Tigers heading towards a profit

[one-eyed]

Tigers turn it around off the field
By Michael Gleeson
The Age
June 22, 2005

Richmond is heading towards a profit of up to $250,000 this year, a stunning turnaround on the $2.2 million loss of last season.

The remarkable about-face in financial performance at Punt Road has only partly been attributable to the improved on-field effort early in the season.

Richmond president Clinton Casey said the worst-case scenario would be for the Tigers to make $50,000 this year, with the best-case scenario a $250,000 profit.

The club has increased net revenue per membership by about $28. This takes revenue per membership to more than $80 each by cutting back on what was given to members, including scrapping the giveaway sunglasses (which cost $14.95 each) with memberships.

Casey said it was an extraordinary change in fortune from just nine months ago when he met with AFL chief executive Andrew Demetriou. Then, the club was without a coach or CEO, facing a hostile board election and was posting a loss of more than $2.2 million.

"While it is still relatively early and there are a lot of risks and unknowns, I am confident that we will exceed our budget," Casey said. "What is most pleasing is that this turnaround has not been caused by the on-field success of the team, but by improvements in the underlying business."

In the newsletter to members to be sent out this week, Casey itemises where savings have been made.

He said net membership revenue had increased by $750,000 or 38 per cent, net sponsorship income had risen 16 per cent or $300,000, coterie income was up 93 per cent or $300,000 and net corporate hospitality income was up $200,000 or 225 per cent.

Savings were also made in the football department where spending was trimmed by $400,000 or 4 per cent. Casey said the club was only paying 94 per cent of its salary cap this season.

A further impost on the club was the $170,000 for the cost of the election, and injury payments this season are up $90,000 on the previous five-year average. The club will pay out the remaining $1.5 million debt on the redeveloped social club by the end of next year.

Much of the credit for the change is attributed to a business plan drafted by consultant Crowe-Lovett. The extensive three-year plan compiled by Crowe-Lovett's Ben Crowe, Peter Mann, Xavier Russo and former consultant Andrew Catterall, who is now at the AFL, provided a detailed blueprint for new chief executive Steven Wright.

"Having an absolutely detailed business plan based on the historical performance year-on-year benchmarked against other clubs in the competition of similar membership and size was the most important decision the club took," Casey said. "Having that business plan to give to the new CEO and say, that is your blueprint."

http://www.realfooty.theage.com.au/realfooty/articles/2005/06/21/1119321731616.html

[Bulluss]

This is a fantastic result by the club, things will only continue to improve as Wallace and Miller improve our list and we rise back up the ladder.

Maybe we can become a force once again.

[mightytiges]

Congrats to Steven Wright.

Hopefully we can score the best case scenario of $250K profit. A tunraround in form after the break from the past couple of weeks and few wins on field wouldn't do any harm.

[julzqld]

You took the words right out of my mouth MT.

[one-eyed]

TIGERS RIGHT ON TRACK
The Fighting Tiger Bulletin
By Clinton Casey
Richmond President

As part of the Board's commitment to our members and supporters, we prom­ised that among other things in 2005, there would be a significant turnaround in the financial affairs of the Club, and we would create an environment that would help us achieve sustained success on the field.

I am pleased to state that we are well on the way to meeting both these objectives.

Firstly, in respect of the Club's finances, as members will recall, we set ourselves for an improvement of $2million in 2005. I have pleasure in advising that we are well on track to meet this target. While it is still relatively early and there are a lot of risks and unknowns, I am confident that we will exceed our budget. To achieve such an improvement in so short a period of time is terrific, and testament to the hard work put in by the Board and management over the off-season.

What is most pleasing is that this turn­around has not been caused by the on-field success of the team, but by improvements in the underlying business itself. I have set out below a summary of where the improvement has occurred.



As you can see, it's great that all areas of the Club have responded and played a significant role in this improve­ment.

If the team continues its on-field success, our income from match­day attendances will also increase, adding some icing on the cake. I would encourage you to head to the MCG for our upcoming home games against Sydney, Essendon and St Kilda, because not only will you be able to cheer on the boys, you will also be helping the Club to further improve its finances.

This financial improvement is even more pleasing considering we have had to absorb some large costs this year. Firstly, the election cost the Club more than $170,000 and, secondly, our injury pay­ments in 2005 are over $90,000 up on our previous five-year average, which was our budgeted figure.

I would like to offer my congratulations to our CEO, Steven Wright and his team for the fantastic job they are doing to keep the Club financially secure.

From a football perspective, Terry Wallace provides an in-depth analysis of the season to date in this issue of the 'Fighting Tiger Bulletin'. I would like to add to Terry's comments by congratulating the entire coaching team and players for the way they have gone about their football this year. An entertaining, attacking style of play has provided great excitement for the fans, who are coming in considerably larg­er numbers than in recent years to support the Yellow and Black.

With the unearthing of some fine young recruits this year, and the excellent form shown by our key senior players, the play­ing list is set up well for the future. No doubt, with a young group, and injuries to a number of players, there will be challenges along the way. But Greg Miller, as Director of Football, must be congratulated for assembling such a fantastic group and set­ting the foundations for what we will be a successfuL team in the years ahead.

On a personal note, it has been great to see so many former Richmond players returning to the Club this year as part of our mentoring scheme. Tiger greats such as Francis Bourke, Dick Clay, Tony Free, Michael Green and Brendon Gale have joined more than 30 other former pLayers in volunteering to assist Terry in the development of our players. I thank them for their won­derful com­mitment to the Club.

I'd like to take this opportunity to welcome on board the Australian Finance Group (AFG) as a co­-major partner with Motorola. We look forward to working with both of these great companies along with Laguna Whitsunday, Connex, CUB, Coca Cola, Concept Sports, Bartercard, Silver Top Taxis and our other key partners. The commitment of these companies to the Tiger cause is greatly appreciated by us all.

Finally, I'd also like to thank you for your great support as a dedicated Richmond member. This Club relies heavily on the support of our members. We have man­aged to increase the number of ticketed members again in 2005, to have over 28,000. We will be driving to break through the 30,000 ticketed member mark in sea­son 2006, so we can be right up there, legit­imately mixing it with the big Melbourne based clubs. But in the mean time, we ask you to encourage all of your friends, family and colleagues to join you at the upcoming Richmond games, to help us celebrate some more wins and to sing our famous song.

[WilliamPowell]

The Age
June 22, 2005

In the newsletter to members to be sent out this week, Casey itemises where savings have been made.

Just on a side bar the original article from the Age was in last Wednesday's edition (22/6/05). It said that the newsletter was to be sent out that week.

It is now the 28/6/05 - and of last night I still hadn't recevied it - Ma Powell got hers yesterday so too did MT .

But I have to say I really do get peeved with this sort of thing - I just reckon ever member should get them at the same time

[Mopsy]

Well when your name starts with 'W'as in william i guess you must be used to being last as i am!!
( even in the army for the needles!!!!)

[WilliamPowell]

Praise for Tiger turnaround
10:27:34 AM Wed 29 June, 2005
Paul Gough
Exclusive to afl.com.au

Richmond's stunning transformation not only on the field but more importantly off it has won high praise from AFL chief executive Andrew Demetriou who has described the Tigers' financial turnaround as "remarkable.'

Demetriou, speaking exclusively to afl.com.au, said the league is thrilled the Tigers have been able to put the turmoil of 2004 behind them so quickly with a recent visit by league heavyweights to Punt Road confirming the club's growing financial strength.
 "Richmond this year in the space of eight or nine months will have a $2.5 million turnaround and that is fantastic," Demetriou said.

"It's remarkable and that's the way we described it when we visited the club recently."

It was only last December that president Clinton Casey and the rest of his board survived a challenge for control of the club from a rival ticket led by former board member Charles Macek after the Tigers posted a loss of just under $2.2 million for 2004.

This was at the end of a season in which the club had finished on the bottom for the first time since 1989, after losing its last 14 games of the season, which bought about the end of Danny Frawley's reign as coach.

But Casey and football director Greg Miller - whose decision to nominate for Casey's ticket helped swing the election in favour of the Tigers' president - went out and secured highly respected former Bulldogs Terry Wallace as coach and the club has not looked back since.

Despite defeats in their past four matches, the Tigers are still in the top eight with seven wins from 13 games and a good chance to play finals for the first time since 2001.

And now the club is headed for a profit off the field despite coming off last year's huge loss.

Demetriou said Casey and the Tigers' board deserved much of the credit for getting the club out of such a precarious situation so quickly.

"It was only towards end of last season they weren't playing well on the field and they had lost $2.2 million and there was huge turmoil off the field with the presidential election looming," he said.

"But they got a new CEO (Steven Wright), a new coach and Clinton Casey withstood the challenge, which was terrific."

"They then put a strategic plan in place and they are seeing the benefits."

"They are playing well on the field and they are going to return a modest profit this year and that is a significant financial turnaround."

"But that's what can happen in this competition, you can lose money really quickly but then you can turn things around quickly as well both on and off the field."

"I've got to congratulate Richmond because they have done a great job as have other clubs such as Melbourne, the Kangaroos and the Bulldogs."

Demetriou said the league is delighted with the improved financial performances of the 16 clubs overall.

"It's a credit to the boards of the clubs and to the CEO's and probably in my time they are the best collection of quality CEO's that we have had."

"The competition is strong at the moment and it's great because I don't think anyone wants to see a club lose money off the field."

http://richmondfc.com.au/default.asp?pg=news&spg=display&articleid=211932

[WilliamPowell]

"I've got to congratulate Richmond because they have done a great job as have other clubs such as Melbourne, the Kangaroos and the Bulldogs."

Demetriou said the league is delighted with the improved financial performances of the 16 clubs overall.

I just want to say there is a huge difference between the Tigers and the other 3 Clubs mentioned and that is unlike the other 3 we didn't get money from the Competitive Balance Fund (eg $1 million). Granted we got a re-direction order but that is justa piece of paper that says the AFL is guaranteeing paying a club their annual dividend.

This turnaround is off the back of the RFC's harwork not AFL handouts

====

PS: Still no FTB 

[Fishfinger]

You and I must be a bit sensitive WP. 
I winced as well when the 3 clubs on welfare were mentioned in the same breath. Demetriou was just being complimentary to how they're operating but it makes it sound like we're in the same boat. A lot of people seem to think that the AFL is propping up Richmond financially, and being mentioned with the 3 that are will not help dispel the myth.
I still shake my head that the club appears not to have refuted the rubbish article from The Financial Review, which gained notice when it appeared in The Age, saying Richmond was worth the least of any AFL club but based on incorrect figures. Opposition supporters still get great pleasure from mentioning the false findings and it drives me mad.

Well done to Steven Wright, Clinton Casey, the board and all the club administration for their astute work and fantastic results.
Well done to the majority of Richmond members for seeing beyond the horror of last years bottom line. 

[WilliamPowell]

You and I must be a bit sensitive WP. 

Me sensitive  ??? never

I winced as well when the 3 clubs on welfare were mentioned in the same breath. Demetriou was just being complimentary to how they're operating but it makes it sound like we're in the same boat. A lot of people seem to think that the AFL is propping up Richmond financially, and being mentioned with the 3 that are will not help dispel the myth.

That's why I raised it Fish, if we were getting propped up I'd put my hand up and admit it and I'd have no problem. But to be mentioned with the other 3 is ludicrous and unfair to those at the RFC who worked their butts off to turn this thing around.

It's like those delluded Hawks supporters who have said for years that they receive no financial assistance from the AFL - when they have as a result of their compensation deal from when the got kicked out of Waverley. Again it isn't CBF money but it is money recevied from the AFL outside the normal yearly dividend - that's a form of assistance in my book. And just on Hawthorn I am sure I read over the weekend that they are going to go to the AFL and ask for a further extension of that arrangement 

[mightytiges]

You and I must be a bit sensitive WP. 
I winced as well when the 3 clubs on welfare were mentioned in the same breath.

I winced as well. We turned our balance sheet around ourselves and aren't propped up by the CBF like those clubs. You could see from last year's budget that we met our expenditure targets but were in $2 million ga-ga land in terms of revenue projected. Once we got Steve Wright and returned to real world estimations this sort of turnaround wasn't unexpected. As FF says well done to everyone involved .

Most of those opposition supporters who have a go at us on BF seem to be Hawk fans who conveniently forget they have received comp every year from the AFL as part of transferring from Waverley to the MCG. Let's see how the Hawks go without the handout although I notice a few weeks ago they were asking for the comp to continue. Aren't they expecting a loss of around $1 million this year anyway?

That Finanical Review article was so poorly researched it didn't deserve a response. Not just from an AFL standpoint and undercutting our revenue by $6 million but the fact that it didn't include revenue from League's clubs for the NRL clubs. That alone made the article laughable.