Richmond on road to clearing debt
By Mark Robinson
November 8, 2005
RICHMOND has kept its pre-season promise and will announce a balance sheet turnaround of $2.2 million at its annual meeting.
Significantly, the Tigers are also expected to make a small profit of between $50,000 and $200,000.
A combination of cost-cutting in the football department and revenue growth, particularly in sponsorship and membership, has spearheaded the club's transformation.
Tigers chief executive Steven Wright said yesterday the result was indicative of the club's stable environment.
"It shows some stability, and stability has been lacking at Punt Rd a bit over the last few years," Wright said.
"With Terry Wallace there for five years, the board's done a very good job this year and has been able to deliver on the promises it made."
The sponsorship base will expand even further on Thursday when the club announces the signing of international clothing company hummel as its new apparel partner.
While the Tigers still carry a $4 million debt into the 2006 season, the climate at Punt Rd has changed enormously in 12 months. This time last year the club was in turmoil.
A wooden spoon, a bitter boardroom fight for control and a $2.2 million loss confronted key appointees - Wallace and Wright.
Wright yesterday acknowledged the result as pleasing. "It's only a week since the year end and we're still finalising all the accounts, but we anticipate being able to make a small profit," Wright said.
"We can't at this point put a number on it because there's ups and downs and there's incomes coming in.
"Certainly we've got a long way to go to build the club and pay off our debt, but it's pleasing in one year we've been able to make that turnaround.
"We've had the support of our sponsors, our partners and our members who have all been involved in helping the revival of the club."
While the Tigers will aim for the finals on-field from next year, reducing the $4 million is their No. 1 priority off field.
Wright acknowledged that task was a significant hurdle.
"In all honesty, the first $2 million is the easiest, finding another $2 million (per year) will be a challenge for us," he said.
"But, hopefully, with the support of our partners, additional partners and members and people coming to the games . . . all those things help to grow the business.
"(This year) we didn't do anything that was a one-year hit, so they're sustainable."
Wright also confirmed all players had signed again.
The AGM will be held in mid to late December.
Herald Sun
http://foxsports.news.com.au/story/...9-23211,00.html_____________________________________________
Since when did our debt become $4m?
I thought it was about $600,000.
Well done RFC on the turnaround.
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