Official Club Stuff 2024 Financial Results & Annual Report

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Some thought bubbles:
  • Revenue up materially - largely driven by increased membership and gate revenue (attendance based)
  • The club is not for profit, but is establishing a strong net asset position so it will be able to weather future downturns
  • Unfortunately we haven't been able to translate the improved revenue into improved profitability - this is driven by staff costs - and more importantly, the staff costs are not from "KMP" roles (therefore it has to be either player or football department based)
  • The Salary cap went up roughly $750k, so this explains a portion of the increase
  • The likely driver of additional cost stems from other football department costs
  • The salary cap is set to increase by circa $2m next year and whilst we can sustain that based on current revenue, this revenue level is unlikely to be sustainable in the longer term
 
Medical centre and imaging devices would be costing a motza no doubt, how will the minnow clubs like Norf afford an extra mill in the salary cap if our current revenues won’t suffice?



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Some thought bubbles:
  • Revenue up materially - largely driven by increased membership and gate revenue (attendance based)
  • The club is not for profit, but is establishing a strong net asset position so it will be able to weather future downturns
  • Unfortunately we haven't been able to translate the improved revenue into improved profitability - this is driven by staff costs - and more importantly, the staff costs are not from "KMP" roles (therefore it has to be either player or football department based)
  • The Salary cap went up roughly $750k, so this explains a portion of the increase
  • The likely driver of additional cost stems from other football department costs
  • The salary cap is set to increase by circa $2m next year and whilst we can sustain that based on current revenue, this revenue level is unlikely to be sustainable in the longer term
Isn't the salary cap pretty much funded by the AFL club distribution. I also thought that the salary cap increase is to be covered by an increased afl
club distribution which will be covered by the massive increase in the afl media deal that kicks in next year?
 
Isn't the salary cap pretty much funded by the AFL club distribution. I also thought that the salary cap increase is to be covered by an increased afl
club distribution which will be covered by the massive increase in the afl media deal that kicks in next year?
That's a great point - we didn't experience that this year with our "AFL income" decreasing by circa $200k whilst the salary cap increased by $750k.

That being said, our higher football department spend, probably increased our soft cap contributions which would have offset some of the increases we otherwise may have received.
 
That's a great point - we didn't experience that this year with our "AFL income" decreasing by circa $200k whilst the salary cap increased by $750k.

That being said, our higher football department spend, probably increased our soft cap contributions which would have offset some of the increases we otherwise may have received.
I'm sure that I read somewhere that our actual profit was above $7mill but we were able to offset that with a lot of depreciation, amortisation and statutory charges etc.

Haven't actually seen the figures though to confirm that.
 
I'm sure that I read somewhere that our actual profit was above $7mill but we were able to offset that with a lot of depreciation, amortisation and statutory charges etc.

Haven't actually seen the figures though to confirm that.
Finance costs were $1.4m
D&A were $8.9m
Of these two add backs, about $4.0m is related to leases (the aasb16 standard makes the statements misleading) and $0.3m is genuine finance costs related to pokies. So in theory you could do:
  • $3.0 stat profit
  • then add back $1.4 and $8.9
  • less $4.0 for leases and $0.3m for pokies
  • proxy for real underlying profit of $9.0m
Importantly, these are directionally aligned with the amounts in prior years. Obviously the costs of interest/financing has had an impact in the current year

Net cash increase was $7.9m (so it's directionally aligned)

None of this takes away from my main point which is that we've had increased revenue which has been spent on the football department, and resulted in lower net profit year on year.
 

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Official Club Stuff 2024 Financial Results & Annual Report

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