is a concern that we did not post a profit with money put into the club by supporters. 09 is a year that will define us. If the club gets it right we will have a platform to build on, if not then who knows where we will be by 2012

[H_T 3,043]

For people who have been waiting for the clubs blueprint, the strongest indication given is in this article posted in the first post. It will be released sometime next year, its been called the "red and blueprint", and you will have to wait a little longer...

[John Dee 445]

This is why the debt demolition is a number one priority; without the debt we would have made an operating profit. The amout of money that we do not have to pay in servicing our debt impacts directly to our bottom line.

[rpfc 28,262]

Debt Demolition money is included.

We would have lost over $3m this year if not for that.

We need a sponsor...

[LeBron James 41]

Since it is including the 3mil of debt demolition money, that is really bad. I'm sure improvement will come off field with improvements on, but geeze, that is very bad.

[Forest Demon 4,681]

Since it is including the 3mil of debt demolition money, that is really bad. I'm sure improvement will come off field with improvements on, but geeze, that is very bad.

When Stynes and co took over and later implemented debt demolition they outlined that we would post a loss of around $3mil, and even included that in the amount of debt related to debt demolition, which raised $3mil, so it is not much worse than expected. Article states we are $2mil in debt so in 2009, it is imperative that we post a profit and reduce that debt as much as possible.

[darkhorse72 1,906]

So with the $2m we have secured from the AFL/MMC does that go straight to pay off the remaining $2m debt? It would make sense to wipe the debt and remove the interest payments and use an overdraft to make up any shortfall.

[biggestred 5,015]

well weve reduced debt from 5 million to 2 million, and written off .8million from the leighoak club, so really, this isnt a bad start IMO.

[Roost It 1,434]

Q. Where would this club be if Stynes hadn't put up his hand?

A. Not worth considering!

[Redleg 40,836]

"We are also hopeful of making some important announcements in the near future in relation to funding and facilities,” Mr Schwab commented.

This is the quote from the article that really interested me.

[LeBron James 41]

Wow, looking at the financial report we made an operating loss of over 4 million dollars.

We must improve dramatically, and quickly.

[Stigga 25]

"The answer is that Melbourne's current business model and revenue streams are weaker than other clubs. Until our new CEO and management are able to secure the business and rebuild it, it would be imprudent to carry debt."

Can any financial Whizkids deconstruct this statement?

[LeBron James 41]

"We are also hopeful of making some important announcements in the near future in relation to funding and facilities,” Mr Schwab commented.

From the report:

Two further significant items require attention in coming months.

Primus, our major sponsor since 2004, is not continuing. We fully understand their decision, and thank them for their past support. We need to put in place a major

sponsor for the 2009 season, and we are working hard on this challenge.

Addressing the training conditions for the players and the football department is critical. If at all possible, we want to bring the football department and the players’

training facilities back to the MCG precinct. We continue to assess the facilities on offer at the new Rectangular Stadium under construction at Olympic Park, and

are having continuing discussions with various stakeholders. There are some aspects which require further work and negotiation, but we are confident the end

result will be first rate facilities for our players and the football department. We must take time to get this decision absolutely right – it will be a long term

commitment at considerable cost to the Club.

[w00dy 146]

"The answer is that Melbourne's current business model and revenue streams are weaker than other clubs. Until our new CEO and management are able to secure the business and rebuild it, it would be imprudent to carry debt."

Can any financial Whizkids deconstruct this statement?

what part of the annual report is that from?

essentially what it is saying is that while the club struggles with bringing in revenue, it's not good for the club to carry debt, so we should try and clear it...

by clearing the debt we won't be spending money on interest expenses and can acutally make some money... if we don't clear the debt we're always going to be behind, and never get in front...

[Roger Mellie 3,975]

"The answer is that Melbourne's current business model and revenue streams are weaker than other clubs. Until our new CEO and management are able to secure the business and rebuild it, it would be imprudent to carry debt."

Our revenue streams are weak because we are on the bottom of the ladder and have been allocated a fixture to perpetuate our financial situation. They are simply saying, it would be unwise to carry too much debt at this time because it makes us vulnerable (to merger, relocation, disappearing). Until we rise up the ladder and (theoretically) get a potentially profitable fixture, have fewer injuries and land a sponsor, amongst other things we will have to be bare bones operation. This is counter-productive to rising up the ladder of course!. Schwab has the unenviable task of making this work (ie the business model).

On the upside we have a good young list, a magnificent debt demolition campaign and hopefully more members in 09

[Rhino Richards 1,467]

"The answer is that Melbourne's current business model and revenue streams are weaker than other clubs. Until our new CEO and management are able to secure the business and rebuild it, it would be imprudent to carry debt."

Can any financial Whizkids deconstruct this statement?

MFC's current business model is not financially viable and will not provide for a commercial sustainable future no matter where we finish in 2009 and 2010.

All AFL Clubs are dependent on AFL assistance. MFC is more dependent than most as it does not have other forms of revenue to replace and supplement the AFL contributions

As a consequence we have neither the consistent revenue stream to reduce debt and service the accompanying interest bill.

I hope that Schwab and co are looking at a significant overhaul of MFC's business model as the current business model will be less sustainable in 5 to 10 years than it is now.

[Redleg 40,836]

MFC's current business model is not financially viable and will not provide for a commercial sustainable future no matter where we finish in 2009 and 2010.

All AFL Clubs are dependent on AFL assistance. MFC is more dependent than most as it does not have other forms of revenue to replace and supplement the AFL contributions

As a consequence we have neither the consistent revenue stream to reduce debt and service the accompanying interest bill.

I hope that Schwab and co are looking at a significant overhaul of MFC's business model as the current business model will be less sustainable in 5 to 10 years than it is now.

Agree.

I repeat again, get back to the bosom of the MCC. It will be our salvation. On all fronts, financial, facilities, football and image an MCC/MFC merger can deliver.

[Left Field 313]

Agree.

I repeat again, get back to the bosom of the MCC. It will be our salvation. On all fronts, financial, facilities, football and image an MCC/MFC merger can deliver.

Salvation is different from survival which is different again from flourishing. Nothing will ever replace success on the field when it comes to cross-generational popularity.

Maybe we need to stop obsessing with our history and start competing in the world of the footy franchise. Hopefully we can distract attention while our coaching staff find a way to win a flag.....

[youami 54]

Note 23 on page 23 was my favourite. AASB Accounting Policies, Changes in Accounting Estimates and Errors, basically Gardner spruiked to us last year that we made a profit of $93k, this is now shown up as a loss of $109k. Another classic example of BS spun by the artist Gardner. This relates to the Travis Johnstone payment to Brisbane Lions, from memory we had to pay $200k of his salary in 2008, may also have been the reason why we were able to settle Carroll’s payment in the 2008 TPP, as Johnstone’s payment I assume went to the 2007 TPP based on the above correction.

A lot more transparency this time round, in that we were able to view the financial reports on the MelbFC website. BS artist had hidden it away somewhere last year.

Another interesting observation is the lack of blame the current administration heaps on the previous administration, in fact they are praised for their hard work. Fair enough Jim.

Thank God for Jim without him and others we would be all but gone. The Christmas Carol song another example of initiative that id suggest all members appreciate, rather than a printed signed Paul Gardner Christmas Card.

[Rhino Richards 1,467]

Another interesting observation is the lack of blame the current administration heaps on the previous administration, in fact they are praised for their hard work. Fair enough Jim.

Its a pity supporters who acknowledge Jim Stynes for such honesty and recognition of people's service dont have the good grace and common sense to take a leaf from his book and do likewise.

[youami 54]

Its a pity supporters who acknowledge Jim Stynes for such honesty and recognition of people's service dont have the good grace and common sense to take a leaf from his book and do likewise.

It’s a pity that supporters praise administrations that have made our club a laughing stock and practically bankrupt. Pretty sure behind closed doors Jim would not be praising the previous administration. But by all means Rhino praise the Gardner era from the rooftops if you believe it was a successful administration. By the way this particular supporter is being honest in his assessment and I do recognise the 5 years of incompetent service.

[Rhino Richards 1,467]

It’s a pity that supporters praise administrations that have made our club a laughing stock and practically bankrupt. Pretty sure behind closed doors Jim would not be praising the previous administration. But by all means Rhino praise the Gardner era from the rooftops if you believe it was a successful administration. By the way this particular supporter is being honest in his assessment and I do recognise the 5 years of incompetent service.

And its achieving a great purpose too. Well done. The Club is proud of your petty vindictiveness.

No one is praising the previous administration, but most supporters show the nous and maturity to move on and not undertake childish and divisive vendettas.

[youami 54]

I am highlighting what a competent board can achieve in a very short period of time, as well as having a swipe at all those who said/have been saying (not sure where you sat on the fence Rhino when Jim was elected President) – “What has Jim achieved?”, “Jim has not shown us a plan.”, “We want to see some results before we ascertain whether Jim is a success or not.” Many achievements are based on history. Jim’s annual report is a very good read and I feel much more comfortable with Jim at the helm. Surely comparisons must be made between the old and the new, for better or worse. The problem, I think in this case, is that this is for the better. By offering opinions on previous players/administrators is not being divisive it is being opionated. Perhaps I’m on the wrong board.

[youami 54]

And its achieving a great purpose too. Well done. The Club is proud of your petty vindictiveness.

No one is praising the previous administration, but most supporters show the nous and maturity to move on and not undertake childish and divisive vendettas.

Your grandstanding on Nathan Carroll could be interpreted as divisive. Jim also praised him for his efforts in the annual report. If I can borrow a quote – ‘The Club is proud of your petty vindictiveness.’ Leave Carroll alone Rhino, and other players you may have mocked in the past that are no longer with us, or worse still, are still with us. Don’t get too tied up in the noble cause.