PRESIDENT'S REPORT
Dear RFC Members,
On behalf of the Board of the Richmond Football Club, I
present you with my President's report at the conclusion of
the 2004 season...
FOOTBALL
This time last year we had just embarked on a rebuilding
program, which netted us talented young players of the
calibre of Andrew Raines, Tom Roach, Daniel Jackson, Brent
Hartigan and Alex Gilmour through the AFL National Draft. In
an otherwise, bitterly disappointing on-field season, it was
the hope for the future provided by such Tiger cubs that
sustained the Yellow and Black faithful.
We had a year left on the coaching contract of Danny Frawley
coming into 2004, and thought it important from the Club's
viewpoint to show absolute solidarity in this area. Too often
in the past, Richmond had buckled under the weight of
scrutiny and sought a quick fix by making a scapegoat of the
senior coach. This time, however, we were determined to
change the perception of "Tigers eating their own" and
become a more honorable football club. We had made a
commitment to Danny and we provided him with every
opportunity to achieve his goals for the Club. He knew all
along that a bad season would almost certainly spell the end
of his coaching career at Tigerland and didn't have to wait to
be told his fate...
Just after the mid-season break, Danny informed us of his
decision not to seek reappointment when his contract
expired at the end of the '04 season. This then enabled us to
move quickly on the prime available coaching candidates in
Terry Wallace and Rodney Eade. I have no doubt, too, that
through our show of solidarity to Danny, we became a more
attractive proposition for the likes of Wallace and Eade to
coach. No longer was Richmond paying mere lip service to a
coaching contractual commitment...
The upshot is that after targeting Terry Wallace as the right
fit to be our next coach, we were able to win the race for his
services, which was extremely pleasing. Both inside and
outside Punt Road, he was rated the best candidate for the
job because of his all-round coaching skills, combined with
his excellent capacity to market the Club. His appointment as
senior coach for at least the next five years provides us with
crucial stability in the football area.
We've now got two of the game's most experienced and astute men, in Terry
and Greg Miller, heading up our football operations, with a
predominantly new group of support coaches (several with that
precious premiership experience). So, after a particularly tough season,
the footy division at the Club is now in good shape and we look forward to
2005 with plenty of optimism.
Our poor on-field performance in 2004 gave us the impetus
to clean out our playing list and add a lot of fresh, young
talent to the mix. The end result has been the turnover of
about a dozen players since the completion of the season.
And, we made AFL history by having four first-round National
Draft selections, and five of the top 20 picks! That certainly
underlines the exciting rebuilding phase we're going
through...
With so much youthful talent at the Club, it's very important
that we work closely with our VFL affiliate, the Coburg
Tigers, on development. That why it's great that David Flood
will continue as Coburg's coach in 2005 because he made an
excellent impression with our youngsters in his debut
coaching season this year. David is fully aware of Coburg's
and Richmond's needs, and he's done a top job in balancing
the interests of both clubs to ensure the benefits for the
players.
OFF-FIELD
Not only was it a difficult season on-field, the financial
problems we've encountered have also been well
documented. As you can see in this financial report, the Club
lost $2.19 million this year, which is a totally unacceptable
result. However, it must be pointed out that the magnitude of
the financial loss was forecast many months ago. From the
time the Board became aware of the exact extent of our
financial situation in March this year, we have been very
transparent in providing information about it to the
members.
When the loss was forecast at $2 million back in March, we
then took appropriate action to stem the tide. We replaced our
CEO, tightened our belts in all areas, and made sure our
members were informed of where we were at in a financial
sense.
What's pleasing is the fact that despite losing 14 games in-arow,
and finishing on the bottom of the ladder, we were able to
stop the financial haemorrhaging through the decisive action
taken once we identified the causes of the problem.
Clearly, the Club made mistakes to end up in that sort of
financial position. The Board erred in budgeting for continued
growth in revenue, particularly corporate sponsorship. The
budget also provided for a relatively high cost football
department budget, to get the Club back on track with on-field
success. In summary, we were over-optimistic on revenue.
That, along with a significant fall in revenue from our gaming
venues, sponsorship and coterie groups, led to our financial
plight.
But having promptly recognised the challenges, we
subsequently made changes with the CEO, to the
administration, and in the football department structure, to
make sure such financial problems don't arise again at
Tigerland.
THE SOLUTIONS
Why won't it happen again...? Well, there are a number of solid
structures we've put in place to avoid a repeat.
Importantly, we had Crowe Lovett come in to the Club to
provide a full review of our operations. That review was
endorsed by the AFL. Of the $2 million turnaround we need in
2005, Crowe Lovett and the Club's management team
identified $1.5 million in annual cost-savings alone. Those
cost-savings are virtually set in concrete already because
they're in player contracts, membership fulfillment and other
areas that we can actually control.
We will be absolutely relentless in our pursuit of new revenue
opportunities, however, importantly this will not be included in
our budgets. Accordingly, if we are successful we will achieve
'blue-sky' money, not budget money. Moving forward, we're
setting extremely realistic, conservative budgets for the Club
based on definites, not possibles. Anything above that, will be
a bonus for us...
THE CEO
Our new CEO, Steven Wright, had a key role for several years
with the Australian Grand Prix Corporation, so he is very
familiar with the Melbourne sports industry as well as
sponsorship, marketing, licensing, merchandising, catering...
all the revenue streams you need to successfully run an AFL
club. Steven is right up to speed with the necessary tight
business procedures, processes and protocols. He has
already restructured the marketing team and put in place a
detailed strategic plan.
Steven Wright fully understands what's expected and
required to run the business operations of the football club,
based on the outcomes of the Crowe-Lovett report, as well
as provide the Club's management and staff with a new,
clear direction.
THE BOARD
Despite media speculation, I can assure you that the Club's
Board is united and rejuvenated. It's worth noting during the
past year, we've had four new appointees to the Board - John
Matthies, Anthony Mithen, Alan Nicklos and Rob Dalton. This
new blood, with their energy and expertise, across a broad
range of areas and issues, has been of considerable value to
the Club. They, along with our other Board members, are all
totally committed to restoring Richmond to its rightful place
as the No. 1 club in the competition.
THE FUTURE
We now have the coach we wanted for the next five years, we've
got the most talented group of young players we've had in a very
long time, our administration has been revamped and is being
capably led, and we have a decisive business strategy that's
strongly supported by the AFL.
All these key plans are in place - but the next vital ingredient in
Richmond's recipe for sustained success is stability. Yes, we had
a horrible season, but that's been consigned to history... We've
taken the necessary action to stop the rot and get this great club
up and running again. The Richmond of today is a far cry from
the club that was handed the wooden spoon three months ago.
There's a real buzz around Punt Road with everyone genuinely
excited about the Club's prospects for the future.
If we can all stick together and carry out our plans, I'm certain
the roar of the Tiger will be heard loud and clear throughout the
football world.
ACKNOWLEDGEMENTS
Throughout 2004, there were several fine achievements by
members of the Richmond family, deserving of a special
mention...
* Joel Bowden for winning the Jack Dyer Medal and also
reaching the 150-game milestone.
* Brent Hartigan for winning the Club's Bill Cosgrove-
Harry Jenkins Rising Star award.
* Matthew Richardson for winning the Michael Roach
Medal (as the Club's Leading Goalkicker) for the 9th time.
* Darren Gaspar, Dan Minogue and Mike Perry on attaining
Life Membership of the Club.
On behalf of the Club, I would also like to congratulate Duncan
Kellaway and Matthew Rogers on the wonderful contributions
they made to the Tigers throughout their playing careers,
and wish them all the best in retirement.
APPRECIATION
In closing, I would like to take this opportunity to thank the
many organisations and individuals for the support they have
given to the Richmond Football Club throughout the past year...
Firstly, to our co-major partners, the TAC and Motorola, I would
like to acknowledge their strong backing of the Club. I am
delighted they will both be continuing to partner the Tigers in
2005. To our other main partners, Carlton and United
Beverages, Coca-Cola, Concept Sports International, Connex,
Laguna Whitsundays, and our many other commercial partners,
I extend our sincere thanks.
Richmond is fortunate to have a collection of supporter groups,
consisting of like-minded individuals, who are in a position to take
their love of the Yellow and Black to another level. I refer to Jack's
Club, the President's Club, Player and Coaching Link, Titus Ton
Up, the Tommy Hafey Club, Hafey's Ambush, the Former Players
and Officials' Association and Club 80. On behalf of the Club, I
would like to thank all the people who show further support to the
Tigers by becoming a member of these valued groups.
To the Richmond Cheer Squad, I offer a special thank you and
praise for their enthusiastic efforts in flying the famous Yellow
and Black colors through some really hard times this year.
To all the employees of the Richmond Football Club, I extend the
gratitude of the Club and its members for the dedication, hard
work and loyalty you have shown when the going has been at its
toughest.
To the numerous volunteers who devote their time to the Club
and cherish their involvement with the Tigers, thank you so much.
Finally, to you, our members, I offer the sincerest thanks of your
Club. The passion, loyalty, energy and devotion you display for
Richmond is simply outstanding. My great hope is that, in the nottoo-
distant future, you will be suitably rewarded for your
unconditional love of the mighty Tigers.
You deserve nothing less ...
Clinton Casey
President
