Annual Reports: Every Club's Profit/Loss Margin for 2012

[Rob]

Part of the AFL's distribution to all clubs is AFL member club support fees. That's why some of the big Victorian clubs get more than you'd expect - and it's probably not reasonable to classify that income as AFL grants. Some would, but some would include it under membership income.

Not that Port would get a lot out of that, they've probably only got 100 AFL members that have Port as their chosen club.

 

[manicmagpie]

Part of the AFL's distribution to all clubs is AFL member club support fees. That's why some of the big Victorian clubs get more than you'd expect - and it's probably not reasonable to classify that income as AFL grants. Some would, but some would include it under membership income.

Not that Port would get a lot out of that, they've probably only got 100 AFL members that have Port as their chosen club.

I always thought that it was counted as membership revenue, particularly as the AFL club support members are counted in the membership tallies.

 

[RussellEbertHandball]

Where do see the TV income highlighted in the Pies Annual Report being reported in other clubs Wookie - I couldnt find it in Ports figures.

As I said in the other thread the $1.2mil/year/club 2007-12 TV monies which continues thru 2012-16 is basically the base distribution. Port's $7.956mil includes base + TV. Most clubs would include that as AFL distributions.

Edit: Wookie added Port's base and the 40k prize monies from NAB cup to get $7.996mil.

After that it varies from club to club. The old annual special distributions which are now called dis-equal distributions and you have the equal component ( $500k+575k+650k+725k+800k = $3.25m over 2012-16). Some clubs will show both equal and dis-equal distributions as AFL distributions, some seperate them and some put them in other football income. Port used to show it separately now it gets dumped into revenue from football operations.

Some clubs show the distribution they get from AFL members club support as AFL distributions some as membership income.

Then there is the signage and licence, travel subsidies, promotional distributions and prize monies. Prize monies tend to be separately reported the rest either offset against cost of in other revenue items.

There is no consistency.

 

[RussellEbertHandball]

In 2012 every club got;

1) 2011 Base + increase in the salary cap in 2012, as per 2012-16 club funding and equalisation documents
= 6,182,004 +

The AFL base distribution goes up by the amount the salary cap goes up
2011 - $8,212,500 from the 2007-11 CBA document
2012 $8.787m from the AFLPA CBA summary presentation document. But I suspect both salary cap amounts might have a bit of rounding

So salary cap went up approx $574.5k

$6,182,004 + 574,xxx = $6,756,xxx

2) TV monies 2007-11 continued thru 2012-16. The AFL call this a bonus distribution.

$1,200,000

Edit (from Port's and Essendon's accounts 1 + 2 = $7,956,876)

3) Equal component of Club Future Fund ( $3.25mil over 5 years starting @ $500k going up $75k/yr)

$500,000

See the 2012-16 Club funding & equalisation strategy - Presentation to the Media 26 September 2011.

 

[Rob]

I always thought that it was counted as membership revenue, particularly as the AFL club support members are counted in the membership tallies.

I would have thought that was the logical place for it. The AFL certainly include it in their annual reports as distributions to clubs though, sometimes without breaking it down.

I am coming around to the idea that the AFL should set reporting standards for clubs to allow for consistency. It wouldn't take much work on their behalf, and it's unlikely it would add to costs for clubs. If anything it would reduce them, as accountants would spend less time working out where to put what.

 

[Ned_Flanders]

I would have thought that was the logical place for it. The AFL certainly include it in their annual reports as distributions to clubs though, sometimes without breaking it down.

I am coming around to the idea that the AFL should set reporting standards for clubs to allow for consistency. It wouldn't take much work on their behalf, and it's unlikely it would add to costs for clubs. If anything it would reduce them, as accountants would spend less time working out where to put what.

AFL won't do this because it loves the idea of everyone have good news to announce. Having no set reporting standard means you can report the version you like best to present your club in the best light.

Just look at memberships. Used to be you had to be an 11 game member to count in the official membership figures. Suddenly the AFL wants 1,000,000 club members, the reins are removed and 3 gamers are all the rage.

 

[RussellEbertHandball]

In the 2004 AFL annual report they had a spreadsheet type list of their distributions to the clubs that had individual columns for base, special - every club got $100k that year, AFL members club support, AFL members contribution to the gate, finals allowance, prize money and competitive balance fund (ie the origial ASD's). That totalled $78.3mil but total distributions were $89.5mil.

There were other distributions, the Waverley Park sales monies $300k x 16 clubs. The other $6mil+ difference was the usual signage and licence payments, travel subsidies, promotional activities etc.

Since 2005 its been base + other totals. The $1.2mil/yr/club started in 2007.

 

[Rob]

AFL won't do this because it loves the idea of everyone have good news to announce. Having no set reporting standard means you can report the version you like best to present your club in the best light.

I'm not sure that's true, as existing accounting standards already oblige clubs to report headline figures like profit and revenue correctly. The AFL doesn't need to set rules in regards to that - it's just in relation to specific AFL amounts within the financials, like defining membership income, football operations expenditure, gate receipt income, that sort of thing. These things are already included in the accounts in some form, it's just about making it consistent across all the clubs.

 

[Ned_Flanders]

I'm not sure that's true, as existing accounting standards already oblige clubs to report headline figures like profit and revenue correctly. The AFL doesn't need to set rules in regards to that - it's just in relation to specific AFL amounts within the financials, like defining membership income, football operations expenditure, gate receipt income, that sort of thing. These things are already included in the accounts in some form, it's just about making it consistent across all the clubs.

Sorry, thats what I was referring to.

I know my club (just as an example) has reported operating profit figures some years with fundraising excluded, but this year its included (apparently its a part of normal footy ops now). Some years gaming is excluded, this year it was included. Personally I suspect what gets included and excluded more often than not is based upon removing non-performing issues you dont want to draw attention to (i.e. our pokies issues last year when the blues were given them) than any real attempt to provide transparent financial figures.

 

[The_Wookie]

Adelaide have released info here: http://www.afc.com.au/news/2012-12-13/financial-result

In a nutshell:
Operating Profit: 1.2 million
Actual Profit: $122,000 after SANFL grant and depreciation
Net Assets: 18.74 million

Makes the running tally at:

Membership:

• Hawthorn - 60,841 (8,731 Tasmania)
• Richmond - 53,072
• Essendon - 47,708
• Carlton - 45,800
• Geelong - 40,200
• Melbourne - 35,000
• Western Bulldogs - "more than 30,000"

Revenue:

• Collingwood - $69,600,000*
• Essendon - $65,431,425
• Hawthorn - $57,277,620
• Geelong - $48,957,150
• Carlton - $46,637,015 (up $6 million on 2011)
• Brisbane - $43,859,151
• Melbourne - $39,517,200
• Richmond - $37,640,767
• Port Adelaide - $36,649,694
• Western Bulldogs - $32,777,251
• St Kilda - $30,846,816

Sponsorship, Marketing

• Richmond - $19,323,900
• Essendon - $15,920,153
• Geelong - $15,696,889
• Hawthorn - $15,083,689
• Carlton - $12,524,669
• Brisbane - $11,700,040
• Melbourne - $8,219,263
• St Kilda - $6,714,163
• Port Adelaide - Not specified

Membership, reserved seating

• Essendon - $9,367,066
• Hawthorn - $9,028,307
• Carlton - $8,953,054
• St Kilda - $7,353,883
• Melbourne - $5,619,605
• Richmond - $5,050,000 (membership only)
• Western Bulldogs - $5,027,548 (membership only)
• Port Adelaide - Not specified

Gate reciepts

• Melbourne - $4,305,292
• Hawthorn - $4,018,101 ("matchday income")
• Carlton - $3,426,953
• Western Bulldogs - $1,374,525 ("match returns and gate receipts")
• Essendon - $726,504 (This is not a misprint)
• Richmond - Not specified
• St Kilda - included in AFL revenue
• Port Adelaide - Not specified
• Geelong includes Gate reciepts with membership: $11,536,630
• Brisbane includes Gate recipets with membership: $6,127,764

Total Profit/Loss:

• Essendon - $12,345,536
• Collingwood - $7,835,000*
• Richmond - $3,017,742
• Hawthorn - $1,288,810
• Adelaide - $$122,434*
• Melbourne - $19,485
• Western Bulldogs - (136,679)
• St Kilda - ($436,818)
• Carlton - ($639,799)
• Geelong - ($996,000)
• Brisbane - ($2,200,013)
• Port Adelaide - ($2,117,071)

Operating Profit/Loss

• Collingwood - $4,860,000*
• Richmond - $3,017,742
• North Melbourne - $1,193,080*
• Hawthorn - $1,288,810
• Adelaide - $1,214,039*
• St Kilda - $631,135
• Essendon - $401,429
• Geelong - $322,000
• Western Bulldogs - ($136,679)
• Carlton - ($683,799)
• Brisbane - ($2,513,262)
• Port Adelaide - ($4,120,000)

Merchandise Income:

• Essendon - $3,226,302
• Hawthorn - $2,700,000
• Geelong - $2,699,798
• Carlton - $1,902,671
• Western Bulldogs - $1,268,765 (labelled "consumer products")
• St Kilda - $1,121,857
• Brisbane - $1,004,273
• Melbourne - $634,384
• Richmond - not specified
• Port Adelaide - Not specified

Football Department Spend

• Collingwood - $21,167,000*
• Carlton - $20,349,646
• Essendon - $19,200,704
• Geelong - $19,200,072
• Melbourne - $17,983,567
• St Kilda - $17,962,408
• Port Adelaide - $17,430,245
• Brisbane - $17,231,496
• Western Bulldogs - $15,748,928
• Richmond - $3,915,909 (specifically cited)
• Hawthorn - $2,378,471 (Specifically cited)

Debt Repaid -

• Richmond - $1,500,000
• North Melbourne - $1,000,000*
• Carlton - $750,000
• Western Bulldogs - $594,000*

Grants (non AFL)

• Essendon - $10,100,000 (ASF, Federal Gov)
• Carlton - $321,220 (ASF)
• Western Bulldogs - $755,413
• Port Adelaide - $2,000,000 (SANFL)

AFL Income - Distributions (includes 2012 base grant of $6.682 million to all clubs)
Note: this may include prize money, ASD and future fund grants.

• Melbourne - $10,796,875
• Brisbane - $10,400,161
• Western Bulldogs - $10,326,872
• Hawthorn - $9,138,376
• Carlton - $9,056,876
• Port Adelaide - $7,996,876
• Essendon - $7,956,876
• Geelong - $7,606,364
• Richmond - $14,046,030 ("Football income")
• St Kilda - $13,115,339 (includes Gate reciepts)

Net Assets

• Essendon - $35,059,757
• Hawthorn - $26,364,619
• Western Bulldogs - $23,227,514
• Richmond - $19,065,807
• Adelaide - $18,740,000*
• Collingwood - $18,690,000*
• Carlton - $12,709,584
• Geelong - $9,957,144
• Port Adelaide - $6,721,225
• Melbourne - $6,375,056
• St Kilda - $5,633,566
• Brisbane - (3,131,072)

Reference:

• Brisbane Football Club 2012 Annual Report
• Carlton Football Club 2012 Annual Report
• Essendon Football Club 2012 Annual Report
• Geelong Football Club 2012 Annual Report
• Hawthorn Football Club 2012 Annual Report
• Melbourne Football Club 2012 Annual Report
• Port Adelaide Football Club 2012 Annual Report
• Richmond Football Club 2012 Annual Report
• St KIlda Football Club 2012 Annual Report
• Western Bulldogs 2012 Annual Report

Additional References - * information will be contained here.

• Adelaide back in the black
• $7.8 million Jackpot (Collingwood)
• Lions record Massive loss
• Another million for North
• Loss caps dog of a year (Western Bulldogs)
• PAFC Financial Result (Port Adelaide)

Footnote:
* Club media release, not annual report.

 

[*PAF]

Wow!!
Adelaide averaged nearly 37K per game, must have got a decent amount of pricemoney for making the preliminary final and only just made a profit.

Where did all the cash go?

 

[RussellEbertHandball]

Adelaide have released info here: http://www.afc.com.au/news/2012-12-13/financial-result

In a nutshell:
Operating Profit: 1.2 million
Actual Profit: $122,000 after SANFL grant and depreciation
.........

Under what accounting rules is depreciation not included in operating profit? There is nothing abnormal about it.

 

[The_Wookie]

Under what accounting rules is depreciation not included in operating profit? There is nothing abnormal about it.

yeah it stumped me too, im just going by what they've told the media.

 

[RussellEbertHandball]

I love how the cash surplus includes credit sales and credit purchases. The true cash surplus is what the cash flow statement says in the net cash cash flow from normal activities section - or its closer to the real cash surplus figure, not the one stated in the presser.

http://www.afc.com.au/news/2012-12-13/financial-result

The Adelaide Football Club today posted a cash surplus for 2012 of $1,214,039.

This result is after payment of the annual sub licence fee ($525,000) and is reported prior to a depreciation provision of $1,091,605 - resulting in a net profit of $122,434.

http://www.afc.com.au/news/2012-12-13/financial-result

 

[The_Wookie]

It really is one result that highlights specifically what the club wants to highlight. I really hope to get a copy of the adelaide report this year.

 

[greennick]

yeah it stumped me too, im just going by what they've told the media.

It is like they're confusing EBIT (Operating Profit) with EBITDA...

 

[TheFVK]

Wow!!
Adelaide averaged nearly 37K per game, must have got a decent amount of pricemoney for making the preliminary final and only just made a profit.

Where did all the cash go?

Astonishing- and don't forget the prizemoney for bringing home the NAB Cup. Minus the 300K for the salary cap / draft tampering breaches and it's a loss of almost $200K.

The SANFL leeches are working it perfectly, kudos

 

[UpTheGuts]

Port will be ok. Just hang tough for another year until they can get to Adelaide Oval. They've had a fine offseason, good coach and drafted/ traded very well
Financially, the problem club is Brisbane. They're in some strife

 

[The_Answer3]

The SANFL can **** right off with their sub license fees.

Can't get to AO quick enough.

 

[Papa G]

It is astonishing how the Crows can only make that much. Big crowds, big membership, excellent season on field, NAB Cup and Prelim prize money, an adoring media, Chapman saying they have great corporate support...... it truely is astonishing. Why aren't the Crows up there with West Coast and Collingwood???? Are there any Crows supporters still out there that think SANFL ownership of their club is the way to go?

 

[Hard_to_Beat]

It is astonishing how the Crows can only make that much. Big crowds, big membership, excellent season on field, NAB Cup and Prelim prize money, an adoring media, Chapman saying they have great corporate support...... it truely is astonishing. Why aren't the Crows up there with West Coast and Collingwood???? Are there any Crows supporters still out there that think SANFL ownership of their club is the way to go?

Don't they give money to the SANFL also?

 

[GarnerSmash]

The SANFL can **** right off with their sub license fees.

Can't get to AO quick enough.

How much are they taking/leeching?

Edit: Just saw the $525k figure. Are there other fees too, aligned to stadium usage etc?

 

[The_Answer3]

How much are they taking/leeching?

Edit: Just saw the $525k figure. Are there other fees too, aligned to stadium usage etc?

That fee is just for the licence. I believe they get high percentages of the gate as well as any AAMI stadium revenue.

The SANFL are on the bones of their ass so they won't let all that money go lightly. Would require a big buy by the AFL....but then we just go into the AFL's pocket.

 

[Papa G]

How much are they taking/leeching?

Edit: Just saw the $525k figure. Are there other fees too, aligned to stadium usage etc?

Worst stadium deal in the country, a stadium which is wholly owned by their owner.

 

[GarnerSmash]

That fee is just for the licence. I believe they get high percentages of the gate as well as any AAMI stadium revenue.

The SANFL are on the bones of their arse so they won't let all that money go lightly. Would require a big buy by the AFL....but then we just go into the AFL's pocket.

Worst stadium deal in the country, a stadium which is wholly owned by their owner.

F****ng stadium deals...

Any info on the return for clubs from AO and if that will be any better?