Bulldogs Financial Position

[bornadog]

Received the bulldogs magazine last night which included the financial accounts. Looking through the accounts the club is recording an operating profit of $641,242 compared to last years profit of $534,214. On the face of it looks good but!!!!

* Loans, or facilities from Westpac have increased from $5 million to $13 million. This is a huge loan with $12.42 million utilized and really needs further explanation from the club. According to the financial statements the loan is required to keep the club afloat and has been reported in the balance sheet as a current liability (short term liability).

Members need to know why such a loan was requested and how will the club pay the loan back. What were the funds used for? Were they used for financing the ongoing operations of the club or to purchase Assets? If they are for ongoing operations, what is going to happen next year?

Other concerns:

* Receipts from customers and AFL, down from $30.14 million to $28.86 million (down 4.2%). I thought this would have been up considering the finals, membership upgrades etc.

* Sponsorship still hasn't been resolved.

* Stadium income still low and we have to rely on $1.7 million from AFL, plus sell home games interstate.

* On going problems with the council.

AGM is set for 18th December and I think we need answers from directors.

[Mofra]

Loans, or facilities from Westpac have increased from $5 million to $13 million. This is a huge loan with $12.42 million utilized and really needs further explanation from the club. According to the financial statements the loan is required to keep the club afloat and has been reported in the balance sheet as a current liability (short term liability).

Members need to know why such a loan was requested and how will the club pay the loan back. What were the funds used for? Were they used for financing the ongoing operations of the club or to purchase Assets? If they are for ongoing operations, what is going to happen next year?

Given it's a short term liability, the club must be anticipating the debt be cleared within the next 12 months - is this an extension facility that will be repaid upon receipt of state/federal government funds for the redevelopment?

[Dry Rot]

* Loans, or facilities from Westpac have increased from $5 million to $13 million. This is a huge loan with $12.42 million utilized and really needs further explanation from the club. According to the financial statements the loan is required to keep the club afloat and has been reported in the balance sheet as a current liability (short term liability).



WTF? We have gone a further $7.4 million into debt? Is it some temporary thing for the redevelopment?

If they have to renew the facility or roll it over in the next couple of years they'll be in the poo.

And the interest will basically account for all of our so called 'profit".

[bornadog]

WTF? We have gone a further $7.4 million into debt? Is it some temporary thing for the redevelopment?

If they have to renew the facility or roll it over in the next couple of years they'll be in the poo.

And the interest will basically account for all of our so called 'profit".

No mention of why they increased the borrowings.

[LostDoggy]

No wonder we are in debt if we spend 25k on a board room table.

[ledge]

I would say its what the government hasnt paid for yet but obviously is coming

[Prince Imperial]

The report states (at Note 14(c)) that the AFL gave a guarantee of $8m to Westpac based on future redevelopment funding agreements so the quicker that funding (Commonwealth, Vic Uni?) eventuates the better. Smorgo gives the League a special thank you in his report in the yearbook.

[bornadog]

Bump

Recently Melbourne's debt reduction target was almost reached and will be wiped out by the year end. Is anyone else still worried about the $12,500,000 owing to Westpac?

Campbell Rose's next target should be to get rid of debt, or at least reduce it substantially. It is costing the club $500,000 a year in interest alone. I know the Rocket has said we are still behind other clubs with things like, gym equipment, staff in the football department etc.

With this debt hanging over our heads, more expenditure in the footy department is not going to happen.

[LostDoggy]

The board room table was made by students of Victoria University at no cost to the Club. The boardroom chairs were also donated to the club pro bono.
________
LAUNCH BOX (http://www.vaporshop.com/mflb-vaporizer.html)

[Prince Imperial]

I think $8m of that debt related to the WO redevelopment and with Victoria Uni having moved into the Gent Stand, that part of the debt should be gone.

Having said that, in the recent poker machine licence auction, the club paid just over $4m for about 100 machines and that will no doubt mean the debt is again very large. Of course, we would be hoping the revenue from these at Club Leeds and Edgewater (when it opens) will mean we are better off in the long term.

At last year's AGM, Campbell Rose stated that we would be adopting Melbourne's Debt Demolition campaign but I'm haven't heard anything further since.

[GVGjr]

Bump

Recently Melbourne's debt reduction target was almost reached and will be wiped out by the year end. Is anyone else still worried about the $12,500,000 owing to Westpac?

Campbell Rose's next target should be to get rid of debt, or at least reduce it substantially. It is costing the club $500,000 a year in interest alone. I know the Rocket has said we are still behind other clubs with things like, gym equipment, staff in the football department etc.

With this debt hanging over our heads, more expenditure in the footy department is not going to happen.

I was listening to some discussions on the radio yesterday about Melbourne's outstanding effort on debt reduction and thought of our own position. We have been good at convincing governments and councils about the need to construct buildings and community based initiatives etc but the hardest thing was always going to be the debt reduction. The modest profits produced by the club won't change anything with regards to the money that is owed.

[bornadog]

I think $8m of that debt related to the WO redevelopment and with Victoria Uni having moved into the Gent Stand, that part of the debt should be gone.

At last year's AGM, Campbell Rose stated that we would be adopting Melbourne's Debt Demolition campaign but I'm haven't heard anything further since.

I don't believe so but could be wrong. We have had the facility with Westpac for a few years now. It will be interesting when the next financial come out.

We need a Melbourne type of Debt demolition, but unfortunately we don't have as many well off members like they do, so therefore the concern.

[comrade]

I don't believe so but could be wrong. We have had the facility with Westpac for a few years now. It will be interesting when the next financial come out.

We need a Melbourne type of Debt demolition, but unfortunately we don't have as many well off members like they do, so therefore the concern.

Surely Smorgo can just put his hand down the back of the couch and pull out some cash ;)

[ledge]

Get Westpac to sponsor us 4 mil a year over 3 years.

[LostDoggy]

I hope the club don't put all there faith in revenue from pokies to sustain new investment. Especially to the people of the surrounding suburbs of the venues.

Looking forward for more detailed info from the club pencil pushers.

Go Dogs...........

[Prince Imperial]

I don't believe so but could be wrong. We have had the facility with Westpac for a few years now. It will be interesting when the next financial come out.

You can check the annual reports on the club's website which would support what I said. In 2007 we had a $4.65m facility with Westpac. The next year it was out to $12.4m and I said earlier in this thread there was a note attached stating that there was a guarantee and indemnity provided by the AFL of $8m based on future redevelopment funding agreements. See note 14 of the 2008 report that explains this.

http://cms.westernbulldogs.com.au/portals/0/2008%20wb%20financials.pdf