I remember those dark days shaking cans and fundraising during the Save Our Skins era. The club almost folded and were destined to become the Brisbane Tigers. Now it seems we have of 24mill cash in the kitty and the powerhouse club we once were. So please those on the current board do not get involved with a recruiting trade war with Collingwood.Hate to think of Hardwick,like Hafey ending up there.
-
IMPORTANT // Please look after your loved ones, yourself and be kind to others. If you are feeling that the world is too hard to handle there is always help - I implore you not to hesitate in contacting one of these wonderful organisations Lifeline and Beyond Blue ... and I'm sure reaching out to our PRE community we will find a way to help. T.
From SOS to 24mill.
- Thread starter gold1
- Start date
There's an old saying (something like): 'money makes money'.
Gone are the days of nepotism where clubs were ruled by ex player cliques without business acumen or values.
What Benny Gale (and Peggy) have bought to this club is simply AMAZING!!!!!
They have vision - and constraint - a very very rare quality in any field!
For me the light bulb moment was Dusty signing - when there (appears to have been) bigger offers elsewhere!
Now we see many lesser players accepting less pay - to be part of a club/a dynasty!
When the culture of success over rules hip pocket nerve - we're in a good place!!!
Well done RFC! You have truly become the Australian sporting code bench mark!!
Gone are the days of nepotism where clubs were ruled by ex player cliques without business acumen or values.
What Benny Gale (and Peggy) have bought to this club is simply AMAZING!!!!!
They have vision - and constraint - a very very rare quality in any field!
For me the light bulb moment was Dusty signing - when there (appears to have been) bigger offers elsewhere!
Now we see many lesser players accepting less pay - to be part of a club/a dynasty!
When the culture of success over rules hip pocket nerve - we're in a good place!!!
Well done RFC! You have truly become the Australian sporting code bench mark!!
What's got me perplexed is how slow they are at starting the redevelopment of Punt Rd, sorry Swinburne Centre.
They also have access to all the money they were promised by Scomo when Libs had their unlikely Federal win.
Now 2 massive cash cows in 2017 and 19 wins, Membership swells 3years running + all the Merch sales.
Not sure why they are dragging their feat on this.
Anyway club is in best financial position ever.
Hope to hear some redevelopment news soon, Benny.
They also have access to all the money they were promised by Scomo when Libs had their unlikely Federal win.
Now 2 massive cash cows in 2017 and 19 wins, Membership swells 3years running + all the Merch sales.
Not sure why they are dragging their feat on this.
Anyway club is in best financial position ever.
Hope to hear some redevelopment news soon, Benny.
Firstly: A great set of numbers!
It is frustrating to have to wait but the Grand Plan is for a $60 million dollar redevelopment, it has to be of a magnitude that will sustain us for the next 50 years we are too big to do a half baked re-do this time. Last I heard i think they were talking a timeline of 2023?, (that might be completion date they may well do in stages?)
I assume the Club are looking to have it fully funded , (or at least mapped out), before proceeding.
So there is:
24 million cash reserves
15 million pledged by Federal Liberal Gov't
They are lobbying the State Gov't and probably the AFL as well, (but don't hold your breath).
And rest assured there will be a call to arms to members at some point.
Last 3 years club profit has been:
2017 - 3.06 million
2018 - 4.2 million
2019 - 4.1 million
These sort of results are still largely dependant on continued success so no guarantees there.
Last edited:
Ask the question at the AGM.I would have thought that sort of development would take 6-12 months to plan, maybe there are planning permission issues..who knows?
Actually I don't know how to read annual reports how did we increase cash reserves by $10 million when we only made a profit of $4.1 million?, Maybe the Gov't pledge is factored in but then that doesn't make sense either.
NET INCREASE IN CASH HELD 10,737,884
Cash at the beginning of the financial year 13,710,013
CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR 24,447,897
That's a colossal jump from last year where the annual report said $13.7m.
Edit: As pointed out above by caesar
I said many times to people over the years, the one thing we have to do to fix all our problems....is win. But the club has gone way beyond that. They've set us up as the monster club for the foreseeable future. Still hard to process.
Caesar - from my reading, theres the 4million extra profit, plus we owe an extra 5million to trade debtors relative to last year and we have an extra 1m in income prepayments. That’s basically the 10m extra cash.
i presume they 1m relates to the fitness biz - ie we get paid in advance and take the cash, but it creates a liability as we have to provide the service into the following year.
5m in trade debtors may mean we are paying invoices on longer terms or something different with the way the leisure group operates. Just means we will need that cash to pay for these when they are due.
hope that helps.
I believe from the looks of it that this relates to the change in accounting treatment of leases. Previous operating leases (off balance sheet) are now treated as capital leases (on balance sheet). There is a direct correlation with this and the right of use asset ($9m) shown within assets. It also explains the finance cost which it states is related to the leased asset. Its not technically "paid" interest. Basically the lease is valued like an asset and uses an NPV calc to be calculated and creates an "interest charge".
I'm not sure what we lease that would be valued at $9m, any ideas?
Surely the $9m lease is Punt Rd, we don't own it. Haven't looked at the report so maybe I've missed something but the lease on Punt Rd, unless it is at a concession, must be substantial.
This would also be in the calculations regarding the redevelopment. Unless we have a long guarantee of occupancy we're hardly going to spend a lot on redeveloping.
As for paying for the redevelopment, now is a good time to borrow with interest rates so low. Could be worth risking at least some borrowing, it is an investment after all and the use of the facilities would over a long period of time so we can pay it off over a period of time. Don't want reserves down to nothing either so you can't commit the whole of the cash reserves to one project.
DS
This would also be in the calculations regarding the redevelopment. Unless we have a long guarantee of occupancy we're hardly going to spend a lot on redeveloping.
As for paying for the redevelopment, now is a good time to borrow with interest rates so low. Could be worth risking at least some borrowing, it is an investment after all and the use of the facilities would over a long period of time so we can pay it off over a period of time. Don't want reserves down to nothing either so you can't commit the whole of the cash reserves to one project.
DS
I was thinking the same.. giddy up and finish punt road oval. But at the same time you dont want to go from $25M in the black to -$10M doing it all ourselves. State govt and AFL would also need to chip in. Perhaps we time this with the redevelopment plans of Richmond Station and possibly a new Southern stand ?? 200M from the center of the AFL universe (MCG) we have a prime location with the opportunity of turning it from good to very special.
We have done so much right over the last 10 years building a new training facility, removing cricket from the ground, resurfacing going from the worst to one of the best tracks going around. Just need that last grand plan to take this to the next level. I personally would like to see us put not more than $10M from our cash reserves.
If they turned Punt Road into an underground tunnel, it would give us more space. Problem is we're too close to the G.
