"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."

MFC after the womens and men's teams went out in straight sets... 😬

most of that profit is just what ive spent at the club shop

 

i have a problem

Edited November 24, 20231 yr by biggestred

With all the stuff going on, at least we have money

 

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 November 24, 20231 yr by Eelesie
correction!

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?

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 

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.

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

"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."

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 

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. 

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.

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.

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

42 minutes ago, Hawk the Demon said:

"pinched" $7.7 mil from the FF,

Pinched

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

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?

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 November 24, 20231 yr by deva5610

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.

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.

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.!!

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?

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.

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.