Official Club Stuff 2021 Financial Results

Remove this Banner Ad

Before I talk about what was said in the AGM I want to refer back to post number 98, and in my answer to Kingfish73, I wrote

We are building $30mil of assets. $17mil comes from governments and $13mil has to be found from members, sponsors and partners. We are told that funding gap has been closed. If so, that is a bloody great result. If that doesn't give you confidence then nothing will.

During the AGM when the picture of the whole redevelopment went up on screen it struck me how this is probably is going to be paid for. First lets split up the precinct projects;

1. The Port Club redevelopment - $5mil
Monies are coming from private donations and sale of Pirate Life beers with Port themed cans. Koch in his speech and Q&A, and Richo in an email this arvo confirmed that only $500k of donations was included in our 2021 accounts and there will be a lot more in 2022.

2. The AFLW changerooms - $2mil.
The state government gave a grant of $1.5mil, so the $500k balance is either from club general funds or specific contributions from corporates or donations

3. The high performance centre, training facility, basketball courts, soccer field and landscaping - $23mil.
The feds have given us $15mil and we have to find $8mil.

The club keeps saying they are fully funded.

I am going to assume the $30mil is the fully costed price as if the club has to pay contractors market rates to do the work and buy raw materials at normal market prices.

As I saw the graphic of the redevelopment, I thought that is a bloody big steel shed on the eastern side and it dawned on me how much steel will be needed in the above 3 items.

Who is the only vertically integrated company from mining iron ore, to having a coking coal mine, to having a steel manufacturing plant, to having a steel products production process divison who takes the steel from the manufacturer and turns it into building and construction products steel??

GFG - our friendly sponsor.

So after a quick back of the envelope calculation, maybe $5mil+ at market rates of steel needs to be used in the construction process. I don't know what the margins are in the steel industry but the rule of thumb for manufactured goods is, if it costs $1 to manufacture an item, the manufacturer sells it to the wholesaler for $2, and retailer sells it to the customer for $4. But the margins in steel industry might be smaller.

Zakk Wylde steel is your game, what do you think the ballpark figures are for amount of steel needed to build these 3 items and $$ value if the club had to buy it at normal market rates.

The big shed might well become the GFG Training Centre.

I have no problems them getting naming rights if they are providing the steel for free as part of their sponsorship of the club.

Richo and Koch keep talking about how invested our sponsors are in the club and what we are trying to achieve.

Then their might be other coterie members who are supplying goods and services to the club at cost or mates rates, or even free, as part of their donations to the club.

My brother's best mate has been a Port Magpies sponsor for years and he is in the earth moving business. He might shift a lot of dirt at mates rates. A long time coterie group member I know, is in the carpet business. Maybe he will donate all the carpets for The Precinct for free.

Donations don't all have to be $$$$.
 
Last edited:
RussellEbertHandball said:
Before I talk about what was said in the AGM I want to refer back to post number 98, and in my answer to Kingfish73, I wrote

We are building $30mil of assets. $17mil comes from governments and $13mil has to be found from members, sponsors and partners. We are told that funding gap has been closed. If so, that is a bloody great result. If that doesn't give you confidence then nothing will.

During the AGM when the picture of the whole redevelopment went up on screen it struck me how this is probably is going to be paid for. First lets split up the precinct projects;

1. The Port Club redevelopment - $5mil
Monies are coming from private donations and sale of Pirate Life beers with Port themed cans. Koch in his speech and Q&A, and Richo in an email this arvo confirmed that only $500k of donations was included in our 2021 accounts and there will be a lot more in 2022.

2. The AFLW changerooms - $2mil.
The state government gave a grant of $1.5mil, so the $500k balance is either from club general funds or specific contributions from corporates or donations

3. The high performance centre, training facility, basketball courts, soccer field and landscaping - $23mil.
The feds have given us $15mil and we have to find $8mil.

The club keeps saying they are fully funded.

I am going to assume the $30mil is the fully costed price as if the club has to pay contractors market rates to do the work and buy raw materials at normal market prices.

As I saw the graphic of the redevelopment, I thought that is a bloody big steel shed on the eastern side and it dawned on me how much steel will be needed in the above 3 items.

Who is the only vertically integrated company from mining iron ore, to having a coking coal mine, to having a steel manufacturing plant, to having a steel products production process divison who takes the steel from the manufacturer and turns it into building and construction products steel??

GFG - our friendly sponsor.

So after a quick back of the envelope calculation, maybe $5mil+ at market rates of steel needs to be used in the construction process. I don't know what the margins are in the steel industry but the rule of thumb for manufactured goods is, if it costs $1 to manufacturer an item, the manufacturer sells it to the wholesaler for $2, and retailer sells it to the customer for $4. But the margins in steel industry might be smaller.

Zakk Wylde steel is your game, what do you think the ballpark figures are for amount of steel needed to build these 3 items and $$ value if the club had to buy it at normal market rates.

The big shed might well become the GFG Training Centre.

I have no problems them getting naming rights if they are providing the steel for free as part of their sponsorship of the club.

Richo and Koch keep talking about how invested our sponsor are in the club and what we are trying to achieve.

Then their might be other coterie members who are supplying goods and services to the club at cost or mates rates, or even free, as part of their donations to the club.

My brother's best mate has been a Port Magpies sponsor for years and he is in the earth moving business. He might shift a lot of dirt at mates rates. A long time coterie group member I know, is in the carpet business. Maybe he will donate all the carpets for The Precinct for free.

Donations don't all have to be $$$$.
Click to expand...
The GM of the building contractor constructing the Quinn stand building (retail shop, first floor extensions, museum, etc) is apparently a Port supporter, and they are doing the works at "mates rates).
So saving some money there.

The rectangular (square?) soccer pitch possibly won't be called Alberton Oval?
Maybe "MG Field" or some such naming rights moniker, to pay homage to a sponsor?
 

Log in to remove this ad.

VineValerian said:
The rectangular (square?) soccer pitch possibly won't be called Alberton Oval?
Maybe "MG Field" or some such naming rights moniker, to pay homage to a sponsor?
Click to expand...
That's a possibility, but I reckon the big shed will be named after GFG if they are supplying all the steel for free.
 
PowerLil said:
How did KT remain as CEO for so long? His notable achievements: ballooning debt, one major sponsor and multiple contract extensions for Hinkley 😡
Click to expand...

He carried a bag of ice once.
 
RossFC said:
Interesting that the debt is actually 9mil, not 10mil. And Kochie is aiming for it to go down to 7mil this time next year. (As noted in the slide posted by REH).
Click to expand...

Which judging by the graphic will be the lowest since about 2013/2014….

Given the 3 major sponsors, the funded development and the COVID storm being weathered, financials are not the biggest issue at Port Adelaide anymore.
 
RussellEbertHandball said:
Before I talk about what was said in the AGM I want to refer back to post number 98, and in my answer to Kingfish73, I wrote

We are building $30mil of assets. $17mil comes from governments and $13mil has to be found from members, sponsors and partners. We are told that funding gap has been closed. If so, that is a bloody great result. If that doesn't give you confidence then nothing will.

During the AGM when the picture of the whole redevelopment went up on screen it struck me how this is probably is going to be paid for. First lets split up the precinct projects;

1. The Port Club redevelopment - $5mil
Monies are coming from private donations and sale of Pirate Life beers with Port themed cans. Koch in his speech and Q&A, and Richo in an email this arvo confirmed that only $500k of donations was included in our 2021 accounts and there will be a lot more in 2022.

2. The AFLW changerooms - $2mil.
The state government gave a grant of $1.5mil, so the $500k balance is either from club general funds or specific contributions from corporates or donations

3. The high performance centre, training facility, basketball courts, soccer field and landscaping - $23mil.
The feds have given us $15mil and we have to find $8mil.

The club keeps saying they are fully funded.

I am going to assume the $30mil is the fully costed price as if the club has to pay contractors market rates to do the work and buy raw materials at normal market prices.

As I saw the graphic of the redevelopment, I thought that is a bloody big steel shed on the eastern side and it dawned on me how much steel will be needed in the above 3 items.

Who is the only vertically integrated company from mining iron ore, to having a coking coal mine, to having a steel manufacturing plant, to having a steel products production process divison who takes the steel from the manufacturer and turns it into building and construction products steel??

GFG - our friendly sponsor.

So after a quick back of the envelope calculation, maybe $5mil+ at market rates of steel needs to be used in the construction process. I don't know what the margins are in the steel industry but the rule of thumb for manufactured goods is, if it costs $1 to manufacture an item, the manufacturer sells it to the wholesaler for $2, and retailer sells it to the customer for $4. But the margins in steel industry might be smaller.

Zakk Wylde steel is your game, what do you think the ballpark figures are for amount of steel needed to build these 3 items and $$ value if the club had to buy it at normal market rates.

The big shed might well become the GFG Training Centre.

I have no problems them getting naming rights if they are providing the steel for free as part of their sponsorship of the club.

Richo and Koch keep talking about how invested our sponsors are in the club and what we are trying to achieve.

Then their might be other coterie members who are supplying goods and services to the club at cost or mates rates, or even free, as part of their donations to the club.

My brother's best mate has been a Port Magpies sponsor for years and he is in the earth moving business. He might shift a lot of dirt at mates rates. A long time coterie group member I know, is in the carpet business. Maybe he will donate all the carpets for The Precinct for free.

Donations don't all have to be $$$$.
Click to expand...

Would need to see what square meterage the building is or a tonnage estimate.... But since November 2020, steel has increased 70%.

If we're getting materials for free, or heavily discounted, that is one massive leg up.

Approx cost is $2000TN for raw material, plus processing and fabrication.
 
Zakk Wylde said:
Would need to see what square meterage the building is or a tonnage estimate.... But since November 2020, steel has increased 70%.

If we're getting materials for free, or heavily discounted, that is one massive leg up.

Approx cost is $2000TN for raw material, plus processing and fabrication.
Click to expand...
The Big Shed component is approx 1,104 sqm for the footy facility ie remodelling/repositioning the current area, but have the same size as currently have, and approx 1,140 sqm for the basketball courts, plus maybe 200sqm is the changerooms, kitchen, toilet etc area at the back of the courts. Its about 12m high as the highest pt where the air conditioning units are, was either 14.2m or 14.7m, I read somewhere.

I know the roof of the Quinn stand was fully replaced and there would be a fair bit of steel used in both Quinn stand and Williams stand change room construction works.
 
RussellEbertHandball said:
Here is something a bit less detailed to see the big picture.

The AO deal so far, pre Covid has meant we have to sell the 80 x 10 to 12 seat corporate boxes in the $35k to $55k range - lets call it $40k average net of GST, so $3.2mil net to the club, to be able to fully fund our footy department and breakeven or do a bit better than breakeven.

If the Footy Ops department costs has been slashed by $3.5mil, lets say it goes up a bit and is now $3.0m less than 2019 costs, but we are selling out all the corporate boxes for similar prices if not higher prices than 2019, then that is a nice profit margin left over to pay for other costs, pay down debt, or pay for some of the Alberton Oval redevelopment.

This graphic below is from the 59 page document the SMA presented in January 2019 to the SA Parliament Committee looking at the AO redevelopment.

Well looky here its more than 80 corporate boxes.

Its 18 x 12 seat suites ie enclosed boxes and 89 x 8,10 and 12 seat open boxes the club can sell and keep the revenue.


View attachment 1329925






View attachment 1329924
Click to expand...
A lot of snouts in the trough :)
 
Last edited:
RussellEbertHandball said:
Before I talk about what was said in the AGM I want to refer back to post number 98, and in my answer to Kingfish73, I wrote

We are building $30mil of assets. $17mil comes from governments and $13mil has to be found from members, sponsors and partners. We are told that funding gap has been closed. If so, that is a bloody great result. If that doesn't give you confidence then nothing will.

During the AGM when the picture of the whole redevelopment went up on screen it struck me how this is probably is going to be paid for. First lets split up the precinct projects;

1. The Port Club redevelopment - $5mil
Monies are coming from private donations and sale of Pirate Life beers with Port themed cans. Koch in his speech and Q&A, and Richo in an email this arvo confirmed that only $500k of donations was included in our 2021 accounts and there will be a lot more in 2022.

2. The AFLW changerooms - $2mil.
The state government gave a grant of $1.5mil, so the $500k balance is either from club general funds or specific contributions from corporates or donations

3. The high performance centre, training facility, basketball courts, soccer field and landscaping - $23mil.
The feds have given us $15mil and we have to find $8mil.

The club keeps saying they are fully funded.

I am going to assume the $30mil is the fully costed price as if the club has to pay contractors market rates to do the work and buy raw materials at normal market prices.

As I saw the graphic of the redevelopment, I thought that is a bloody big steel shed on the eastern side and it dawned on me how much steel will be needed in the above 3 items.

Who is the only vertically integrated company from mining iron ore, to having a coking coal mine, to having a steel manufacturing plant, to having a steel products production process divison who takes the steel from the manufacturer and turns it into building and construction products steel??

GFG - our friendly sponsor.

So after a quick back of the envelope calculation, maybe $5mil+ at market rates of steel needs to be used in the construction process. I don't know what the margins are in the steel industry but the rule of thumb for manufactured goods is, if it costs $1 to manufacture an item, the manufacturer sells it to the wholesaler for $2, and retailer sells it to the customer for $4. But the margins in steel industry might be smaller.

Zakk Wylde steel is your game, what do you think the ballpark figures are for amount of steel needed to build these 3 items and $$ value if the club had to buy it at normal market rates.

The big shed might well become the GFG Training Centre.

I have no problems them getting naming rights if they are providing the steel for free as part of their sponsorship of the club.

Richo and Koch keep talking about how invested our sponsors are in the club and what we are trying to achieve.

Then their might be other coterie members who are supplying goods and services to the club at cost or mates rates, or even free, as part of their donations to the club.

My brother's best mate has been a Port Magpies sponsor for years and he is in the earth moving business. He might shift a lot of dirt at mates rates. A long time coterie group member I know, is in the carpet business. Maybe he will donate all the carpets for The Precinct for free.

Donations don't all have to be $$$$.
Click to expand...
REH does the club publish the donors? Would be good to see and celebrate those who give us $$$$
 

(Log in to remove this ad.)

It still blows my mind that a club that is regularly competing, has average crowds of 40k and a part of a billion dollar TV contract in the top flight of a national competition has a debt of under 10million (in the first place), and such a pissy amount can actually threaten the existence and governance of the club!

If you told anyone from ANY other professional sport that was the case they'd laugh at you!

**** our stadium deal! And **** the AFL's control freakery!

Especially when compared with a competition like the Championship.
  • Eight Championship clubs reported net debt in excess of £50m and four had debt in excess of £100m. (pre Covid). Average attendance 16,000!
  • Highest clubs average attendance 27,000. Ticket price approx. 25 pounds, though there are a lot more games.

Reading and Blackburn have a combined debt of $300 million ALONE! and that was pre-Covid.
www.gazettelive.co.uk

The wild financial contradictions of Championship life for Boro

Middlesbrough are operating in a wildly contradictory division reveal annual Deloitte financial MOT
www.gazettelive.co.uk www.gazettelive.co.uk
 
Last edited:
Joelg said:
Do you think they should, would be nice to recognise the people who really put in for the club. I feel thankful for them. I put in $200 for chasing greatness this year.
Click to expand...
Someone who contributed $200k might not want their name to be revealed.
 
Joelg said:
Why not, we should shout them from The rooftops!
Click to expand...
We would, but many probably don't want to deal with family, friends (or general public if really well known) going 'Why didn't/don't you donate it to <homelessness/starving kids in Africa/medical research/their favourite charity> instead of a bunch of highly paid sports stars?'
 
chiwigi said:
It still blows my mind that a club that is regularly competing, has average crowds of 40k and a part of a billion dollar TV contract in the top flight of a national competition has a debt of under 10million (in the first place), and such a pissy amount can actually threaten the existence and governance of the club!

If you told anyone from ANY other professional sport that was the case they'd laugh at you!

fu** our stadium deal! And fu** the AFL's control freakery!

Especially when compared with a competition like the Championship.
  • Eight Championship clubs reported net debt in excess of £50m and four had debt in excess of £100m. (pre Covid). Average attendance 16,000!
  • Highest clubs average attendance 27,000. Ticket price approx. 25 pounds, though there are a lot more games.

Reading and Blackburn have a combined debt of $300 million ALONE! and that was pre-Covid.
www.gazettelive.co.uk

The wild financial contradictions of Championship life for Boro

Middlesbrough are operating in a wildly contradictory division reveal annual Deloitte financial MOT
www.gazettelive.co.uk www.gazettelive.co.uk
Click to expand...
2 massive differences between Euro soccer and North American sports vs Oz sports.

1. Private ownership vs member clubs. Directors aren't going to sign personal guarantees for $10m - $50m

2. Those teams usually have to own or develop their stadiums. Security is usually given against those assets or other assets of private owners.
 
RussellEbertHandball said:
2 massive differences between Euro soccer and North American sports vs Oz sports.

1. Private ownership vs member clubs. Directors aren't going to sign personal guarantees for $10m - $50m

2. Those teams usually have to own or develop their stadiums. Security is usually given against those assets or other assets of private owners.
Click to expand...

Because the AFL are control freaks!
 
chiwigi said:
Because the AFL are control freaks!
Click to expand...
Agree 100% they are, but the failure and basket cases private ownership produced in the late 1980's and early 1990's has turned them away from ever considering it.

A-League private owners have lost $250m to $300m in 16 years of the A-League.
 
RussellEbertHandball said:
Agree 100% they are, but the failure and basket cases private ownership produced in the late 1980's and early 1990's has turned them away from ever considering it.

A-League private owners have lost $250m to $300m in 16 years of the A-League.
Click to expand...

It’s ok to say no private owners, as long as you then run all the clubs on an equal/identical basis, which they don’t.
 

Remove this Banner Ad

Official Club Stuff 2021 Financial Results

Similar threads

PowerLil
Official Club Stuff 2023 Financial Results
2 3 4
Replies
87
Views
7K
Poo Eckert
P
Ports1870
Official Club Stuff 2022 Financial Results
2 3 4
Replies
99
Views
4K
El_Scorcho
El_Scorcho
Enviable Tradition
2004 or 2021
2
Replies
26
Views
1K
RussellEbertHandball
RussellEbertHandball

Remove this Banner Ad

Back
Top