One thing for sure, our financial recovery will never make news in the MSM.
If there is one thing the Sorry Saga has taught me, it is always ask -
Why is this in the media?
Is there an agenda at play?
Who is behind it?
What is the motivation?
What is the alternative view?
I’m still learning that most of what I read is absolute biased rubbish. I sleep better at night!
two things
start selling dog memberships
sell jobes brownlow to cotchin and mitchell
Need some chook raffles to be organised and a few Bunnings Sausage Sizzles.
Will be cleared in no time.
Lid off.
Need some chook raffles to be organised and a few Bunnings Sausage Sizzles.Will be cleared in no time.
Lid off.
Sausage/Hamburger: $2
with sauce: $1.3m
What happened to insuranceThe net additional cost of player compensation claims and legal fees - $4.5 million
Sorry can you explain the significance of this
I don’t know the actual figures or have any inside knowledge on this but I would guess that:
I would have thought that this was a good result. It could have been a lot worse.
As I said that’s just me guessing and is very basic.
The other thing is, how do we know if all claims have been settled in the financial year just finished?Maybe there are more to be settled this financial year and hence the comment that the debt position will grow.
Having read the 16 page financial report the part that should get all fans and club angry is we were forced to pay 350,000 (rise from 270k last year) to the AFL equalisation levy to help other clubs so called prosper like the Bulldogs(Premiers), Dees & Saints etc. From my accounts we are still expected to pay this next year despite our financial loss and position. So what then is equalisation if those clubs are currently now richer than us?
I mentioned that earlier and it stinks.
FWIW I think the Hawks had to pay about $1.3m in equalisation funds
9Million is a lot of money… but the underlying financial position of the club is still very healthy. I would also note that the ‘Flight Plan’ was mostly successful in ensuring that our debt exposure on the new training facility is absolutely minimal. They also used the opportunity to ‘write down’ the old Windy Hill facility and a couple of other long term asset positions.
The contribution to the ‘equity’ fund is a blight but by this stage I wouldn’t expect anything else. Once we get back on the park next year and start winning finals… I doubt we will be anything but a financial powerhouse again within 5 years (probably sooner).
One problem is cash flow and bank interest ( or interest payable to the AFL if we borrow from them). If 50,000 members join early, averaging $200 each = $10Million, the debt will be reduced to zero initially, otherwise, the monthly costs of wages and overheads continue over summer, while payments from venues will not start coming in until the season starts in 5 months time. Early membership renewals will help save interest costs . If you plan to join or renew, do it early. It will help the club a lot. On the other hand how much interest will you get for the $200 in the bank over the 5 months ? Practically nothing.
What happened to insuranceThe net additional cost of player compensation claims and legal fees - $4.5 million
Sorry can you explain the significance of this
I don’t know the actual figures or have any inside knowledge on this but I would guess that:
- The total of the compensation claims was well in excess of $4.5m. I would suggest it would have been well over $10m, maybe even pushing $20m. Some of the players would have been claiming $1m each (lost playing income, lost sponsorship income, lost media income, plus lost future income, plus non economic claims for pain and suffering, loss of good name etc).
- EFC would have tried to claim the total amount from insurance. The insurance companies don't like paying out money and would have played hard-ball and would have argued things like (and this depends on the terms of the policy) - EFC contributed to the problem, the CAS decision says the players were at fault, the policy doesn't cover non economic loss etc. They would only be prepared to pay out a certain amount.
- There would have been an excess on the policy i.e. EFC had to pay a certain component - the first x% or first $x.
- We would have had lawyers on the job (dealing with the players demands and the insurer) at our expense.
- So basically the net position is Total claim from players - (amount paid by insurance - excess) + legal costs = $4.5m.
I would have thought that this was a good result. It could have been a lot worse.
As I said that’s just me guessing and is very basic.
The other thing is, how do we know if all claims have been settled in the financial year just finished?Maybe there are more to be settled this financial year and hence the comment that the debt position will grow.
“We are in the process of working through claims for compensation from the suspended players. Some of these have been settled and others are at different stages of the claims process. Our best estimate of the final outcome has been provided for in 2016.”
Therefore it hasn’t been determined exactly what the final position will be - but this is the best guess. No doubt they would have taken a very conservative approach meaning we may get some write back if things go well. The total expense recognised for WADA/ASADA was $4.9m up from $460k last year.
One problem is cash flow and bank interest ( or interest payable to the AFL if we borrow from them). If 50,000 members join early, averaging $200 each = $10Million, the debt will be reduced to zero initially, otherwise, the monthly costs of wages and overheads continue over summer, while payments from venues will not start coming in until the season starts in 5 months time. Early membership renewals will help save interest costs . If you plan to join or renew, do it early. It will help the club a lot. On the other hand how much interest will you get for the $200 in the bank over the 5 months ? Practically nothing.
Most members are on a monthly direct debit aren’t they?
Also wasn’t the cash on hand figure $3m, that’s plenty for cash flow (plus there is capacity for overdraft). Also that is what budgets are for.
But you are right in that membership is important. Not only were membership numbers down this year but so was the revenue from membership i.e. people dropped down to lower level and cheaper memberships. The result being that net membership revenues were down by $640,000.
Low games attendances cost us $1,000,000 compared to last year.
Also its hard to bag the coteries because they do so much but even they were down $760,000 this year. That’s a worry.
The good news is we won’t have to pay top-up players next year. That’s a saving of $1.5m straight up.
Nowhere I know, has lamington's like the Malmsbury Bakery.I've got a good lamington recipeAre they as good as the Malmsbury Bakery lamingtons?
Lol gee this thread is definitely glass half full. 10million is an absolute disaster. I don't neccasarily know but would this be the biggest wack any club in world sport has copped before?Be discerning when it comes to Lawyers and legal costs.Over 4 years, 10 million dollars, banned from finals, banned from 2 drafts, coach banned for 12 months, all the admin resigned in disgrace, 3 court cases (or maybe more), loss of brownlow medal and 12 players suspended for an entire season. When cronulla did the same thing and got what was effectively a 2 week penalty and won the premiership this year. What an absolute disaster.
I also feel part of pursuing the not guilty route may of been due to jobe having to relinquish his medal if we were found guilty, I hope it didn’t though…What do we take out of this… never listen to lawyers.
The good news is we won't have to pay top-up players next year. That's a saving of $1.5m straight up.Kelly, Dea, TIPPA, Hartley and Brown would be pushing for $300k each, surely?
Kelly maybe. The others, no way.
The good news is we won't have to pay top-up players next year. That's a saving of $1.5m straight up.Kelly, Dea, TIPPA, Hartley and Brown would be pushing for $300k each, surely?
I’d be guessing a few of those would be on about $150K plus match payments, which might add up to $240-300K depending on games played.
whoooooosh
Net assets - $27,453,599. And that’s after Windy Hill write-downs. The figures show we are clearly not tin rattlers. They also show why we are the perfect target for an AFL stitch-up- you know, if some club had to be found.
Even more perfect a target for a stitch up if the Club expects its supporters to bail it out over compensation, instead of the people who not only have Australia’s deepest pockets but actually caused the scandal, i.e. the AFL executive.
What happened to insuranceThe net additional cost of player compensation claims and legal fees - $4.5 million
Sorry can you explain the significance of this
I don’t know the actual figures or have any inside knowledge on this but I would guess that:
- The total of the compensation claims was well in excess of $4.5m. I would suggest it would have been well over $10m, maybe even pushing $20m. Some of the players would have been claiming $1m each (lost playing income, lost sponsorship income, lost media income, plus lost future income, plus non economic claims for pain and suffering, loss of good name etc).
- EFC would have tried to claim the total amount from insurance. The insurance companies don't like paying out money and would have played hard-ball and would have argued things like (and this depends on the terms of the policy) - EFC contributed to the problem, the CAS decision says the players were at fault, the policy doesn't cover non economic loss etc. They would only be prepared to pay out a certain amount.
- There would have been an excess on the policy i.e. EFC had to pay a certain component - the first x% or first $x.
- We would have had lawyers on the job (dealing with the players demands and the insurer) at our expense.
- So basically the net position is Total claim from players - (amount paid by insurance - excess) + legal costs = $4.5m.
I would have thought that this was a good result. It could have been a lot worse.
As I said that’s just me guessing and is very basic.
The other thing is, how do we know if all claims have been settled in the financial year just finished?Maybe there are more to be settled this financial year and hence the comment that the debt position will grow.
I note the following on this point in the Finance Directors Report:“We are in the process of working through claims for compensation from the suspended players. Some of these have been settled and others are at different stages of the claims process. Our best estimate of the final outcome has been provided for in 2016.”
Therefore it hasn’t been determined exactly what the final position will be - but this is the best guess. No doubt they would have taken a very conservative approach meaning we may get some write back if things go well. The total expense recognised for WADA/ASADA was $4.9m up from $460k last year.
I’ll chuck in and sell some fairy bread and lemonade at the bunnings sausage/burger sizzle.
I’ve got some limes and lemons growing should be ready fairly soonish. Should clear the debt in no time.
Debt does not matter. It is the ability to stay solvent that counts.