Swans Post a Profit

[Matt80]

Great to see that the Swans are being run very efficiently. Well done Andrew Pidram, Andrew Ireland and the rest of the organisation. A profit of over $800,000. Yes!

Record membership helps Swans to $846k profit - M.afl.com.au

[Doctor J.]

Meh.

So what.

Why is this such a fantastic thing?

[Matt80]

Meh.

So what.

Why is this such a fantastic thing?

Financial performance is one of the key metrics of club performance.

If our club was making losses the AFL would be asking serious questions of our management.

The profit is fantastic as the money can be used to either pay down some debt on the balance sheet or can be used as a future buffer if we have years where we make a loss.

The profit is also evidence of a financial return on the Buddy investment.

I?m hoping that we get more members next year and smash that profit through the $1,000,000 mark. I?m confident that with Pidram at the helm that we will continue to improve efficiencies in the organisation which may lead to even better financial performance.

[barry]

Im far more interested in total revenue figures, and how that compares to other sides. I remember we used to be mid-range a few years ago at $25m. $40-something million is probably still mid-range, but who knows ?

[Mel_C]

Meh.

So what.

Why is this such a fantastic thing?

It's a very good thing. We don't want to end up like the Bulldogs and North Melbourne!

[Bloods05]

Financial performance is one of the key metrics of club performance.

If our club was making losses the AFL would be asking serious questions of our management.

The profit is fantastic as the money can be used to either pay down some debt on the balance sheet or can be used as a future buffer if we have years where we make a loss.

The profit is also evidence of a financial return on the Buddy investment.

I?m hoping that we get more members next year and smash that profit through the $1,000,000 mark. I?m confident that with Pidram at the helm that we will continue to improve efficiencies in the organisation which may lead to even better financial performance.

Go Pidram!! Get those metrics happenin'!

[R-1]

Financial performance is one of the key metrics of club performance.

If our club was making losses the AFL would be asking serious questions of our management.

The profit is fantastic as the money can be used to either pay down some debt on the balance sheet or can be used as a future buffer if we have years where we make a loss.

The profit is also evidence of a financial return on the Buddy investment.

I?m hoping that we get more members next year and smash that profit through the $1,000,000 mark. I?m confident that with Pidram at the helm that we will continue to improve efficiencies in the organisation which may lead to even better financial performance.

If rather we didn't make an overly large profit. Gotta be more productive uses of surplus revenue.

[R-1]

Im far more interested in total revenue figures, and how that compares to other sides. I remember we used to be mid-range a few years ago at $25m. $40-something million is probably still mid-range, but who knows ?

I made this graph from the Bigfooty thread recording club annual reports. The guy even got our annual report from ASIC.



As of 2013 we are corporate sponsorship heavyweights (recorded as part of "other" on the graph). Our membership and match day revenue is upper mid table... about on par with Carlton and Hawthorn which means our attendance income is better compared to our average crowds than Melbourne clubs.

We aren't huge but we're solidly in the larger half of the comp, actually looking really healthy right now.

[barry]

By that graph we are sitting ninth. Outside the 8. Not where we want to be at all.

[DamY]

By that graph we are sitting ninth. Outside the 8. Not where we want to be at all.

Considering how well we're doing with merchandise (and that's in 2013, not including the Buddy effect) and corporate sponsorship, the results are pretty good. No need for gambling which is admirable. Plus it's not like we'll make revenue-based "Top 8" and go into the revenue Grand Final.

[Doctor J.]

Financial performance is one of the key metrics of club performan

If our club was making losses the AFL would be asking serious questions of our management.

The profit is fantastic as the money can be used to either pay down some debt on the balance sheet or can be used as a future buffer if we have years where we make a loss.

The profit is also evidence of a financial return on the Buddy investment.

I?m hoping that we get more members next year and smash that profit through the $1,000,000 mark. I?m confident that with Pidram at the helm that we will continue to improve efficiencies in the organisation which may lead to even better financial performance.

Explain to me how profit matters for a company that operates in the not for profit sector. Sporting clubs such as the Sydney Swans exist for one thing only and that is to achieve sporting success.

Profit is an outcome in the environment that Sydney operate in. It is far from a key metric. If you want a key metric, it's cash flow and by extension net assets where the net position is basically more cash assets than liabilities. With no dividend payments and no shares profit is hardly necessary as long as you can pay the bills.

There are many examples of profitable businesses going broke due to cash from trading operations being deficient. Basically borrowing to remain in business. Look to the cash flow statement for an insight into a company's performance

You being such a guru of the business world I thought would know all this. So endeth the lesson. Oh and if you are going to name drop at least do the dropee the courtesy of spelling their name correctly.

Now can we get back to talking about the footy?

[Dosser]

Explain to me how profit matters for a company that operates in the not for profit sector. Sporting clubs such as the Sydney Swans exist for one thing only and that is to achieve sporting success.

Profit is an outcome in the environment that Sydney operate in. It is far from a key metric. If you want a key metric, it's cash flow and by extension net assets where the net position is basically more cash assets than liabilities. With no dividend payments and no shares profit is hardly necessary as long as you can pay the bills.

There are many examples of profitable businesses going broke due to cash from trading operations being deficient. Basically borrowing to remain in business. Look to the cash flow statement for an insight into a company's performance

You being such a guru of the business world I thought would know all this. So endeth the lesson. Oh and if you are going to name drop at least do the dropee the courtesy of spelling their name correctly.

Now can we get back to talking about the footy?

You have a good point here regarding profit. A non-profit organization is supposed to cover its operating expenses, however a profit also allows us to invest in the future to hopefully keep us continually in the black.
The thread is footy related, though.

[Auntie.Gerald]

i think the point about profit is realised or unrealised either way it does not matter when a club structure..... "is the club kicking goals with managing to reinvest for the future while keeping their head above water and still recording a profit of some sort" ?

you dont need to take the profit but it is nice when you genuinely can therefore sometimes looking at a realised profit alone does not indicate the success of a club financially

example being if the club put on 2 more staff for marketing / advertising in 2014 that may drop the profit with the added costs but they may be in a profit centre that contributes to bringing in another $1mill in revenue in 2015........

"therefore we have invested in our club model and we could have taken a higher profit in 2014 but we chose to immediately use the surplus and not declare that portion as a profit'

[DamY]

A footy club has to be reasonably well run, or we find ourselves in situations like North, Melbourne and Bulldogs always going to the AFL with cap in hand for money. It restricts how much we can invest in coaches and prevents situations like Bulldogs who can't even afford to pay 95% of their cap as expected under AFL rules. I think it's a bit unfair to have a go at Matt80, possibly tainted by his previous standings on finance/business/etc but at the end of the day, a financially viable and stable club IS an important feat. North Melbourne was almost forced to relocate due to a lack of memberships and debt. Look at the efforts clubs like Carlton and Richmond are doing to reduce debt.

As long as the club is on strong financial footing, it can afford to invest in players, coaches, facilities, member engagement and events and so on to maintain competitiveness not just with other AFL clubs, but rival codes (league, cricket etc) because all commercial sports entities are fighting for the same customers.

[DamY]

In 2013 it was noted that Sydney Swans spent "just enough" (as recommended by the AFL) off-field, to achieve a competitive outcome on-field. This included things such as administrative support, development, etc and that as Richard Colless stated, every additional dollar the club made was ploughed back into making the club competitive on-field.