Anyone want to have a go at what our receivables and outgoings are?

afaik

revenue - 19mill

outgoings (guessing of course)
player salaries +pagan - 7mill (edit 7.5mill including 500k from kouta outside cap)
assistant coaches - 700k (3 X200k, 2X50k)
travel expenses - 400k (5 tripsX2k$/tripX40man party)
Optus upkeep - 2 mill
Interest on debt - 325k (10% of 2.5mil for legends stand+15% of 500k for overdraft) - assuming no interest due on advanced monies

What other expenses do we have?

too many numbers

Yep it's simple.

Bit like losing weight. What's getting burnt off is greater than what we're eating.

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bortaS bIr jablu'DI', reH QaQqu' nay'
-Old Klingon Proverb

Staff salaries - or is that included in "optus upkeep"?

our revenue is the lowest in the AFL. Our expenses are more than our revenue. We have spent up front $ we got for moving. Our overdraft of $4mill (from memory) is fully spent. Our membership is down 7000 say that equals $1.5 mill. OUR NET DEBT IS ALREADY $7 MILL.

= ROOTED

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I support Carlton, Fulham and I'm an accountant - my mate calls me a 3 time loser.

The purpose of the exercise was to try to figure out where we are making the losses and whether or not some cut backs can be made (ie dogs/north/etc)


Its often quoted that we are in this tight cashflow position due to our debt and the requirement to service it. The last time the debt was broken down in the paper it was listed as 2.5mill oweing to legends stand, 500k on overdraft and 4mill on advanced monies from the AFL. Advanced monies should not be an interest bearing item. I think estimating 10% on a bank loan and 15% on overdraft would cover the actual %s on the loan/accounts. In which case an annual debt interest expense of 325k whilst high, in no way accounts for our current poor financial position of looking at a 1.5mill cash shortfall.

think our interest expense is closer to $500K per year (Mikkey have you got the figures and ps sorry for shouting before!). The advanced monies from the AFL are actually (I believe) pre advanced from the NAB so they are interest bearing....

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I support Carlton, Fulham and I'm an accountant - my mate calls me a 3 time loser.

Chicken the future value of money is higher than the current value. If the AFL gives us $4m dollars now that it doesn't owe us for 12 months, then it actually costs them $4m plus the 10% interest they could have earnt on the money over that 12 months until they were supposed to give it to us.

So I suspect that the AFL would be discounting the advance they are giving us to account for this, and we're only getting given say $3.6m of the $4m that we would otherwise get if we weren't drawing on it in advance. That's just a guess but it's entirely logical.

All of a sudden your interest expense is up to 3/4s of a million dollars

4C good start. Don't have the numbers but there is the administration staff to pay for. This may include the membership, sponsorship, marketing areas, etc.

BTW the PP upkeep of $2m looks pretty steep.

NOT MUCH - HEAPS = [REDACTED]

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Love Cricket? Love me

I dont think the AFL wouldnt apply discounts on the cash advance advances - The cash is there, the AFL doesnt need it and several clubs participate in this arrangement - just wouldnt make sense to discount a cash advance (not to mention would be misleading to quote the full amount in the media, annual reports etc)

THere are clubs out there with lower memberships and possibly lower game attendances. We are told that the clubs facilities arent up to scratch either so obviously we arent spending that much money there. So where is the money going?

It goes to the NAB. We get it off them to run the club before we get it off the AFL. The money we get from the AFL doesn't come to us - it gets redirected to the NAB (but we pay the interest). From memory the last financial statements showed this as fully drawn ($4mil).

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I support Carlton, Fulham and I'm an accountant - my mate calls me a 3 time loser.

So if the NAB overdraft is fully drawn at $4mil then where do we owe the other $3mil?

wages wouldnt top 1.5 mill/yr (say 20 staff @ 50k each+ a bit extra for overheads)

on PP upkeep - it is steep -the last official figure was 1.8mill (prior to AGM) though given that it was reported to be 300k prior to the move from PP I figured putting it a bit higher would be a safer bet

Michael Malouf ... $50,000
Ian Coutts .... $50,000
Do you want me to keep going?

The rest is what's left of the stand debt. Think of the $4m as a very large credit card debt.

I presume that this is with the NAB also given that our overdraft is there.

You could not be further from the truth. The 4 million dollar debt which is the advance on the AFL dividend would cost the club somewhere near 7% interest p.a. Usually this money is in the form of commercial bills and the rate is based on the cash rate plus the bank wacks on a margin between 1-2%. Credit card debt is at least twice this rate.

I was using an analogy of a credit card for the line of credit that the NAB extends in exchange for the redirection order. I wasn't equating the two terms of interest owing.