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http://www.theage.com.au/afl/afl-news/k ... 1awke.html

The above article talks about the poor state of the Kangaroos finances, but tucked away in the article, I found the below quote a little concerning.



Has anybody got any insight into the true current state of our finances ? I thought things were going quite well, but maybe not....

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James Hird and Essendon* FC - #FOREVERDRUGCHEATS

That's a little concerning.

I though we posted a reasonable profit last year?

I'll be very interested to hear what those in the know have to say.

Perhaps it's in line with "You shouldn't believe everything you read".

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I support the Navy Blues whatever happens!

Pretty sure the profit figure was good due to some external funding for the re-development of Visy Park. That type of funding does not continue once the project is complete. We could make more money if we decided to spend the same amount of money as the Kangaroos and Melbourne spend on their football departments.
We still have about 6 million dollar debt and at the recent AGM it was stated that it would be reduced by about 700k by the end of this season.

I just checked the financials as at 31.10.2010;

Debt is 7.9 million

Profit was 2.3 million with 2.4 million in grants so effectively 100k loss. On the flip side due to the new facilities depreciation went from 300k to 1.1 million, this increase does not involve cash as it is just a paper entry.

Pokies to the rescue.

I guess there's two ways of going about debt reduction. Melbourne's approach was the devote all increased revenue to debt reduction ASAP.

Carlton seem to have taken the approach of investing higher revenue streams back into the business (ie foot dept).

As I understand it, the debt repayments are not at a level which cause much angst at Visy Park.

The line being referred to in the article is a very common phrase used by auditors. Wouldn't read much into it.

What Punter22 said. As for North melbourne....they're Rooted!

I dont think debt is the issue.

The challenge going forward is income generation (profit). Membership revenues need to get beyond 50,000 plus.

Last year I posted that Swan does it with mirrors after that gloating article in one of the major papers. Mathieson's Pokies will push us into profit ....... I just think Swan is very good at attracting the glory, when the results are not that great

Are you sure the depreciation isn't for other stands? I saw a sign indicating a redevelopment on the outside wall of the Former Elliot stand, didn't read it but when I walked into the ground it looks seriously crap as a stadium these days. Run down and unloved.

The other stands have been there for years so there is no way they would result in a jump in depreciation for 2010. My memory tells me that the club wrote down the value of those stands in the early to mid 2000's when we recorded some huge losses.

Won't turn our finances around until we move away from the concrete jungle/collo contract!

That would be a huge leap forwards.

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Bring the season on already. The wait is killing me.