4thchicken wrote:
Big_T
Fwiw, I dont think the legends stand would have been that much of an issue IF the AFL had been fair dinkum with draws, publicity etc - the moment the AFL decided that they wanted optus gone (which, from memory was after the legends stand had been built?), then it was a liability.
At a guess the stands are only being written down because games will no longer be played at optus. Were it not for that fact, then they wouldnt be depreciated as rapidly and our 'financial losses' wouldnt be as great. At a guess a normal grandstand would be depreciated over a period of at least 20 years (ie the average lifespan of a grandstand). Anyone with access to the MCC trusts annual reports etc should be able to find the normal time frame of depreciation readily from info on the great southern stand etc) - If the CFC had used these accepted accounting procedures over the past 3 years the losses reported by the club would be nowhere near as great. However, given the AFL's position on optus I think the club had little choice but to depreciate the stands completely given that games will no longer be played there. Consequently the majority of the value of the stands has been written off in the previous 3 years when clearly they would/could still hold some significant value - Obviously not much value as scrap metal but the same could be said for the MCG and telstra dome if the main drawcards ceased to be played there. ie if footy and cricket decided to quit the G' then the stands are basically worthless as they wont be filled with crowds.
John Elliot being arrogant decided to build the stand without AFL support. The MCG stand only got built because the AFL guaranteed games would be played there and the GF would be there for 50 years or some shit like that.
Elliot built the OO stand with only a 9 year guarantee from the AFL.
Considering it would take 20/30 years to properly recoup the costs of building it the decision to go ahead was madness. Trying to go alone in OO full stop has been madness. Its been a millstone for a long time and the Pies/Bummers have really kicked our ass financially - they realised a long time ago that fronting up costs for your own ground was going to be difficult.
You can't blame the AFL for not giving draws/publicity. If they didn't see OO as a viable venue then Elliot shouldn't have pumped so much money into it. Its not for the AFL to re-organise the comp to back up a dumb decision. They've got the good of the whole comp to consider.
Worrying bit of all those articles:
"We have liabilities of $15.1 million and assets which don't match that, so it is not a pretty picture when you look at the balance sheet itself."
Collins' own words.