Power lose $514k

[Macca19]

Just on Channel 7 news.

Thats big, and dissapointing. Will look forward to reading the Report.

 

[Portia]

Thats really pathetic, considering thats the number -before- the SANFL distribution.

Primus only accounts for $400k odd of it, so why are we losing even more money beyond that?

 

[missionpossible]

Yes now the report shall be interesting but let me have a guess. In it we have

$400,000 licence payment
$200,000 retirement payment to primus
$100,000 termination pays
$200,000 depreciation of building

leaving an underlying profit of $386,000. I dont know these figures but let see how creative we have been when the figures come out.

 

[Ford Fairlane]

From the club website

Power's 2005 Financial Result
12:58:02 PM Thu 8 December, 2005
Port Adelaide Football Club

The Port Adelaide Football Club today distributed its Annual Report to club members, revealing a consolidated loss of $514,723 prior to paying its sub-licence distribution to the SANFL, but also reporting some positives on the financial front.

This result follows a consolidated profit prior to SANFL sub-licence distribution of $332,337 last year, which was achieved on the back of the 2004 premiership.

The recorded loss includes a payout to retired captain Matthew Primus for his 2006 contract as well as management redundancy payments relating to a restructure of the sales and marketing operations. This amount accounts for $409,000 of the loss for the year.

Also impacting on the club’s financial result is the deferral of the Foundation Lottery to February 2006, which has meant that approximately $124,000 profit (of a total $220,000) has been moved into the 2006 financial year accounts.

The loss also includes $576,000 relating to license fees and set-up costs, which are unique to the Port Adelaide Football Club as the ‘newest’ team in the AFL. Furthermore, in comparing with last year, there was $720,000 profit directly related to winning the premiership (memorabilia, merchandise etc) which the club did not have in the 2005 year.

Boulton said that that as the club approaches its 10th year in the AFL it was making decisions now for the benefit of the club over the next five to ten years.

“Although you are never pleased in announcing a loss, there are some clear reasons why this is the case. We have made some decisions which have impacted this year’s financials but which leave us in a stronger position going forward,” Port Adelaide Football Club President Greg Boulton said.

“When comparing apples to apples, our financial result this year is an improvement on our core results compared to last year. Having said that, as a club we recognise that we need to continue to look for ways to grow our revenue.

“Prior to the finals series last year, we were expecting a loss in excess of half a million dollars. Included in the 2004 profit was $182,000 on the sale of properties and $720,000 resulting from the premiership. In simple terms this means that there was around $902,000 profit that occurred last year, but not in the 2005 year.

“Although costs were up primarily due to a player payout and redundancies, pleasingly we had an increase in revenue from match receipts and season tickets and memberships, reflecting the fact that crowds were up on average by 3,000 people compared to 2005 and season tickets and memberships increased by 16%.”

Boulton stressed that it would continue to be tough financially for the club until it extinguished costs associated with entering the competition at the end of 2006.

“We continue to incur $576,000 in costs that other AFL clubs do not have,” he said. “These costs include establishment costs of entering the AFL, which are being written off over 10 years, and a licence fee of $4 million which is paid in instalments until the end of 2006.”

Boulton said that the club’s strong net asset position of $5.3 million held it in strong financial standing.

The club’s reported loss is prior to payment of $220,000 SANFL sub-licence distribution. Boulton said the club was pleased to again contribute $220,000 to the SANFL as a sub-licence distribution, in addition to the significant funds the SANFL earned through corporate boxes, catering, ground signage and car parking during the season.

The consolidated result includes the performance of Port Adelaide Football Club Ltd, Port Adelaide Football and Community Club Inc (The Port Club) and PAFC Foundation Limited.

The club will be holding its Annual General Meeting on Monday, December 19.

 

[Macca19]

hmmm. They shouldnt be making excuses regarding the premiership income. That should only ever be an icing on the cake type thing, not using it as an excuse on why we didnt make money this year.

Not too happy at all really.

 

[*PAF]

I'm not overly concerned at all.
Bottom line is that we're in good shape.

 

[Sheeds]

hmmm. They shouldnt be making excuses regarding the premiership income

Agree 100%

Making a profit should not be dependant upon whether we win the premiership, otherwise we will be posting a lot more losses than profits over time.

 

[Toots Hibbert]

hmmm. They shouldnt be making excuses regarding the premiership income. That should only ever be an icing on the cake type thing, not using it as an excuse on why we didnt make money this year.

Not too happy at all really.

I got the report in the mail today. Very concerning that we've made such a large loss when memberships and season ticket sales are up. I've been working flat out and can't face reading it tonight. I did hear Greg Boulton on the radio saying the club was budgetting for a profit next year. I assume this is not simply spin.

Edit:- Just a quick thought, did the club see this coming when they cut the football department budget for this year?

 

[Macca19]

They would have seen it coming when they said we were in for a similar loss last year before the premiership income.

No matter what excuses we come up with, what we say and what extraordinary payments we may have, this is a bloody poor result. Considering that memberships and attendances were a fair bit higher as well makes it even worse.

 

[spookism]

Not good to lose money, hopefully we can back on the right track in the coming seasons or something will seriously need to be looked at!

 

[Crow-mosone]

They would have seen it coming when they said we were in for a similar loss last year before the premiership income.

No matter what excuses we come up with, what we say and what extraordinary payments we may have, this is a bloody poor result. Considering that memberships and attendances were a fair bit higher as well makes it even worse.

this is exactly right. the total loss approaches 850k taking into account your license fee.

no idea why you lost this much, but bleeting about primus and other excuses is pretty thin PR smoke.

The real concern, and yes there is cause for concern, is that your new CEO is supposed to be a financial guy.

 

[missionpossible]

When is the SANFL evaluating how much the crows and the power have to pay to them as a licence fee over the next couple of years????????

 

[Paralowiepower]

The real concern, and yes there is cause for concern, is that your new CEO is supposed to be a financial guy.

Ahh yes, and he has put things in place for the long term, so expecting miracle profits in his first year in some what short sighted.
It was refreshing to hear Greg Boulton say we are here to win football matches and not make millions of dollars.

 

[Paralowiepower]

When is the SANFL evaluating how much the crows and the power have to pay to them as a licence fee over the next couple of years????????

Our fee jumps up over the 300,000 k mark next year which is ridiculous, then we get to re-negotiate. Not sure about the crows.

 

[Crow-mosone]

Ahh yes, and he has put things in place for the long term, so expecting miracle profits in his first year in some what short sighted.
It was refreshing to hear Greg Boulton say we are here to win football matches and not make millions of dollars.

I'd agree.
But what are these things, behind the double speak?

 

[ClintEastwood]

I'm not overly concerned at all.
Bottom line is that we're in good shape.

Agree. The AFL license payment virtually cancels out the deficit, and if we end up breaking even over the course of a year, tough shyte.

If we were making no license repayments, and yet being bailed out to the tune of millions of dollars a year like some Vic clubs.....

 

[Ford Fairlane]

We've already started making a profit by flogging off the crows gear we got the rookies to knock off from their equipment room!

 

[*PAF]

Yes now the report shall be interesting but let me have a guess. In it we have

$400,000 licence payment
$200,000 retirement payment to primus
$100,000 termination pays
$200,000 depreciation of building

leaving an underlying profit of $386,000. I dont know these figures but let see how creative we have been when the figures come out.

$409,000 once off loss (Primus + various redundancies) Will not be there next year.
$576,000 license fee (Only one year left to run)
$124,000 not accounted for (lottery that will now be counted next year)
Depreciation of $?

Dollars wise (as compared to paper wise) we did not do too badly.

 

[Paralowiepower]

$409,000 once off loss (Primus + various redundancies) Will not be there next year.
$576,000 license fee (Only one year left to run)
$124,000 not accounted for (lottery that will now be counted next year)
Depreciation of $?

Dollars wise (as compared to paper wise) we did not do too badly.

But expect Leigh and co to want a greater slice when we go in to re-negotiate the dividend back the SANFL.

 

[Paralowiepower]

It's all well and good to account for the the one offs, but you're still just skewing the figures to say what you want.

Can someone please give us some fundamentals? Assets, liabilities, net assets, cash flow would all give a pretty good picture of how the club is travelling (but honestly, if they have 5 million in net assets, then the club can't be travelling badly at all).

I agree Yob, next year we will have a different set of one offs. As Macca and others have said, to have record memberships and crowds up and yet still lose so much money is a worry.

 

[*PAF]

But there is only one one-off.

 

[scotty13]

How logn do we have to keep paying the SANFL for??? Surely it cant be both ways with the AFL saying we have no relation to PAFC of the SANFL yet the SANFL saying we do and have to keep paying them. Its one way or the other and since the AFl owns the SANFL (i presume since they own every other state comp) then to me the AFL is double dipping.

 

[Paralowiepower]

We you renegotiate you'll already be 500k better off thanks to paying off the AFL license. Sounds fair that your bill would go up. Not up by 500, but at least a little bit to account for the improved financial position.

I agree, but Im just worried the SANFL is relying too much on both Port and the crows to make money for them, when it should actually be done in grants from the AFL like they do with every other state of Australia.
I think most SANFL clubs are in a healthy state, which is fantastic, but you have to worry when a club like North Adelaide start posting profits bigger than an AFL club.

With the dividend given to the SANFL from both the crows and Port I would like to see both AFL clubs have a bigger say on how the money is spent, ie junior development, umpiring and maybe promotion of the local league, not for clubs to use buying pubs and clubs.

 

[Paralowiepower]

But there is only one one-off.

But it's a different one-off each year.

 

[*PAF]

But it's a different one-off each year.

True, but the cashflow side of things seems to be fine even with these one offs. As long as we keep that positive we will be fine.
The trick now is to build on our foundation and stay at the forefront of facilities etc available to players and staff alike, otherwise there will come a time we will have to borrow heavily to get them up to scratch again.

We will never be a billion dollar club. Do not forget that unlike interstate clubs (I think) the profits from AAMI go to the SANFL and not the Crows or Port. IIRC that was a big component of WCE's profit.
However without those profits, plus the dividends from the clubs, the SANFL would slowly but surely go downhill financially.