Carlton to strip Richmond of Royal Oak Hotel & pokie revenue

[Ramps]

With the number of Asians running around in "The Glen" shopping centre in Glen Waverley maybe we can stick a gaming joint in there. Mammoth returns just waiting right there!

[bojangles17]

not may options, pfftttttt, there are licesnsed venues bought and sold ea week...there are any number of opportunities in hospitality that the tigers could cash in on and use themselves as the PR vehicle..Just takes a bit of enterprise, anything could be better than the WC, FFS, howzabout a few cafes, 

I reckon becuase of the way the licenced venue market is now structured I can't see many being off loaded. those that are would be at a premium price .... I don't think in the short terms it's the answer

Certainly agree though that we need to look at other options though

hopefully they show a bit of foresight and invest in healthy cafes, a few of them would cost nothing, and rtreturn more than what is yielded from ther WC

Cafes are to hard to run IMHO (especially by FC's) and the returns wouldnt justify the time or investment made.

Not so sure about the degree of difficulty Vs pubs, licensed premises et al, capital outlay would be alot lower..% return likely higher if successful

[yellowandback]

Guys, retail is bloody tough and heavily saturated, people won't come just because its owned by Richmond.
And Ramps, for Gods sake do you think its that easy to stick pokie machines where the "asians" live???!!!!

The Magpies are a great example of a club that "thought" it would just happen and fingers were badly burnt.
They lost all that money on those pubs because Eddie and A'Rocca had absolutely no idea what they were doing.
They also tried to make the lexus centre a meeting place for tennis/mcg traffic but its location is incredibly difficult to access as it is not close enough to train stations or car parks.

However!
There are about 3million people attending sporting events at the 'G every year - probably half of those access the ground via Richmond station.
Our new facility is in the perfect location and it must get over 1.5 million punters walking past it every year.

Our new site would be perfect for:-
 
 - Football shop
 - Cafe
 - Licensed premise/pub

The question is whether we are able to access a liquor license.

It cost 45cents to make a cup of coffee and a pot of beer is roughly $1.40 - this is after all on costs but before rent.
You charge about $3.00 for a small coffee and $3.90 for a pot. Margin of $2.55 and $2.50 - the margins are fantastic but you need high volume to cover the labour costs and rent. High volume comes with high foot fall traffic and little competition.

Convert 5% (conservative conversion rates for high traffic areas in retail) of those 1.5 million punters to a cup of coffee and a pot every year - that 75,000 coffees and beer.
There is nearly $400k in profit without any pokies.

The rent could be easily covered by other food and beverage sales - if we were to be charged rent from this facility, if there is no rent it would be seriously happy days.
Because the site has such high foot fall, we could probably charge signage to both coffee and beer companies.
We could charge for free sampling of food/products.
We could use the sites for functions
Imagine how big it would be during footy finals, boxing day cricket, one dayers, blockbuster games etc

Now the fit out would be the one big cost- probably $1.5mil but we get pay back in 3-5 years, decent ROI by any standards.

[Ramps]

And Ramps, for Gods sake do you think its that easy to stick pokie machines where the "asians" live???!!!!

My apologies LOL.

[bojangles17]

I think there is going to be some social club facilities in the new joint, I think you are spot on that it is a gold mine ready to be tapped

[Ramps]

Do you think they'll have Lamb Gyros @ $9 a souva?

[Ox]

royal oak is a shytehole.
Carlton can have it

[Tigeritis™©®]

Guys, retail is bloody tough and heavily saturated, people won't come just because its owned by Richmond.
And Ramps, for Gods sake do you think its that easy to stick pokie machines where the "asians" live???!!!!

The Magpies are a great example of a club that "thought" it would just happen and fingers were badly burnt.
They lost all that money on those pubs because Eddie and A'Rocca had absolutely no idea what they were doing.
They also tried to make the lexus centre a meeting place for tennis/mcg traffic but its location is incredibly difficult to access as it is not close enough to train stations or car parks.

However!
There are about 3million people attending sporting events at the 'G every year - probably half of those access the ground via Richmond station.
Our new facility is in the perfect location and it must get over 1.5 million punters walking past it every year.

Our new site would be perfect for:-
 
 - Football shop
 - Cafe
 - Licensed premise/pub

The question is whether we are able to access a liquor license.

It cost 45cents to make a cup of coffee and a pot of beer is roughly $1.40 - this is after all on costs but before rent.
You charge about $3.00 for a small coffee and $3.90 for a pot. Margin of $2.55 and $2.50 - the margins are fantastic but you need high volume to cover the labour costs and rent. High volume comes with high foot fall traffic and little competition.

Convert 5% (conservative conversion rates for high traffic areas in retail) of those 1.5 million punters to a cup of coffee and a pot every year - that 75,000 coffees and beer.
There is nearly $400k in profit without any pokies.

The rent could be easily covered by other food and beverage sales - if we were to be charged rent from this facility, if there is no rent it would be seriously happy days.
Because the site has such high foot fall, we could probably charge signage to both coffee and beer companies.
We could charge for free sampling of food/products.
We could use the sites for functions
Imagine how big it would be during footy finals, boxing day cricket, one dayers, blockbuster games etc

Now the fit out would be the one big cost- probably $1.5mil but we get pay back in 3-5 years, decent ROI by any standards.

well done Y&B. 
already more planning and thought in a project than anything the Rudd/Gillard has dished up in 3 years. Maybe they'll give you a job at the ALP and they'll finally get something done properly.

[mightytiges]

I think there is going to be some social club facilities in the new joint, I think you are spot on that it is a gold mine ready to be tapped

Top (3rd) level of the new redevelopment will be the new Social Club I believe.

The temporary mobile Tiger Den van always seems to be doing a good trade on game days when I walk past it. The good thing about having a young side is people want to buy badges, etc of all the newbies. I think the new permanent Tiger Den will be under the Jack Dyer stand along with the RFC museum.

[one-eyed]

 

Carlton hits jackpot on pokies deal
Jason Dowling
February 25, 2011

THE Carlton Football Club is set to make millions of dollars over the next decade from the purchase of 30 poker machines from a basketball club whose status as a club is the subject of two separate investigations.

The North Melbourne Giants Basketball Club plans to sell its entitlement to operate 30 poker machines for a decade after 2012 to Carlton for a third of the market rate.

The deal to transfer the entitlements to Carlton is being helped by poker machine company Australian Leisure and Hospitality Group.

The group includes former Carlton director Bruce Mathieson and Woolworths.

The new deal comes after Carlton swooped on 260 machines last year with the assistance of Mr Mathieson's company, at the expense of several other AFL clubs.

http://www.theage.com.au/victoria/carlton-hits-jackpot-on-pokies-deal-20110224-1b73t.html

[Penelope]

How the stuff, in an industry supposedly so heavily regulated, can the poker machine rights be sold for 1/3 of the market value?

Dirty filthy blue scum

[mightytiges]

How the eff, in an industry supposedly so heavily regulated, can the poker machine rights be sold for 1/3 of the market value?

Dirty filthy blue scum

It sucks doesn't it. Greed is good! 

[Penelope]

If you sell a car for 1/3 of it's value the appropriate authorities are all over you like a rash.

Why would they sell so cheap? Is this more criminal dirty underhand dealing from the corruption heart of Melbourne?

[mightytiges]

If you sell a car for 1/3 of it's value the appropriate authorities are all over you like a rash.

Why would they sell so cheap? Is this more criminal dirty underhand dealing from the corruption heart of Melbourne?

Could be a director is on both boards so effectively selling them to themselves  ???

[one-eyed]

Maybe a bit of karma for the Blues taking over the Royal Oak...

Kennett alarm on pokies law
Richard Willingham
April 21, 2011.

THE plan to introduce mandatory gambling limits on poker machines could send some AFL clubs to the wall, says Hawthorn president Jeff Kennett.

Mr Kennett made the claim as Clubs Australia, which is fighting against the reforms, claimed some AFL clubs would have to spend millions of dollars just to upgrade their machines to comply with the new law.

And it claims that AFL clubs collectively stand to lose tens of millions of dollars more once the reforms come in and poker machine revenue slumps.

According to modelling by Clubs Australia, Hawthorn would have to spend $1.125 million to upgrade its 75 machines to adopt a mandatory pre-commitment system. It found the Western Bulldogs would have to spend about $2.85 million on its 190 machines, while Carlton would face a bill of $4.35 million for 290 machines.

Mr Kennett said most AFL clubs could not afford the upgrades, and that poorer clubs could be destroyed. The Hawks were also worried about a loss of revenue once the reforms came in and were frustrated by the intervention of federal politicians into a state domain.

Read more:
http://www.theage.com.au/national/kennett-alarm-on-pokies-law-20110420-1doyk.html#ixzz1K55MTzHw