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the VFL imploding financially

Posted: Mon Feb 10, 2014 10:45 pm
by Raiderdave
oh my

oh my oh my

deary gracious me fumblers :-k

your codes governing body has had to go bank guarantor for its failing clubs, many of whom are technically insolvent .. to the tune of 34 Million dollars
just
to keep them operational :shock:

Ol Raider has been bangin on for years about how awful many VFL clubs are goin coin wise
but we have our deluded brain washed .. head up their assess ... twats in here
who just refuse to believe it :lol: :lol: :lol: :lol: :lol:

The Kitty Kats
theres some opinion .. they simply cannot continue to function they are that far up shit creek...... they're close to folding :_<> :_<> :(/ :(/ :(/ :(/ :(/

is it any wonder the VFL only bank 11 million odd in 2013..
while the ARLC....banked 47.5 Million :wink:

heres the full story fumblers
read it
& weep :cool:

the AFL is providing $34 million of bank guarantees on behalf of its clubs, in some cases to enable cash-stricken operations to pay their bills and convince auditors they remain commercially viable.

as australia’s richest football competition prepares to enter fresh negotiations on what it hopes will be another $1 billion broadcast rights deal, its underclass of working-poor clubs are increasingly reliant on the goodwill of the AFL and banks to survive.

An examination of club finances by the australian has found the AFL club in the most dire financial position is brisbane, which remains technically insolvent with a deficiency in net assets of $4.7m and a deficiency in current assets of $12.8m.

The club is bleeding cash, with last year’s cash profit of nearly $400,000 a quirk of accounting masking a true loss of $538,872. The club’s 2013 season balance sheet prompted a stern warning from kpmg auditor scott guse, who said there was a “material uncertainty which may cast doubt about the company’s ability to continue as a going concern”.

To secure an $8 million bill facility, the club relied on an AFL guarantee and presented westpac with a separate letter of support from the league setting out “a range of financial assistance packages that can be used to assist the company to meet its obligations if necessary”. St kilda relied on an AFL guarantee to extend its commercial bill facility from $4.75m to $6.75 million. The western bulldogs, north melbourne and melbourne, who all failed to make last year’s finals series, also depend on AFL-guaranteed credit.

Carlton and richmond continue to operate with AFL-backed credit facilities, although both clubs are steadily reducing the amount they owe and ended the last trading year with healthy cash surpluses.

Even one of the competition’s most powerful clubs, essendon, finds itself drained of cash after having to fork out nearly $4m to cover fines and legal expenses from the supplements scandal and a further estimated $1m to pay suspended coach james hird his entire 2014 salary in advance.

Essendon president paul little said the club always expected to end last season depleted of cash reserves after investing heavily in the club’s new training centre. However, he said the club had forecast a trading profit this season and expected to be debt-free in three years.

The AFL guarantees enable clubs to secure a line of credit at a cheaper interest rate than banks would otherwise offer, if at all, to businesses facing similar financial difficulties.
Last year’s figure of $34m has risen from total guarantees worth a little over $30m in 2012.

St kilda president peter summers said an additional $2m in AFL-guaranteed credit secured since the end of the 2013 season was be used as working capital. Put another way, the extended credit is being used to keep the lights on.

Bulldogs president peter gordon said the problem confronting the competition’s perennially cash-strapped clubs was simple. “we don’t make enough money at the moment,” he said. “we have to address that.”

summers, whose club recorded the lowest revenue figure in the competition last year, said the club had not spent itself into trouble.

“we are not a high-spending club,” he said. “this is about increasing our revenue.”
the saints are off to a shaky start, with the club last week confirming a 10 per cent drop-off in membership from this time last year. Summers told members at the club’s annual general meeting last friday that it was “complete nonsense” to suggest smaller clubs were poorly managed.

Although the AFL’s salary cap and draft has helped keep the national competition even, a growing mountain of cash separates the rich clubs from the poor.

Where the saints failed to earn $30m last year, collingwood declared revenues in excess of $75m. Collingwood ended last season with $21m cash on hand, the saints were left with $80,418. The bulldogs’ cash balance was boosted by a $1m, interest-free loan from gordon.

Collingwood last year spent $6.3m managing its swollen membership base - more than the bulldogs earned from theirs.

The bulldogs’ 2013 accounts lodged with the australian securities & investments commission carry an auditor’s warning citing “significant uncertainty” about club continuing as a going concern. The directors of the st kilda, melbourne and north melbourne also address going concern issues in their financial statements.

Gordon, a founding partner of legal firm slater & gordon who now runs gordon legal, and summers, chief executive of property group avjennings, are optimistic about this season.

Summers said the saints had budgeted for an operating surplus for 2014 and would soon unveil a five-year plan to build a sustainable revenue base. Gordon said in contrast to his previous time as bulldogs president 25 years ago, when a less paternalistic AFL was prepared to see the dogs go broke, he no longer felt like the sword of damocles was hanging over the club.

However, both are pushing for substantial reform to how the proceeds of football are shared.
Summers wants urgent action by the AFL to address the discrepancy in the financial returns clubs receive under their respective stadium deals. Gordon wants the AFL’s complex system of financial distributions scrapped and replaced by equal allocations to the clubs to cover all player payments and a set amount on other expenses. Under the gordon model, the rich clubs would be free to spend more on their football operations but the poorer clubs would have guaranteed, long-term revenue and no longer be year-to-year propositions.

“had the AFL introduced the sort of revenue sharing which the nfl has and major league baseball did and the nba did 10 years ago, it is likely that our balance sheets and a lot of other balance sheets would be a lot healthier now,” gordon said.

A chartered accountant with a leading insolvency specialist examined brisbane’s financials and provided a bleak assessment of the club’s outlook.

“they are currently loss making, are churning through their available cash reserves, and have a significant current asset deficiency,” the accountant said. “they also have significant levels of debt. The letter of support from the AFL is obviously critical to the operations of the business in its current form.”


representatives from the brisbane lions did not respond to requests for comment

http://www.theaustralian.com.au/spor...-1226822011769#

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Re: the VFL imploding financially

Posted: Mon Feb 10, 2014 10:56 pm
by adamj1300
page could not be found
:(/ :(/

Re: the VFL imploding financially

Posted: Mon Feb 10, 2014 11:00 pm
by Raiderdave
adamj1300 wrote:
page could not be found
:(/ :(/
bit like your intellect eh cockhead ? :lol: :lol: :(/ :(/ :(/ :_<> :_<> :_<>


PS
page works fine :wink:

Re: the VFL imploding financially

Posted: Mon Feb 10, 2014 11:01 pm
by King-Eliagh
ShiiiiiiiiIIIiiiit eh. Oh my indeed! No wonder they've been in the basketcase league three years runnin!

Eek. I've always hated the lions but also really enjoy it when the swans give em a good thumpin. I spose that mightn't be happening too much longer if brissie fold... 8-[ 8-[ 8-[

This also brings up further questions. Has the introduction of the goldcoast acted as a catalyst to this awful downfall of a club? Have the AFL misjudged their own reach and importance and foolishly gone into a market that simply wouldn't support two teams of a code which is second or third fiddle in the city?

Re: the VFL imploding financially

Posted: Mon Feb 10, 2014 11:02 pm
by King-Eliagh
page works fine for me too adam. Perhaps your browser?

:)

Re: the VFL imploding financially

Posted: Mon Feb 10, 2014 11:42 pm
by adamj1300
the Australian page loads but article doesn't, in Google chrome

Re: the VFL imploding financially

Posted: Tue Feb 11, 2014 1:33 am
by King-Eliagh
adamj1300 wrote:
the Australian page loads but article doesn't, in Google chrome
Ahh yes ok I see. Yes chrome is prone to glitches im afraid. glitches like....your head! :_<>

No sorry im just a joshin. Try another browser :)

Re: the VFL imploding financially

Posted: Tue Feb 11, 2014 6:27 am
by Xman
Its fair to say the AFL need to equalise football department spending. The current setup is putting a lot of pressure on the smaller clubs to compete. Once they sort this out there won't be a problem

Re: the VFL imploding financially

Posted: Tue Feb 11, 2014 6:36 am
by Raiderdave
Xman wrote:
Its fair to say the AFL need to equalise football department spending. The current setup is putting a lot of pressure on the smaller clubs to compete. Once they sort this out there won't be a problem
equalise
what.. are we in communist North Korea or something ? :?>

how can you tell a business they are to curb their success or even worse
share their income with their competitors ? :shock:
just another attempt by the kings of fake
to manipulate things to contrive an outcome [-( [-( [-( [-( [-( [-(

fuck me
this bumbling Victorian circus just gets more ridiculous by the day :lol: :lol: :lol: :(/ :(/ :(/ :_<> :_<> :_<> :_<> :_<>

Re: the VFL imploding financially

Posted: Tue Feb 11, 2014 6:53 am
by Xman
Raiderdave wrote:
Xman wrote:
Its fair to say the AFL need to equalise football department spending. The current setup is putting a lot of pressure on the smaller clubs to compete. Once they sort this out there won't be a problem
equalise
what.. are we in communist North Korea or something ? :?>

how can you tell a business they are to curb their success or even worse
share their income with their competitors ? :shock:
just another attempt by the kings of fake
to manipulate things to contrive an outcome [-( [-( [-( [-( [-( [-(

fuck me
this bumbling Victorian circus just gets more ridiculous by the day :lol: :lol: :lol: :(/ :(/ :(/ :_<> :_<> :_<> :_<> :_<>
The AFL recently visited the NFL to learn about their equalisation strategies. :\:

Re: the VFL imploding financially

Posted: Tue Feb 11, 2014 9:32 am
by TLPG
Raiderdave wrote:
equalise
what.. are we in communist North Korea or something ? :?>

how can you tell a business they are to curb their success or even worse
share their income with their competitors ? :shock:
just another attempt by the kings of fake
to manipulate things to contrive an outcome [-( [-( [-( [-( [-( [-(
Get lost, Raider!! Football doesn't run like that! It needs to be even to be successful!! Do NOT apply such business principles to team sport. It doesn't work and if you had any guts (and you don't as proven at 9am yesterday morning) or brains (and you don't because you stuffed up the link and that's the real reason why it didn't work) you'd understand that!

The football department issue was already canvassed awhile ago by the Herald Sun, and the AFL is onto it and rightly so.

But, Xman, the NFL is the LAST place the AFL should be taking it's advice from. Simply because their sport's layout and ours are poles apart to the point of irrelevance. If they wanted to take marketing and equalisation advice, they should be talking to MLB if they have to go to the US.

Needed to be said.

Re: the VFL imploding financially

Posted: Tue Feb 11, 2014 10:28 am
by NRLCrap1
I'll back up the stuffed link. Dots don't work, Dave! You have to copy and paste the whole thing, goose!

Where's this Herald Sun story, TLPG?

Re: the VFL imploding financially

Posted: Tue Feb 11, 2014 10:43 am
by King-Eliagh
TLPG wrote:
Raiderdave wrote:
equalise
what.. are we in communist North Korea or something ? :?>

how can you tell a business they are to curb their success or even worse
share their income with their competitors ? :shock:
just another attempt by the kings of fake
to manipulate things to contrive an outcome [-( [-( [-( [-( [-( [-(
Get lost, Raider!! Football doesn't run like that! It needs to be even to be successful!! Do NOT apply such business principles to team sport. It doesn't work and if you had any guts (and you don't as proven at 9am yesterday morning) or brains (and you don't because you stuffed up the link and that's the real reason why it didn't work) you'd understand that!
Oi! Settle down pumpkin. We don't want another tantrum in here. We want good robust discussion and, of course, fighting! you suggest business principles don't apply to the AFL, a professional football league...?

Ahhh :?> and then you suggest dave's got no brains in the same post because of a link error!! :(/ Ohhhhhhhh the irony! :(/ :_<> :_<> :(/

The big picture. These AFL chumpos just don't have it :lol:

Re: the VFL imploding financially

Posted: Tue Feb 11, 2014 11:16 am
by AFLcrap1
The words "INTEGRITY" & "EQUAL " should never be used in any sentence containing AFL.

The Laughable COLA, The laughable Draft picks going to new teams..TANKING or NON Tanking make sure that the comp is no where near EQUAL.

Re: the VFL imploding financially

Posted: Tue Feb 11, 2014 12:21 pm
by NRLCrap1
King-Eliagh wrote:
The big picture. These AFL chumpos just don't have it :lol:
The big picture goes wider than your mirror, Eliagh.