Official Club Stuff 2023 Financial Results

[VineValerian]

On face value it sounds quite good.
But the devil is in the detail, and I'm certainly no accountant, so I await the observations of others with superior knowledge of such black arts.

I mean, I struggled to calculate "12 divided by 12" - even with a calculator.

However, I do know that 13 x 7 equals 28.

 

[EskimoPAFC]

Seriously good results if they are accurate.

Well done.

 

[TeeKray]

It's important to remember that we don't need to be a massively profitable organisation. There is very little benefit in having massive cash reserves as an AFL club. Our goal should be to be in a strong financial position. We are currently in that position but we also haven't finished lower than 11th in 11 years (ie, we're always at least around the mark and competing for finals). The real test comes if we get a 2008-2012 like downturn in on field fortunes - then what does it look like?

I personally don't like the business model of relying on good on field results to turn a profit. I think it's risky and also relies on an economic model (ie our deal with the SMA) that we have no to minimal control over. For that reason I would like to see diversification into revenue generating assets away from football.

 

[JimmyBC]

Dunno about you guys but I feel some debt is a good thing and shows investment. It's probably no wonder we have the poxxy coaching and off field support we have as we don't want to pay any tax on it.

One bloke on golden roller blind money is all ya need m7.

 

[dirty2]

On face value it sounds quite good.
But the devil is in the detail, and I'm certainly no accountant, so I await the observations of others with superior knowledge of such black arts.

I mean, I struggled to calculate "12 divided by 12" - even with a calculator.

However, I do know that 13 x 7 equals 28.

 

[tribey]

Dunno about you guys but I feel some debt is a good thing and shows investment. It's probably no wonder we have the poxxy coaching and off field support we have as we don't want to pay any tax on it.

With the Walshes, Vosses, Schofields, Bassetts and Burgesses replaced by in-house and boondocks randos, we’d be in the lower table of staff spending a mile away from the luxury tax.

 

[Doctor Feel]

With the Walshes, Vosses, Schofields, Bassetts and Burgesses replaced by in-house and boondocks randos, we’d be in the lower table of staff spending a mile away from the luxury tax.

See you would like to think that...but I bet we are at the cap.

 

[TeeKray]

See you would like to think that...but I bet we are at the cap.

I bet we are too. I have a feeling there's something of a going rate with assistant coaches league wide. It's a lot of the reason why we can't attract good ones. They're all getting the same money so why move cities for the same job.

 

[tribey]

See you would like to think that...but I bet we are at the cap.

I bet we are too. I have a feeling there's something of a going rate with assistant coaches league wide. It's a lot of the reason why we can't attract good ones. They're all getting the same money so why move cities for the same job.

lol that would be the most ‘AFL!’ thing ever

 

[Buget]

It's important to remember that we don't need to be a massively profitable organisation. There is very little benefit in having massive cash reserves as an AFL club. Our goal should be to be in a strong financial position. We are currently in that position but we also haven't finished lower than 11th in 11 years (ie, we're always at least around the mark and competing for finals). The real test comes if we get a 2008-2012 like downturn in on field fortunes - then what does it look like?

I personally don't like the business model of relying on good on field results to turn a profit. I think it's risky and also relies on an economic model (ie our deal with the SMA) that we have no to minimal control over. For that reason I would like to see diversification into revenue generating assets away from football.

I agree with you.

Profits as an AFL club doesn’t mean the same as a listed business - there are no dividends coming….

I also agree that diversifying away from on field makes sense. Any investment portfolio needs to be balanced. Hawthorn, “family club” jokes aside, did this through their clubs.

It will be interesting to see what that diversification will be into though. DK (for all his faults) is a pretty savvy business man. Bring on the AGM…

 

[Finest of Wines]

Surely the diversification into greyhound racing is imminent

 

[Festerz]

Most soccer clubs debt seems to be in the $100's of millions. Manchester Uniteds is over $1 billion.

True. And stating the obvious here but those are clubs in private hands - by very wealthy individuals.

A quick look at the finances of clubs where that happens - top soccer leagues in Europe and South America, the NFL, NBA and F1 teams shows that sporting clubs might not be the best financial investment. They are doing it for love.

Sadly the people with that type of cash in Australia are pretty limited.

Anyway, it's a great result for our Club's management. A huge turn around from where we were 10 years ago.

But as it says on the label - we exist for premierships. And on that point we have failed badly regardless of the financial position.

 

[chiwigi]

I’m not against the debt. But when it is used as a tool of control by the AFL we need to get rid.

If the AFL had debt leverage over the Kangaroos they’d already be in Tassie.

 

[Dutchy5150]

This must be really annoying news to a lot of people here...

 

[Del165198]

Imagine if we weren't paying stinkers a million bucks a year for donuts

 

[RussellEbertHandball]

For farks sake WTF is core business revenue?? They have never reported this figure before. Why the change? Last year total revenue was $57.1m

This has nothing to do with government grants for the redevelopment.

Is the $2m - $3m a year the club gets from government and private sector to do community programs considered core business revenue?? What about revenue from venues, The Prince and the Precinct? Is this core business revenue?? Or is the Precinct included, but The Prince not?? Last year venues revenue was $5.9m.

This figures are somewhat meaningless with out fuller set of accounts.

I say fuller because we never provide full info like WCE and Freo do in their ASIC lodged accounts and Collingwood, Hawthorn and Geelong do in the financial statements of their Annual Report, they make available to their members to download from their websites.

Gross revenue increasing by $7.5m in 2023, to a total of $64.6m.
.......

The highlights of 2023 Port Adelaide's financial result:

• Core business revenue up 13 per cent to $57.5 million.

 

[shewho]

Seriously good financials. Given the on field performance should be on an upturn, these results should be sustainable over the next few years.

This is our opportunity to make the club secure and fulfill Greg Boulton’s prophecy the day we were granted the “second licence”:

“The name “Port Adelaide” will live forever.”

 

[RussellEbertHandball]

Dunno about you guys but I feel some debt is a good thing and shows investment. It's probably no wonder we have the poxxy coaching and off field support we have as we don't want to pay any tax on it.

That's dribble.

Our debt comes from the losses accumulated between 2008 and 2014 years and the small amount that was on the balance sheet at the end of 2007.

We haven't paid that off yet. Not all bad because we have had a fully funded footy department these days, but if we had sustained success of 2 or 3 GFs/flags in a row, we would have paid off the debt, from increased revenue streams that come from winning flags.

We don't have debt because we went and bought an income producing asset, like the Hawks did in 2010, borrowed $12m in 2010 to buy pokies, their leasehold on Caroline Springs venue, upgrade of their pokies venue at Mulgrave, which combined produced profits of $2m to $3m each year to help fund their footy department or invest in their share and property portfolio.

They sold their venues in 2022 and got out of pokies and still had $8m in debt when they sold the venues, despite all the profits made, interest rates were cheap. They sold their venues for $48m, so were left with $40m in the bank after they paid off their loan. They ended 2022 with no debt and $69m in cash and cash equivalents. This year they have ended 2023 with $70m in the bank and interest earned was $2.7m, with higher interest rates, its nicely covering the profits generated by pokies venues in the past decade or so.

The Hawks’ huge windfall: Club makes $40m from pokies sale

The Hawks have made $40m from the sale of their poker machine assets, but the club isn’t planning to spend any of the money on its planned new base at Dingley.

www.theage.com.au

 

[StrappingTape]

Imagine the profit if we sacked Ken. Potential upgrade if memberships clears that remaining debt. I'm also concerned that there's been no word on full control back and there is no incentive for DK or anyone else to want it either.

 

[Alberton Proud]

This must be really annoying news to a lot of people here...

We exist to be sort of financially stable or something

 

[Relativity]

True. And stating the obvious here but those are clubs in private hands - by very wealthy individuals.

A quick look at the finances of clubs where that happens - top soccer leagues in Europe and South America, the NFL, NBA and F1 teams shows that sporting clubs might not be the best financial investment. They are doing it for love.

Sadly the people with that type of cash in Australia are pretty limited.

Anyway, it's a great result for our Club's management. A huge turn around from where we were 10 years ago.

But as it says on the label - we exist for premierships. And on that point we have failed badly regardless of the financial position.

Particularly since Geoffrey Eddleston passed.

 

[PowerLil]

See you would like to think that...but I bet we are at the cap.

Because that useless parasite and his extended family of bloodsuckers are on the payroll.

 

[Launchpad McQuack]

Being in a stronger financial position is a positive. Makes it easier to sack Hinkley.

 

[Enviable Tradition]

Being in a stronger financial position is a positive. Makes it easier to sack Hinkley.

In theory.

On SM-G975F using BigFooty.com mobile app

 

[Jello_B]

On face value it sounds quite good.
But the devil is in the detail, and I'm certainly no accountant, so I await the observations of others with superior knowledge of such black arts.

I mean, I struggled to calculate "12 divided by 12" - even with a calculator.

However, I do know that 13 x 7 equals 28.

11 x 0 = 0