The ship has turned.....

[beelzebub 23,378]

Well i'll take this with a grain of salt...and I dont recall any updates from the club announcing thtis as yet...but seems that we may have turned the corner and actually have a small working profit for this year.

Tucked away in the article by Caro (24/11) about Ball was this:

"Melbourne's financial constraints are more relaxed than in recent years. The club - under the one-year stewardship of chief executive Cameron Schwab - expected to announce a small profit for 2009. Having eradicated a further $1 million from its debt, the club remains beholden to the AFL and the MCG but has managed a positive result and has been buoyed by the new AFL stadium deal - worth $1 million to Melbourne retrospectively - along with a commercially much-improved 2010 fixture."

That bit in particular got my curiosity as I dont recall any retrospective component mentioned before...only going forwards.

What an amazing result. I was amongst the sceptics at first as to whether the Stynes brigade had the where-withall. After speaking with him I definitely got a distinctly different impression. Plaudits to Jim and Scwabby and their crew and the stewardship they have brought back to the club.

We'll look back one day and call these our rennaissance years !! Its been a long time since I felt this positve...and really positve...not just a self deluding fanciful type, about this club.

Timing is great...if we werent on our way now...well...lets not think about that

Go Dees

[Rhino Richards 1,467]

Careful.

The "small profit" could as much an illusion as a fair AFL fixture.

Proceeds to reduce debt are taken as revenue in the Profit/Loss. I think the debt reduction this FY has been in the vicinity of $2 mil thereabouts. Someone can confirm this it would be great.

Also we did get special AFL funding as well in the past 12 months which is not necessarily recurring.

There has been alot of good work done by the MFC Board and executive to turn the ship around. However the real test is to establish MFC as a sustainable financial viable and solid club.

Small steps have been taken...but its a loooonnnggg march still to go.

[beelzebub 23,378]

despite your customary misgivings Im no so silly to think this is the salvation itself. its a small 'working' profit.. That is still far more preferable to a large working LOSS !! it represents a much healthier bottom line and a massive reduction in debt and associated costs.

Just for a brief moent RR ...just share the joy....it wont hurt...truly !!

[Rhino Richards 1,467]

despite your customary misgivings Im no so silly to think this is the salvation itself. its a small 'working' profit.. That is still far more preferable to a large working LOSS !! it represents a much healthier bottom line and a massive reduction in debt and associated costs.

Just for a brief moent RR ...just share the joy....it wont hurt...truly !!

Sorry Bub...dealing with the facts again. Good luck with the fantasy.

[45HG 1,539]

Debt demolition raised about $825,000 didn't it?

[Trisul 664]

"That bit in particular got my curiosity as I dont recall any retrospective component mentioned before...only going forwards."

The AFL brokered re-negotiation of the MCG deals was always retrospective. ES was/is not.

"Debt demolition raised about $825,000 didn't it? "

Sounds about right to me.

Edited November 23, 2009 by Trident

[H_T 3,047]

Debt demolition raised about $825,000 didn't it?

Approximately, yes.

edit: There is about ~$1.1 million to go.

Edited November 23, 2009 by High Tower

[iv'a worn smith 1,979]

Bub,

You are correct. Previously, our finances were certainly in a parlous state. The debt reduction strategy has worked, allowing us to have working capital. The AFL has recognised our debt management strategy and to be quite frank, we are in a far better financial situation, than some of our competitors. Membership is on the rise and I suspect, we will see another surge after the Draft and the publicity that will surround that. And of course Jimma is a membership magnet.

Those who subscribe to the "economics of anticipation" encourage a self-fulfilling prophecy, but we have now laid solid foundations and I truly believe we will reap the rewards, both on and off the field, in the not too distant future.

Bub, I share your not unreasonable optimism and the more of us that do and get involved, the better off we will be.

Cheers

[drdrake 3,178]

I hope that the small profit doesn't include an allowance for the $1million we will get for the MCG stadium deal. I read yesterday that the Pies didn't take this up as the agreement hasn't been signed and will take it up next year. If we take this up although it still will be a true figure it means that with out it we would have lost a large amount of money and the club wouldn't of included the new stadium deal in the budgeted figures at the start of the year.

[Rhino Richards 1,467]

I hope that the small profit doesn't include an allowance for the $1million we will get for the MCG stadium deal. I read yesterday that the Pies didn't take this up as the agreement hasn't been signed and will take it up next year. If we take this up although it still will be a true figure it means that with out it we would have lost a large amount of money and the club wouldn't of included the new stadium deal in the budgeted figures at the start of the year.

It shouldn't.

The AFL will ensure that each Club is accounting on a consistent basis. If the Pies are taking it up next year then so will we.

[H_T 3,047]

I hope that the small profit doesn't include an allowance for the $1million we will get for the MCG stadium deal. I read yesterday that the Pies didn't take this up as the agreement hasn't been signed and will take it up next year. If we take this up although it still will be a true figure it means that with out it we would have lost a large amount of money and the club wouldn't of included the new stadium deal in the budgeted figures at the start of the year.

Yes. I read that too, will be interesting to see if we include it or for next financial year as the Pies are doing. It may come down to when the agreement is signed.

[beelzebub 23,378]

Sorry Bub...dealing with the facts again. Good luck with the fantasy.

We will have made a small profit.. thats the fact. If you dont like the course to getting to it...thats your stance. You can trapse out all your negativity ...i dont really care for it. it not putting any head in sand to admire the position we now find our selves in. we are trading better. Yes we still get handouts...as you have often pointed out...all teams do. Doesnt change that instead of another loss...we got some black ink instead.

[Gooner 9]

Careful.

The "small profit" could as much an illusion as a fair AFL fixture.

Proceeds to reduce debt are taken as revenue in the Profit/Loss. I think the debt reduction this FY has been in the vicinity of $2 mil thereabouts. Someone can confirm this it would be great.

Also we did get special AFL funding as well in the past 12 months which is not necessarily recurring.

There has been alot of good work done by the MFC Board and executive to turn the ship around. However the real test is to establish MFC as a sustainable financial viable and solid club.

Small steps have been taken...but its a loooonnnggg march still to go.

It's more important to look at the cashflow statement than the profit and loss that the club puts out.

The cash flows are what run the club, not arbitrary accounting treatments.

I don't believe the contributions were taken as revenue in the past, as we were still incurring large losses. The standard accounting treatment is to take them as revenue, although if they're for a particular project such as reducing the debt, they may not be. It depends on whether the club is treated as a not for profit entity or not.

The fact stands that we're reduced our debt. Either we've sold off assets (which I don't think we have), or we've generated funds in addition to our profit. We can't issue more equity, so those are the only alternatives.

[H_T 3,047]

I'm cautious in relation to off the field statements such as the "ship has turned".

But what I would like to add to this thread from a football perspective under this same title "the ship has turned", is acknowledge Joel MacDonald's bypassing of the ND to come to Melbourne for the PSD#1.

Unlike one L.Ball, McDonald may have recognised - despite Mfc's form of recent years - what is brewing down at 'Demonland' in terms of it's playing list and what is on the horizon. ie. exciting times ahead.

Could this be the turning point in terms of players from other clubs knocking on our door, thinking that Melbourne is going places ?

Thanks Joel. Good move.

Edited November 24, 2009 by High Tower

[Hazyshadeofgrinter 80]

It would be great if we made a profit this year although I'm not sure that it is appropriate to call it "turning the ship" given that small profits were made in '04, '05, '06, and '07.

If anything, last year's loss was the anomaly.

Of course, if we do make a profit this year then most/much of the credit goes to the supporters. I just hope that we can continue to make profits on a sustainable basis. The debt reduction "strategy" seems to rely quite heavily upon one-off donations at the moment.

Hopefully our anticipated on-field improvement will help to counter the "chairty fatigue".

[45HG 1,539]

Will we ever find out how we went from making "small profits" to being $5m in debt?

Still doesn't make sense to me.

[Hazyshadeofgrinter 80]

Will we ever find out how we went from making "small profits" to being $5m in debt?

Still doesn't make sense to me.

Obviously the debt was bigger in '04 thatn it was in '07. I think it was around $7m at one stage.

I'm sure there are a number of things that don't make sense to you, I am not inclined to explain all of them.

[45HG 1,539]

Cagey aren't we?

In 2004 were we, as members, informed that our debt was $7m?

[H_T 3,047]

Obviously the debt was bigger in '04 thatn it was in '07. I think it was around $7m at one stage.

I'm sure there are a number of things that don't make sense to you, I am not inclined to explain all of them.

$7 million ?!

Was it really that much ? I'm not so sure about that.

I thought it was around $3.5m in debt '04, which was trimmed back to $2 million with "small profits", before blowing back out to over $5million in debt. Please, someone correct me if I'm wrong.

[Hazyshadeofgrinter 80]

Cagey aren't we?

In 2004 were we, as members, informed that our debt was $7m?

I don't understand what you are getting at here. I'm not being cagey. I know for a fact that we made profits every year from '04-'07. Obviously this means that the debt was smaller in '07 than it was in '04.

I also seem to recall that the debt reached around $7m at one stage but my memory is imperfect and I haven't bothered to find a reference for this. If you are interested, why don't you do the research yourself?

[Craig Drinker 179]

Some ongoing good things happening at the MFC. The glass is "half full" at the moment and definitely rising!

[beelzebub 23,378]

The nature of " the ship has turned" is to state the direction...not the destination. It has been well documented that in recent times we were a financial basket case. predictions of small trading profits turned into rather large losses. If not for the the generosity of many supporters and those connected with the club together with the understanding of the AFL we probably wouldnt have survived. The renewed alignment with the MCC and better stadium deals ought to provide us with a brighter aspect with reference to the base revenues. Debt is down, costs are far better projected and managed.

We can rightly think that our course has changed. No ones kidding anyone that its all plain sailing from here on in, but even the most die hard of pessimists must concur we are heading in a different direction. i.e A turned Ship !

[H_T 3,047]

I'm sure there are a number of things that don't make sense to you, I am not inclined to explain all of them.

I don't understand what you are getting at here. I'm not being cagey.

Cagey.

I know for a fact that we made profits every year from '04-'07. Obviously this means that the debt was smaller in '07 than it was in '04.

Not necessarily.

I also seem to recall that the debt reached around $7m at one stage but my memory is imperfect and I haven't bothered to find a reference for this. If you are interested, why don't you do the research yourself?

How convenient.

[Hazyshadeofgrinter 80]

$7 million ?!

Was it really that much ? I'm not so sure about that.

I thought it was around $3.5m in debt '04, which was trimmed back to $2 million with "small profits", before blowing back out to over $5million in debt. Please, someone correct me if I'm wrong.

Sound about right to me, I know that there was a forecast loss of around $1.5M when the new board took over last year. This was the amount that football operations spending was increased by that year.

[45HG 1,539]

"I'm sure there are a number of things that don't make sense to you, I am not inclined to explain all of them." That in my view is a cagey comment, each to their own.

I have looked for the information I have asked for but have not been able to find it, hence I'm asking the question.

I assumed you, who obviously have great knowledge of the situation (especially as this era seems to be the only topic on these boards that prompts you to post), would be able to offer me some insight.

This article refers to some of where my concern rises, and I assume for a few other supporters, as to how our debt got so far out of hand that it was even unknown to the club.