Dees Post Operating Loss for 2019

[Binmans PA 25,894]

On 12/19/2019 at 10:53 PM, Dr. Gonzo said:

Governments rarely give up revenue, what makes you think they'll ban pokies and give up the revenue that flows through from that?

A financial model that relies on sustained success is doomed to failure. The only way we could operate that way would be to have so many members they are forced into reserve seat packages at the start of the year which would be extremely difficult given our large home ground, large number of MCC members and low supporters base.

Governments will transition sectors if it means the economy will be positively impacted. 

In the MFC's case, we're not talking about an economy. We're talking about a business.

Whether it was the right move to exit the pokies, probably only time will tell. I don't think we could say one way or the other at this stage. What I think we can safely say though is that the CEO and the COO did not predict such a drastic onfield decline and this has impacted on the financial bottom line. There's not a lot that can be done to the financials if the onfield team is puss. 

[drysdale demon 4,143]

On 12/19/2019 at 10:53 PM, Dr. Gonzo said:

Governments rarely give up revenue, what makes you think they'll ban pokies and give up the revenue that flows through from that?

A financial model that relies on sustained success is doomed to failure. The only way we could operate that way would be to have so many members they are forced into reserve seat packages at the start of the year which would be extremely difficult given our large home ground, large number of MCC members and low supporters base.

Governments are as addicted to poker machines as bad as the  worst problem gamblers, about time they looked at other revenue streams.

[Bring-Back-Powell 13,101]

3 hours ago, Diamond_Jim said:

Geelong are considering arguing for a minimum of nine home games at Kardinia and only two at the MCG.

The stadium if finished will have a maximum crowd of 40k.

https://www.theage.com.au/sport/afl/what-s-best-fit-cats-mount-case-for-more-home-games-20191221-p53m2y.html

Stadium economics are the new growth area. Unlike most stadium deals it is Geelong that get the ground advertising, the pouring rights money, the super box proceeds etc etc (with the ground's capital costs largely funded by taxpayer dollars)

If the AFL redevelops Docklands and gives North, Bulldogs and Saints a good stadium deal (a big "if) we could end up in a classic squeeze play.

Complete hypothetical here, but if we were to transfer a home game or 2 to Kardinia Park and/or Casey Fields would we make a guaranteed profit on the game?

Might be heading that way if we make a series of losses.

Edited December 21, 2019 by Bring-Back-Powell

[Lord Nev 13,511]

8 hours ago, Dr. Gonzo said:

Maybe there are. But they haven't been implemented or even communicated. So until we are at least told what this might be I will remain sceptical.

More than fair enough mate. I have a healthy amount of skepticism too, but I'm a huge PJ fan so I have this strange amount of hope and trust for a Dees supporter about this.

[Diamond_Jim 11,678]

12 hours ago, Bring-Back-Powell said:

Complete hypothetical here, but if we were to transfer a home game or 2 to Kardinia Park and/or Casey Fields would we make a guaranteed profit on the game?

Might be heading that way if we make a series of losses.

Interesting question and you need to do the sums. I suspect Kardinia Park would not work for us simply because of the geographical location of our supporter base. Casey would require massive investment to bring it to say a 20,000 seat stadium and that investment could not be justified for only 3-4 games.

The other issue would be that Geelong (or more correctly the Ground Trust) as the owner would presumably want some form of ground rent that would defeat the purpose somewhat.

A club that it might work for is Footscray. They could lobby the Governments who are funding the development that they should get co- tenancy for say 4 games. Their supporter base is growing in the Point Cook/Werribee area which is easy access to Geelong. In these days of electronic signage game day advertisments and stadium fit out are more easily changed and things like pouring rights and super boxes can be pro rated or the like.

In the US many of the team relocations that we have seen over the years are teams moving to new cities who will provide a stadium effectively free of charge to the incoming team.

As an aside if the AFL decide to "upgrade" Docklands where will the games be played that year. I'm no engineer but I would be surprised if you could easily update Docklands in a piecemeal manner like they did with the MCG.

[Bring-Back-Powell 13,101]

2 hours ago, Diamond_Jim said:

Interesting question and you need to do the sums. I suspect Kardinia Park would not work for us simply because of the geographical location of our supporter base. Casey would require massive investment to bring it to say a 20,000 seat stadium and that investment could not be justified for only 3-4 games.

I suspect you’re correct in that Kardinia Park wouldn’t work for our supporter base. We’d be lucky to get 6,000 against an interstate side down there.

I was just wondering if we or another VIC side would get a guaranteed cheque for hosting a game for the city of Geelong.

GMHBA stadium is expected to have a 40,000 stadium so you’d think there’s opportunity to play more AFL games there than just Geelong’s 9 a year.

[Diamond_Jim 11,678]

31 minutes ago, Bring-Back-Powell said:

I suspect you’re correct in that Kardinia Park wouldn’t work for our supporter base. We’d be lucky to get 6,000 against an interstate side down there.

I was just wondering if we or another VIC side would get a guaranteed cheque for hosting a game for the city of Geelong.

GMHBA stadium is expected to have a 40,000 stadium so you’d think there’s opportunity to play more AFL games there than just Geelong’s 9 a year.

the Victorian government pay the Bulldogs to play twice a year at Ballarat where the capacity is 10k at most so there are deals to be had.

Albury/Wodonga could be a possible place for us to play GWS if the money was right. Similarly Mildura against Port.

On the use of Kardinia Park the deal would depend on both what the Ownership Trust could pay and what if any exclusivity rights Geelong have with the Trust.

Geelong are certainly getting a good deal with a "clean" boutique stadium for their sole use largely funded by taxpayer money.

[old55 21,216]

Maybe we should replace the pokes revenue with a Phillip Morris sponsorship?

[Macca 16,173]

Not much of a choice is it?

The cash grab with all the ethics & morals attached (Pokies) or we probably post losses if we don't win enough games in any given year.  The NT venture was never well received by a fair proportion of the supporter base but $800k per game is good coin for otherwise low drawing home game's at the MCG.

And if we have a run of outs as what has previously occurred then the debt rises.  However,  it should be noted that despite posting a loss this season ($1.58Million) we did reduce our debt by $628k.  Effectively that brings the loss down to about $930k this season without the help of either of our locked-in Blockbuster fixtures (ANZAC Eve & QB) 

And a reasonable result from the 2 BB games could return $2Million (combined)

It should also be noted that the club has property holdings worth $8.7Million along with an investment portfolio worth $7.8Million.  And our overall debt sits at about $2Million.

So it's not panic stations yet but ...

The profits from the Pokies & NT income was/is always going to be difficult to replace so let's hope the club has a decent plan (apart from the no-brainer plan of winning games)

5 winning seasons in a row (at least 12 wins) and we're almost certainly posting decent profit's on a regular basis but given our history,  that's a very big ask.

Edited December 29, 2019 by Macca

[Lord Nev 13,511]

Storm are moving back into pokies just 1 year after exiting, in a typical location for the industry.

Melbourne Storm dives back into pokies with plan for gambling venue

 

 

[Diamond_Jim 11,678]

4 hours ago, Lord Nev said:

Storm are moving back into pokies just 1 year after exiting, in a typical location for the industry.

Melbourne Storm dives back into pokies with plan for gambling venue

 

 

saw that article... very disappointing and doubly disappointing that they are targeting the western suburbs..

enough almost to make me follow the Rabbitohs

[Macca 16,173]

3 hours ago, Diamond_Jim said:

saw that article... very disappointing and doubly disappointing that they are targeting the western suburbs..

enough almost to make me follow the Rabbitohs

Except the Rabbitohs have got a super large pokies venue of their own (Star City Casino)

The Panthers have got 6 venues including the 'World of Entertainment' venue.  So whether these clubs have always had them,  just getting into them or revisiting,  it all amounts to the same thing. 

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