News If there was any doubt we are the greatest club in the land...

[Frankie23]

http://www.collingwoodfc.com.au/newsfeatures/news/newsarticle/tabid/5586/newsid/105462/default.aspx

The Collingwood Football Club today capped off an outstanding 2010 season by announcing an operating profit of $5.389 million.

The club announced record performance levels in every revenue stream, growing overall income by $12.7 million, to a total annual turnover of $75.5 million.

http://www.collingwoodfc.com.au/newsfeatures/news/newsarticle/tabid/5586/newsid/105462/default.aspx


EDIT: This is just the operating profit, didn't realise the club write-downs hadn't taken place yet. Anyway at least we can write off our debts and still post a net profit.

 

[mattys123]

My favourite part;

"Last year the club made a commitment to our supporters that we would substantially reduce debt attached to our gaming venue portfolio. By reducing our debt by $8 million this year, we are setting the club up to potentially be debt free by the end of next season,” Pert said.

We had to win a flag for it to happen, but hey, in 12 months, according to Perty, we will be debt free, which is a massive turnaround from where we were a few years ago.

The board and the administration have to be congratulated for cleaning up a mess left largely by Swann and Arocca.

 

[beez]

Man, we're awesome!

<3 Collingwood

 

[Lenz]

I just hope we don't make any more dumb-arsed footy-mentality investments like pubs and pokies. If you need to invest then buy some bloody BHP shares you idiots.

 

[Football God]

so how much have we earnt? there's too many numbers and i dont understand all this mumbo jumbo

 

[jonbe54]

so how much have we earnt? there's too many numbers and i dont understand all this mumbo jumbo

If I understand it right we've earned almost enough to wipe out those millstone pub debts - should clear them next year now

 

[Football God]

Will we be getting money from Demitriou for making him richer?

 

[Swooop]

I just hope we don't make any more dumb-arsed footy-mentality investments like pubs and pokies. If you need to invest then buy some bloody BHP shares you idiots.

I wonder what actually went wrong with these investments?

Normally, they're a licence to print money.

With a legion of fans, happy to get behind the club, you'd have thought it was a cert as an investment.

Dose anyone know if it was poor local management, poor location or whatever else, why they failed?

 

[Football God]

From last season

http://www.heraldsun.com.au/sport/a...emiership-stakes/story-e6frf9jf-1225815392261

 

[vjknight]

so how much have we earnt? there's too many numbers and i dont understand all this mumbo jumbo

im no expert god but i'll do my best.

they borrowed to buy the hotels, but at boomtime prices. the loans were short term, borrowed against the value to the asset (hotels). the value of the hotels fell, and when time to renew the loans, the value didnt match the amount borrowed, so its either put up more security, which they dont really have, or sell the hotels for a loss, close out the loan and pay the difference out of profits from this year. also the value of the hotels they still own has dropped, and thats also reflected in the books, thereby eating into the profits - but on paper only. they still had a profit of $5m from their normal activities, and thats a huge result - with more to come.

a shame they didnt learn from the 'buy the local school' debacle of the 90's that nearly sent them under.

 

[Bay Pie]

$75.5M in Total Revenue
$12.3M from Memberships alone.

Reduced our Pub debt from $11.5M to $3M and a saving of $600,000 in interest payments yearly.

This is a bloody good result, with plenty more revenue to flow in over the Christmas period with the sale of premiership merchandise etc.

Should be debt free by end of 2011.

* Premiers - tick
* Financial stability - tick
* 2011 prospects - tick (3rd youngest team in the 8. carlton and Freo about 100 days younger per average player age)

 

[Subprime]

This years write-downs were in relation to the Diamond Creek Tavern according to this article:

This year the Collingwood Football Club board decided to write down the value of the Diamond Creek Tavern, which it now plans to retain as an ongoing profitable business within the club’s venue portfolio.

As our members were advised earlier this year, the club had sold the Diamond Creek Tavern business, but the purchaser was placed into administration by his banks, and was unable to complete the sale. As part of the club’s strategy to retain the business, the board had the Diamond Creek Tavern business independently valued as part of a necessary accounting process. This process has zero impact on the club’s cash flow and operations. It is simply a calculation of the value of the business as a multiple of its current earnings. The business was valued at $3.65 million, meaning the club will now record this figure in its financial reports, replacing the previous valuation of $8 million. To complete this process, a write-down figure of $4.389 million, which is largely the venue valuation write down, will be taken off the club’s operating profit, as per standard accounting practices.

The club will ultimately record a net profit of just over $1 million, which is simply the operating profit minus the valuation write down.

 

[Peter Sidorkiewicz]

Things appears to be going so well for the club.

I can't understand why would they would scale back their members benefits and jack up prices?

It's seems they are doing the opposite of rewarding members for their loyalty and huge boost in membership revenue.

 

[Invigoration]

You had the option of freezing the price of your membership this year, clearly that tells you prices are going to rise or why else would they offer it? Prices had remained stagnant for the two years prior as well, so naturally they were eventually going to inflate.

And scale back benefits? It's a hat for **** sake and a shitty one at that. The premiership kit is better value anyway.

 

[Happy Pie]

Im happy to contribute and support for 2011, ive gone from a standard membership for me & my son to Legend Memberships. The capped 9,000 was reached last week so already that's heaps more money in that area since 2010.

Things can only get better

 

[Football God]

im no expert god but i'll do my best.

they borrowed to buy the hotels, but at boomtime prices. the loans were short term, borrowed against the value to the asset (hotels). the value of the hotels fell, and when time to renew the loans, the value didnt match the amount borrowed, so its either put up more security, which they dont really have, or sell the hotels for a loss, close out the loan and pay the difference out of profits from this year. also the value of the hotels they still own has dropped, and thats also reflected in the books, thereby eating into the profits - but on paper only. they still had a profit of $5m from their normal activities, and thats a huge result - with more to come.

a shame they didnt learn from the 'buy the local school' debacle of the 90's that nearly sent them under.

Ahhk thanks man, understand it more now

$75.5M in Total Revenue
$12.3M from Memberships alone.

We should offer jobs to sports scientists over in Europe and America = more gain

 

[Visions]

I just hope we don't make any more dumb-arsed footy-mentality investments like pubs and pokies. If you need to invest then buy some bloody BHP shares you idiots.

Nah, stuff BHP, try penny stocks instead!

 

[Jonno_]

We should offer jobs to sports scientists over in Europe and America = more gain

Our (and Australia's) sports scientists are the best in the world. Liverpool bought some of our former club doctors (actually in fact a whole team of them) to the club to try to do what we do. It was like a huge deal for the backroom staff at Liverpool. We play one of the most physically demanding sports in the world, but for some reason, clubs like Liverpool, Arsenal etc always seem to have more injuries than us.

I'll take ours thanks.

 

[vjknight]

Nah, stuff BHP, try penny stocks instead!

LOL visions.

i have to disagree. after the joy of this year, ive just had my nuts removed with the demise of a penny dreadful - was a coming powerhouse - no longer.

anyway, i still have footy.

 

[mwalker]

I wonder what actually went wrong with these investments?

Normally, they're a licence to print money.

With a legion of fans, happy to get behind the club, you'd have thought it was a cert as an investment.

Dose anyone know if it was poor local management, poor location or whatever else, why they failed?

im no expert god but i'll do my best.

they borrowed to buy the hotels, but at boomtime prices. the loans were short term, borrowed against the value to the asset (hotels). the value of the hotels fell, and when time to renew the loans, the value didnt match the amount borrowed, so its either put up more security, which they dont really have, or sell the hotels for a loss, close out the loan and pay the difference out of profits from this year. also the value of the hotels they still own has dropped, and thats also reflected in the books, thereby eating into the profits - but on paper only. they still had a profit of $5m from their normal activities, and thats a huge result - with more to come.

a shame they didnt learn from the 'buy the local school' debacle of the 90's that nearly sent them under.

I will give some insight into The Beach as I did all the IT work for the computer systems before we took them over. The place is lovely but like all businesses there on Beach Rd they take quite the hit in winter and struggle to make money (esp during the day as not a lot of regulars and locals). Add to the fact that their kitchen/wine cellar was exceptional but the economy at the time did not suit such things and again could not attract enough customers.

It was not unusal (mon-fri) to have only 3 or 4 customers for the entire day up until 6pm. The pokies were just as quiet. Add to the fact all the stuff mentioned by the prev poster regarding the timing of buying it was a horrible horrible decision.

My wife worked the bar and I did all the installing and it work for their computer systems so I saw the place everyday for a long time and it was like a ghost town.

 

[Invigoration]

A challenger appea....

oh wait, nevermind.

 

[FredNerk69]

Can anybody tell me do we still own both pubs?

I can only see mention of one in all the articles.

Although we lost on them if we still own them debt free they are an asset we can use for the future. Property markets are fickle and who knows they might go back to the price we bought them at sooner rather than later.

 

[MarkT2]

I wonder what actually went wrong with these investments?

Normally, they're a licence to print money.

With a legion of fans, happy to get behind the club, you'd have thought it was a cert as an investment.

Dose anyone know if it was poor local management, poor location or whatever else, why they failed?

Paid too much, borrowed too much, didn't adequately anticipate the impact of smoking regulations and generally made poor decicions.

We make a lot of money becasue we have a huge supporter base, get a lot of coverage and have a president that can work a corwd and do a deal. We ahve carroed some ordiary administrators and even board members along the way though.

We got list management and development right though and that is the most important thing. A lot of that can be put down to revenue generation being put into the football department. Our profits are understated because we spend so much on the football department - as we should. The pubs we just a monumental failure of management from start to finish - except it still isn't finished.

I honestly think members have been mislead over the last few years and to a large degree Kirean Butler was right but I'll cop it for a flag.

 

[Swooop]

Thanks mwalker and MarkT2.

PS LOL Invig, very good!