Official Club Stuff 2021 Financial Results

[CharlieKelly]

Charlie, are you waiting for REH's analysis of the financial results that just came out?

maybe...

 

[DaTBird187]

I put it down to the clubs astute investments in Crypto.

 

[Enviable Tradition]

Also interesting to note the comment that debt removal isn’t a focus, which makes sense. Companies need a balance of debt and equity to grow, relying just on equity is a slow approach

Only if you are spending the money on profit making assets rather than liabilities.

If say our debt is more of the latter so should be cleared as a priority to free up money for thr former.

 

[Enviable Tradition]

On face value if we maintain this trajectory we'll be practically debt free in 3 years with a host of new facilities to boot

And if it doesn't get us control of our board, the prison bars and a new coach what's the point.

I want to see a plan for all three.

 

[RossFC]

Should we expect a little dent in finances next year with the AFLW side coming in?

 

[TeeKray]

Should we expect a little dent in finances next year with the AFLW side coming in?

Nah, I suspect the AFLW programme will be fully funded by corporate/government/AFL backing.

 

[ibd77]

Good news on the face of it but sceptical of what's laid underneath. Need an expert honest appraisal without any of the spin.

 

[Andre]

Debt per se isn't bad, but ours hasn't funded a flag or even until the last round of government grants, much in the way of facilities improvements. So it's 'bad debt', rather than 'good debt'. The other one some have overlooked here is all our debt really falls under 'bad debt', because it's underwritten by the AFL and whilst we have it we can't push issues (cough PB's cough, cough Sack Hinkley cough), we could otherwise if they didn't have to sign off on everything.

 

[manureid]

This be REH and his team right now...

 

[chiwigi]

Only if you are spending the money on profit making assets rather than liabilities.

If say our debt is more of the latter so should be cleared as a priority to free up money for thr former.

Still need to invest in the footy side or it becomes a death spiral, a big part of being able to pay off what we are is qualifying for finals and the income generated.

 

[CharlieKelly]

Should we expect a little dent in finances next year with the AFLW side coming in?

It wouldn't be much.

I remember reading the financial results for the Demons a few years ago, their operating cost for the men's team was like $18 million, the women's team was something like $1.6 million, not even 10%. Shorter season, suburban grounds and less away games/lower travel costs. I suspect Port may be slightly higher, since we'd have to travel interstate more than the Victorian AFLW clubs, but that's pretty much it.

 

[RussellEbertHandball]

I reckon REH predicted a result like this. Has a lot to do when we count membership revenue. Have they double dipped membership revenue ie did they count most of the 2020 membership revenue of 2020 in 21 as well as 2021 membership revenue?

Given the circumstances, 2020 was the year to report a bad result, this seems entirely orchestrated.

Yes I said we would have a decent profit and how big was dependent on how much of the $5mil collected for the Port Club redevelopment was included, in an answer to your question before Christmas and explained in the link below.

But I said I expect normal operating profit to be $2-$3mil outside these donations. See

Resource - 2022 Membership - 63,240 as at August 25th

Legend :) I literally typed 'port membership choose card' into google and found it.

www.bigfooty.com

The double collecting of membership fees in 2021 financial year ( ie 2021 auto renewals started in Nov 2020, and 2022 memberships in Oct 21) didn't affect our profit figure in either year, as any membership fees collected early are an Unearned Revenue liability item in the balance sheet, but it meant our debt blew out as at 31st Oct 2020, because we didn't collect about $2mil of 2021 membership fees before balance date to offset against our debt.

This result is driven by 2 things;

1. Revenue was slashed by 36% in 2020, from $58.33mil to $39.68mil and now are back to $49.3mil or only 85% of 2019 revenue mainly due to having at least 50% crowds at all our games, AND heavy Covid cost cutting imposed in 2020 has been heavily maintained in 2021, so our costs went up somewhat but are around 80% of 2019.

Our staff employee numbers went from 119 in February 2020, to 96 in October 2020, to 81 in January 2021 to 90 in January 2022.

Plus we don't have two large one off items this year - $1.18mil spent on covid redundancy costs and costs spent on 2020 china game that had to be cancelled, and don't have $1.06mil of expenses relating to prior years that were put thru the books in 2020.

2. Donations for the Port Club redevelopment have been capitalized, not expensed and gone straight to the bottom line. How much of the $5mil?? I don't know.

If the club was smart, they would have said to the benefactors who contributed large sums say $50k+ or $100k+, pay half in late June and you will get an ASF eligible projects tax deduction for the tax return you lodge in the next couple of months, and pay the other half in December as we wont need the cash until then, you get your tax deduction when you lodge your tax return after June 2022 and we show this half as income in the 2022 accounts.

 

[Tibbs]

Statement – 2021 financial result

The Port Adelaide Football Club has declared a record operating profit for the 2021 financial year.

www.portadelaidefc.com.au

View attachment 1328047

Could someone (and by 'someone' I mean RussellEbertHandball) tell us whether this is actual good news or just some accounting *******tery?

Making Port great again

 

[all seeing eye]

Will hold judgement and my excitement until the Big Footy Accountancy Board has cast their eyes over the balance sheet and given it the tick of approval.

 

[RussellEbertHandball]

Only if you are spending the money on profit making assets rather than liabilities.

If say our debt is more of the latter so should be cleared as a priority to free up money for thr former.

Our debt is because of accumulated losses between 2008-14 years + last year's covid affected losses. We didn't buy or build any major assets between building the player facility next to the ASHQ in 2009, $5mil came from fed+state governments and we borrowed $1mil - and the Port Club redevelopment that started in June last year.

 

[RussellEbertHandball]

3 items that make up $2.8 08m of the $8.796m turnaround on the 2020 statutory result are;

From 2020 Financial statements
Depreciation expense................................... (567,149)
COVID-19 impact and restructuring costs....... (1,186,000) inc $400k spent/lost on 2020 China game
Expense related to prior year operations......... (1,055,590)

Total...........................................................(2,808,739)

So $6mil of the turnaround is due 2021 being more of a normal year compared 2020, and Port Club redevelopment benefactors contributions.

This depreciation charge was as a result an accounting standard change, re Leases, where the club had to recognise a right of use asset on its balance sheet so it brought in a gross value of $1,474,270 but had to recognise depreciation of $567,149. I think it relates to the lease on The Prince Hotel but the notes to the 2020 financials don't specify what it is. This is a one off charge.

Total Depreciation expense was $1,520,183, which was made up of normal depreciation of $953,034 + this lease accounting standard charnge charge of $567,149.

Edit the club article suggest 2021 depreciation of $958,394 when you look at:

Profit from operating activities before depreciation $5,714,278 - Statutory profit of $4,755,884

Double edit: I missed this bit as it wasn't in the teal highlights -declared a record operating profit of $4,209,451

That suggests depreciation is indeed around $1.5mil - maybe they wrote off a lot of assets they had to demolish as part of the Port club redevelopment, and there is some income item of $500k. I hope its not another dodgy revaluation of intangible assets.

 

[Schulzenfest]

I put it down to the clubs astute investments in Crypto.

I hear the price of the John Butcher 'there is no need to be upset' NFT has gone through the roof.

 

[Ford Fairlane]

Results were always going to improve once we stopped employing 119 staff Whose stupid idea was that, anyway?

 

[Holden Hillbilly]

Power bounces back from AFL pandemic slump with $4m profit

Port Adelaide Football Club has bounced back from a rocky 2020 impacted heavily by COVID-19 to report a record profit of more than $4 million last year.

indaily.com.au

 

[GoPorts]

I put it down to the clubs astute investments in Crypto.

$3million profit this week, $2 million dollar loss next week

 

[Interstater]

AFL's eye-watering COVID costs revealed after 'resilient' 2021 season

The AFL has published its 2021 financial results after another year impacted by the COVID-19 pandemic

www.afl.com.au

Revenue
On its 2021 financial records, the AFL's revenue was $738.1 million, an increase of $63.3 million on 2020 due largely to improved broadcast returns.
The $738.1 million revenue for 2021 was nearly $56 million short of 2019 figures.

Expenses
Operating expenditure was down $22.5 million year on year.
The AFL has revealed to its clubs that it was forced to spend $76 million on COVID-19-related expenses in the past two seasons.
Payments to clubs and the AFLPA increased by $117 million in 2021.
In 2021, $300.9 million went to the 18 clubs, $29.5 million on administration costs of running the AFL and AFLW seasons, $53 million to game development and $60.2 million to the AFLPA.
A total of $9.8 million was paid to AFL executives in 2021, up from $7 million in 2020 and down from $10.4 million in 2019.

Result
It had an underlying loss of $22.7 million in 2020.
It had an underlying operating loss of $43 million in 2021

Memberships
Total AFL club membership reached an all-time record of 1,113,441 members in 2021.

------------------
So in summary

2022
revenue: 738 million
expenses: 76/2 + 300+ 30 + 53 + 60 + 10 + 290 (??) = 781 million
operating loss: 43 million

 

[Doctor Feel]

lol they've just put the construction grants/benefactors/COVID packages from the AFL and 'revalued' some assets - straight into the figure I reckon. It'll look completely different next year.

 

[Arsene Wenger]

Yes I said we would have a decent profit and how big was dependent on how much of the $5mil collected for the Port Club redevelopment was included, in an answer to your question before Christmas and explained in the link below.

But I said I expect normal operating profit to be $2-$3mil outside these donations. See

Resource - 2022 Membership - 63,240 as at August 25th

Legend :) I literally typed 'port membership choose card' into google and found it.

www.bigfooty.com

The double collecting of membership fees in 2021 financial year ( ie 2021 auto renewals started in Nov 2020, and 2022 memberships in Oct 21) didn't affect our profit figure in either year, as any membership fees collected early are an Unearned Revenue liability item in the balance sheet, but it meant our debt blew out as at 31st Oct 2020, because we didn't collect about $2mil of 2021 membership fees before balance date to offset against our debt.

This result is driven by 2 things;

1. Revenue was slashed by 36% in 2020, from $58.33mil to $39.68mil and now are back to $49.3mil or only 85% of 2019 revenue mainly due to having at least 50% crowds at all our games, AND heavy Covid cost cutting imposed in 2020 has been heavily maintained in 2021, so our costs went up somewhat but are around 80% of 2019.

Our staff employee numbers went from 119 in February 2020, to 96 in October 2020, to 81 in January 2021 to 90 in January 2022.

Plus we don't have two large one off items this year - $1.18mil spent on covid redundancy costs and costs spent on 2020 china game that had to be cancelled, and don't have $1.06mil of expenses relating to prior years that were put thru the books in 2020.

2. Donations for the Port Club redevelopment have been capitalized, not expensed and gone straight to the bottom line. How much of the $5mil?? I don't know.

If the club was smart, they would have said to the benefactors who contributed large sums say $50k+ or $100k+, pay half in late June and you will get an ASF eligible projects tax deduction for the tax return you lodge in the next couple of months, and pay the other half in December as we wont need the cash until then, you get your tax deduction when you lodge your tax return after June 2022 and we show this half as income in the 2022 accounts.

Love the analysis mate. Exceptional

 

[RussellEbertHandball]

lol they've just put the construction grants/benefactors/COVID packages from the AFL and 'revalued' some assets - straight into the figure I reckon. It'll look completely different next year.

Bigger profits next year. Bigger govt grants and bigger private benefactors.

 

[Visenfest]

Results were always going to improve once we stopped employing 119 staff Whose stupid idea was that, anyway?

The obvious course of action was to sack Hinkley.