The Fighting Tiger Fund - "Giving 110%" [merged]

[Penelope]

pretty sure they said the annual interest they were paying is about 400K, which is the estimated cost of fielding our own reserves team.

therefore it would be 1.5 mil left, paying off 400K a year, taking into account further interest payments it would be about 4 1/2 years

[Penelope]

didn't we receive a handout off the league for debt reduction?

[WilliamPowell]

If we raise the $6 mil then any remaining debt should be gone within 12 months IMHO. Cash savings in interest payments frees up cash to retire debt.

Acctg 105 

1/2 of $6M target equals $3M
$4.5M minus $3M leaves $1.5M
Annual Interest payments on $4.5M was $300K.
$1.5M divided by $300K equals 5 years.

Basic arithmetic   

Now basic arithmetic doesn't apply to accounting     

Prior to the FTF the club paid down $500k of the debt and was paying approx $300k of interest.

Future repayments of debt should in the first instance be based on what you were able to do in the past based on the worse case scenario (prior to the FTF) therefore $500k + $300k = $800k (acctg 105  )

Increased cash flows from increased revenues should mean your target is to pay off the debt sooner rather than later

 

[RedanTiger]

If we raise the $6 mil then any remaining debt should be gone within 12 months IMHO. Cash savings in interest payments frees up cash to retire debt.

Acctg 105 

Prior to the FTF the club paid down $500k of the debt and was paying approx $300k of interest.
Increased cash flows from increased revenues should mean your target is to pay off the debt sooner rather than later

Your inference in the first post was that savings on interest payments would retire remaining debt in 12 months. That's what I disagreed with.
I agree that increased cash flow AND reduced interest payments will help retire debt quickly.
Another helpful aspect is that money from FTF will pay for some football department spending that would have normally come from general revenue.
The other thing is the AFL "Club Future Fund" referred to by al.
Interesting that the allocation (page 14) for debt reduction is only a total of $7M for the entire league over 2012-2014.
http://mm.afl.com.au/portals/0/2011/finals/club_funding_presentation_260911.pdf

BTW see that you and al are also  for claiming a $300K figure.
 

[WilliamPowell]

BTW see that you and al are also  for claiming a $300K figure.
 

Yep from RFC 2011 Financial Report:

Pg 10: Statement of Cash Flows - Interest Paid $299,445

 

[one-eyed]

Richmond hopes to slash debt
Michael Gleeson
The Age
May 30, 2012


THE feelgood surge that the ongoing upward trend of Richmond as an on-field team is this time built on a solid foundation is helping to consolidate the club's position off the field.

The Tigers are expecting that by the end of the year they will have more than halved their debt from when the Fighting Tiger Fund was launched with a debt of more than $4.5 million 2˝ years ago. Richmond hopes to cut its debt to about $2 million by year's end, with the club hopeful that with the way things are tending they are in line for a solid profit this year of close to a million dollars.

The Tigers will hold a major dinner on Saturday night marking the halfway mark of the ambitious five-year, 3-0-75 plan to play finals three times, clear debt to zero and hit 75,000 members.

The $600-a-head dinner held at the club in the function room and social club will be attended by several hundred people and is hoped to generate a similar amount to the $2 million raised at the first dinner.

Half of all money raised at the dinner is invested in football and half is used to retire debt - and with it create significant interest rate savings.

''We hope to make a significant dent in the debt on Saturday night,'' Richmond president Gary March said yesterday.

''Our aim has always been that by the end of this season to have reduced our debt to at least half of where we started and I believe we will get there if not more.

''And we have done that while investing in football and doing the things we said we would do: reshape and resurface Punt Road oval, fund all the facilities changes, bring in the new coaches that we did with Ross Smith this year, front end contracts so we could pay 100 per cent of the salary cap so we were in a good position for free agency which we now are.

''And I think our next step is to invest in a little bit more in sport science equipment to help with recovery.

''Last year helped bring us to the best in facilities and football spend and Saturday night will allow us to even go past the best clubs.''

http://www.theage.com.au/afl/afl-news/richmond-hopes-to-slash-debt-20120529-1zhdw.html#ixzz1wGskbdLJ

[Penelope]

people have siezed on comments about being being prepared for free agency to mean we will be players, but this part,

..front end contracts so we could pay 100 per cent of the salary cap so we were in a good position for free agency which we now are.

says to me it was meant we could protect our interests rather than poach anyone else, initially anyway.

[Eat_em_Alive]

What's amazing is that this thread was started at 1am and has already had 60 views. There are tigers roaming everywhere!!! 

[tdy]

Yeah geez I hope we don't go a a superstar search.  You hardly ever get good players that way.   

''And I think our next step is to invest in a little bit more in sport science equipment to help with recovery." 

That's a good sign.

[Coach]

What's amazing is that this thread was started at 1am and has already had 60 views. There are tigers roaming everywhere!!! 

whoa

[the claw]

yep they are doing a fair bit right at last. would like some extra money go into recruiting and list management. matt rendell to go with jackson who imo has only been average.  get more people on the ground and to all games like tac.
 at least someone who can keep an eye on craig cameron if not replace him when it comes to list management.. some of his re-signings have been mind boggling.
other than these i dont know if anyone can complain about the off field direction we are taking.

personally i would like the ftf to continue to a stage where we are say 10mil in the black and investing in assets. that is self sustaining.

[dwaino]

yep they are doing a fair bit right at last.

I think you should contact the club and let them know this. I'm sure it would be a massive sigh of relief!

[Loui Tufga]

yep they are doing a fair bit right at last. would like some extra money go into recruiting and list management. matt rendell to go with jackson who imo has only been average. 

How can you say Jackson has "Only been average"??  13 kids of the 22 that played on the weekend Jackson had a hand in recruiting, the other 9 are all that's left from an era of badly handled trades and Bungled draft picks. The Core of this club going forward is based around Jacksons picks and considering most of them are aged 24 and under it would be hard to see our list going backwards from here
If we win a Flag in the next 5 years you will only have Jackson to thank but I supose that still wont be good enough for some

[Mr Magic]

 at least someone who can keep an eye on craig cameron if not replace him when it comes to list management.. some of his re-signings have been mind boggling.

Rendell picked up Tambling. Reckon CC is ahead on that one.

[tony_montana]

Rendall is joining the pies..

 apparently Craig is the one who wanted tambling, rendall was the recruiter nk the bloke making decisions on who to trade for. I'd take Rendall over just about any recruiter bar a handful