Projected $1.5 Million loss

[Demonland 66,839]

http://www.afl.com.au/news/2013-05-12/dees-milliondollar-loss?utm_medium=RSS

MELBOURNE has revealed it will lose more than $1.5 million this year as it adds legal fees, fines and expenses attached to a CEO change to the operating losses incurred following its disastrous start to the season.

Interim CEO Peter Jackson, who began in the job on May 1, told AFL.com.au that although the club could cover that shortfall the Demons needed to focus on its core business of football.

[Wadda We Sing 10,685]

Mmmm.....

[Roost It 1,434]

$500,000 thanks to the AFL

$250,000 thanks to lawyers and tanking

$750,000 for being ordinary

[pitmaster 3,146]

Not exactly a surprise given results and the draw but very sobering anyway. Football spending will need to be protected though.

[Forest Demon 4,681]

I thought this was pretty much revealed earlier in the year wasn't it.

Hard to believe this year could have been any worse than last, but I think this one is making last year look like 1964 in comparison.

[Wadda We Sing 10,685]

I thought this was pretty much revealed earlier in the year wasn't it.

Hard to believe this year could have been any worse than last, but I think this one is making last year look like 1964 in comparison.

Ha, you funny!

[Sir Why You Little 35,320]

That loss can be attributed to decisions made by the Board, followed by paying for the consequences.

They are on shaky ground at best.

Fark they better hope for a win today. Then at least the bars will be serving some beer after the game.

[Cheap Seats 3,308]

That loss can be attributed to decisions made by the Board, followed by paying for the consequences.

They are on shaky ground at best.

Fark they better hope for a win today. Then at least the bars will be serving some beer after the game.

Haven't got a lot of cash on me wyl but I will be hitting up the bar for sure!

[Soidee 1,496]

As a paid up member all I will say is this.

To those entrusted with the accountability to run the MFC you have failed those who trusted you.

[PJ_12345 1,098]

That loss can be attributed to decisions made by the Board, followed by paying for the consequences.

They are on shaky ground at best.

Fark they better hope for a win today. Then at least the bars will be serving some beer after the game.

Haven't got a lot of cash on me wyl but I will be hitting up the bar for sure!

Apparently if we win the Spread Eagle Hotel in Richmond is giving away free beers until it closes... dont know if its true or not but if we win god help them

[Sir Why You Little 35,320]

As a paid up member all I will say is this.

To those entrusted with the accountability to run the MFC you have failed those who trusted you.

i have some sympathy with those entrusted as it was Jimmy's Board. They were there to support him.

But when Jimmy died in hindsight we members should have voted on a new board.

I am really glad with the way Jackson spoke today. No more BS. Mclardy should take note.

This is how we shareholders wish to be informed from this day forth.

Truth.

[Pates 9,551]

Hardly surprising. The $500K fine from the AFL was always going to hurt us, add on to that the severance of Schwab, the lawyer bills, and the poor performance of the team.

Good luck to Peter Jackson on digging us out of this hole.

[Sir Why You Little 35,320]

Apparently if we win the Spread Eagle Hotel in Richmond is giving away free beers until it closes... dont know if its true or not but if we win god help them

Hahaha "Drink Up"

[Pennant St Dee 11,764]

Hey WYL, he said something of what I have been thinking, we are spending money on the footy department but it may not be being spent in the right areas.

Did not say no when asked if he would take on the role in a full time capacity.

If he is in for the long haul it is much better for the club than a 6 month band aid review and report to the board

[1858 265]

This is really frustrating for Dees fans to swallow although it is refreshing to get proper insight for a change.

I'm sure our board has a lot of talented individuals but how in god's name did they not get the communication channels set up properly?

Schwab could only control what communication was passed on if the board let him be in that situation in the first place.

We need more people in tune with football club operations on our board me thinks. I'm glad Jackson also seems to have a proper grasp of our deficiencies.

The last 4 or so years, what have they been for? We've been a club but not a football club.

...and now the finances are under strain again. Jeebus.

[Sir Why You Little 35,320]

Hey WYL, he said something of what I have been thinking, we are spending money on the footy department but it may not be being spent in the right areas.

Did not say no when asked if he would take on the role in a full time capacity.

If he is in for the long haul it is much better for the club than a 6 month band aid review and report to the board

he will be there longer than 6 months imo. He won't leave the job half done.

It is now we need stability.

[Gorgoroth 12,431]

What I found interesting was when he said "too many people are reporting to the CEO" or words to the effect.

Shows that CS was still trying to control everywhere.

[Rhino Richards 1,467]

This is really frustrating for Dees fans to swallow although it is refreshing to get proper insight for a change.

I'm sure our board has a lot of talented individuals but how in god's name did they not get the communication channels set up properly?

Schwab could only control what communication was passed on if the board let him be in that situation in the first place.

We need more people in tune with football club operations on our board me thinks. I'm glad Jackson also seems to have a proper grasp of our deficiencies.

The last 4 or so years, what have they been for? We've been a club but not a football club.

...and now the finances are under strain again. Jeebus.

The finances have always been under strain. This year just brings home a few truth.

And it's a cop out on Schwab. He is responsible for what happens in the footy club. The buck stops with him. How the Board could have extended his contract for 3 years last November when we were in the midst of serious AFL investigation just beggars belief. Even worse to sack him 4 months under suspicious reasons.

This Board has been an outright failure on and off the field for 5 years. It's been a circus.

[PJ_12345 1,098]

The finances have always been under strain. This year just brings home a few truth.

And it's a cop out on Schwab. He is responsible for what happens in the footy club. The buck stops with him. How the Board could have extended his contract for 3 years last November when we were in the midst of serious AFL investigation just beggars belief. Even worse to sack him 4 months under suspicious reasons.

This Board has been an outright failure on and off the field for 5 years. It's been a circus.

Rubbish.

Been the only thing that has been under control.

Inherited a debt of $5 million, wiped off in 2 years during the GFC, managed to free up finances for both Casey/Aami park and increase FD expenditure and posted a small profit for the first time in how long last year.

[Rhino Richards 1,467]

Rubbish.

Been the only thing that has been under control.

Inherited a debt of $5 million, wiped off in 2 years during the GFC, managed to free up finances for both Casey/Aami park and increase FD expenditure and posted a small profit for the first time in how long last year.

The debt was reduced through the amazing generosity of members and supporters who bought a dream promised by an administration that chronically under delivered. Go and do the research and you will note that we made a small "profit" last year based on about $700k donation from FH members and not from football operations.

I and a couple other posters last year challenged that the "profit" was illusory and that we were living hand to mouth in an unsustainable way and Club was very exposed financially. These comments were greeted by howls of derision by those who only served to highlight their own financial naivety. Well guess what? The tides gone out and true situation is evident. Even if others want to fantasise despite the message from Jackson.

Edited May 12, 2013 by Rhino Richards

[1858 265]

The finances have always been under strain. This year just brings home a few truth.

And it's a cop out on Schwab. He is responsible for what happens in the footy club. The buck stops with him. How the Board could have extended his contract for 3 years last November when we were in the midst of serious AFL investigation just beggars belief. Even worse to sack him 4 months under suspicious reasons.

This Board has been an outright failure on and off the field for 5 years. It's been a circus.

The finances are not great but our budget has grown over the years and profits can be what we want them to be based on our spend but I get where you're coming from - we still lack a viable long term business model.

Re Schwab I'm not sure what your cop out point relates to. Both he and the board have been incompetent.

[Bitter but optimistic 21,573]

The debt was reduced through the amazing generosity of members and supporters who bought a dream promised by an administration that chronically under delivered. Go and do the research and you will note that we made a small "profit" last year based on about $700k donation from FH members and not from football operations.

I and a couple other posters last year challenged that the "profit" was illusory and that we were living hand to mouth in an unsustainable way and Club was very exposed financially. These comments were greeted by howls of derision by those who only served to highlight their own financial naivety. Well guess what? The tides gone out and true situation is evident. Even if others want to fantasise despite the message from Jackson.

The bottom line is that unless we can somehow produce a cohesive on field unit that can win games and attract both members and sponsors this club is in very deep shite indeed.

[PJ_12345 1,098]

The debt was reduced through the amazing generosity of members and supporters who bought a dream promised by an administration that chronically under delivered. Go and do the research and you will note that we made a small "profit" last year based on about $700k donation from FH members and not from football operations.

I and a couple other posters last year challenged that the "profit" was illusory and that we were living hand to mouth in an unsustainable way and Club was very exposed financially. These comments were greeted howls of derision by those who only served to highlight their financial naivety. Well guess what? The tides gone out and true situation is evident. Even if others want to fantasise despite the message from Jackson.

I've been to the last 2 heroes foundation events, and the past 4 b&f's - I know how generous supporters, and players, are.

Raising money through supporters is an activity done by every club, the most successful has been Richmond.

Credit has to be given to those at the MFC who held those events, got sponsors/gifts/raffles and who made it possible to get those generous donations.

If people hold the board responsible for the debt this year, they also have to give credit to them getting rid of the $5m.

Credit where credit is due (for the good and the bad).

As to the sustainability of it I agree with you. But no one said they were going to rely on donations as a long-term strategy, the donations were used to get rid of our $5m debt and get us self-sufficient... the tanking has clearly ruined any hope at that

[Rhino Richards 1,467]

Re Schwab I'm not sure what your cop out point relates to. Both he and the board have been incompetent.

Agree and misread your post.

I am not sure what you meant by profits can be what you want them to be.

[Rhino Richards 1,467]

I've been to the last 2 heroes foundation events, and the past 4 b&f's - I know how generous supporters, and players, are.

Raising money through supporters is an activity done by every club, the most successful has been Richmond.

Credit has to be given to those at the MFC who held those events, got sponsors/gifts/raffles and who made it possible to get those generous donations.

If people hold the board responsible for the debt this year, they also have to give credit to them getting rid of the $5m.

Credit where credit is due (for the good and the bad).

As to the sustainability of it I agree with you. But no one said they were going to rely on donations as a long-term strategy, the donations were used to get rid of our $5m debt and get us self-sufficient... the tanking has clearly ruined any hope at that

You misunderstand me if you think I discredit generous members. Nothing could be further from the truth. I recognised repeatedly that generosity. In fact I think they're the group who have been punished most by the Board's and CEO's incompetence over a number of years. This Board did well to galvanise the supporter group to give $5m to them but it all went south after that at the rate of knots.

My issue with the "profit" of $80k was its high dependence of the FH donations of $700k. It's generous but not sustainable particularly when you are a cellar dweller. And the financial strength that many posters lauded is fragile and not robust. With Schwab now gone finally a lot more truths will come out. How could the Board have been so hopeless sidetracked by such a CEO? Even more disturbing why they ever gave him a personal loan?