Essendon Football Club - 2019 Financial Result

Football Discussion Dustin Fletcher Hangar
42

So we have a healthy bank sheet
One of the best facilities in the AFL
Miles away from wining a flag :frowning:

43

Yeah this is disgusting. I wish we were rattling tins and just scraping by. Horrible outcome.

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44

I am not a fan of Tanner or Xavier and would be happy if both left but some credit has to go to them for attracting that sort of money from ā€˜investorsā€™ considering the basket case of a club we are.

I can understand directly after the saga that wealthy people would have been there for the club because it was on its knees, but there is no such excuse now. We are relatively stable compared to other clubs and continue to attract sponsors even though the football side of the business has continued to make huge errors. It wouldnā€™t be easy attracting donors when you donā€™t have any success or even potential to hang your hat on.

That being said, a lot has gone right commercially, or as we have been lead to believe anyway and to post just a $60k profit that is hugely disappointing. We are at a point now that for the club to continue to prosper and continue to pay down the debt of the extension we need to have onfield success.

We may have just come out of our darkest days but there is every chance we might be in for some more stormy weather.

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45

TOTAL REVENUE FROM OPERATIONS 69,114,762

(b) EXPENSES FROM OPERATIONS
Administration expenses 4,976,630
Football expenses 26,603,118
IT expenses 929,219
Marketing expenses 9,548,865
Membership expenses 4,555,956
Merchandise - cost of sales 590,312
Rental expenses 332,430
Site expenses 3,445,681
Windy Hill Fitness Centre expenses 3,151,705
Venues expenses 11,304,021
Interest expenses 143,088
TOTAL EXPENSES FROM OPERATIONS 65,581,025

It would be interesting to know what Marketing and Venues expenses actually entails.

To be spending a combined total of about 21 mill on the 2 while our total football spend is 26 million is interesting to me.

I would assume a large part of Venues expenses is payments on stadiums but Marketing expenses seems really high to me, but of course i have little idea what they actually are.

We do advertise a little on Radio but would be interested to know where else we are spending part of that 9.5 Million on.

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46
  1. turf worsfold
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47

James Sherry does not get out of bed for less than a million

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48

Sorry cannot agree with that. Yes we have our problems/issues as a club, but basket case IMO we are not.

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49

Iā€™m guessing marketing expenses is partially the way sponsorship works: e.g. the AFL boast about their billion dollar TV deal, but they only get $700M and the the other $300M is ā€œfreeā€ ads run by the stations.

[not actual numbers]

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50

Yeah i donā€™t know how it works tbh but Marketing being about 36% of football spend just seems high to me.

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51

Pete Lazer does.

@Stallion

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52

Has anyone done a comparison with other clubs? I wouldnā€™t be surprised for us to be a bit higher than other clubs after playing saga catch up.

53

Basketcase is probably harsh but itā€™s difficult to argue we are anything more than mediocre.

Considering the distinct advantages we have commercially due to the size of our supporter base we are definitely underachieving in a lot of areas.

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54

Essendon FC Inc.

ā– ā– ā– ā–  at football, but still an incredibly well run business.

Well done off-field people.

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55

What part of win a flag does this club not understand.

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56

A bit surprised by that profit. Considering the record membership and major sponsorship ā€¦ 60k ā€¦ would be interested in a bit more disclosure on those operating costs.

57

The club have disclosed an increase in player payments of 1.1m in line with the increase in the salary cap, yet our distribution from the AFL has actually decreased slightly.

Does anyone understand how that revenue distribution works? I would have thought we would receive more from the AFL to cover the TPP increase.

58

I donā€™t care to bore myself by delving into the numbers, but surely a profit using financial sculduggery is better than recording a loss using that same sculduggery.

And besides, all 18 clubs would be employing these sorts of methods to fudge the number and most of them would still be coming up short.

2 Likes
59

60k profit is anything but fantastic.

And newsflash: thereā€™s a lot thatā€™s been going on that you donā€™t know.

60

I think this is important . We donā€™t want to be the tin rattlers .

61

Feel free to elaborate.

Let me guessā€¦you canā€™t?