Fourth consecutive profit for Dees

[H_T 2,941]

Demons make fourth consecutive profit

The financial result is pleasing, given the number of challenges the Club faced throughout the year. While many factors contributed to the result, the Clubs robust governance and risk management practices held the Demons in good stead through those challenges.

Given all the negativity factors and results in season 2012, I would have thought we'd certainly take this financial result. If the team can perform with "robust" performances on the field as it is with the governance and management off the field, we would be so much better off.

Message update from President McLardy in relation to the announcement: -

http://www.melbournefc.com.au/news/newsarticle/tabid/7415/newsid/152005/default.aspx

[Ouch! 2,043]

Given everything that has happened this year, and poor on field performance, I was expecting to see a loss this year, not a profit. Good effort IMO

...although I expect that the CS haters will find some way to twist this around.

Also good to see Don mention the tanking investigation, and that the MFC is going to do everything it can to defend itself.

Edited December 3, 2012 by Oucher

[dee-luded 2,958]

Thats Great news.

maybe having less debt to service is a big help.

Go Dees.

[rjay 24,046]

Does anyone know if the profit figure included the 700k raised by the foundation hero's or was it a pure trading profit?

[rpfc 27,643]

Does anyone know if the profit figure included the 700k raised by the foundation hero's or was it a pure trading profit?

I don't see how we could have gone through this hell of a season and not post a loss so my guess is the $700k is included but I don't know for sure.

Anyone?

[Jordie_tackles 354]

Does anyone know if the profit figure included the 700k raised by the foundation hero's or was it a pure trading profit?

I dont know, but assume it would tbh,

but they would also have factored to have raised this amount and planed to spend it also.

Its good that we made a profit but it depends on how much total turnover ect increases ect, all it means it that we predicted what we would earn and spent a very similar amount to that throughout the year,

As long as total spending goes up every year by a few Million i will be happy if we go close to turning a profit

[Demonsterative 2,103]

WHAT, only $77 000 profit!!! Given the year we just had this is CRAP. Sack CS and the board.

[Sir Why You Little 34,938]

Wow. Imagine how much money the club will make when we win enough games to play in September.

Well done CS. Kudos.

Hazy ADC Fan i will be interested in your opinions...

[Deeoldfart 7,820]

Don McLardy:
"As I stated in my last update, we will not take short cuts, we will continue to make hard decisions and we will continue to have high performance expectations of everyone associated with the Melbourne football club. In time this will translate into a club you will be proud to be associated with."

No need to worry about me Don. I have, and always will be a proud Melbourne member ......... and rarely have I felt as proud as I have during the year from hell that we have just endured. Well done to everyone involved at the Melbourne Footy Club, and well done to all the supporters / members who have stuck fat during the lean times. The groundwork is being laid, and our day will come!

There is a new spirit at Melbourne, and I really believe that one day in the not too distant future, we will once again be able to hold our own with the best in the competition. The expectation is palpable.

[darkhorse72 1,760]

An point that hasn't been mentioned is this:

"The latest profit was achieved despite the club increasing their football department spending by $1.674 million this year.The latest profit was achieved despite the club increasing their football department spending by $1.674 million this year."

If we had maintained the same football department skills/resources as last year we would have made a $1.5m profit in real terms.

So yes overall we did improve this year despite a low book profit.

What I am more interested in is our turnover for the year? Anyone know?

[old dee 22,983]

Don McLardy:

"As I stated in my last update, we will not take short cuts, we will continue to make hard decisions and we will continue to have high performance expectations of everyone associated with the Melbourne football club. In time this will translate into a club you will be proud to be associated with."

No need to worry about me Don. I have, and always will be a proud Melbourne member ......... and rarely have I felt as proud as I have during the year from hell that we have just endured. Well done to everyone involved at the Melbourne Footy Club, and well done to all the supporters / members who have stuck fat during the lean times. The groundwork is being laid, and our day will come!

There is a new spirit at Melbourne, and I really believe that one day in the not too distant future, we will once again be able to hold our own with the best in the competition. The expectation is palpable.

Not sure I can say I have always been this deeoldfart.

There have been numerous occasions when the MFC has not exactly covered itself in glory.

However to make any profit this year amazes me.

Something to be happy about.

Edited December 3, 2012 by old dee

[Demonsterative 2,103]

Kudos MFC! Increase spending particulary in the FD and still come with a profit. This says to me the club is heading the right direction and proving it's worth as am Afl club. Star winning games, increase membership, the club will make million dollar profits.

We have at least 5000 more paying supporters going on 2011 membership numbers. Hopefully they get on board this year

[Biffen 12,433]

Sack em all .

[old dee 22,983]

Sack em all .

Yes biffen how can we say to the AFL we are as baldly off as north and the Dogs

If we starting making profits.

Get rid of the board and as for that useless CEO

well words fail me.

[Slartibartfast 16,024]

Hazy ADC Fan i will be interested in your opinions...

Well in the spirit of all things MFC must be good a profit is certainly better than a loss. But for those with any accounting nous the reality is a $77,000 profit in an organization that turns over in excess of $30 million is nothing short of a manipulated result. Expenses can be put off and income brought forward to achieve these sort of results and they are in most cases just window dressing. The reality is we are spending everything that is coming in and we are far from financially secure.

Much more important to me is the sustainability of this result. Is it reasonable to rely on $700,000 per annum from the Foundation Hero's? What are the "one off" expenses and incomes?

I don't know the answer. If the expenses of the footy department didn't include spending 100% of the salary cap then we have failed miserably. Does anyone know if we did?

In the last few years we have eradicated our $5 million debt which would have saved in the order of $500,000 pa, we've received additional funding from the AFL and we've received significant contributions from the FH.

We've spent the lot in order to try and compete with the bigger clubs but still spend millions less than the rich on the FD.

Who can say what this result really means other than we are doing little more than surviving. That may comfort some on here but not me. If the AFL want a team in Hobart all they have to do is pull back our distributions and watch us fold. We are a club living on the edge.

[Forest Demon 4,681]

Well in the spirit of all things MFC must be good a profit is certainly better than a loss. But for those with any accounting nous the reality is a $77,000 profit in an organization that turns over in excess of $30 million is nothing short of a manipulated result. Expenses can be put off and income brought forward to achieve these sort of results and they are in most cases just window dressing. The reality is we are spending everything that is coming in and we are far from financially secure.

Much more important to me is the sustainability of this result. Is it reasonable to rely on $700,000 per annum from the Foundation Hero's? What are the "one off" expenses and incomes?

I don't know the answer. If the expenses of the footy department didn't include spending 100% of the salary cap then we have failed miserably. Does anyone know if we did?

In the last few years we have eradicated our $5 million debt which would have saved in the order of $500,000 pa, we've received additional funding from the AFL and we've received significant contributions from the FH.

We've spent the lot in order to try and compete with the bigger clubs but still spend millions less than the rich on the FD.

Who can say what this result really means other than we are doing little more than surviving. That may comfort some on here but not me. If the AFL want a team in Hobart all they have to do is pull back our distributions and watch us fold. We are a club living on the edge.

No expert on these things, but this year was just one disaster after the next, both on field and off, with the sponsorship whack we copped from EnergyWatch etc. To me that suggests that even though I suspected there was definitely a bit of 'window dressing' as you put it, to show a small gain rather than a small loss, the fact that with way, we pretty much broke even this year is a pretty good sign really.

[Biffen 12,433]

Dear Fan and other Axe-Grinders,

I'm sure the figures are available for all to see.

If you are a financial guru and want to fix something that aint broke then have a crack.

No point talking to us keyboard supporters on here about the board .

There is little support for toppling the current regime on here.

I am not against people speaking their mind at an AGM or even having a whinge about the Status Quo

but what is the point of whinging about something if you are not prepared to have a crack ?

Peter Costello made a career out of it but not a very brave one.

Like Paul Keating said,

"You have to have the ticker for it ,you have to be able to draw the sword".

[Barney Rubble 1,576]

Didn't we get a huge tip in from the AFL to bolster our FD?

Next we will get a few $m to help us with our Litigation of CW.

[Slartibartfast 16,024]

No expert on these things, but this year was just one disaster after the next, both on field and off, with the sponsorship whack we copped from EnergyWatch etc. To me that suggests that even though I suspected there was definitely a bit of 'window dressing' as you put it, to show a small gain rather than a small loss, the fact that with way, we pretty much broke even this year is a pretty good sign really.

Not if we achieved it by not prepaying whatever remaining salary cap we had available. We undoubtedly had a shocking year for attendances and I suspect given our draw for next year we'll have another in 2013. I don't know how you can make the comment about sponsorships because AFAIK those figures aren't available.

Look, I'm not knocking it but all I'm saying is we don't know what it means. But if expenses and incomes were recognized normally I'd bet a fair bit we actually made a loss. The question is "how much".

[Sir Why You Little 34,938]

Nice one Fan. If Gardner was still in charge we would already be in Tasmania.

I am stoked we actually have the head above water with the onfield results of the last 6 seasons.

MFC supporters will gladly open the wallet to celebrate once the wins roll.

[rpfc 27,643]

Wait a minute...

Boards are creative with financial records to place themselves in the best light?!

You have to excuse me, I am learning this stuff for the first time as I was born just yesterday.

McLardy Board, Gardner Board, Cheddar Board, Chalk Board - whatever Board you mention is going to write-up those numbers best they can.

Solid effort in the circumstances and a big thankyou to RobbieF and the other heroes out there.

[Jordie_tackles 354]

Didn't we get a huge tip in from the AFL to bolster our FD?

Next we will get a few $m to help us with our Litigation of CW.

Just like every other club

[Rhino Richards 1,467]

In the last few years we have eradicated our $5 million debt which would have saved in the order of $500,000 pa, we've received additional funding from the AFL and we've received significant contributions from the FH.

We've spent the lot in order to try and compete with the bigger clubs but still spend millions less than the rich on the FD.

Who can say what this result really means other than we are doing little more than surviving. That may comfort some on here but not me. If the AFL want a team in Hobart all they have to do is pull back our distributions and watch us fold. We are a club living on the edge.

The sense of this will be missed by those bemused by smoke and mirrors.

The FH $700k is not something we can rely on every year and we need to keep pedalling one offs to squeeze a "profit"

As always you look at the elements of the profit figure not just the PR bottomline number.

[Rhino Richards 1,467]

Wait a minute...

Boards are creative with financial records to place themselves in the best light?!

They are only as "creative" as the Corporations Act allows them. There is not much wriggle room there. Its hard to floss the real numbers but one off donations like FH are taken to the profit and loss even though they are not primarily the result of the work of the Board but that of the members.

[H_T 2,941]

The club needs to improve on field to compliment the hard work done off the field by the club and it's generous supporters.

I can't imagine how hard it would be to develop and improve the supporter base, assets and sponsors with the onfield results we've had since Daniher and Co. who 'walked' mid 2007 with a playing list resembling a disgrace under Paul Gardner's watch. Clearly put in the too hard basket by Daniher. It was akin to making progress whilst in quick sand for the likes of Bailey. So bad, that Neeld has felt more than a ripple effects from the Daniher era, having now cleaned out with up to 15 changes.


How does a club go from playing in consecutive finals series through 2004-05-06 and get further behind in debt significantly(>$5m) to a club that has languished in the sellar for four consecutive years yet maintained four consecutive years of profit?

Better management (and generous members)?