Jump to content

Discussion on recent allegations about the use of illicit drugs in football is forbidden
  • IMPORTANT: PLEASE READ BEFORE POSTING

    Posting unsubstantiated rumours on this website is strictly forbidden.

    Demonland has made the difficult decision to not permit this platform to be used to discuss & debate the off-field issues relating to the Melbourne Football Club including matters currently being litigated between the Club & former Board members, board elections, the issue of illicit drugs in footy, the culture at the club & the personal issues & allegations against some of our players & officials ...

    We do not take these issues & this decision lightly & of course we believe that these serious matters affecting the club we love & are so passionate about are worthy of discussion & debate & I wish we could provide a place where these matters can be discussed in a civil & respectful manner.

    However these discussions unfortunately invariably devolve into areas that may be defamatory, libelous, spread unsubstantiated rumours & can effect the mental health of those involved. Even discussion & debate of known facts or media reports can lead to finger pointing, blame & personal attacks.

    The repercussion is that these discussions can open this website, it’s owners & it’s users to legal action & may result in this website being forced to shutdown.

    Our moderating team are all volunteers & cannot moderate the forum 24/7 & as a consequence problematic content that contravenes our rules & standards may go unnoticed for some time before it can be removed.

    We reserve the right to delete posts that offend against our above policy & indeed, to ban posters who are repeat offenders or who breach our code of conduct.

    WE HAVE BUILT A FANTASTIC ONLINE COMMUNITY AT DEMONLAND OVER THE PAST 23 YEARS & WE WOULD LIKE TO CONTINUE TO BE ABLE TO DISCUSS THE CLUB WE LOVE & ARE SO PASSIONATE ABOUT.

    Thank you for your continued support & understanding. Go Dees.


2020 Financials: Reduced Debt Despite Loss


Demonland

Recommended Posts

      https://www.melbournefc.com.au/news/845785

If I read this correctly;  if not for Covid and our projected revenue was realised  then we would have made a profit of $15 million this year which is a fantastic result and augers well for the future.

Well done Perty.

I am not an accountant and if wrong someone will point it out,  which they should do, but never the less it seems like some good news.                                                                

Edited by skills32
insert comma
  • Like 3
Link to comment
Share on other sites

I'm no expert either, but i read it a more negative way. We sold Leighoak (for around 10 million?), and the proceeds were basically used to cover the debt accrued from the past few years. Now the only real asset we have is the land value of Bentleigh club.

  • Like 1
Link to comment
Share on other sites

Neither am I but remember revenue raising costs money, so   revenue 18 mill (down) may have cost 17 mill  to raise.

Nearly 4 mill in job keeper payments.

A small capital loss on the sale of investments. I think.

Not sure why we want to go debt free when interest rates are at historical lows.

 

  • Like 3
Link to comment
Share on other sites

Some highlights

they reduced expenses by around $16M due to covid which helped to offset the revenue reduction of $17.5M.

Jobkeeper earned them nearly $4M

Sponsorship income dropped by $4.4M

They revalued  Bentleigh Club upwards by $14M

There's a positive $13M odd swing in financial investments  which I assume reflects the proceeds of sale of Leighoak

 

Edited by Diamond_Jim
  • Thanks 1
Link to comment
Share on other sites

1 hour ago, IWAP said:

I'm no expert either, but i read it a more negative way. We sold Leighoak (for around 10 million?), and the proceeds were basically used to cover the debt accrued from the past few years. Now the only real asset we have is the land value of Bentleigh club.

Don't like the fact that the Leighoak sale isn't mentioned in any of the financial updates, a bit deceiving and trust takes a bit of a hit as a result. They also liquidated their assets ... more information please!

Edited by Demons1858
Link to comment
Share on other sites


25 minutes ago, Demons1858 said:

Don't like the fact that the Leighoak sale isn't mentioned in any of the financial updates, a bit deceiving and trust takes a bit of a hit as a result. They also liquidated their assets ... more information please!

I haven’t looked at the financials yet, but wasnt the Leighoak sold in 2018 and wouldn’t be in this years result? These accounts would be for the year ended 31 October 2020, unless it didn’t settle until after 1 November 2019 which would be surprising? 

  • Like 1
  • Thanks 1
Link to comment
Share on other sites

Have had a quick look. The Leighoak was sold in 2018 and was settled even before last financial year, hence the non-mention given it happened all of two financial years ago. You will note some post sale expenses are reflected in the 2019 profit and loss statement. 
 

 

  • Like 2
  • Thanks 1
Link to comment
Share on other sites

5 minutes ago, ox_5 said:

Have had a quick look. The Leighoak was sold in 2018 and was settled even before last financial year, hence the non-mention given it happened all of two financial years ago. You will note some post sale expenses are reflected in the 2019 profit and loss statement. 
 

 

Fair enough ... I think I'm more annoyed they claim to be paying off debt while making a loss without mentioning they had sold down assets to be able to do that

Link to comment
Share on other sites

2 minutes ago, Demons1858 said:

Fair enough ... I think I'm more annoyed they claim to be paying off debt while making a loss without mentioning they had sold down assets to be able to do that

the full detail of the financials rather than the website summary does mention the investments were liquidated to get through the year from a cash flow perspective, and the rationale of that decision. 

  • Like 1
  • Thanks 1
Link to comment
Share on other sites

7 minutes ago, ox_5 said:

the full detail of the financials rather than the website summary does mention the investments were liquidated to get through the year from a cash flow perspective, and the rationale of that decision. 

ox_5, seeing as you appear across this, where did he proceeds of the sale of leighoak go? It was sold for $11mill

Link to comment
Share on other sites

1 minute ago, Demons1858 said:

ox_5, seeing as you appear across this, where did he proceeds of the sale of leighoak go? It was sold for $11mill

Let me take the time to have a proper read. It was 2 years ago, so some will no doubt have gone towards debt. 

  • Like 2
  • Thanks 1
Link to comment
Share on other sites

The club liquidated the investment of $6.6m which was the wash-up from the Leighoak sale. $2m when to pay-down debt and $3m to fund the operating loss. The remainder is in the bank account.

The debt was in the form of commercial bills which can be expensive. Interest expenses was greater than the interest earned on the investment hence made sense to pay down the debt.

They are not pretty numbers but we were lucky to have the leighoak proceeds to tide us over. Another year like this year and we’ll either have to tap the AFL, drawdown on the commercial bill facility again or sell the Bentleigh Club and live off the proceeds.

Note 2b outlines the basis on which the directors are satisfied to sign off the statements on a going concern basis. I note the auditors haven't included a reference in their audit report to going concern which is positive. Suggests no immediate reasons to be concerned about the financial situation.

I’d be interested to see what sponsorship and membership are looking like for 2021. Are we renewing at the same rates or is there a drop-off?

I hope the vaccines are effective and we can get back to full crowds again and relative normality otherwise it’ll be another round of wage cuts, reduced list sizes and austerity.

Edited by Better days ahead
  • Like 3
  • Thanks 2
  • Sad 1
Link to comment
Share on other sites

10 minutes ago, Better days ahead said:

The club liquidated the investment of $6.6m which was the wash-up from the Leighoak sale. $2m when to pay-down debt and $3m to fund the operating loss. The remainder is in the bank account.

The debt was in the form of commercial bills which can be expensive. Interest expenses was greater than the interest earned on the investment hence made sense to pay down the debt.

They are not pretty numbers but we were lucky to have the leighoak proceeds to tide us over. Another year like this year and we’ll either have to tap the AFL, drawdown on the commercial bill facility again or sell the Bentleigh Club and live off the proceeds.

Note 2b outlines the basis on which the directors are satisfied to sign off the statements on a going concern basis. I note the auditors haven't included a reference in their audit report to going concern which is positive. Suggests no immediate reasons to be concerned about the financial situation.

I’d be interested to see what sponsorship and membership are looking like for 2021. Are we renewing at the same rates or is there a drop-off?

I hope the vaccines are effective and we can get back to full crowds again and relative normality otherwise it’ll be another round of wage cuts, reduced list sizes and austerity.

Do you recall where the remainder of the $11mil Leighoak sale went of approx $4.4mil (i.e. $11mill minus 6.6mill)?

Link to comment
Share on other sites

19 minutes ago, Demons1858 said:

Do you recall where the remainder of the $11mil Leighoak sale went of approx $4.4mil (i.e. $11mill minus 6.6mill)?

https://resources.melbournefc.com.au/aflc-melb/document/2019/12/16/392d79e2-bd8d-46b4-8db1-57f764504f4d/MFC_Financial-Report_2019_Digital.pdf

The above link is to the 2019 financial statements.The sale was accounted for in the 2018 financial year.

Looks like the proceeds on sale were $10.65m – see cashflow statement 2018 comparative - Proceeds from sale of discontinued operations.

The money was banked.

In 2019 some of the funds were re-invested – see $7.6m financial investment on 2019 statement of financial position ($1m + $6.6m)

We incurred a loss in the 2019 year of approx. $2m which accounts the majority of the remainder of the Leighoaks proceeds (used to cover the losses).

Alternatively you could look at the 2019 cashflow statement which details components of the decrease in the bank account of $10.2m. 

  • Like 2
Link to comment
Share on other sites


1 hour ago, Better days ahead said:

https://resources.melbournefc.com.au/aflc-melb/document/2019/12/16/392d79e2-bd8d-46b4-8db1-57f764504f4d/MFC_Financial-Report_2019_Digital.pdf

The above link is to the 2019 financial statements.The sale was accounted for in the 2018 financial year.

Looks like the proceeds on sale were $10.65m – see cashflow statement 2018 comparative - Proceeds from sale of discontinued operations.

The money was banked.

In 2019 some of the funds were re-invested – see $7.6m financial investment on 2019 statement of financial position ($1m + $6.6m)

We incurred a loss in the 2019 year of approx. $2m which accounts the majority of the remainder of the Leighoaks proceeds (used to cover the losses).

Alternatively you could look at the 2019 cashflow statement which details components of the decrease in the bank account of $10.2m. 

Good summary, saved me a lot of typing! 

  • Like 1
Link to comment
Share on other sites

11 minutes ago, Darkhorse72 said:

While interest are low for "households" but not sure what the commercial rates are?

Rather have zero debt and that is the safest way to be in the current climate, massively reduces the risk to the club.

 

If you are a government, issuing bonds to raise debt is very low interest. Commercial entities borrowing new money at bank is relatively low interest. Existing loans or financial agreements could be at various rates.

If the choice is between investments paying a high rate of return vs low interest debts, then you keep the investment (if you are liquid enough to survive).

If it's between debt being repaid and cash invested at no interest, then repaying makes sense.

 

 

  • Like 1
Link to comment
Share on other sites

as, theoretically, the afl and subsidiaries (i.e. clubs) are not for profit, any money we would have to pay back as part of a loan to clear debt etc. would be money that we could have otherwise spent, yes?

we can carry the debt without a care in the world (theoretically) because of the afl being able to guarantee us

Link to comment
Share on other sites

5 hours ago, whatwhatsaywhat said:

as, theoretically, the afl and subsidiaries (i.e. clubs) are not for profit, any money we would have to pay back as part of a loan to clear debt etc. would be money that we could have otherwise spent, yes?

we can carry the debt without a care in the world (theoretically) because of the afl being able to guarantee us

Would you go into debt and be guaranteed by the AFL, most clubs like ours have moved heaven and earth to avoid this why? The AFL is committed to a 18 team competition, but they have never said they are committed to having all the teams based in their current location. Don't think a second the AFL won't hesitate to relocate 1 of these AFL assistant teams, without a home base to Tasmania.

  • Like 1
Link to comment
Share on other sites

7 hours ago, whatwhatsaywhat said:

we can carry the debt without a care in the world (theoretically) because of the afl being able to guarantee us

Depends how financially secure the AFL is. They took out a big loan early in the covid crisis for $500m which was secured against Marvel Stadium. That needs to be repaid and i'd love to know the rate of interest they were charged. HQ was gutted and all the "make work" roles were done away with (which was most of them). Player payments reduced as well.

Gill was looking very nervous there for a while but i think the bubble meant a financial crisis was avoided for now. 

I wouldn't like to be relying on the AFL. Much prefer we retain our financial independence and can make our own decisions.

  • Like 4
Link to comment
Share on other sites

14 hours ago, Diamond_Jim said:

Some highlights

they reduced expenses by around $16M due to covid which helped to offset the revenue reduction of $17.5M.

Jobkeeper earned them nearly $4M

Sponsorship income dropped by $4.4M

They revalued  Bentleigh Club upwards by $14M

There's a positive $13M odd swing in financial investments  which I assume reflects the proceeds of sale of Leighoak

 

That one line explains everything that has been claimed.

The Bentleigh club had not been revalued for years ( and should have been). 

We have been drawing down on the sale proceeds from the Leighoak club for 2 years now.  While this past year has been difficult, in terms of operational cash flow, all that has been happening is we are selling assets. 

Importantly, although the sale of Leighoak was fortuitous in terms of COVID since Poker machine venues couldn't operate, we have not replaced the $1M per year of profit that it provided. 

Revaluation of Bentleigh, doesn't put any more food on the table.  The sooner it is sold so that either the money can be invested to provide decent long term income or directed toward a training base, the better. 

Edited by george_on_the_outer
  • Like 2
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Unfortunately, your content contains terms that we do not allow. Please edit your content to remove the highlighted words below.
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Recently Browsing   0 members

    • No registered users viewing this page.
  • Demonland Forums  

  • Match Previews, Reports & Articles  

    DEPTH CHARGE by Whispering Jack

    The jubilation on the coach’s face as he danced a celebratory jig by the playing bench after the final siren sounded to record his team’s four-point victory over the Demons when the teams last met, said it all.    On that rainy Friday night at the Adelaide Oval, Ken Hinkley’s young midfield secured much more than four points on offer. The victory over one of the big dogs of the competition after a succession of wins over some of its lesser lights gave his team respect and validation fo

    Demonland
    Demonland |
    Melbourne Demons 5

    TRAINING: Monday 25th March 2024

    Demonland Trackwatchers Demon Dynasty & Kev Martin were trackside at Gosch's Paddock today to bring you their observations from training. DEMON DYNASTY'S TRAINING OBSERVATIONS Kade Chandler's left knee heavily strapped. BBB, Spargs & Jake Lever also in rehab group. Jake Bowey solo running separate kicking/sprint/agility drills. Super fine morning / early arvo at Gosch's for the boys to blow out some cobwebs. Choco initially had the light duties / rehab group

    Demonland
    Demonland |
    Training Reports

    HIBERNATING by KC from Casey

    When they locked up the rooms for summer at the end of last year’s football season, the rooms gathered cobwebs, the atmosphere became dense and the place developed a sleepy feel. They opened up the rooms to let Casey out to play on Sunday but the team was still hibernating and they missed the bulk of the opening quarter. By the time they worked out it was game on, their opponents from Box Hill had accumulated five goals and, if the game wasn’t over, it might as well have been. For a se

    Demonland
    Demonland |
    Casey Articles

    A FORK IN THE HAWK by George on the Outer

    For too long in the past, Demon fans became habitually sick and tired of watching the Hawks hand out thrashings to their side. But Melbourne’s empahtic 55-point win at the MCG on Saturday has truly put a fork in the Hawk and turned that history well and truly on its head. The Demons have now won nine of their last ten encounters with the other result, a draw.     And like a fork, it was the multi-pronged options that Melbourne had all across the ground.  It certainly helped that Hawthorn

    Demonland
    Demonland |
    Match Reports 8

    PREGAME: Rd 03 vs Port Adelaide

    The Demons head on the road for the next 2 weeks as they travel to Adelaide to play Port on Saturday and then have a 5 Day break before facing the Crows in the Gather Round. With injuries to May and Lever who comes in and who goes out?

    Demonland
    Demonland |
    Melbourne Demons 262

    PODCAST: Rd 02 vs Hawthorn

    The Demonland Podcast will air LIVE on Monday, 25th March @ 8:30pm. Join George, Binman & I as we analyse the Demons victory at the MCG against the Hawks in the Round 02. You questions and comments are a huge part of our podcast so please post anything you want to ask or say below and we'll give you a shout out on the show. If you would like to leave us a voicemail please call 03 9016 3666 and don't worry no body answers so you don't have to talk to a human. Listen & Chat

    Demonland
    Demonland |
    Melbourne Demons 46

    VOTES: Rd 02 vs Hawthorn

    Last week Steven May took the lead in the Demonland Player of the Year Award from Jack Viney. Clayton Oliver & Max Gawn round out the Top 4. Your votes for the win/loss against/to the Hawks. 6, 5, 4, 3, 2, 1.

    Demonland
    Demonland |
    Melbourne Demons 50

    POSTGAME: Rd 02 vs Hawthorn

    The Demons cruised to an easy 55 point win over the Hawks at the MCG but but paid a heavy toll on the injury front with Steven May & Jake Lever possibly sidelined for a number of weeks.

    Demonland
    Demonland |
    Melbourne Demons 357

    GAMEDAY: Rd 02 vs Hawthorn

    It's Game Day and after mixed results in the first two weeks of the season the Demons have the opportunity to capitalise on their good form last week when they take on the Hawks at the MCG today.

    Demonland
    Demonland |
    Melbourne Demons 437
  • Tell a friend

    Love Demonland? Tell a friend!

  • Podcast 

  • Podcast 

  • Podcast Stream 


    Open Stream in
    New Window
        TuneIn    Opens in New Tab
  • Support Demonland  



  • 2021 Premiership  

  • Social Media 

  • Non MFC Games  

    NON-MFC: Round 03

    Discussion of all the other games that don't involve the Demons in Round 03 ... READ MORE

    Demonland | Round 03

  • Match Preview      

    DEPTH CHARGE by Whispering Jack

    The jubilation on the coach’s face as he danced a celebratory jig by the playing bench after the final siren sounded to record his team’s four-point victory over the Demons when the teams last met, said it all ... READ MORE

    Demonland | March 27

  • Latest Podcast      

    PODCAST: Rd 02 vs Hawthorn

    The boys dissected the clinical thrashing of Hawks praising the immense performance of Christian Petracca whilst lamenting the injury toll to our defensive unit ... LISTEN

    Demonland | March 26

  • Training  

    Monday, 25th March 2024

    Demonland Trackwatchers Demon Dynasty & Kev Martin were trackside at Gosch's Paddock today to bring you their observations from training ... READ MORE

    Demonland | March 25

  • Casey Report      

    HIBERNATING by KC from Casey

    When they locked up the rooms for summer at the end of last year’s football season, the rooms gathered cobwebs, the atmosphere became dense and the place developed a sleepy feel. They opened up the rooms to let Casey out to play on Sunday but the team was still hibernating and they missed the bulk of the opening quarter ... READ MORE

    Demonland | March 25

  • PreGame      

    PREGAME: Rd 03 vs Port Adelaide

    The Demons head out on the road for the next 2 weeks as they travel to Adelaide to play Port on Saturday and then have a 5 Day break before facing the Crows in Gather Round. With injuries to May and Lever who comes in and who goes out? ...READ MORE

    Demonland | March 28

  • Match Report      

    A FORK IN THE HAWK by George on the Outer

    For too long in the past, Demon fans became habitually sick and tired of watching the Hawks hand out thrashings to their side. But Melbourne’s empahtic 55-point win at the MCG on Saturday has truly put a fork in the Hawk and turned that history well and truly on its head ... READ MORE

    Demonland | March 23

  • Post Game      

    POSTGAME: Rd 02 vs Hawthorn

    The Demons cruised to an easy 55 point win over the Hawks at the MCG but but paid a heavy toll on the injury front with Steven May & Jake Lever possibly sidelined for a number of weeks ...READ MORE

    Demonland | March 23

  • Votes      

    VOTES: Rd 02 vs Hawthorn

    Last week Steven May took the lead in the Demonland Player of the Year Award from Jack Viney. Clayton Oliver & Max Gawn round out the Top 4. Your votes for the win/loss against/to the Hawks. 6, 5, 4, 3, 2, 1 ...READ MORE

    Demonland | March 23

  • Game Day      

    GAMEDAY: Round 02 vs Hawthorn

    It's Game Day and after mixed results in the first two weeks of the season the Demons have the opportunity to capitalise on their good form last week when they take on the Hawks at the MCG today ... READ MORE

    Demonland | March 23

  • Training  

    Friday, 22nd March 2024

    Demonland Trackwatcher Kev Martin and I attended the Captain's Run at Gosch's Paddock on this lovely sunny morning to bring you the following observations from the training session ... READ MORE

    Demonland | March 22

  • Training  

    Tuesday, 19th March 2024

    Demonland Trackwatchers Kev Martin & Walking Civil War attended Tuesday morning's training session at Gosch's Paddock to bring you the following observations ... READ MORE

    Demonland | March 19

  • Training  

    Saturday, 16th March 2024

    Demonland Trackwatchers Kev Martin and Dee Zephyr wandered down to Gosch's Paddock on Saturday morning to bring you their observations from the Captain's Run in the lead up to Sunday's Round One match against the Bulldogs ... READ MORE

    Demonland | March 16

  • Farewell  

    Angus Brayshaw Retires

    After 167 games including the drought breaking Premiership Angus Brayshaw has made the heart breaking decision to medically retire from football as a result of a series of serious head knocks over his nearly decade of footy. We wish Gus all the best and he'll always be a hero at Demonland ... READ MORE

    Demonland | February 22

  • Latest Podcast  

    PODCAST: Koltyn Tholstrup Interview

    I interview the Melbourne Football Club’s newest recruit Koltyn Tholstrup to have a chat about his journey from the farm to the Demons, his first few weeks of preseason training, which Dees have impressed him on the track and his aspirations of playing Round 1 ... LISTEN

    Demonland | December 14

  • Latest Podcast  

    PODCAST: Jason Taylor Interview

    I interview the Melbourne Football Club's National Recruitment Manager Jason Taylor to have a chat about our Trade and Draft period, our newest recruits, our recent recruits who have yet to debut as well as those father son prospects on the horizon ... LISTEN

    Demonland | November 27

  • Next Match 

    .

    Round 03

       vs   

    Saturday 30th March 2024
    @ 07:30pm (AO)

  • MFC Forum  

  • Match Previews & Reports  

  • Training Forum  

  • AFLW Forum  

  • 2024 Player Sponsorship

  • Topics

  • Injury List  


      PLAYER INJURY LENGTH
    Jake Lever Knee Test
    Clayton Oliver Hand Test
    Oliver Sestan Concussion Test
    Steven May Ribs 1 Week
    Lachie Hunter Calf 1 Week
    Daniel Turner Hip 2-3 Weeks
    Charlie Spargo Achilles 2-4 Weeks
    Shane McAdam Hamstring 3-5 Weeks
    Jake Bowey Shoulder 7 Weeks
    Jake Melksham ACL 12-14 Weeks
    Joel Smith Suspension TBA

  • Player of the Year  


        PLAYER VOTES
    1 Christian Petracca 27
    2 Steven May 25
    3 Max Gawn 21
    4 Jack Viney 20
    5 Bayley Fritsch 19
    6 Clayton Oliver 18
    7 Christian Salem 12
    8 Blake Howes 11
    9 Jack Billings 10
    9 Alex Neal-Bullen 10

        FULL TABLE
  • Demonland Interviews 



  • Upcoming Events 

×
×
  • Create New...