Tigers still in turmoil? So says Caro

[mightytiges]

By Caroline Wilson
realfooty.theage.com.au
May 26, 2004

The Richmond Football Club is facing further financial and political turmoil, with an expected 2004 loss of $2 million and several key positions, including that of chief executive Ian Campbell, under serious review.

President Clinton Casey's depleted board will meet next week in the knowledge that at least five former Tigers - Ian Stewart, Barry Richardson, Rex Hunt, Emmett Dunne and Brendon Gale - have rejected invitations over the past two months to return as directors.

With the AFL keeping a close eye on the club's finances, savage cost-cutting this season means the team will travel to Subiaco for Saturday's clash against West Coast without an interchange steward, statisticians or coach Danny Frawley's regular whiteboard assistant.

The football department has been instructed to restrict its travel party for the club's five interstate fixtures this season.

The club's poor start to the season and a spectacular black hole in the club's marketing and corporate sales has led Campbell's projected profit - estimated at the end of last year at between $250,000 and $600,000 - to plummet to a record loss.

The former Nike executive, who has overseen improved membership figures in 2004 but is now expected to preside over big losses in his first two seasons, will have his performance closely assessed at the end of the season. Coach Danny Frawley's contract also expires at the end of 2004.

And Casey's board remains vulnerable to challenge following the resignation of three directors - Brendan Schwab, Peter Welsh and Michael Daddo - on the eve of the season. The defeat of Tony Jewell in the January club election means that Richmond is the only Victorian club without a former player on its board.

Casey, who guaranteed the club a $300,000 loan in December 2003 to help its desperate cash flow, remained unavailable for comment yesterday despite several calls from The Age.

The president's guarantee was overridden in March by a $3.2 million bank loan that came via an AFL guarantee, which is to be taken out of the club's $4 million dividend at the end of the season.

While the club has privately conceded it will lose at least $2 million in a worst-case scenario, it continues to deny it has put in place a strategy to apply to the AFL for further assistance via the competitive balance fund - a seven-figure facility already used by the Bulldogs and the Kangaroos, and for which Melbourne will officially apply next month.

But the stark reality of 2004 is that massive losses have been recorded in the marketing and corporate support areas, with the President's Men coterie group virtually halved from 49 members in 2003 to 25 in 2004. The cost of a President's Men membership, which includes finals series tickets, is $8500.

While the club moved last year to outsource most of its corporate functions to Elite Sports Properties, a deal with the group was not signed until March this year.

With eight members of the Tigers' marketing department sacked, made redundant or choosing to resign late last year, the staff shortage meant a significant drop in corporate support and mid-level sponsorship that has cost the club hundreds of thousands of dollars.

Richmond's deal with its major sponsor, TAC, expires at the end of this year.

ESP is believed to have paid the Tigers an estimated $250,000 to take over the club's corporate functions until at least the end of 2006.

Richmond always has struggled to keep up with successful clubs in the corporate area and remains disenchanted with its home stadium, the MCG.

A Tiger deputation will hold talks with Melbourne Cricket Club officials next week.

http://realfooty.theage.com.au/realfooty/articles/2004/05/25/1085461757977.html?oneclick=true

[mightytiges]

I wish there was some evidence backing up these claims and confirmation about what's really going on. You would reckon the Herald-Sun would be over this story like a rash as well but not a peep from them. As members we are in the dark  . There's a big difference between "a expected loss of $2 million" and "worst case scenario loss of $2 million". The former means we are finanically bleeding big time while the latter means after paying out all our expenses (hence our cash flow problems earlier on in the year and the need for a additional overdraft) there would need to be a dramatic fall in expected generated revenue (worst case) for us to lose $2 million.   

We are over 2000 members ahead of the projected mark = $250,000 extra in the coffers and didn't we sign one of the largest sponsorship deals with Motorola over the off-season plus Danny's laguna sponsorship ???. We've had poor seasons the past 2 years so you'd reckon a cautious treasurer wouldn't budget for anything exceeding previous season figures in terms of gate receipts etc...

We just want some answers now as where our club is at! 

[froars]

Exactly why i called for a meeting of supporters on Big Footy a couple of months ago.  As i said then, i don't want to find out at the end of the season we are doomed - we need to know now what we're up against.

[Ox]

No past players with any stoush will throw their weight
behind the club while Frawley is coaching.
While dudley is at the club we are slowly dying,morally and financially.
He must go at years end so we can move forward.

This has indeed been a dark phase for our beloved Richmond
and is only high-lighted by the fact that none of our people
want to be at the club while the spud is coaching.

The fact that Clokey,Rainesy etc dont come out and say that Frawley is a hack
can mean only 1 of 2 things.
a)They have no balls.
2)They intend on returning at years end,once he's gone but
dont want to be seen as part of the problem

[WilliamPowell]

I wish there was some evidence backing up these claims and confirmation about what's really going on.

There's a big difference between "a expected loss of $2 million" and "worst case scenario loss of $2 million". The former means we are finanically bleeding big time while the latter means after paying out all our expenses (hence our cash flow problems earlier on in the year and the need for a additional overdraft) there would need to be a dramatic fall in expected generated revenue (worst case) for us to lose $2 million.   

Stole my thunder MT.

The gap between worst case and expected could be massive. I am not for one minute saying that things are fantastic financially but the fact reamins that we have 7 home games remaining in 2004. The crowd numbers at these games will have a great effect on the Clubs bottom line in 2004.

Unfortunately, we are Club that has its finances driven so heavily by gate receipts unlike other Clubs.

As for Caro's "sources" - well I have my suspicions

[Struggletown]

I was pleased at the appointment of Ian Campbell,but he has been almost anonymous during this season at a time where crisis after crisis looms.
I would like as a member for my fears to be allayed or be told in truth and not smokescreens and mirrors what the hell is really happening.
I am genueinly fearful that with a terrible recent performance history,poor playing list,inept coaching staff,unstable board,dwindling corporate& marketing dollars,reluctant past greats to be involved,and appalling recruitment for decades now we have plenty of reasons to worry about this famous club being at the crossroads.

[Puntroadroar]

I dont know about you guys but this news is even worse than us losing. Its ok to take the pee out of our club like we do so well but if this story is true i fear for the worst.

to think we will be considered with the likes of melbourne, western bulldogs and kangaroos makes my stomach churn. Its embarrassing to think it! its a real big dent in all Richmond supporters pride for the club to be considered the bottom of the barrel, and now that we are no longer blockbuster status hurts so much more.

we are really in strife, the players cant perform for the future of the club, they have known for the past 2 seasons that for Richmond to improve off the field then on the field commitment is necessary to assist the admin. Im not blaming just the footy players but they have made the situation worse, time and time again they fail us, and the really concerning thing is we have 27,000 members! yet are likely to lose 2 million, i heard this rumour a few months ago but took it as nonsense, but now im not too sure.

we need a massive overhaul, the admin should be turfed out for bring this club to its knees, the coaches should all be sacked and every player on our list should have questions asked and I dont care what happens but if your proven to not being able to give the club everything you have then you should be sacked. For too long we have had players at this club demanding large sums of money a season, those players have also contributed to the situation, and the admin responsible to allowing it to happen is a disgrace.

Unfortunately the only person I can see changing the culture at our club is Kevin Sheedy! If sheedy really cares about Richmond like he says he has a soft spot for then he must came back to Richmond, there would be a huge surge in memberships in the first year and our sponsorship would boom. I know some of you dont want him back but he is exactly whats needed. Also Rex Hunt and Benny Gale have to put their hands up for Richmond we need smart people at Richmond with a vision not half hearted no brainers.

 

[Harry]

Start rattling those tins people

[Puntroadroar]

Harry unfortunately its a sad sad day when we have too resort to those measures, and Im sure your like me in that you really dont want us to go dont that path no matter how much we jest about us being the rabble we are.

Im absolutely crushed, every year for almost 10 years now I have put my hand into my pocket and bought a membership because thats what our club told us to do, I will continue to do so, but the club is just so disappointing.

[WilliamPowell]

and the really concerning thing is we have 27,000 members! yet are likely to lose 2 million, i heard this rumour a few months ago but took it as nonsense, but now im not too sure.

Membership numbers are only part of the problem PRR - Carlton have 32,000 members and they continue to struggle financially - there 1 major naming rights sponsor tips in about $600-800,000 per year. Our 2 combined is $1.4 million.  There are just so many contributing factors regarding the generating revenues for footy clubs

Unfortunately the only person I can see changing the culture at our club is Kevin Sheedy! If sheedy really cares about Richmond like he says he has a soft spot for then he must came back to Richmond, there would be a huge surge in memberships in the first year and our sponsorship would boom. I know some of you dont want him back but he is exactly whats needed. Also Rex Hunt and Benny Gale have to put their hands up for Richmond we need smart people at Richmond with a vision not half hearted no brainers.
 

I believe that a change in coach will automatically result in a membership increase in 2005. It has happened in the past will happen again

I actually said to someone the other week that I believed the following membership numbers were most probable in 2005 :

Kevin Sheedy = 35,000 members
Terry Wallace = 30-32,000 members
Rodney Eade  = 28-29,000 members
Lambert = 30,000 members
O'Donnell = 28-30,000 members
Danny Frawley (assuming we make the finals and he keeps his job) - the same as this year.

[mightytiges]

But the stark reality of 2004 is that massive losses have been recorded in the marketing and corporate support areas, with the President's Men coterie group virtually halved from 49 members in 2003 to 25 in 2004.

KB had Miller on SEN this morning. IIRC, Greg said although the above statement is true Caro had left out that the half that had left had moved to another coterie group.

[froars]

Have a friend in Ton Up who was going to take out a President's Men's membership except it was something of the order of $8,000.  Hmmm, if that's the case who would want to?

[mightytiges]

As for Caro's "sources" - well I have my suspicions

A former director(s)? Caro's written a number of negative pieces about the RFC off-field since the board resignations.