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Bulldogs eradicate debt with third straight significant profit
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The Western Bulldogs Football Club is set to report a consolidated net profit of $1,643,050 for the financial year ended 31 October 2017, and that its net debt has been extinguished.
The financial result will be the Club’s third consecutive year of profit in excess of $1 million, underpinned by growth in membership and commercial revenue.
The strong performance has enabled the repayment of the Club’s bank borrowings and strengthened its balance sheet and financial health.
“The key financial objective for 2017 was to continue to reduce debt while supporting growth and investing in football to support our three teams. Each of those financial objectives was achieved,” said Bulldogs’ CEO Gary Kent.
“We are unable to recall the last time the Club was in a position of having nil net debt. It is at least forty years. So that’s extremely satisfying.
“The investment for growth has enabled the Club to expand operations in Ballarat and provide for additional resources for marketing, membership services, commercial operations and our community programs.
“We have worked hard over the last few years to grow our financial strength, and it’s the dedication of the entire organisation which has helped us into a position where we are debt free while continuing to invest heavily in the Club.”
Football expenditure increased by $2.8 million in 2017 and was invested in resources for coaching, high performance, player welfare and recruitment for the AFL, VFL and AFLW teams, as well as the establishment of the Next Generation Academy.
The Bulldogs set a membership record for the third straight year, with 47,709 members signing up in 2017, an increase of 19% from the previous year.
Revenue from Commercial Partnerships also set a Club record with a growth of 8.9% to $10.5 million.
“The renewal of Mission Foods as the Club’s major partner for a further three years from 2018, the announcement of the Club’s three-year partnership with Mercedes-Benz Vans and the renewal of our partnership with Victoria University for a further five years will provide tremendous opportunities for partnering with these world class organisations,” Kent said.
“The growth in number and quality of sponsors and partners is also recognition of the increased value being attributed to the Club’s brand and its commercial assets.”
The Club’s charity arm, the Western Bulldogs Community Foundation, also continued its outstanding work in 2017. The Foundation partnered with government, corporate and community agencies, committing over $1.5 million to running its thriving suite of programs.
The audited financial report is scheduled for approval by the Western Bulldogs Board on December 12.
Highlights of the Bulldogs’ financial performance:
- Consolidated net profit of $1.6 million
- Third successive year of profit in excess of $1 million
- Bank borrowings fully re-paid and nil net debt at year end
- Increase in revenue of 7.3% to $51.9m
- Investment in Football department increased by $2.8m to $25 million
- Membership growth of 19% to a record level of 47,709
- Commercial partnerships revenue growth of 8.9%
- Renewal of Mission Foods as major partner to end of 2020
- Announcement of three-year partnership with Mercedes-Benz Vans, commencing in 2018
- Merchandise revenue of $2.5 million
- Historical first season of the Western Bulldogs AFLW team and partnership with Western Spurs for a Western Bulldogs VFLW team in 2018
- Average AFL home attendances at Etihad Stadium increased to 36,306
- Inaugural AFL match at Mars Stadium in Ballarat
- Expansion of community programs into Western Victoria and the launch of the Daughters of the West program
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Re: Bulldogs eradicate debt with third straight significant profit
What a wonderful achievment. The article says net debt is something not achieved for 40 years, but to tell you the truth, I don't think we have ever been in that posititon before.
Well done to Peter Gordon and all the staff at the Footscray Football Club Limited (trading as the Westernbulldogs)
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Re: Bulldogs eradicate debt with third straight significant profit
Quote:
Originally Posted by
bornadog
What a wonderful achievment. The article says net debt is something not achieved for 40 years, but to tell you the truth, I don't think we have ever been in that posititon before.
Well done to Peter Gordon and all the staff at the Footscray Football Club Limited (trading as the Westernbulldogs)
Completely and wholeheartedly echo these thoughts. Magnificent effort.
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Re: Bulldogs eradicate debt with third straight significant profit
So which one is net debt again?
Does that mean we owe nobody anything or is it something to do with not paying interest on loans anymore?
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Re: Bulldogs eradicate debt with third straight significant profit
Awesone news.
I'm pretty ecstatic actually, never thought we would achieve what we have but since PG came back it's been all front foot, we can do anything attitude.
And to Barrett and co , suck shit and wallow in all your wrong assumptions about our president, board, coaches and trying to hurt this club.
Do some real investigations into things before you mouth off , because it's easy to make headlines writing rubbish.
God I love this club.
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Re: Bulldogs eradicate debt with third straight significant profit
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Originally Posted by
Twodogs
So which one is net debt again?
Does that mean we owe nobody anything or is it something to do with not paying interest on loans anymore?
It means our cash and other liquid assets exceed our loans. Eg we may still have a loan for $1 million but we also have $1.5 million in cash.
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Re: Bulldogs eradicate debt with third straight significant profit
Very, very, very happy with this news. Extraordinary achievement. So proud!
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Re: Bulldogs eradicate debt with third straight significant profit
Great news. If we handle the next few years correctly, we should be around forever. Another premiership or two in this window would be ideal.
Collingwood making huge losses again. For certain journos attacks on our various senior management, a club with about half the members is massively out performing the biggest, most powerful club in the commercial battle.
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Re: Bulldogs eradicate debt with third straight significant profit
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Originally Posted by
Axe Man
It means our cash and other liquid assets exceed our loans. Eg we may still have a loan for $1 million but we also have $1.5 million in cash.
Don't believe we have loans anymore :)
You are right we have more cash than needs to be paid out for expenses, wages etc. Great position to be in.
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Re: Bulldogs eradicate debt with third straight significant profit
Quote:
Originally Posted by
bornadog
Don't believe we have loans anymore :)
You are right we have more cash than needs to be paid out for expenses, wages etc. Great position to be in.
I wonder if we will start to do like the wealthier clubs do, that is, with our cash whether we start looking at using the Cat B rookie list much more with international players, players coming from other sports or like we did with Tweedie. The success rate seems low relatively speaking, but it you land a very good or gun player by 'buying' Cat B rookies, that's a huge advantage for the side.
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Re: Bulldogs eradicate debt with third straight significant profit
Quote:
Originally Posted by
bulldogtragic
I wonder if we will start to do like the wealthier clubs do, that is, with our cash whether we start looking at using the Cat B rookie list much more with international players, players coming from other sports or like we did with Tweedie. The success rate seems low relatively speaking, but it you land a very good or gun player by 'buying' Cat B rookies, that's a huge advantage for the side.
I think we are more into promoting our brand and expanding into other areas.
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Re: Bulldogs eradicate debt with third straight significant profit
Fantastic news. Well done to Peter, Gary and all involved. Very proud to be a member.
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Re: Bulldogs eradicate debt with third straight significant profit
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Originally Posted by
ledge
I think we are more into promoting our brand and expanding into other areas.
Certainly a good use of money off field no doubt, we have to keep growing. I hope we don't neglect ways we can use money for on field pursuits. I liked us taking a punt on Tweedie, despite it not working out.
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Re: Bulldogs eradicate debt with third straight significant profit
Great news.
We are still premiership winners on the financial front. Now to translate it on field.
Will be keen reading the financial report whenever that is released.
Another proud member here.
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Re: Bulldogs eradicate debt with third straight significant profit
Quote:
Originally Posted by
Axe Man
It means our cash and other liquid assets exceed our loans. Eg we may still have a loan for $1 million but we also have $1.5 million in cash.
Debts can be as simple as invoices waiting to be paid (Accounts payable) on a balance sheet. It need not mean loans to be repaid.
The club have done a wonderful job from a financial perspective. Here's hoping we can maintain the balance sheet for years to come.
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Re: Bulldogs eradicate debt with third straight significant profit
Quote:
Originally Posted by
westdog54
Debts can be as simple as invoices waiting to be paid (Accounts payable) on a balance sheet. It need not mean loans to be repaid.
The club have done a wonderful job from a financial perspective. Here's hoping we can maintain the balance sheet for years to come.
Yeah I'm an accountant, I was just trying to put it in simple to understand terms.
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Re: Bulldogs eradicate debt with third straight significant profit
Fantastic result. Now wait for the bigger clubs and the AFL to table chipping away our competitive balance concessions.
We need to be extremely smart with how we use our available funds.
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Re: Bulldogs eradicate debt with third straight significant profit
Thanks Woofers for explaining 'net debt' - was a little suspicious of what it actually meant when PG announced it last evening. I had one elderly long time Bulldog supporter come up to me and ask it this meant we no longer owed money to anyone - I suggested to her that we wait until we see the more formal reporting on the Bulldog website (as I had no idea what it actually meant).
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Re: Bulldogs eradicate debt with third straight significant profit
Let's enjoy the moment but another season like 2017 will see us with falling membership numbers and corporate support.
No time to be complacent.
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Re: Bulldogs eradicate debt with third straight significant profit
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Originally Posted by
comrade
Let's enjoy the moment but another season like 2017 will see us with falling membership numbers and corporate support.
No time to be complacent.
I agree, though I think once you prove you've got numbers corporate sponsors change their attitudes. All the market research data and subsequent estimations were no match for the support we demonstrated.
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Re: Bulldogs eradicate debt with third straight significant profit
Great news- well done Peter Gordon and Club. Imagine how good it will be when we win another cup in’18 or soon after?Agree we must not be complacent and whilst Gordon is at the helm cannot see that happening.
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Re: Bulldogs eradicate debt with third straight significant profit
Well done to the Western Bulldogs fc and all involved. This is just awesome news. From rags to riches for the struggling ol dogs hey. I love this club and I'm so glad to have been around for the bad times because it makes the good times so much better.
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Re: Bulldogs eradicate debt with third straight significant profit
Quote:
Originally Posted by
jeemak
I agree, though I think once you prove you've got numbers corporate sponsors change their attitudes. All the market research data and subsequent estimations were no match for the support we demonstrated.
I think sponsorship will continue to be strong (unless we completely implode), I'm more referring to the coteries, private support from wealthy benefactors and corporate types attending events and tipping money into the club. Everyone loves a winner.
And membership is a real concern...my old man was on the waiting list for gold membership post 2016 and has already been called to upgrade due to people already dropping off (which he did).
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Re: Bulldogs eradicate debt with third straight significant profit
Never thought I’d see this in my lifetime. Outstanding.
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Re: Bulldogs eradicate debt with third straight significant profit
This is the article in the HS:
Western Bulldogs’ in strongest financial position in more than 40 years
MICHAEL WARNER, Herald Sun, December 6, 2017 5:07pm
Quote:
WESTERN Bulldogs are trumpeting their first net debt position in more than four decades.
The Dogs yesterday declared a profit of $1.63 million for 2017 — their third consecutive $1m result.
Total club debt was as high as $9.75 million just two years ago but has fallen to about $3 million thanks to surging membership and commercial revenues.
The club has another $3.5 million cash in the bank.
“We are unable to recall the last time the club was in a position of having nil net debt. It is at least forty years. So that’s extremely satisfying,” outgoing Bulldogs chief Gary Kent said.
“The investment for growth has enabled the club to expand operations in Ballarat and provide for additional resources for marketing, membership services, commercial operations and our community programs.”
Football expenditure increased by $2.8 million to $25 million off the back of last year’s drought-breaking premiership.
A record 47,709 members signed on in 2017 — up 19 per cent.
Former St Kilda chief operating officer Ameet Baines takes over from Kent on Monday.
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Re: Bulldogs eradicate debt with third straight significant profit
It is so great reading how well now we are doing on the financial front.
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Re: Bulldogs eradicate debt with third straight significant profit
Quote:
Originally Posted by
choconmientay
Its a bloody fantastic legacy for Kent to leave after his short time at the club. Credit to Simon Garlick and David Stephenson for their efforts as well.
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Re: Bulldogs eradicate debt with third straight significant profit
Quote:
Originally Posted by
westdog54
Its a bloody fantastic legacy for Kent to leave after his short time at the club. Credit to Simon Garlick and David Stephenson for their efforts as well.
Gary's last day today I believe. Has had a good 18 months or so.
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Re: Bulldogs eradicate debt with third straight significant profit
Quote:
Originally Posted by
choconmientay
Are you sure that's us they are talking about? We are an irrelevant, broke, welfare dependent blight on the competition bludging off the better clubs superior output.
Did I miss anything?
Quote:
Originally Posted by
westdog54
Its a bloody fantastic legacy for Kent to leave after his short time at the club. Credit to Simon Garlick and David Stephenson for their efforts as well.
It's quite a coup for his CV isn't it? And you're right a lot if the situation we find ourselves in would be the result of the hard work they would have done.
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Re: Bulldogs eradicate debt with third straight significant profit
An outstanding effort by everyone at the club. 3 years ago I thought we were 10 years away from being debt free.
We have many challenges coming up and we can't take the foot off the accelerator. Our position is still very reliant on membership and the commitment of our supporters so we all have a role to play.
How great will it be if we can back it up in 12 months with another $1M+ profit announcement?
The days of being known as the struggling club from the West will long behind us
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Re: Bulldogs eradicate debt with third straight significant profit
Quote:
Originally Posted by
GVGjr
An outstanding effort by everyone at the club. 3 years ago I thought we were 10 years away from being debt free.
We have many challenges coming up and we can't take the foot off the accelerator. Our position is still very reliant on membership and the commitment of our supporters so we all have a role to play to .
How great will it be if we can back it up in 12 months with another $1M+ profit announcement?
The days of being known as the struggling club from the West will long behind us
I'm assuming we didn't have Mercedes advance us, nor Bob Jane. So with a bit of luck that cash will give us a big head start towards that profit range you mention. I fear a membership drop off of (worst case) 10% next year. But if we come out guns blazing in the first month, we should grow the membership yet again.
It's just wonderful to know a line in books of $1,000,000 or more was not a benefactor bailing us out. It's great to have those club heroes do those things for us, but it's better to have our masses doing it with competent financial management. Those 2016 players have a huge legacy beyond a flag, they've set in motion a bulldozing of the debt and built the future profits with 4 amazing weeks.
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Re: Bulldogs eradicate debt with third straight significant profit
Let’s hope PG can keep turning the screws on city hall to finally get that stadium deal upgrade.
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Re: Bulldogs eradicate debt with third straight significant profit
I want us to be in a position where we don't need to rely upon the AFL and any equalisation funding.
We may well have seen the high point of TV rights and net deals. I don't know that an 18 team AFL comp is sustainable.
In time, when they speak of the Big 4 Vic teams, I want the Dogs to be one of them.
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Re: Bulldogs eradicate debt with third straight significant profit
Quote:
Originally Posted by
Dry Rot
I want us to be in a position where we don't need to rely upon the AFL and any equalisation funding.
We may well have seen the high point of TV rights and net deals. I don't know that an 18 team AFL comp is sustainable.
In time, when they speak of the Big 4 Vic teams, I want the Dogs to be one of them.
Fix up the stadium deal and I suspect we'll basically be there already
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Re: Bulldogs eradicate debt with third straight significant profit
Quote:
Originally Posted by
hujsh
Fix up the stadium deal and I suspect we'll basically be there already
Equalization funds = fixing the stadium deal and other abnomalies.
The AFL has more control keeping it as an equalization fund.
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Re: Bulldogs eradicate debt with third straight significant profit
Quote:
Originally Posted by
Dry Rot
I want us to be in a position where we don't need to rely upon the AFL and any equalisation funding.
We may well have seen the high point of TV rights and net deals. I don't know that an 18 team AFL comp is sustainable.
In time, when they speak of the Big 4 Vic teams, I want the Dogs to be one of them.
That's assuming the AFL hand out the goodies they have under their control on an equal basis. They don't so we can't see the equalisation fund as something we get as an extra or an add on to the deal we already have. I see your (and agree with) your point about the current conditions continuing on (they won't). But I don't agree that we are the first to get it in the neck when things change. It's simple , if we go down we take the other bastards with us. I see it as a fairly simple equation, either we get to play or no one gets to play. And I'm happy to bring the whole edifice and superstructure down. I'd do it without thinking about it.
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Re: Bulldogs eradicate debt with third straight significant profit
Hopefully this means we are also going to sign a better deal soon. This should be one of the first items Ameet Bains crosses off his to-do list.
Saints close to resolving Etihad 'hamstring'
ST KILDA is "very close" to finalising a deal with the AFL to see improved financial returns from games it hosts at Etihad Stadium, with a result almost certain to come before the start of next season.
The AFL purchased the Docklands-based venue last October in a huge win for most of the tenant clubs, which have received relatively low revenue compared to what they make when hosting games at the MCG.
Saints CEO Matt Finnis told reporters at Seaford on Friday a resolution was not far away.
"We've been working all year with the AFL and the other tenant clubs on improving the economics of Etihad Stadium. We're getting very close to nailing that down," Finnis said.
"We think we're on the cusp of getting a deal at Etihad Stadium which will now underpin our financial sustainability in the future."
Finnis said the increased funds would allow for more investment in the club's football department, with a new deal to be done before round one in March next year.
"We'd be incredibly disappointed if we hadn't resolved that before the first ball is bounced," Finnis said.
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Re: Bulldogs eradicate debt with third straight significant profit
Quote:
Originally Posted by
Axe Man
Hopefully this means we are also going to sign a better deal soon. This should be one of the first items Ameet Bains crosses off his to-do list.
Saints close to resolving Etihad 'hamstring'
ST KILDA is "very close" to finalising a deal with the AFL to see improved financial returns from games it hosts at Etihad Stadium, with a result almost certain to come before the start of next season.
The AFL purchased the Docklands-based venue last October in a huge win for most of the tenant clubs, which have received relatively low revenue compared to what they make when hosting games at the MCG.
Saints CEO Matt Finnis told reporters at Seaford on Friday a resolution was not far away.
"We've been working all year with the AFL and the other tenant clubs on improving the economics of Etihad Stadium. We're getting very close to nailing that down," Finnis said.
"We think we're on the cusp of getting a deal at Etihad Stadium which will now underpin our financial sustainability in the future."
Finnis said the increased funds would allow for more investment in the club's football department, with a new deal to be done before round one in March next year.
"We'd be incredibly disappointed if we hadn't resolved that before the first ball is bounced," Finnis said.
Just make me question what the butterfly effect will be. The AFL won't easily give up profits to assist smaller clubs. Other things will be taken away.
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Re: Bulldogs eradicate debt with third straight significant profit
Quote:
Originally Posted by
comrade
Just make me question what the butterfly effect will be. The AFL won't easily give up profits to assist smaller clubs. Other things will be taken away.
The AFL is all of the clubs. The profit from Etihad earned by the shabby deals for the clubs in question now belongs to all the clubs.
AFL only play at equalization.
Answer will be in smaller distributions, as they really can't cope with smaller clubs becoming bigger and meriting a fairer fixture.
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Re: Bulldogs eradicate debt with third straight significant profit
Quote:
Originally Posted by
Bulldog Joe
The AFL is all of the clubs. The profit from Etihad earned by the shabby deals for the clubs in question now belongs to all the clubs.
AFL only play at equalization.
Answer will be in smaller distributions, as they really can't cope with smaller clubs becoming bigger and meriting a fairer fixture.
It's a parochial form of equalisation.