Jump to content

2023 MFC Financials


Demonland

Recommended Posts

"FOR THE third consecutive year, Melbourne Football Club has announced a strong financial result, returning an operating profit of $2.2m for the year ended 31 October 2023.

The Club has also generated an additional one off $900k in fundraising proceeds for the purpose of upgrading current training and administration facilities. These proceeds added to the operating profit, create a statutory profit of $3.1m."

  • Like 7
  • Clap 5
Link to comment
Share on other sites

I don't think that it includes the McClelland Trophy money is included in the revenues from reading the report, unless it is in the AFL distributions amount. The prize money was only 298k.

Edit - Just read the website article, is to be included in the 2024 results, starts the year with a bang!

 

Edited by Eelesie
correction!
  • Like 4
  • Thanks 1
Link to comment
Share on other sites

Last year's Directors' Report said:

 

"The Club exits gaming with combined sale proceeds of $34.4m, and the expectation of an annual income stream from the Future Fund that will exceed income otherwise expected had the Club retained its two gaming venues.

The Board have established a Future Fund with the proceeds of the sale, with the purpose of the Future Fund to underpin the long-term financial sustainability of the Club."

Why have we only put $23.7m in the Future Fund?

  • Thanks 2
  • Facepalm 1
  • Angry 1
Link to comment
Share on other sites

22 minutes ago, Hawk the Demon said:

Last year's Directors' Report said:

 

"The Club exits gaming with combined sale proceeds of $34.4m, and the expectation of an annual income stream from the Future Fund that will exceed income otherwise expected had the Club retained its two gaming venues.

The Board have established a Future Fund with the proceeds of the sale, with the purpose of the Future Fund to underpin the long-term financial sustainability of the Club."

Why have we only put $23.7m in the Future Fund?

Cash Reserves of $10mill approx. is in the article, I am certain.

Put away your microscope and please delete that ridiculous and shameful Cutoff Hawk that has no place in the Melbourne Club logos. It brings many fans heartache and sadness of a previous era. It is completely irrelevant and adds nothing to your posts. You 

  • Like 4
Link to comment
Share on other sites

21 minutes ago, Hawk the Demon said:

Last year's Directors' Report said:

 

"The Club exits gaming with combined sale proceeds of $34.4m, and the expectation of an annual income stream from the Future Fund that will exceed income otherwise expected had the Club retained its two gaming venues.

The Board have established a Future Fund with the proceeds of the sale, with the purpose of the Future Fund to underpin the long-term financial sustainability of the Club."

Why have we only put $23.7m in the Future Fund?

Good question - but not one that anyone of us on DL would be able to answer, which I'm sure you would know Hawk. I suggest the best place to raise that question is with the Club. Perhaps once you do, you might inform us of the response please.

  • Like 1
Link to comment
Share on other sites


"Whilst there was $0.5m in legal proceedings expenses during the year, the net cost after recoveries is $0.1m. It is regrettable that the Club is required to incur this expenditure."

 

"Whilst the Club has been unable to achieve its aim of commencing construction on a new Melbourne home base facility during the strategic period, all involved in the Club are working tirelessly to deliver the vision of a world class primary facility that can be enjoyed by players, staff and supporters, and are confident this vision will be realised in the term of the Club’s next Strategic Plan. We understand the delay 
is frustrating for players, staff, supporters and your Board, however it is a long-term project and in order to deliver the world class facilities we want we can only move at the speed determined by our key project partners and State Government given our requirement for land and funding. 
The Club is continuing to work closely with the Victorian State Government on our primary home base, and as advised at last year’s Annual General Meeting this includes opportunities within the Caulfield 
Racecourse."

  • Like 4
  • Thanks 1
Link to comment
Share on other sites

42 minutes ago, 58er said:

Cash Reserves of $10mill approx. is in the article, I am certain.

Put away your microscope and please delete that ridiculous and shameful Cutoff Hawk that has no place in the Melbourne Club logos. It brings many fans heartache and sadness of a previous era. It is completely irrelevant and adds nothing to your posts. You 

$10 Million running costs sounds reasonable to me for a year. But Hawk the Troll is not looking for reason 

  • Like 5
Link to comment
Share on other sites

19 minutes ago, Mickey said:

"Whilst there was $0.5m in legal proceedings expenses during the year, the net cost after recoveries is $0.1m. It is regrettable that the Club is required to incur this expenditure."

 

"Whilst the Club has been unable to achieve its aim of commencing construction on a new Melbourne home base facility during the strategic period, all involved in the Club are working tirelessly to deliver the vision of a world class primary facility that can be enjoyed by players, staff and supporters, and are confident this vision will be realised in the term of the Club’s next Strategic Plan. We understand the delay 
is frustrating for players, staff, supporters and your Board, however it is a long-term project and in order to deliver the world class facilities we want we can only move at the speed determined by our key project partners and State Government given our requirement for land and funding. 
The Club is continuing to work closely with the Victorian State Government on our primary home base, and as advised at last year’s Annual General Meeting this includes opportunities within the Caulfield 
Racecourse."

The state and the nation are broke. Getting any type of funding is going to be extremely challenging. I would be surprised if we made any progress this decade. 

  • Like 5
Link to comment
Share on other sites

1 hour ago, Neil Crompton said:

Good question - but not one that anyone of us on DL would be able to answer, which I'm sure you would know Hawk. I suggest the best place to raise that question is with the Club. Perhaps once you do, you might inform us of the response please.

The Club doesn't respond to detailed questions from members - they tell you to ask them at the AGM, and you are restricted to one question per member (see your AGM notice you should have received today). Oh, and if you want a proxy form, you have to ask the Company Secretary - they used to be included in the notice.

Link to comment
Share on other sites

1 hour ago, BDA said:

Presumably the $34m refers to Bentleigh and Leighoak combined sales proceeds (leighoak was sold a couple of years ago).

It does BDA - so it is only (roughly) the proceeds from Bentleigh that has gone into the FF - $23.7m. My point is that last year we were advised that the combined sales proceeds would go into the FF, and not to be used on capex or operating deficits. It seems we have "pinched" $7.7 mil from the FF, ready in case we get to build something at Caulfield.

  • Facepalm 1
Link to comment
Share on other sites

18 minutes ago, Hawk the Demon said:

It does BDA - so it is only (roughly) the proceeds from Bentleigh that has gone into the FF - $23.7m. My point is that last year we were advised that the combined sales proceeds would go into the FF, and not to be used on capex or operating deficits. It seems we have "pinched" $7.7 mil from the FF, ready in case we get to build something at Caulfield.

we've been profitable the past 2 years so no operating deficit to fund

per cashflow statement there has been a $5.5m investment in property plant and Equip (capex) this year. I presume this is the money spent on Gosch's paddock. This is money that needed to be spent imv so i'm ok with it.

Worth noting that the FF generated $833k interest income (see note 3 fin asset income).

These are a healthy set of numbers so i don't think the financials will be a fruitful angle of attack for you.

Club culture is a different story. Reckon you're on firmer ground criticising the club in that regard

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

Well that well and truely sucked any positive feelings about our miraculous financial turnaround over the past five years. Thanks Hawk.

  • Like 1
Link to comment
Share on other sites

2 hours ago, Hawk the Demon said:

you are restricted to one question per member

"To enable maximum participation, each member may ask one question until all members who wish to ask questions have had the opportunity to raise questions"

Sounds fair and reasonable, no?

  • Like 2
Link to comment
Share on other sites


2 hours ago, Hawk the Demon said:

last year we were advised that the combined sales proceeds would go into the FF

Where was that?

All I can find is the following -
"Having explored all options it was clear that the best outcome for Melbourne’s long-term financial viability was to sell the Bentleigh Club. The proceeds of the sale will allow the club to establish a future fund"

and then in the 2022 AGM notice -
"In addition, we finalised the Bentleigh Club sale, the proceeds of which will be invested via our Future Fund"

As far as I can tell that is exactly what was done?

Edited by deva5610
  • Like 2
Link to comment
Share on other sites

From 2022 Financials

"The Club completed its exit from the gaming industry, with the Bentleigh Club closing in August 2022. The sale of Bentleigh Club settled after the financial year end, with proceeds of $23.7m being received. The Board have established a Future Fund with the sale proceeds, to replace the foregone gaming income from the divestment of Bentleigh Club and Leighoak, and provide financial security for the Club for many years to come."

Seems to state that the Future Fund was setup with the proceeds from the bentleigh club.

  • Like 5
Link to comment
Share on other sites

Leighoak was sold back in 2018.  From the 2018 financials

"The Club had net assets of $13.109m at balance date, underwritten by the cash position largely achieved through the sale of Leighoak Club, and the Bentleigh Club land asset. The Club’s overall debt at the end of 2018 totalled $2.629m, which represents a reduction of $1.500m during the year. The Club will continue to prioritise the repayment of debt from its operating cashflow over the coming years, as it has done in prior years, with $5.499m of debt repaid since 2013"

Btw the financials for the last 8 years are up on the website.  And note we had debt back then.  Not now.

  • Like 4
  • Thanks 2
Link to comment
Share on other sites

Thanks Jontee, It just hammers home the importance of being relevant and extremely well managed. Success breeds success, it is what we all craved for our mighty club.!!

  • Like 2
Link to comment
Share on other sites

1 hour ago, Jontee said:

From 2022 Financials

"The Club completed its exit from the gaming industry, with the Bentleigh Club closing in August 2022. The sale of Bentleigh Club settled after the financial year end, with proceeds of $23.7m being received. The Board have established a Future Fund with the sale proceeds, to replace the foregone gaming income from the divestment of Bentleigh Club and Leighoak, and provide financial security for the Club for many years to come."

Seems to state that the Future Fund was setup with the proceeds from the bentleigh club.

And the proceeds from the sale of Leighoak? That was $10.7 million. The quote above come sfrom Key Highlights.

The other quote from those 2022 Financials is this one further on in the Dircetors' Report:

"Bentleigh Club Sale, Future Fund & Investment Committee

As outlined previously, the sale of Bentleigh Club settled just after the financial year end. The sale of Bentleigh Club is the culmination of a long-term strategy to exit the gaming industry, which commenced with the sale of Leighoak in 2018 for $10.7m. The Club exits gaming with combined sale proceeds of $34.4m, and the expectation of an annual income stream from the Future Fund that will exceed income otherwise expected had the Club retained its two gaming venues.

The Board have established a Future Fund with the proceeds of the sale, with the purpose of the Future Fund to underpin the long-term financial sustainability of the Club."

One could read that the Future Fund was to be $34.4 m. Maybe the wording was unclear (sale proceeds/proceeds of the sale?) and it was only ever to be $23.7m?

Link to comment
Share on other sites

6 hours ago, Sir Why You Little said:

$10 Million running costs sounds reasonable to me for a year. But Hawk the Troll is not looking for reason 

Future Fund - $23.7 mil. Cash $10.2 mil, of which $7.7 mil "of these funds are allocated for investment in the Club's Training & Administration Facility project". That leaves $2.5 million cash. And we have current liabilities including trade and other payables of $5.5 mil. Perhaps that explains the new $4.5 million loan facility from NAB (not drawn) - see Note 15. Just in case.

And that cash is there partly because of the prepaid 2024 memberships as at 31 October 2023 of $3.7 million.

Not saying any of this is bad. Just giving you the financial facts as contained in our audited financial statements.

Link to comment
Share on other sites

3 hours ago, deva5610 said:

"To enable maximum participation, each member may ask one question until all members who wish to ask questions have had the opportunity to raise questions"

Sounds fair and reasonable, no?

Absolutely, so the additional 12 financial questions can come at the end. You had better be there in person because you if you were on the stream last year you saw no Q&A.

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  

    TROUBLE by The Oracle

    Situated roughly in Australia's geographic centre, Alice Springs has for many years been a troubled town suffering from intermittent crime waves, particularly among its younger residents. There was a time a little while ago when things were so bad that some even doubted the annual AFL game in the town would proceed.  Now, the hope is that this Sunday’s Melbourne vs Fremantle encounter will bring joy to the residents of the town and that through the sport and the example of the participants,

    Demonland
    Demonland |
    Melbourne Demons

    Welcome to Demonland: Luker Kentfield

    With the Melbourne Football Club's first pick in the 2024 AFL Mid-Season Draft and pick number 11 overall the Demon's selected Western Australian key forward Luker Kentfield from Subiaco.

    Demonland
    Demonland |
    Melbourne Demons 205

    TRAINING: Tuesday 28th May 2024

    Veteran Demonland Trackwatcher Kev Martin returned to the training track to bring you the following observations from Gosch's Paddock this morning. Beautiful morning for training. The dew has dried, out from AAMI, quiet chatting. Maysie does his heart symbol. 7 in rehab, Turner, Hore, Sestan, BBB, Petty, Spargo and Schache. All in runners. Melky weighted and change of angles work. Salem has his individual program. White cap (no contact), Howes, Woewodin and Sparrow

    Demonland
    Demonland |
    Training Reports

    GALLANT by KC from Casey

    The world “gallant” is not one that is readily acceptable to losing teams in our game of football so when it was used in the context of the Casey Demons’ loss to Sandringham in yesterday’s match at Casey Fields, it left a bitter taste in the mouth.  The Demons went into the game against the St Kilda affiliated Zebras with the advantage of playing on their home turf (not that this has been a major asset in 2024) and with very little else going in their favour. The Saints have close to a full

    Demonland
    Demonland |
    Casey Articles

    MEANWHILE by Whispering Jack

    … meanwhile, at about the same time that Narrm was putting its feet on the accelerator to obliterate the long-suffering Euro-Yroke combination, I heard someone mention in passing that Kuwarna was leading Waalitj Marawar by a whopping 46 to 1 halfway through the second quarter of their game over in Adelaide. “What is football coming to?” I asked myself.  In front of my eyes, the Demons were smashing it through the midfield, forcing turnovers and getting the footy to their forwards who w

    Demonland
    Demonland |
    Match Reports

    PREGAME: Rd 12 vs Fremantle

    The Demons head back on the road for the fourth time this season as the travel to Alice Springs to take on the Fremantle Dockers at Treager Park on Sunday afternoon. Who comes in and who goes out?

    Demonland
    Demonland |
    Melbourne Demons 199

    PODCAST: Rd 11 vs St. Kilda

    The Demonland Podcast will air LIVE on Monday, 27th May @ 8:30pm. Join George, Binman & I as we analyse the Demons victory at the MCG over the Saints in the Round 11. 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 LIVE

    Demonland
    Demonland |
    Melbourne Demons 30

    VOTES: Rd 11 vs St. Kilda

    Captain Max Gawn has a considerable lead over reigning champion Christian Petracca in the Demonland Player of the Year Award. Steven May, Alex Neal-Bullen & Jake Lever make up the Top 5. Your votes for the win against the Saints. 6, 5, 4, 3, 2, 1.

    Demonland
    Demonland |
    Melbourne Demons 54

    POSTGAME: Rd 11 vs St. Kilda

    After a very wasteful first half of footy the Demons ended up cruising to a clinical victory over the Saints by 38 points at the MCG and ultimately reclaimed a coveted spot in the Top 4.

    Demonland
    Demonland |
    Melbourne Demons 401
  • Tell a friend

    Love Demonland? Tell a friend!

×
×
  • Create New...