Bob Reilly exits as chairman

[Matabele]

So if the club has been under performing for a number of years then how has Bob stayed in the job unchallenged?

You would think performance would be a KPI?

Only for successful coaches and CEOs mate.

 

[Fluffy]

Problem is this all takes large sums of money to create, something that would involve a lot of risk.

The place is far nicer than what it was 5 or 10 years ago but only surface changes are really possible.

Rooftop beer garden is probably the only significat change that could happen for relativly little capital.

 

[zambuck]

david costello is a top class official with a great background and was bar manager many moons ago as well as a local junior player and has plenty of experience in club functioning and i congratulate him on his appointment
its good to see bob step down and admit his inability to perform to his ability where others would ignore problems bob has fallen on his sword for the betterment of the club

 

[vidmar]

So if the club has been under performing for a number of years then how has Bob stayed in the job unchallenged?

You would think performance would be a KPI?

Only for successful coaches and CEOs mate.

You did of course google the annual reports for the last couple of years before commenting on KPI's relating to performance at the leagues club Mata?
Would hate to think your extended absence from the site was interrupted purely and simply to stick the boot in to a respected club official from the safety of a key board?

 

[Garts]

So if the club has been under performing for a number of years then how has Bob stayed in the job unchallenged?

You would think performance would be a KPI?

Only for successful coaches and CEOs mate.

You did of course google the annual reports for the last couple of years before commenting on KPI's relating to performance at the leagues club Mata?
Would hate to think your extended absence from the site was interrupted purely and simply to stick the boot in to a respected club official from the safety of a key board?

I thought we went backwards in terms of financial performance from the previous year. I could be wrong.

Anyway at the end of the day he is the Chairman, the management have quite a bit to do with how the club performs, not just the chairman.

A quick question for Vid, does he like your nose up his arse

 

[vidmar]

Garts, read the annual reports over the last few years to understand the environment these guys have been working in.

I'm a simple soul - if someone who I know is doing good is slagged off by those who have no idea I tend to come out and say something?

I'd hope you know people that would do that for you?

 

[Garts]

Garts, read the annual reports over the last few years to understand the environment these guys have been working in.

I'm a simple soul - if someone who I know is doing good is slagged off by those who have no idea I tend to come out and say something?

I'd hope you know people that would do that for you?

The annual reports do not show if someone is doing a good job or not. All they currently show is poor financials results with a poor cash position. Is that Bobs fault? No. As you said the environment is tough. But at the end of the day the club needs to be financially viable.

I have no doubt you would know if someone is doing a good job if they are on the footy club board. Considering you are on that board and obviously involved and privy to the goings on. But as for the leagues club, what is your involvement?

Good on you for sticking up for a mate. It is a loyal trait to have. I have mates who would stick up for me no matter if I was doing a good job or not. That is what mates do.

 

[lovefooty]

Garts, read the annual reports over the last few years to understand the environment these guys have been working in.

I'm a simple soul - if someone who I know is doing good is slagged off by those who have no idea I tend to come out and say something?

I'd hope you know people that would do that for you?

The annual reports do not show if someone is doing a good job or not. All they currently show is poor financials results with a poor cash position. Is that Bobs fault? No. As you said the environment is tough. But at the end of the day the club needs to be financially viable.

I have no doubt you would know if someone is doing a good job if they are on the leagues club board. Considering you are on that board and obviously involved and privy to the goings on. But as for the leagues club, what is your involvement?

Good on you for sticking up for a mate. It is a loyal trait to have. I have mates who would stick up for me no matter if I was doing a good job or not. That is what mates do.

I go to the club alot and it looks better than it did before Bob arrived.
Last year they did Reno's that took 4 months to complete. That would of hurt the bottom line as i think they went over time.
I think reed did them.
Thank god they are completed as i think Reed has gone broke.

Any way I think he is still on the board. Good luck to him the place is better now than is was before.

 

[Garts]

I agree, it looks heaps better. Just stiring up Vid, he is Bob and others knight in shining armour.

 

[Matabele]

I didn't bring KPIs into it. Vidmar has selective vision. Reilly himself is quoted as saying he's not up to the job. Maybe the reporter misquoted him?

Good to see Vidmar's missed me though.

 

[Ryan]

Actually most of the recurring income the club sources has improved. Regression in memberships, Poker Machine (especially) income, and what looks to be one off sale of assets is what is hurting the club.

But Poker Machine income is obviously having the biggest adverse affect.

How do clubs acquire (in Manly Leagues case) circa $1,002,000 in lost poker machine revenue in 12 months? It would be a really tough gig.

Financing Costs have also increased substantially. Without knowing the workings of the business, I'd put this down to the club borrowing an additional $2,100,000, which netted a gain of circa $3,000,000 in property, plant and equipment.

If you look at page 11, it shows a lot of the long term debt being charged at 8.5%. In my way of thinking, that's pretty darned high. Especially when the cash rate has been around 5.3%. What kind of margin are these people paying? With liquidity costs going up for The Banks, that's only going to get worse as well.

Renegotiation here may improve funds cash drivers.

Another thing I noted, is that memberships are drastically down ($20k odd). How many members does that equate to? That, on top of a reduction in the pokies income, should have meant less staff was required, but staff numbers remained consistent.

That's another suggestion to improve performance (as hard as that may sound to families, I know).

Also guys, depreciation is a non cash item, so before people cast stones out as to how bad the club is doing, add that back, and the clubs actually making a profit after grants and donations etc.

Honestly, I think the clubs strategies and objectives are a little naive (almost as though they could be type cast for any club). I have listed 2 tangible ways profits could improve (sometimes in a business, streamlining isn't what people want to hear).

In Summary: Less cash (fixable), Good Net Asset position (Equity), profits after intangible add backs.

Not as bad as it appears IN THIS ECONOMY.

 

[Matabele]

How much did the Leagues club contribute to the operations of the team last year, did it say?

 

[jbb/james]

Actually most of the recurring income the club sources has improved. Regression in memberships, Poker Machine (especially) income, and what looks to be one off sale of assets is what is hurting the club.

But Poker Machine income is obviously having the biggest adverse affect.

How do clubs acquire (in Manly Leagues case) circa $1,002,000 in lost poker machine revenue in 12 months? It would be a really tough gig.

Financing Costs have also increased substantially. Without knowing the workings of the business, I'd put this down to the club borrowing an additional $2,100,000, which netted a gain of circa $3,000,000 in property, plant and equipment.

If you look at page 11, it shows a lot of the long term debt being charged at 8.5%. In my way of thinking, that's pretty darned high. Especially when the cash rate has been around 5.3%. What kind of margin are these people paying? With liquidity costs going up for The Banks, that's only going to get worse as well.

Renegotiation here may improve funds cash drivers.

Another thing I noted, is that memberships are drastically down ($20k odd). How many members does that equate to? That, on top of a reduction in the pokies income, should have meant less staff was required, but staff numbers remained consistent.

That's another suggestion to improve performance (as hard as that may sound to families, I know).

Also guys, depreciation is a non cash item, so before people cast stones out as to how bad the club is doing, add that back, and the clubs actually making a profit after grants and donations etc.

Honestly, I think the clubs strategies and objectives are a little naive (almost as though they could be type cast for any club). I have listed 2 tangible ways profits could improve (sometimes in a business, streamlining isn't what people want to hear).

In Summary: Less cash (fixable), Good Net Asset position (Equity), profits after intangible add backs.

Not as bad as it appears IN THIS ECONOMY.

Just an observation Ryan, and in no way meant as disrespect

Gee you post well when you write with your head and not your heart

 

[Rex]

What sort of accounting is that Ryan?

You don't include depreciation when calculating a profit? Seriously?

By that accounting you could buy a machine for $1m that becomes scrap after three years, make $10,000 in revenue each year, and pat yourself on the back for a $30k profit over those three years! All you have to do is forget that one million dollars you lost to make that $30k.

 

[Ryan]

Matabele, on page 6 mate, there is an item labelled, "propagation of sport: Football related grants of $226,508 (2011) and $226,846 (2010). I'm assuming that what is provided mate.

Another few things of note: What the HELL is write off of $202,037? Was there a "put and call" option not taken up? Why wasn't it taken up? Jeez guys - not good.

Secondly, (and this made me chuckle) Directors food bill for the year, and yeah, I know Zorba was there, was $57,571. What, were they drinking cocktails all year?

---

Rex, mate, as explained in my post, depreciation is a legal tax offset affecting a balance sheet vs. income statement. Here's an example from google:

Buildings, machinery, equipment, furniture, fixtures, computers, outdoor lighting, parking lots, cars, and trucks are examples of assets that will last for more than one year, but will not last indefinitely. During each accounting period (year, quarter, month, etc.) a portion of the cost of these assets is being used up. The portion being used up is reported as Depreciation Expense on the income statement. In effect depreciation is the transfer of a portion of the asset's cost from the balance sheet to the income statement during each year of the asset's life.
______________________________________________________________________________

Back to me:-

When Banks look at servicing for a client based on profit (very rare nowadays - it's all net cash after operations, and rightly so - cash is king), it goes as follows:-

Sales, plus OTHER income, less Cogs, less expenses, less tax, plus amortisation + depreciation + Interest = XYZ

XYZ = net income used to service the huge debts.

Also, the example you used mate is silly. If I saw anyone looking to buy a widget for $1,000,000, hoping to attain $30,000 in revenue from it, I'd tell them to re-consider. If they were after $30,000 in net PROFIT, after the cost principle, or matching principle was applied, and other expenses, MAYBE, but even then, profit margins are low for such a big investment.

To answer your question though simply. Yes, depreciation is used to determine profit. Secondary to that, as a non-cash item, Bank's addback this figure to determine net income available to service any debts.

Wheel or Tookey - sound about right lads?

 

[tookey]

Spot on Ryan.

Depreciation is a non cash expense and lenders used to add it back as a non cash expense to net profit when calcuating a clients ability to service a loan.

Rex the only organisation I know of that would purchase a peice of equipment for $1m that generates $10k profit a year and is obsolete in 3 years if the current federal government.

Does the leagues club have a box at brookie? If so then I would suggest that this might make up part of the $57k in the directors costs.

 

[DSM5]

OK. Suggestions by Ryan are that the club renegotiate bank loans and sack some staff. Suggestions by Matas are to bag the outgoing President. Any suggestions on how to grow the business? I'm actually amazed the club made a profit given the horrid site, renovations and the current abysmal trading situation of most businesses. Leagues clubs seem like dinosaurs in this age of instant gratification, home entertainment and breath testing. Maybe they can squeeze their suppliers, like Woolies and Coles. Redevelopment of the site/s with the club taking a couple of stories. Seems to work at Redfern.

 

[The Wheel]

Spot on Ryan.

Depreciation is a non cash expense and lenders used to add it back as a non cash expense to net profit when calcuating a clients ability to service a loan.

Rex the only organisation I know of that would purchase a peice of equipment for $1m that generates $10k profit a year and is obsolete in 3 years if the current federal government.

Does the leagues club have a box at brookie? If so then I would suggest that this might make up part of the $57k in the directors costs.

Yes I concur, depreciation is an add back.

I also concur with JBB/James, Ryan you are not as dumb as you look

---

OK. Suggestions by Ryan are that the club renegotiate bank loans and sack some staff. Suggestions by Matas are to bag the outgoing President. Any suggestions on how to grow the business? I'm actually amazed the club made a profit given the horrid site, renovations and the current abysmal trading situation of most businesses. Leagues clubs seem like dinosaurs in this age of instant gratification, home entertainment and breath testing. Maybe they can squeeze their suppliers, like Woolies and Coles. Redevelopment of the site/s with the club taking a couple of stories. Seems to work at Redfern.

The problem is DSM is that they sold the premises so redevelopment is not an option.

I like the fact that club actually looks like a footy club now, great stuff. But to grow the business is now difficult without a significant cash injection and of course more changes to the premises. During the recent renovations they should have targeted a family market - kids playground, etc so adults can come and eat/drink and have their kids entertained. Also they is no defined eating/dining area in the club. They should have gone for maybe a pizza or noodle bar to add to the attraction of the bistro. Unfortunately the food services have been poor there for years which makes it hard to attract the punters to play the pokies when the food is average.

Probably the ultimate would be for the Leagues club to relocate to the commerical redevelopemnt of Brookie Oval if/when that ever occurs.

 

[Ryan]

OK. Suggestions by Ryan are that the club renegotiate bank loans and sack some staff. Suggestions by Matas are to bag the outgoing President. Any suggestions on how to grow the business? I'm actually amazed the club made a profit given the horrid site, renovations and the current abysmal trading situation of most businesses. Leagues clubs seem like dinosaurs in this age of instant gratification, home entertainment and breath testing. Maybe they can squeeze their suppliers, like Woolies and Coles. Redevelopment of the site/s with the club taking a couple of stories. Seems to work at Redfern.

DSM5, I recommended those things, because with a lend of circa $10,000,000 every 0.5% discount equates $50,000 per annum (not a one off hit like selling off an asset).

As I said, staffing looks to be out of control. Staffing should be in line with profits and it's success or not. Staffing for the club has increased, yet patronage is way down.

These are small examples. One off big capital investments can tend to be very hit and miss.

 

[DSM5]

I thought the Penns bought the place. As a person who never goes to the place outside watching the WCC there twice, I hope that the new broom will get the place up and running with worthwhile profits that can be pushed across to the club. I never like the idea of sacking staff to improve the bottom line.