Debt now approx. $1.5 million

[H_T 3,049]

FOOTBALL SPENDING SPREE

Melbourne chief executive Cameron Schwab said a new budget was yet to be finalised but said the Demons were intent on more resources for their players.

"We will slowly but surely look to bring our numbers up to similar to most clubs over the next two to three years as our team, our list, develops," he said.

Schwab said $4 million had been donated to the club in the past 12 months and debt had been slashed to about $1.5 million.

Edited October 13, 2009 by High Tower

[H_T 3,049]

With $1.5 million still in debt. How long will it take to wipe off ?

2 more years ? More ?

This years Debt Demolition has wiped off approx ~$827K.

[pantaloons 2,019]

There are only so many times you can go to the well with this sort of stuff. Hopefully the club can continue to be creative about the way we erase the debt.

[45HG 1,548]

Last year I figured (initially incorrectly) the amount of money that has been raised by a very small minority.

It's a shame, but it's reality. Without more debt demolition nights, or a clever grass roots day, we won't be getting rid of the debt any time soon.

[H_T 3,049]

There are only so many times you can go to the well with this sort of stuff. Hopefully the club can continue to be creative about the way we erase the debt.

Agree. With more money being spent on the FD and resources for the players, it will be a juggling act with the Debt still there. I think most would prefer to have the debt wiped off as early as possible and then look at increased spending. However, with the younger ones, we need to develop them and need resources.

TBH I thought our Debt would be around ~$1.1-1.2million.

Edited October 13, 2009 by High Tower

[Rhino Richards 1,467]

Absolutely Pants. In the LT we need to develop a self sustaining business model. Its a big task and we are not there yet.

It is important that we do prioritise resources to developing the talent we have recruited. Otherwise we are just wasting our time.

[Rosso 59]

The new stadiums deal (MCG and Etihad) will reportedly add $1 million to our bottom line next year. That should help.

[Keyser Söze 0]

Exactly.

And there's the old truism that "you need to spend money to make money"

[beelzebub 23,380]

well dare I say it..or even raise the old harbinger of attendances ? As we get better.. we'll be more watchable to many who for whatever reason (and its theres after all) to attend games.

It wouldnt surprise me a bit if we get a few more lower tier partners/sponsors as well.

We might have been a bit on the nose for some but were about to turn the corner...with that comes benefits...one is money !!

[Roost It 1,434]

Exactly.

And there's the old truism that "you need to spend money to make money"

Unfortunately you can't spend money you haven't got

[sylvinator 96]

We should seriously be starting to make profits... in the past we have made $1m losses, but since then...

- we are paying $700,000 less a year in total player payments

- $1m extra from stadium deals

- $1m from MCC

- $1m from AFL

- good sponsorship deal

- 32,000 members

Surely surely surely, considering the $800,000 of debt demolition and the above things, we will make a profit this year, even despite the GFC!?

Once we start making profits, this can help wipe out the debt.

[whelan45 203]

The stadiums deal should really ease some pressure you would think. However it will have no effect on this years profit and loss as it doesn't come into effect until next year.

[beelzebub 23,380]

The stadiums deal should really ease some pressure you would think. However it will have no effect on this years profit and loss as it doesn't come into effect until next year.

and yet the financial year runs july to june

Edited October 13, 2009 by belzebub59

[Sir Why You Little 37,052]

Winning Games is still the Bottom Line-Bums on seats mean membership, which means merchandise sales,

If we can win some Consecutive Games at the MCG the debt will diminish.

The 2010 Draw shall also count for a lot.

How Many games can Bailey win with our Footy Dept.?

[whelan45 203]

and yet the financial year runs july to june

Hmmm so was I right in what I was saying? I think I was

[beelzebub 23,380]

Hmmm so was I right in what I was saying? I think I was

how?

We we STILL gain somewhat from additional revenue via the new stadium deals within the 09/10 year

[whelan45 203]

how?

We we STILL gain somewhat from additional revenue via the new stadium deals within the 09/10 year

but don't they post their profit/loss figures at the end up the season? I thought it works differently in the AFL industry

[beelzebub 23,380]

but don't they post their profit/loss figures at the end up the season? I thought it works differently in the AFL industry

profit and loss is profit and loss. The books for the club still run from July to June...like every other business in the country. They may show "other' tallies encompassing the calender year in various reports but the bottom line is our fiscal situation is benefited next year. It will only effect half the years income period ( or less really in terms of games )

[whelan45 203]

profit and loss is profit and loss. The books for the club still run from July to June...like every other business in the country. They may show "other' tallies encompassing the calender year in various reports but the bottom line is our fiscal situation is benefited next year. It will only effect half the years income period ( or less really in terms of games )

Oh ok fair enough. We don't ever really hear them announce their June end of finacial year result. Maybe I just don't have my ears pricked though.

So the figure all clubs seem to announce about this time of year, is that a 12 month result or just a opertating result over the course of the season (about 7 month period)? Any idea?

[beelzebub 23,380]

Oh ok fair enough. We don't ever really hear them announce their June end of finacial year result. Maybe I just don't have my ears pricked though.

So the figure all clubs seem to announce about this time of year, is that a 12 month result or just a opertating result over the course of the season (about 7 month period)? Any idea?

this may only serve to cloud it..lol.

You can of course produce figures to portray the operating period of the season. Like any business can.. hence quarterly statements etc. It gets muddied ( further ) when those reporting the figures themselves are confused as to the actual period it reflects. Players contracts invariably go from 31st oct through til next ) or which ever year) . These cross over accountable periods. Salary caps etc reflect the playing seasons but the tax dept doesnt really care about this..( other that how it treats sportspersons and thats a whole other explanation ..lol ) So strictly speaking when clubs announce...or publish their financials they are as per the tax year.. But to confuse, many commentators speak of them as though calender ( in ignorance...how amazing )

When the MFC release their figures they are as per business..July/June... but may contain explanations that are Jan/Dec ..

clear as mud isnt it !!

[beelzebub 23,380]

Further to this we will receive a benefit through out the calender year as per games and deals etc but they are reported in the corresponding financial year. So..if there are say 10 h & A games in season 010 that attract money from the MCG then we'll get 1,000,000 . depending on how many fall before or after june30 as to how the differing years bottom lines are affected.

[Mega_Watts 70]

Oh ok fair enough. We don't ever really hear them announce their June end of finacial year result. Maybe I just don't have my ears pricked though.

So the figure all clubs seem to announce about this time of year, is that a 12 month result or just a opertating result over the course of the season (about 7 month period)? Any idea?

All clubs financial years run from 1 November to October 31. Same period as player contracts.

Makes sense as this essentially the time of the football "New Year".

[Little Goffy 14,582]

Hmm...

After last year's significant loss, beaten out by the Debt Demolition campaign, we've taken a number of steps to improve the balance sheet.

2009 player payments were at least $0.5mil less than 08.

2009 interest servicing of debt will have dropped somewhere between $100-$200k.

2009 there has been no sacking/replacing process of the CEO, board and president.

2009 we received $1mil from the MCC and $1mil from the AFL in a support boost, a major increase on Competitive balance payments of 2008.

2009 we have received (the deal was backdated for season 09) an extra $100k per game at the MCG. Call it $1mil.

That looks like about a $3.5 million improvement on the balance sheet.

Much of this is one-off windfalls. But all it would take is a modest improvement in general operations and we are looking at a significant cash injection from 2009.

Then Debt Demolition of $800k.

It's possible that if the club chooses, we could be debt free this year. But I agree with the club's direction in putting as much as it can into player development resources. We have to be 'trying to win', not 'trying not to lose'.

[Kiss of Death 755]

I'm not unhappy with this result. We're making improvements off the field, we're already heading towards 10K members for next year, and with the extra spending on the field and the talent we have, membership/bums on seats/all those little extras are going to help put more cash in the kitty going forwards.

[45HG 1,548]

Well, 2,051,000 from the dinner, 100,000 from Foxtel, and an extra 150,000 at least from these 300 supporters (assuming they're exclusive from those at the dinner), makes 2,301,000 from about 460 supporters and Foxtel.

Leaving about 244,000 from the rest of us.

That means that 460 supporters, or 2.1% of our adult members, have raised 87% of the funds so far, and the other 97.9% of our members have raised 9% of the total.

This is what I posted last year about the debt demolition campaign.

Now this year, 200 people (I'll assume these are different people though I don't think this is the case) have raised $725,000 of $827,000 during the month. Of the $3,128,000 raised by those figures, $2,776,000 has been raised by 660 people or less (plus 100 from foxtel). Leaving roughly $250,000 raised by the rest of the Melbourne supporters.

(nb. there's a fair chance that some of these numbers are wrong, but I think you get the gist and the general idea is probably right)

This article also says our debt was reduced to below $1.2m in August?