Financial Report.

[Dazza]

http://www.westernbulldogs.com.au/Portals/0/bulldogs_docs/2011Financial%20Report_LR.pdf


^^^ There is the financial report for 2011.

It's good that we made a profit this year in light of our on field performance. There's been a few varying numbers released about the bulldoze the debt campaign. Ie: the club website says we made a 800k donation yet in the report it says we made a million dollar donation. Is the loss of $200k from organizing the event?

I'm not very good at reading into these sort of things so I'm just wondering if someone could explain this statement...

"As at 31 October 2011, the Western Bulldogs has a current asset deficiency of $10,160,620. This gives rise
to significant uncertainty about the ability of the company to continue to operate as a going concern."

Does this mean we are 10 million in debt?

[LongWait]

http://www.westernbulldogs.com.au/Portals/0/bulldogs_docs/2011Financial%20Report_LR.pdf


^^^ There is the financial report for 2011.

It's good that we made a profit this year in light of our on field performance. There's been a few varying numbers released about the bulldoze the debt campaign. Ie: the club website says we made a 800k donation yet in the report it says we made a million dollar donation. Is the loss of $200k from organizing the event?

I'm not very good at reading into these sort of things so I'm just wondering if someone could explain this statement...

"As at 31 October 2011, the Western Bulldogs has a current asset deficiency of $10,160,620. This gives rise
to significant uncertainty about the ability of the company to continue to operate as a going concern."

Does this mean we are 10 million in debt?

It means that the value of our short-term liabilities exceeds the value of our short-term assets by $10,160,620. It may include some debt which is due to mature in the 2011/12 year which the club needs to refinance. Given the imbalance between what we owe and what we are owed/have in the way of liquid assets, the auditors are pointing out that we would need the continuing support of our creditors/financiers to continue as a going concern.

It is not a pretty picture but may have some explanations which means it is no-where near as bad as it seems on the surface. For example, there might be some debt that needs to be refinaced in the next year but arrangements are yet to be completed for this. The debt will therefore be considered to be current (usually meaning due within 12 months) until the new loan is agreed, but the assets which back the debt (a bloody big building or two for example) are not considered "current" as they can not be easily liquidated to pay the debt. Therefore, if the above hypothetical is true, we have a working capital deficit which should be rectifed with some urgency.

[boydogs]

It is not a pretty picture but may have some explanations which means it is no-where near as bad as it seems on the surface.

IIRC there's some sort of loan account involving the WB, the AFL & Westpac mentioned in previous reports & threads that probably explains this, someone else may be able to clarify

[bornadog]

A lot of ducks and drakes happening with the accounts. When you look at the balance sheet, the loan has grown from $5.1 million to $5.85 million? so where is the $800k debt reduction?

The statement that we have a current asset deficiency of $10,160,620 is also confusing.

We have been discussing this on the forum for a few years now and to me we are not out of the poo.

http://www.woof.net.au/forum/showthread.php?t=3929&highlight=financial

http://www.woof.net.au/forum/showthread.php?t=6614&highlight=financial

Personally I think the debt reduction campaign is a failure.

[ledge]

A lot of ducks and drakes happening with the accounts. When you look at the balance sheet, the loan has grown from $5.1 million to $5.85 million? so where is the $800k debt reduction?

The statement that we have a current asset deficiency of $10,160,620 is also confusing.

We have been discussing this on the forum for a few years now and to me we are not out of the poo.

http://www.woof.net.au/forum/showthread.php?t=3929&highlight=financial

http://www.woof.net.au/forum/showthread.php?t=6614&highlight=financial

Personally I think the debt reduction campaign is a failure.

Not sure about that, its 800,000 more in debt we would be.

[Prince Imperial]

The report reveals that the club has borrowed $1.5m from Tabcorp to buy and refurbish the Dromana RSL club.

It also reveals that our existing Westpac bank debt declined from $5m to $4.25m - this is no doubt a direct result of the Bulldoze the Debt campaign.

There is of course "good" debt and "bad" debt with the bank debt being the latter as it is historical and not aligned with any asset generating profit.

The "good" debt related to the Dromana club can only be judged if the profits that it generates are greater than the interest paid (well there's capital gain too). The exact details are not apparent but the accounts reveal the hospitality division generated a 300k increase in profit in 2011. Given that we lost the Vic Inn to the Carlton maggots during the year and the Dromana club was in its start up it would seem to indicate that that club performed well.

For those worried about our level of debt, get ready for worse. The accounts also reveal that we will become liable for $4.6m in payment for gaming machine entitlements (for our 3 venues including the planned Edgewater Club) so further large borrowing will be required.

Our club will be heavily leveraged in the next few years and all areas of the business have to perform. The one area that is clearly performing poorly is the Consumer Products division generating a profit of just 8K. Yes, retail's struggling generally everywhere and our team performance was ordinary but for a business that gets to operate in rent free premises that's mediocre. The hooped jumper will help sales but there needs to be substantial improvement in what should be a key profit generator for our club.

[Dazza]

I noticed today that St Kilda are shelving sending out scarves with every membership purchased. Seems reasonable. People certainly don't buy memberships for the scarves etc. Seems a good way of keeping costs down and making retail sales go up.

Just as a way to help the club keep expenses down and to reward loyalty for members could our club drop the "member 2011" scarf thing and just send out a members scarf to all members then you don't get another one. With every 5 years of renewal you get another scarf sent out with a star on it representing that you have been a member for 5 years on. 2 stars for 10 etc and so forth.

Not sure about the logistics for this sort of thing. It could be more expensive this way.

[LostDoggy]

I noticed today that St Kilda are shelving sending out scarves with every membership purchased. Seems reasonable. People certainly don't buy memberships for the scarves etc. Seems a good way of keeping costs down and making retail sales go up.

Just as a way to help the club keep expenses down and to reward loyalty for members could our club drop the "member 2011" scarf thing and just send out a members scarf to all members then you don't get another one. With every 5 years of renewal you get another scarf sent out with a star on it representing that you have been a member for 5 years on. 2 stars for 10 etc and so forth.

Not sure about the logistics for this sort of thing. It could be more expensive this way.

People will look at it and ask “Why am I getting less for my money?” 100% guaranteed.

I reckon we should go the other route — have your consecutive years as a member embroidered on your scarf, like Hawthorn do.

[KT31]

People will look at it and ask “Why am I getting less for my money?” 100% guaranteed.

I reckon we should go the other route — have your consecutive years as a member embroidered on your scarf, like Hawthorn do.

Similar idea would be to have a different designed scarf for 5, 10 15 20 and 25 etc years membership.
Although I can remember it being mentioned to that the club has lost some membership dates when computerising.

[mjp]

I know a little about the memberships at Freo - you basically get NOTHING apart from a ticket to the games. What the dogs offer has been awesome...but seriously, hats, scarves, keyrings - I have stuff from three years ago still in plastic covers.

The stuff we give away? We can't sell it. You gave me a hat, therefore I wont buy a hat. Provide members with a BIGGER discount at the retail shop and give them a token item each year with the membership - one year a towel, one year a scarf etc - and with the bigger discount (or even better, a single use discount certificate with a BIG number on it like '40%') that really encourages everyone to spend. THEN, hammer a smaller product line in the catalogues...and seriously promote the one-time membership discount....

[Raw Toast]

People will look at it and ask “Why am I getting less for my money?” 100% guaranteed.

I reckon we should go the other route — have your consecutive years as a member embroidered on your scarf, like Hawthorn do.

Apparently Hawthorn really regret their whole scarf thing because each scarf has to be done individually, and they have to try and work out beforehand which members are likely to renew, and which ones won't (and thus inevitably over-subscribe).

Shorter version: costs lots of money.


Similar idea would be to have a different designed scarf for 5, 10 15 20 and 25 etc years membership.
Although I can remember it being mentioned to that the club has lost some membership dates when computerising.

Different scarves for different years is a grand idea, but is likely to run into the same problems that the Hawks have encountered.


I know a little about the memberships at Freo - you basically get NOTHING apart from a ticket to the games. What the dogs offer has been awesome...but seriously, hats, scarves, keyrings - I have stuff from three years ago still in plastic covers.

The stuff we give away? We can't sell it. You gave me a hat, therefore I wont buy a hat. Provide members with a BIGGER discount at the retail shop and give them a token item each year with the membership - one year a towel, one year a scarf etc - and with the bigger discount (or even better, a single use discount certificate with a BIG number on it like '40%') that really encourages everyone to spend. THEN, hammer a smaller product line in the catalogues...and seriously promote the one-time membership discount....

Agreed. And I think the Club have become much more strategic about this in recent years and will continue to do so. However, Freo has a much larger base. What the Dogs have been very good with recently is some of their stuff for kids (who we need to lock in), especially the birthday gift voucher that they've started sending out.

[The Adelaide Connection]

I know a little about the memberships at Freo - you basically get NOTHING apart from a ticket to the games. What the dogs offer has been awesome...but seriously, hats, scarves, keyrings - I have stuff from three years ago still in plastic covers.

The stuff we give away? We can't sell it. You gave me a hat, therefore I wont buy a hat. Provide members with a BIGGER discount at the retail shop and give them a token item each year with the membership - one year a towel, one year a scarf etc - and with the bigger discount (or even better, a single use discount certificate with a BIG number on it like '40%') that really encourages everyone to spend. THEN, hammer a smaller product line in the catalogues...and seriously promote the one-time membership discount....

This is a great idea and in a perfect world it would work. My only fear is that once you have been giving it, it is very hard to take it awaywithout huge fallout. Even on here people complain about the hats and the quality of the mugs etc., can you imagine the facebook wall if they completely stopped the freebies?

A third of members will like the idea, a third will not care either way, and a third will be so angry they will threaten to tear up their memberships. The latter third will be the ones that make the poor Facebook admins life hell.

[LostDoggy]

I know a little about the memberships at Freo - you basically get NOTHING apart from a ticket to the games. What the dogs offer has been awesome...but seriously, hats, scarves, keyrings - I have stuff from three years ago still in plastic covers.

The stuff we give away? We can't sell it. You gave me a hat, therefore I wont buy a hat. Provide members with a BIGGER discount at the retail shop and give them a token item each year with the membership - one year a towel, one year a scarf etc - and with the bigger discount (or even better, a single use discount certificate with a BIG number on it like '40%') that really encourages everyone to spend. THEN, hammer a smaller product line in the catalogues...and seriously promote the one-time membership discount....

Agree with this - I have stuff tossed in drawers from years ago that I will never use. Complete waste of money on behalf of the club. However, I do understand that there will be members out there who want/expect stuff but in all honesty, the quality of the give-aways is pretty ordinary (to be expected).

[Murphy'sLore]

The kids appreciate the parcel of goodies, it's an exciting day in our house (we need to get out more). But if we didn't have kids, I would opt out of getting more merchandise, just from an environmental point of view, I really don't need any more made-in-China crap in my life (even if it is Doggies related).

[LostDoggy]

I know a little about the memberships at Freo - you basically get NOTHING apart from a ticket to the games. What the dogs offer has been awesome...but seriously, hats, scarves, keyrings - I have stuff from three years ago still in plastic covers.

The stuff we give away? We can't sell it. You gave me a hat, therefore I wont buy a hat. Provide members with a BIGGER discount at the retail shop and give them a token item each year with the membership - one year a towel, one year a scarf etc - and with the bigger discount (or even better, a single use discount certificate with a BIG number on it like '40%') that really encourages everyone to spend. THEN, hammer a smaller product line in the catalogues...and seriously promote the one-time membership discount....

What I like about the hats, is that it really does create a sea of colour through the crowd, given our very bright colours.