Email from Euge

[Ry009]

Message to members from Eugene Arocca



AS OUR season has come to an end, I thought it appropriate to update you on some of the off-field issues facing the club at the present time.

It has been reported that we are considering 'selling' a home game to an interstate venue. While playing one home game interstate is an option, I would like to assure all of our members and supporters that the North Melbourne Football Club remains 100 per cent committed to a future in Melbourne. We have publically stated this to be the case and we will not back away from this position.

When we committed to our future in Melbourne we relinquished an agreement worth $1.2 million per annum to play three home games (at $400,000 per match) on the Gold Coast.

Recovering this lost income through other means is one of the most significant challenges facing this administration, particularly given that we are currently subject to stadium deals in Melbourne that significantly disadvantage our club in terms of match receipts (as opposed to the interstate clubs and other Victorian clubs which have favourable agreements).

In fact, despite drawing healthy home game crowds, our net income from gate receipts at Melbourne home games in 2008 will amount to approximately $700,000 in total. Over 60 per cent of our total net match receipt income in 2008 was generated from the three Gold Coast matches.

Given the poor stadium returns in Victoria and our decision not to play matches in the Gold Coast from 2009, the North Melbourne Football Club must ensure that it does everything possible to maximise match returns.

Even with assistance from the AFL in the fixturing and scheduling of Victorian home games, the best we might expect under our current stadium deals is approximately $1.1M for 2009. Not many clubs could sustain an $800,000 'hit' to our net profit in any given year.

Accordingly, we need to consider every available option and playing one home game in Sydney, in return for at least $400,000, is one of those options.
We had explored the possibility of playing an extra game at Subiaco (given our strong historical, sponsorship and membership connections with Western Australia) however AFL policy prohibits Melbourne-based clubs from playing interstate home matches in developed markets.

Any decision to play a home game in Sydney is not part of a long term strategy by the club to chase a new interstate market; it is simply driven by a commercial consideration impacted upon by our current stadium deals in Victoria.

While we are confident that the AFL is doing everything possible to assist the Victorian clubs that are subject to those deals, until such time as the situation improves, we have to act responsibly and in the interests of this club’s long term survival.

Ultimately, until the stadium deals in Victoria are improved, the only other way of protecting this club’s financial position is a continuing 30,000-plus membership AND strong crowd attendances at home matches in Victoria.

I can assure you that we will play more home games in Melbourne next season than we have in any year since 1998 and that our members will get more value for their memberships than they have in a long time. We are working hard to ensure that any increase in membership prices due to the extra home games is kept to an absolute minimum.

We are also working hard on a corporate restructure that will return the North Melbourne Football Club to its members for the first time in over 20 years and to ensure that the club is a profitable one with a sustainable future in Melbourne.

We will continue to keep you updated on further developments as more information regarding the corporate restructure and this year's financial result becomes available. In the meantime, thank you for your outstanding support.

Eugene Arocca

Chief Executive Officer

North Melbourne Football Club

Gotta love him.

 

[bailz66]

Is that it?

I would have thought it would end with a bit more

Never mind i was just looking at it to early

 

[Ry009]

Is that it?

I would have thought it would end with a bit more

Sorry mate, have edited to include the whole thing.

 

[Arden]

Must stop reading these letters from Eugene at work.

I'm sure my reactions are totally inappropriate for my workplace. Apparently giggling like a smitten school girl is "inappropriate".

 

[BoomerBrownlow_29]

Link is here to full article:

http://www.kangaroos.com.au/tabid/4912/Default.aspx?newsid=67732

 

[Arden]

Kind of worrying, just means lots of hard work and luck is needed.

Doesn't worry me at all actually. It's refreshing to have a CEO and board who acknowledge our position and comprehend what is needed to strengthen our position as a Melbourne based club.

No point star gazing and planning your next Gold Coast holiday like previous admins.

 

[Royal Flush]

Kind of worrying, just means lots of hard work and luck is needed.

 

[TitanicRider]

Worried too. Sounds like Western Sydney will be the next Gold Coast for us.

We seem to just milk the AFL for money by playing in Sydney, Canberra and Gold Coast, but when it comes to a permanent move - we tell them to get stuffed..

Kinda like the girl at the bar you buy drinks all night, and then when you ask to take her home, she pashes another bloke...

 

[The Zebra]

Quick response, logical explanation, doesn't treat the members like idiots, re-iterates our long term position and has not one but two subtle shots at Caro's article.

The man is a GUN.

 

[Hearts to hearts]

Worried too. Sounds like Western Sydney will be the next Gold Coast for us.

We seem to just milk the AFL for money by playing in Sydney, Canberra and Gold Coast, but when it comes to a permanent move - we tell them to get stuffed..

Kinda like the girl at the bar you buy drinks all night, and then when you ask to take her home, she pashes another bloke...

With respect, bollocks. This time we are making it very clear that if we do any of this it is just to meet AFL needs, it's short term, not to grow our own membership, and for the cash.

Let's say that makes us a girl who has to get out and earn some money. And one that will be home early to spend the rest of her life with... oh stuff the metaphor, watch the interview and listen to what the man is saying.

 

[Hearts to hearts]

Must stop reading these letters from Eugene at work.

I'm sure my reactions are totally inappropriate for my workplace. Apparently giggling like a smitten school girl is "inappropriate".

Have you watched the video? Phwoarr...

 

[blackshadow]

Great letter!

I wonder what I have to do to get on the members' email list though - I'm sure I supplied my email address when I joined.

 

[Arden]

Have you watched the video? Phwoarr...

Am saving that for a private moment at home.

I have no doubt that watching the video at work will result in my employment termination.

 

[blackshadow]

Great letter!

I wonder what I have to do to get on the members' email list though - I'm sure I supplied my email address when I joined.

 

[snapperbowler]

We may not like playing one game in Sydney next year but there appears to be no choice.

It is a small sacifice for what was proposed this time last year.

11 games on the GC.

 

[jacko57]

Excellent work Eugene!

I assume/hope that when he was on the phone to the Vile Serpent on Sunday, he was even more direct in telling her she was full of **** and better get her facts right next time she goes to print on NMFC.

 

[rooboy_88]

We may not like playing one game in Sydney next year but there appears to be no choice.

It is a small sacifice for what was proposed this time last year.

11 games on the GC.

Spot on there.

With a loss of 1.2 mil, we really need to crawl before we walk and euge has acknowledged this and has basically thrown his cards out there compared to the lies of the previous admin.

As a one off as euge mentioned it is for commercial reasons and could minimise the loss by as much as $400,000.

Also the club can sell this as a travel deal and encourage supporters to travel to this home game away from home.

 

[TitanicRider]

or they could charge a special one-off premium of $100 on memberships and make more then three games in Sydney.

I wonder how many members would pay for a $300+ membership each season. Maybe they should do some economics modelling and work out whether its better to have 20k members paying more or 30k members paying less.

 

[RoyalBlue]

Does anyone need a cold spoon? I have just put some in the fridge.

 

[Limerick]

or they could charge a special one-off premium of $100 on memberships and make more then three games in Sydney. I wonder how many members would pay for a $300+ membership each season. Maybe they should do some economics modelling and work out whether its better to have 20k members paying more or 30k members paying less.

I appreciate your thoughts but 2009 isn't the year to substantially increase the fees. There will be an increase due to the extra home games, 2009 isn't shaping up to be strong economically i.e. money will be tighter than in 2008 plus any increase as suggested is likely to cause a decrease in supporter sponsorships, donations, merchandise etc.

Selling one game while committing to stay in Melbourne, something the previous administration didn't embrace, is a small price to pay.

In 2009 we as supporeters and members need to increase our attendance so as to provide a strong arguement for keeping all home games.

 

[giantroo]

Great letter!

I wonder what I have to do to get on the members' email list though - I'm sure I supplied my email address when I joined.

Email them again bs. Only way it worked for me.

 

[TitanicRider]

I appreciate your thoughts but 2009 isn't the year to substantially increase the fees. There will be an increase due to the extra home games, 2009 isn't shaping up to be strong economically i.e. money will be tighter than in 2008 plus any increase as suggested is likely to cause a decrease in supporter sponsorships, donations, merchandise etc.

Selling one game while committing to stay in Melbourne, something the previous administration didn't embrace, is a small price to pay.

In 2009 we as supporeters and members need to increase our attendance so as to provide a strong arguement for keeping all home games.

Understood. I know times are tough economically, they are at the company that I work for as well. But I would pay an extra $100 on top of the membership if it meant the club was going to have a better year financially.

The club could look at offering a "Save A Roo" membership option with a $100 premium towards the club. Chuck in a sausage sizzle with the players down at Arden St over the pre-season for anyone that signs up, and you would have some serious interest. People spend $100 on a nice dinner or going to a concert, and an extra $100 isn't going to hurt the pocket of a dedicated member.

Even if you only get 5,000 members to sign up for this option, thats still $500,000 in the clubs back pocket. More then the AFL will give us for playing in Sydney. If the club decided to do it, and marketed it correctly - It could be done.

 

[fairdinkum]

We seem to just milk the AFL for money by playing in Sydney, Canberra and Gold Coast, but when it comes to a permanent move - we tell them to get stuffed..

Kinda like the girl at the bar you buy drinks all night, and then when you ask to take her home, she pashes another bloke...

Idiotic comment - one which was bandied around ad nauseum last year.

Firstly, if a guy is dumb enough to buy a girl drinks with the sheer intent of getting into her pants, he deserves to lose his cash.

Secondly, using your analogy, that same girl had a bloke by her side. That bloke was the 20 odd thousand members (and umpteen supporters) still down here in Melbourne. If a guy is dumb enough to think he is a chance of stealing a taken girl with a few drinks, he deserves not only to go home alone but to be embarrassed in the process.

 

[sutcliffe's hotel]

If a guy is dumb enough to think he is a chance of stealing a taken girl with a few drinks, he deserves not only to go home alone but to be embarrassed in the process.

Too true. As Cher said, sooner or later we all sleep alone.

Love the work of Euge and a quailty response fairdinkum.

 

[rooboy_88]

Understood. I know times are tough economically, they are at the company that I work for as well. But I would pay an extra $100 on top of the membership if it meant the club was going to have a better year financially.

The club could look at offering a "Save A Roo" membership option with a $100 premium towards the club. Chuck in a sausage sizzle with the players down at Arden St over the pre-season for anyone that signs up, and you would have some serious interest. People spend $100 on a nice dinner or going to a concert, and an extra $100 isn't going to hurt the pocket of a dedicated member.

Even if you only get 5,000 members to sign up for this option, thats still $500,000 in the clubs back pocket. More then the AFL will give us for playing in Sydney. If the club decided to do it, and marketed it correctly - It could be done.

Even if they could say have the equivalent of a players BBQ day with this save a roo campaign and have the players and admin run the day purely for the supporters and the club can make a profit out of it.

It can bring that suburban feel to the club. Even when the club opens the redevlopment they can have an open day for the supporters etc etc.