Mega Thread Port Forum 'General AFL Talk' Thread

[RossFC]

Can't see the photo but thank **** for that.

 

[Jim Dixon]

Hawthorn's financial results came out today. They had a good year off the field too.

link

Key points of the report:• Club net operating profit of $3,118,672 for year ending 31 October 2013;
• Achieved a record membership tally for the sixth consecutive season. 2013: 63,353
(2012: 60,841), which includes 8,567 Tasmanian members;
• Merchandise sales grew by 19% in 2013;
• Football department expenditure increased to $21.8 million (2012: $19.3 million);
• Crowd attendances averaged 52,809 at Melbourne home games in 2013 (2012: 44,629), with the highlights being the season opener against Geelong (76,300) and the Round 21 fixture against Collingwood (71,533);
• Foundation: The Hawthorn Football Club Foundation holds a cash balance of $3,189,422 as at 31 October 2013. The Club is delighted to announce a further contribution of $500,000 to the Foundation, which will be paid in November 2013;
• Assets: The Club’s net assets exceed $26.5 million;
• Total revenue: $64,772,874 (consolidated) and $50,939,062 (Club).

link

I'm not an avid accountant or anything but it seems to me that the Hawthorn FC has been well run for a considerable amount of time. And that in the AFL good management, like compound interest, is a gift that keeps on giving.

 

[Concussion]

Hawthorn's financial results came out today. They had a good year off the field too.

link

$15million over 5 years from the Tasmanian Government helps not to mention the $300,000 extra from them for winning the premiership.

link

I'm not an avid accountant or anything but it seems to me that the Hawthorn FC has been well run for a considerable amount of time. And that in the AFL good management, like compound interest, is a gift that keeps on giving.

 

[Chrizzt]

...
I'm not an avid accountant or anything but it seems to me that the Hawthorn FC has been well run for a considerable amount of time. And that in the AFL good management, like compound interest, is a gift that keeps on giving.

I won't deny that they've been run well, but they've been gifted a lot of it also. Part of it comes from their on field results of the past 5 years, sustained success like that will(should) see any club improve off field.
Their deal with Tassy is a good one, as CamTAS pointed out, their stadium deals in general are better than ours.
And lastly, they've been painted as the media poster boys on the comp, along with some of their players in Franklin and Rioli, which would give a significant boost to merchandise sales. Again, part of this comes from their gameplan which is exciting to watch, but when the AFL media are slapping your image at the front of every product, it makes it a heck of a lot easier to get exposure to sales.

 

[Doctor Feel]

Gee, 64 million in revenue and only a 3 million profit.

Thats a net profit margin of only 4.6%.

Footy clubs business model wouldn't be based around profit I wouldn't think. The hawks would be based around a combination of on field success, supplemented by off field success. A tidy profit of 3 million will allow further investments and potential avenues of revenue, I wonder what plans they would have to extrapolate their profits.

I would wager a fair bit of that profit would go to the AFL and equipment/staffing, as opposed to growth.

 

[Schulzenfest]

Big Matty T is currently training with Richmond. Good luck to him, hope he gets a spot there.

 

[It Just Is]

So what subsidiaries do they own that turn over 13m? Surely not Boxhill.

 

[RussellEbertHandball]

Hawthorn's financial results came out today. They had a good year off the field too.

link



link

I'm not an avid accountant or anything but it seems to me that the Hawthorn FC has been well run for a considerable amount of time. And that in the AFL good management, like compound interest, is a gift that keeps on giving.

Started with Ian Dicker. he finished without seeing the real cream but his 10 years, especially the Waverley Park settlement from the AFL and Tasmania second market home ground, were paying big dividends after he left, which let them go and buy those pokies and the Caroline Springs (spell) social venue.

 

[RussellEbertHandball]

So what subsidiaries do they own that turn over 13m? Surely not Boxhill.

Pokies/social venue at Caroline Springs from the article

whilst the West Waters Hotel Joint Venture at Caroline Springs promises to be an outstanding long-term investment for the Club.

 

[RussellEbertHandball]

So what subsidiaries do they own that turn over 13m? Surely not Boxhill.

From their 2012 Annual Report notes to the accounts. CSJV = Caroline Springs Joint Venture.

In early 2010 the Club initially held a 50% non controlling interest in the CSJV via the CSFT. On 11
October 2010, the Club obtained control of the CSJV by acquiring a further 16.67% of the venture, taking the Group’s consolidated interest to 66.67%. The venture, as a consequence of accounting standards, became a deemed subsidiary as a result of this controlling acquisition.

The total consideration paid for the 16.67% interest was $2.08m with the associated net assets
approximating $80k, resulting in the effective acquisition by the consolidated group of approximately $2m in goodwill.

Recognition of the CSFT’s control of the venture requires that its initial 50% investment in the CSJV be revalued to fair value. In the opinion of the Directors, based on independent valuations received and the price paid for the 16.67%, the 50% CSJV interest’s fair value is approximately $6.239m. Together with the $2m goodwill acquisition and the re-value of the initial 50% interest to fair value, the consolidated group carries approximately $8.2m of goodwill in the statement of financial position as at 31 October 2012 (31 October 2011: $8.2m).

 

[It Just Is]

Pokies/social venue at Caroline Springs from the article

whilst the West Waters Hotel Joint Venture at Caroline Springs promises to be an outstanding long-term investment for the Club.

Thanks. Not sure how I missed that in the article.

Those things are run at pretty much breakeven but nonetheless that's a substantial amount. Some generous pensioners in the Hawthorn area.

What sort of revenue does the Port Club take in REH?

 

[Dobie G]

Hawthorn has had it's ups and downs, in the mid '90's they nearly merged with Melbourne and Clarko's first few years were very lean on field, there were a few regular calls for his head. Wasn't really until Tasmania helped them with sponsorship that they started to get good on and off the field.

 

[It Just Is]

From their 2012 Annual Report notes to the accounts. CSJV = Caroline Springs Joint Venture.

In early 2010 the Club initially held a 50% non controlling interest in the CSJV via the CSFT. On 11
October 2010, the Club obtained control of the CSJV by acquiring a further 16.67% of the venture, taking the Group’s consolidated interest to 66.67%. The venture, as a consequence of accounting standards, became a deemed subsidiary as a result of this controlling acquisition.

The total consideration paid for the 16.67% interest was $2.08m with the associated net assets
approximating $80k, resulting in the effective acquisition by the consolidated group of approximately $2m in goodwill.

Recognition of the CSFT’s control of the venture requires that its initial 50% investment in the CSJV be revalued to fair value. In the opinion of the Directors, based on independent valuations received and the price paid for the 16.67%, the 50% CSJV interest’s fair value is approximately $6.239m. Together with the $2m goodwill acquisition and the re-value of the initial 50% interest to fair value, the consolidated group carries approximately $8.2m of goodwill in the statement of financial position as at 31 October 2012 (31 October 2011: $8.2m).

http://www.hawthornfc.com.au/club/corporate/westwaters-hotel

Hawthorn Football Club’s joint venture at Caroline Springs - WestWaters Hotel & Entertainment Complex officially opened its doors on Friday 17 December, 2010.
The project was three years in the making with significant research and due diligence undertaken to ensure the Club's investment.
The venue is built around Lake Caroline in Caroline Springs, and boasts a 4.5 star 58 room hotel, a la carte bistro, café & lounge bar area, Sports Bar & TAB and conference & event facilities.
This award winning venue has been recognised in local, state and national awards as a finalist and a winner including 'Best Bistro', 'Outstanding achievement in Training', 'Best Hospitality Venue' and 'Sports Bar/TAB of the year'

http://www.westwatershotel.com.au/

That's a significant long term investment.

No wonder the AFL won't sack up and ban pokies revenue. Clubs would demand hefty compensation.

 

[RussellEbertHandball]

Thanks. Not sure how I missed that in the article.

Those things are run at pretty much breakeven but nonetheless that's a substantial amount. Some generous pensioners in the Hawthorn area.

What sort of revenue does the Port Club take in REH?

Port Club + Prince Hotel in 2012 Revenue= $7.75mil Expenses $7.40mil. Before the merger it was roughly a 4:3 split between the Port Club and Prince Hotel reveune and expenses, and I have assumed its stayed the same.

In 2012 the Hawks received $12.25mil revenue from Caroline Springs but it contributed a loss of $1.045mil to the consolidated result.

Revenue is a somewhat meaningless figure without expenses.

The most important KPI is net cash flow from normal operations before football department expense. All this extra revenue is useless if it doesn't produce extra cash for the club to spend on football or make other investments for future long term cash flow gains.

 

[RussellEbertHandball]

http://www.hawthornfc.com.au/club/corporate/westwaters-hotel



http://www.westwatershotel.com.au/

That's a significant long term investment.

No wonder the AFL won't sack up and ban pokies revenue. Clubs would demand hefty compensation.

You have to look back to May 2010 when the government auction of pokie licences in Victoria took place in lieu of the Tabcorp-Taterstalls duopoly coming to an end. Caro write this article about the clubs that bid. Some paid a shit load per machine but the hawks got a bargain.

http://www.theage.com.au/afl/afl-news/pokies-deal-sparks-afl-clubs-feud-20100512-uy3z.html

Hawthorn was celebrating after the silent auction, having paid the $5500 minimum for some 100 machines for which it had considered bidding as much as $110,000 each.

The Hawks / JV entity did go and borrow $12mil + $2mil to fund all this.

 

[Doctor Feel]

I think from memory the prince has been touted as a lemon for some time.

 

[RussellEbertHandball]

Hawthorn has had it's ups and downs, in the mid '90's they nearly merged with Melbourne and Clarko's first few years were very lean on field, there were a few regular calls for his head. Wasn't really until Tasmania helped them with sponsorship that they started to get good on and off the field.

Tasmania deal started in 2002. It was Dicker's long term plans that saved the Hawks and then set them up. When Waverley Park was sold by the AFL the Hawks had a 20 year lease, I think 15 years to go. He negotiated $$$ compensation, took them to the MCG as their home ground, the old Sir Kenneth Luke grandstand was left and was to be their new home for a peppercorn rent and they sublease a good chunk of it to businesses and collect rent.

Everyone talks about Jeff turning the Hawks into a powerhouse off the field but it was Dicker and co. who did the hard yards which has allowed the five 2 fifty strategy to be implemented and succeed. In 2008 the Hawks said they wanted to get to 50,000 members and 2 flags in 5 years ie 2008-2012 period. It took 6 to get 2 flags but the 50,000 got their in 2nd year. 31k in 2007, 41k in 2008 ad 52k in 2009.

 

[RussellEbertHandball]

I think from memory the prince has been touted as a lemon for some time.

Nope the Prince made a $200k profit in 2012. The big advantage of the Prince is the pokies. The club wants to remove the ones in the Port Club to a northern venue and send those who gamble at the Port Club to go to the Prince. The 2012 gambling legislation put that on hold.

 

[Doctor Feel]

Nope the Prince made a $200k profit in 2012. The big advantage of the Prince is the pokies. The club wants to remove the ones in the Port Club to a northern venue and send those who gamble at the Port Club to go to the Prince. The 2012 gambling legislation put that on hold.

I distinctly recall centrals being particularly difficult in regards to this, because of their strong and monopolised source of pokie revenue in the north.

 

[Dobie G]

Tasmania deal started in 2002. .

Hawthorn started playing 4 games each year in Tasmania in 2007, that's when the Tasmania deal kicked in properly.

 

[RussellEbertHandball]

I distinctly recall centrals being particularly difficult in regards to this, because of their strong and monopolised source of pokie revenue in the north.

Yeah they wet their pants, well Chris Grant did when he came out and whinged about it affecting them, despite Golden Grove being the favoured destination, but the on again off again Wilkey gambling legislation that Gillard initially backed, then said no, then introduced a water down version put it all on hold and then other issues, licence, sacking a coach, president resigning, new board, new players, Adelaide Oval put it all on the back burner. But the club still has it in its long term plans to move the 40 pokies out of the Port Club.

 

[RussellEbertHandball]

Hawthorn started playing 4 games each year in Tasmania in 2007, that's when the Tasmania deal kicked in properly.

That's when the sponsorship part of the deal started but the $500k per game started in 2002. If they didn't start playing 2 and 3 games a year from 2002 and doing a good job, and Saint Kilda walking out on Tassie, the Tassie government wouldn't have added the sponsorship component to the $500k /game component to the deal.

1 game in 2001
2 games in 2002
2 games in 2003 + St K 2 games
2 games in 2004 + St K 2 games
2 games in 2005 + St K 2 games
3 games in 2006 + St K 2 games and the saints walked away from Tassie which let in the Hawks to pounce

 

[tribey]

The 2012 gambling legislation put that on hold.

"I actually don't mind a casual post-pub meal poke' and believe people are free to think for themselves vis-a-vis gambling and any problem gamblers usually have addictive personalities and will come acropper in some way, shape or form regardless of what's made forbidden to protect them, but I voted for Mr X anyway because he's SOUFASTRAYAN and so can I!"

- Every other Xenophon voter​

 

[RussellEbertHandball]

"I actually don't mind a casual post-pub meal poke' and believe people are free to think for themselves vis-a-vis gambling and any problem gamblers usually have addictive personalities and will come acropper in some way, shape or form regardless of what's made forbidden to protect them, but I voted for Mr X anyway because he's SOUFASTRAYAN and so can I!"

- Every other Xenophon voter​

​

I voted for him not because he's anti gambling or SOUFASTRAYAN but because he is less incompetent than Penny Wong or that Port hater Don Farrell, wacko Cory Bernardi, the bland Simon Birmingham, the tree hugging Sarah Hansen Young or grandpa Bob Day.

Each to their own, responsible people can do what they want in respect to gambling IMO. But it was the club's long term plans back in 2010 when Pickard jumped on board our wagon that we would turn Alberton into a community hub. Given the $2.5mil x 2 from the state and federal government to build the extension of the facilities and the monies were only granted if a significant community use component was incorporated into the facility. So Pickard agreed to find a venue for us and co-invest in it and take the pokies there and the club wanted to build our museum at Alberton as well as do ther community stuff.

So the move of the pokies was partly philosophical but mainly about the opportunity to make more $$.

 

[Dobie G]

That's when the sponsorship part of the deal started but the $500k per game started in 2002. If they didn't start playing 2 and 3 games a year from 2002 and doing a good job, and Saint Kilda walking out on Tassie, the Tassie government wouldn't have added the sponsorship component to the $500k /game component to the deal.

1 game in 2001
2 games in 2002
2 games in 2003 + St K 2 games
2 games in 2004 + St K 2 games
2 games in 2005 + St K 2 games
3 games in 2006 + St K 2 games and the saints walked away from Tassie which let in the Hawks to pounce

In 2004 the Tasmanian govt put in between $300k-$500k per game
http://en.wikipedia.org/wiki/York_Park
It probably was much less than $500k per game before the 2006 deal where Hawthorn played 1 pre-season game and 4 premiership games each year over 5 years for $15m or $3m a year, $600k per game.