Resource 2017 Financial Results

[RussellEbertHandball]

What makes penrith get such a strong revenue stream?

Its just not Panthers Leagues club at Penrith and the Football Club but they owned up to 14 gaming venues in total and other properties around 2010. They are now down to 10 or 11 as they sold a few of the less profitable licensed clubs. Edit they are down to 6 licensed venue, looks like they have sold 4 or 5 venues since I last checked their annual report in 2013.

The other reason is historical and legal. When pokies came into NSW in the mid 1950's the Football clubs had already been set up as separate legal entity but the Licensed clubs attached to the Football clubs had to be set up as separate legal entities from the Football Club but you could have a common board. Penrith was set up in 1966 to enter the NSWRL in 1967 so they were set up in the one entity.

If Sydney Roosters FC and Easts Leagues Club was one entity, not the two it is now, ie like you have with the AFL club set up with their pokies and Penrith, that combined entity would be in that list of top 500.

 

[RussellEbertHandball]

Penrith get propped up by their leagues club, iirc even members to their pokie clubs are counted as football members as well, not 100% sure on that though.

No there are not. They have football club membership totals which is game day access membership and pokie venue membership totals of over 100,000.

Their Football Club membership has been around 19,000-20,000 the last 3 seasons.
http://leagueunlimited.com/news/29340-2017-nrl-club-membership-tracker/

 

[NoobPie]

Its just not Panthers Leagues club at Penrith and the Football Club but they owned up to 14 gaming venues in total and other properties around 2010. They are now down to 10 or 11 as they sold a few of the less profitable licensed clubs. Edit they are down to 6 licensed venue, looks like they have sold 4 or 5 venues since I last checked their annual report in 2013.

The other reason is historical and legal. When pokies came into NSW in the mid 1950's the Football clubs had already been set up as separate legal entity but the Licensed clubs attached to the Football clubs had to be set up as separate legal entities from the Football Club but you could have a common board. Penrith was set up in 1966 to enter the NSWRL in 1967 so they were set up in the one entity.

If Sydney Roosters FC and Easts Leagues Club was one entity, not the two it is now, ie like you have with the AFL club set up with their pokies and Penrith, that combined entity would be in that list of top 500.

I don't think you can compare Penrith set up with the AFL clubs. The latter have only been able to own pokies licences directly for 6 or so years, and venues for 20 odd years. Penrith is a regional gaming club with a rugby league football club attached to it.

 

[RussellEbertHandball]

I don't think you can compare Penrith set up with the AFL clubs. The latter have only been able to own pokies licences directly for 6 or so years, and venues for 20 odd years. Penrith is a regional gaming club with a rugby league football club attached to it.

Yes you can. You can compare structures. Hawthorn have 2 purchased venues counted in their total revenue/profits/assets like Penrith do and that significantly boosts their group results. I think Collingwood still have 2 venues. Sydney Roosters can't count Easts Leagues Club in their's, because of historical structure. Same for most of the Sydney NRL clubs.

Sure in practical reality Penrith are now more of a gaming group with a football club attached, than the 2 big Vic clubs who are more football club with some decent gaming assets, but the football club is so intertwined with licensed club in Penrith as you have land, stadium, and other assets that you can't separate the licensed club from the football club. Panthers at Penrith is still bigger than the other 5 venues they owe combined.

 

[Frank Gallagher]

No there are not. They have football club membership totals which is game day access membership and pokie venue membership totals of over 100,000.

Their Football Club membership has been around 19,000-20,000 the last 3 seasons.
http://leagueunlimited.com/news/29340-2017-nrl-club-membership-tracker/

Still knuckle draggers though.

 

[RussellEbertHandball]

Still knuckle draggers though.

but game day access membership has only been a thing since News Limited got out of running the game in 2012 when the ARL Commission was set up. The clubs woke up that selling home game memberships would be an important revenue stream rather than selling just 3k-5k memberships to the real rusted on fans.

 

[Ned_Flanders]

http://www.richmondfc.com.au/news/2017-11-17/richmond-2017-financial-result

Richmond will report a profit of $3.06 million for the financial year ended 31 October.

The Club’s operating surplus was $4.31 million, before amortisation and depreciation.

Richmond generated total revenue of $65.2 million, an increase of $17.6 million year-on-year.

This significant growth in revenue is due to increased crowds and sponsorship, as well as sales of merchandise and memorabilia. It also includes a full year’s operation of the Club’s health and recreation business, Aligned Leisure, which expanded further in 2017 to include management of the Eltham Leisure Centre.

The Richmond Institute of Sports Leadership (RISL) – delivered in partnership with Swinburne University – has also contributed to Richmond’s revenue growth.

Richmond president Peggy O’Neal said the Club was in an extremely strong financial position.

“We remain debt free, have cash reserves of $9.88 million and a strong net asset position of $27.15 million,” O’Neal said.

“This position has been hard-earned and we will continue to make considered decisions to protect and enhance our financial position.

“While football is our core business, and always our number one priority, we continue to invest in the community.

“Our charity partnership with the Alannah & Madeline Foundation, and our work with Indigenous youth in the Korin Gamadji Institute are genuine examples of ways in which the Club is committed to making a difference in our community.

“Richmond is now the first AFL club to sponsor the Midsumma Festival – again underlining our authentic commitment to diversity and equality. I know that members and supporters are proud of the Club’s genuine contribution to the community.”

2017 statistics:

• Total home and away crowds in excess of one million (AFL number one)
• Average home crowds of 55,958 (AFL number one and Club record)
• Five games were played in front of crowds in excess of 85,000
• Dreamtime at the ‘G and Anzac Eve games were the 5th and 6th highest home crowds in Club history
• Seventh consecutive record membership 75,777 (AFL 3rd )
• Home and away TV audience in excess of 11.8 million
• Record sponsorship revenue

Link to concise financial report
http://s.afl.com.au/staticfile/AFL Tenant/Richmond/Images/Concise Financial Report 2017.pdf

 

[telsor]

http://www.richmondfc.com.au/news/2017-11-17/richmond-2017-financial-result

Richmond will report a profit of $3.06 million for the financial year ended 31 October.

The Club’s operating surplus was $4.31 million, before amortisation and depreciation.

Richmond generated total revenue of $65.2 million, an increase of $17.6 million year-on-year.

This significant growth in revenue is due to increased crowds and sponsorship, as well as sales of merchandise and memorabilia. It also includes a full year’s operation of the Club’s health and recreation business, Aligned Leisure, which expanded further in 2017 to include management of the Eltham Leisure Centre.

The Richmond Institute of Sports Leadership (RISL) – delivered in partnership with Swinburne University – has also contributed to Richmond’s revenue growth.

Richmond president Peggy O’Neal said the Club was in an extremely strong financial position.

“We remain debt free, have cash reserves of $9.88 million and a strong net asset position of $27.15 million,” O’Neal said.

“This position has been hard-earned and we will continue to make considered decisions to protect and enhance our financial position.

“While football is our core business, and always our number one priority, we continue to invest in the community.

“Our charity partnership with the Alannah & Madeline Foundation, and our work with Indigenous youth in the Korin Gamadji Institute are genuine examples of ways in which the Club is committed to making a difference in our community.

“Richmond is now the first AFL club to sponsor the Midsumma Festival – again underlining our authentic commitment to diversity and equality. I know that members and supporters are proud of the Club’s genuine contribution to the community.”

2017 statistics:

• Total home and away crowds in excess of one million (AFL number one)
• Average home crowds of 55,958 (AFL number one and Club record)
• Five games were played in front of crowds in excess of 85,000
• Dreamtime at the ‘G and Anzac Eve games were the 5th and 6th highest home crowds in Club history
• Seventh consecutive record membership 75,777 (AFL 3rd )
• Home and away TV audience in excess of 11.8 million
• Record sponsorship revenue

Link to concise financial report
http://s.afl.com.au/staticfile/AFL Tenant/Richmond/Images/Concise Financial Report 2017.pdf

Given the premiership, a good result was to be assumed, but a lot of the change in revenue seems to be related to the health clubs venture....Mind you, it also seems that venture is losing money thus far (presumably that is largely to do with the initial investment.).


I'll also add that, as always, Richmond has one of the worst reports in the AFL when it comes to clarity and working anything out beyond the absolute basics.

 

[RussellEbertHandball]

Richmond generated total revenue of $65.2 million, an increase of $17.6 million year-on-year.

That is a huge increase across all revenue categories given tere was no government grants and special distributions from the AFL. AFL Base increased by $2mil to cover salary cap increase + $1.1m for prize money for winning the GF.

I have no idea what Health, fitness and community groups is but it increased to $8,639,721 from $2,473,589 in 2016.

 

[Prince Imperial]

I'll also add that, as always, Richmond has one of the worst reports in the AFL when it comes to clarity and working anything out beyond the absolute basics.

As a member of the club you should be able to obtain from them the full financial report. This concise version says the full version is available upon request.

 

[Prince Imperial]

I have no idea what Health, fitness and community groups is but it increased to $8,639,721 from $2,473,589 in 2016.

https://alignedleisure.com.au/

 

[telsor]

Richmond generated total revenue of $65.2 million, an increase of $17.6 million year-on-year.

That is a huge increase across all revenue categories given tere was no government grants and special distributions from the AFL. AFL Base increased by $2mil to cover salary cap increase + $1.1m for prize money for winning the GF.

I have no idea what Health, fitness and community groups is but it increased to $8,639,721 from $2,473,589 in 2016.

From the quoted report...

It also includes a full year’s operation of the Club’s health and recreation business, Aligned Leisure, which expanded further in 2017 to include management of the Eltham Leisure Centre.

The Richmond Institute of Sports Leadership (RISL) – delivered in partnership with Swinburne University – has also contributed to Richmond’s revenue growth.

The club has been investing in health and leisure centers for a bit over a year now (I think we actually lease the centers from councils and run them for them), The RSIL bit is new this year and was presumably related to the deal that has Punt road oval named as the Swinburne center (IIRC). Suffice to say the club has been diversifying and expanding it's off field income sources, although the increase in raw numbers is in large part due to it being a full years result rather than last years 'part year' (although there are also new elements).

Currently the category is a loss maker, but here's hoping that's just due to the initial investment and that it pays off in the longer term.

 

[theflea]

As a member of the club you should be able to obtain from them the full financial report. This concise version says the full version is available upon request.

The full version is much the same. They dont put items is an orderly category like other clubs, which make it hard for comparisons.

 

[RussellEbertHandball]

From the quoted report...



The club has been investing in health and leisure centers for a bit over a year now (I think we actually lease the centers from councils and run them for them), The RSIL bit is new this year and was presumably related to the deal that has Punt road oval named as the Swinburne center (IIRC). Suffice to say the club has been diversifying and expanding it's off field income sources, although the increase in raw numbers is in large part due to it being a full years result rather than last years 'part year' (although there are also new elements).

Currently the category is a loss maker, but here's hoping that's just due to the initial investment and that it pays off in the longer term.

It has obviously taken off in 2017. I initially thought it might be a business related revenue but there was no big capital expenditure in either 2016 or 2017 in the cash flow statement to go with a 300% increase in revenue so I thought only one way to find out and ask? So is this independent of Richmond doing well on field? Ie if Richmond finish 7th would this revenue at least stay the same or improve?

 

[telsor]

It has obviously taken off in 2017. I initially thought it might be a business related revenue but there was no big capital expenditure in either 2016 or 2017 in the cash flow statement to go with a 300% increase in revenue so I thought only one way to find out and ask? So is this independent of Richmond doing well on field? Ie if Richmond finish 7th would this revenue at least stay the same or improve?

The increase is due to full year results Vs a few months + they added a few bits (Eltham Leisure center & the RSIL) that weren't there 12 months back.

Lack of obvious/major capital payments is due to the business largely being established (was the Cardinia council pool, etc) and the club taking over on a lease/management basis rather than buying the business outright, although considering that we're making a million dollar loss on it thus far, I'm hoping there are some fairly substantial establishment expenses wrapped up in there.

It's all largely unrelated to the football aspects of the club, so yeah, there would have been a big increase with or without the flag. Between this and the $2M increase in the AFL standard payment, I dare say at least half our revenue growth would have happened no matter where we finished...Although profits mightn't have risen by nearly as much (indeed, we might have gone backwards).



nb. I'm working from memory of last years announcements here for some of this. I'm fairly confident about the above, but ...

 

[The_Wookie]

 

[Ned_Flanders]

It has obviously taken off in 2017. I initially thought it might be a business related revenue but there was no big capital expenditure in either 2016 or 2017 in the cash flow statement to go with a 300% increase in revenue so I thought only one way to find out and ask? So is this independent of Richmond doing well on field? Ie if Richmond finish 7th would this revenue at least stay the same or improve?

Aligned Leisures first contract was managing the 8 pools and leisure centres for the cardinia shire. This only started from July 1, 2016 so 2016 only had four months of results.

In 2017 they also won the big eltham centre the ymca used to run

 

[Prince Imperial]

http://www.essendonfc.com.au/news/2017-11-20/2017-financial-result

http://s.afl.com.au/staticfile/AFL Tenant/Essendon/Club HQ/EFC - Annual Report 2017 - Digital 2.pdf

Essendon Football Club is pleased to announce a net operating profit of $5.1 million for the 2017 financial year.

The Club’s operating cash surplus was $8.5 million, before amortisation and depreciation.

Total revenue generated by the Club was $65.2 million, an increase of $11.7 million year-on-year.

The financial comeback was due to a number of factors including record membership, increased match returns and stadium revenues, and enhanced commercial partnerships and corporate sponsorships.

CEO, Xavier Campbell, said the result is another important step forward for the Club.

“To record a profit of $5.1 million dollars this financial year is significant for everyone involved in our Club,” Campbell said.

“This has been a year of progress from both a football and financial perspective, and we have witnessed pleasing increases across several key areas of our operations which directly impacted our bottom line.

“Our exciting brand of football helped us achieve record membership of 67,768, increased match receipts with more than 1 million people attending Essendon games, and an increase in financial investment from our corporate partners and sponsors.

“On and off the field, the competition is more ruthless and competitive than ever, and we know we have to keep working harder and smarter and invest in the right areas of our Club.

“We will increase investment in our men’s and women’s football programs, community programs, Next Generation Academy zones and our people to ensure we make further progress toward our long term strategic objectives.

“In 2018 we will finalise plans for the new extension of our training facility at Melbourne Airport, to ensure state of the art resources for our football teams, and a venue our members and supporters will continue to be proud of.

“This season provides our teams, members and supporters with another exciting opportunity, and as a Club we have never been more unified or as strong to rise to the challenge which awaits.”

Key points of the 2017 financial result;

• Net Operating Profit - $5,054,186
• Total Revenue – $65,165,407
• Net Assets - $32,507,785
• Membership Tally – 67,768
• Cash Reserves – $2,036,791

$4m in donations from wealthy supporters for further capital works at Tullamarine, a big part of this good result.

 

[Great8]

http://www.essendonfc.com.au/news/2017-11-20/2017-financial-result

http://s.afl.com.au/staticfile/AFL Tenant/Essendon/Club HQ/EFC - Annual Report 2017 - Digital 2.pdf



$4m in donations from wealthy supporters for further capital works at Tullamarine, a big part of this good result.

Who cares how we got it?
$65.2m total revenue which is equal to the Premiers, id like to see our capabilities if we ever have on field success again.
Pretty good effort by the club IMO and hopefully bigger and better this season

 

[Prince Imperial]

Who cares how we got it?
$65.2m total revenue which is equal to the Premiers, id like to see our capabilities if we ever have on field success again.
Pretty good effort by the club IMO and hopefully bigger and better this season

Wasn't mentioned at all in the club's website statement which is why I referred to it because it's obviously a big factor. Fundraising for capital works can often be "one off" rather than ongoing so it may not be reflective of normal operating profit.

 

[Ned_Flanders]

Wasn't mentioned at all in the club's website statement which is why I referred to it because it's obviously a big factor. Fundraising for capital works can often be "one off" rather than ongoing so it may not be reflective of normal operating profit.

its still impressive given how often the coteries have been tapped in recent years over the asada costs

hate em all you want, efc donors have given a stunning amount of funds over the last 10 years

 

[Prince Imperial]

its still impressive given how often the coteries have been tapped in recent years over the asada costs

hate em all you want, efc donors have given a stunning amount of funds over the last 10 years

All true and they reduced borrowings by $2.1m.

 

[NoobPie]

Great result by Essendon. Though it is some sort of understatement, to suggest I expect them not to be representative samples, Richmond and Essendon have increased revenues by $29.3 m between them this year.

 

[Great8]

Wasn't mentioned at all in the club's website statement which is why I referred to it because it's obviously a big factor. Fundraising for capital works can often be "one off" rather than ongoing so it may not be reflective of normal operating profit.

Sorry if I came off a bit abrupt, was having an argument with a couple of Port pelicans at work about the same thing at the same time and I was a bit fired up. Yes it’s correct we had a fair whack made up from donations for capital works and it was a concerted effort by the club to target the wealthier folks for this funding. We are in a pretty fortunate position that we can call on these people and they have continued to tip in good amounts over the years. We need to keep growing our membership base and looking at new revenue streams to keep growing but it appears we are on the right track

 

[Great8]

Great result by Essendon. Though it is some sort of understatement, to suggest I expect them not to be representative samples, Richmond and Essendon have increased revenues by $29.3 m between them this year.

Imagine if we actually become good at football again