An open letter to all Richmond members
12:02:55 PM Thu 1 July, 2004
richmondfc.com.au
While it has been a disappointing year for the club, as President I am confident and determined we are now putting the right structures in place for Richmond to again become a force in the AFL.
This letter will provide you with an explanation of why we face some of the challenges we do, and our plan to tackle them.
I would like to start by thanking Danny Frawley for his tireless contribution to the club as senior coach over the past five years. Danny will finish at the end of the season but leaves with the respect of all the players and administration and will always be welcome at Tigerland.
Danny’s decision allows us to immediately begin the search for a new coach.
In order to attract the best available candidate we must be a united and stable club.
While I understand and share the frustrations of many of our members, this is not a time for disruption – we need your support.
The new coach, together with Director of Football, Greg Miller, will continue to rebuild our playing list with a focus on youth. We will be in a good position to draft quality young players, adding to the excitement generated by the likes of Coughlan Krakouer, Roach and Hartigan.
Off-field, we are thrilled to have appointed former Australian Grand Prix Corporation chief Steven Wright to the position of chief executive officer. A passionate Richmond supporter, Steven brings to Punt Road the experience of managing one of the world’s biggest sporting events and strong contractual management skills as an experienced lawyer.
In conjunction with this appointment, we are developing a new strategic plan with the help of an external consultant.
As we continue in this rebuilding process it is important that the Board and administration is open about the financial position of the Club and that all members understand the challenges we are facing.
As has been widely reported, the Club is facing a loss of up to $2 million for 2004. We have identified how this occurred and have already made changes to our administration as we begin the task of turning it around.
The key factors contributing to the 2004 loss are:
1. Team Performance:
Poor team performance has contributed to shortfalls in key revenue streams, such as gate receipts.
2. Licensed Clubs:
Proceeds generated from gaming continues to decline. In 2001, the club generated in excess of $800,000 from gaming activities. In 2004, gaming will generate approximately $50,000 largely due to the impact of the Victorian anti-smoking legislation.
3. Overly optimistic revenue projections:
There were a number of plans driven by the then chief executive that unfortunately did not come to fruition. These included new revenue streams for Punt Road Oval and new sponsorship opportunities.
4. Expenditure overruns:
As a result of the aggressive revenue forecasts, expenditure was set at unsustainable levels.
Detailed financial projections have been prepared for 2005 and 2006 based on the following rationale:
1. Forecast Revenues:
Our revenue forecasts for the next three years are based on small increases only – even though we are confident of a much-improved position.
We will strive for this better revenue position through detailed planning, benchmarking and the help of external consultants.
While on-field success will be sought as a priority, it will not be assumed in the revenue projections.
2.Expenditure Projections:
The expenditure levels of the Club will be set in accordance with the existing revenue streams of the Club.
Accordingly there will be significant expenditure reductions within certain areas.
Importantly, other clubs have demonstrated that such levels of expenditure are possible and sustainable.
The Board is confident in the Club’s ability to achieve the 2005 and 2006 projections for the following reasons:
• Our revenues (particularly corporate revenues) compared to other Melbourne- based AFL Clubs are relatively poor. Therefore the risk of reduced revenues is low, while increased revenues is achievable. In fact we are confident of the return of several former sponsors for 2005.
• The membership and match attendance driven projections assume no on-field success (ie worst case scenario).
• The projected expenditure across departments has been achieved successfully at other Victorian based AFL clubs and although we already do well by AFL Commission comparison, we can do better.
• The “model” adopted of a low cost / “youthful” approach is producing on and off-field success at other clubs.
The next six months are critical to the future of the Richmond Football Club. We need to and will, appoint a new coach, recruit young talent, strengthen our administration and attract new corporate support.
History has shown that a stable environment is vital to any club’s success. While in this time of rebuilding we are embracing change, we are also mindful of the need for stability to attract the best possible people to the club.The Board, administration, coaching staff and the players need to work together to give the Club the best chance for success but we can’t do this without the support of our members.
The best way to do this is to remain strong Richmond supporters and come and watch our team for the remaining nine matches of the home and away season.
Positive change is underway. The Board and I are determined to see it through.
Kind regards
Clinton Casey
PRESIDENT
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