Adelaide Footy League D7 - 2017

Adelaide Footy League Talk

Re: Adelaide Footy League D7 - 2017

Postby The Old Fellow » Tue Aug 08, 2017 4:25 pm

Off The Wall wrote:
Trader wrote:
morell wrote:The bar turns over about $220k a year, if not more and *just* breaks even. When I looked at the MYOB database I calculated that football provides, conservatively, about 65% of that revenue. Approx 50% goes in employee costs - wages, insurance, annual leave, super etc. My very strong position is that for 6 months of the year during footy season that bar should be run using volunteers of the football club and the profits after costs of sales returned to the football club.

I'll do the math: (220*0.65)*0.5=71.5


What number have you tried to calculate?
Are you saying $71,500 would be the profit if the footy club ran the bar using volunteers?

Need to also look at utility costs


You mention that the turn over is $220k pa, Footy club generate about 65%, if 50% goes on employee costs once you take into the cost of the stock you sell you are in a loss situation.

Calculation should be more like turnover of $220k at 100% mark up = $110k profit as your starting point not $220k
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Re: Adelaide Footy League D7 - 2017

Postby jo172 » Tue Aug 08, 2017 4:42 pm

FTE Bar Manager!!???
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Re: Adelaide Footy League D7 - 2017

Postby Sheik Yerbouti » Tue Aug 08, 2017 5:03 pm

A few years ago Fitzroy tried to amalgamate the footy & community club under 1 umbrella, the council who lease the land wouldn't allow it. It may be something along those lines.
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Re: Adelaide Footy League D7 - 2017

Postby morell » Wed Aug 09, 2017 9:13 am

The Old Fellow wrote:
Off The Wall wrote:
Trader wrote:
morell wrote:The bar turns over about $220k a year, if not more and *just* breaks even. When I looked at the MYOB database I calculated that football provides, conservatively, about 65% of that revenue. Approx 50% goes in employee costs - wages, insurance, annual leave, super etc. My very strong position is that for 6 months of the year during footy season that bar should be run using volunteers of the football club and the profits after costs of sales returned to the football club.

I'll do the math: (220*0.65)*0.5=71.5


What number have you tried to calculate?
Are you saying $71,500 would be the profit if the footy club ran the bar using volunteers?

Need to also look at utility costs


You mention that the turn over is $220k pa, Footy club generate about 65%, if 50% goes on employee costs once you take into the cost of the stock you sell you are in a loss situation.

Calculation should be more like turnover of $220k at 100% mark up = $110k profit as your starting point not $220k
It would be in a loss situation if we did that, yes. Which is why there is a lot of resistance.

In my mind it would then be up to those other affiliates to restructure their own business models to make it profitable.
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Re: Adelaide Footy League D7 - 2017

Postby MW » Wed Aug 09, 2017 9:15 am

Its a sports and community club right? not just MPFC facilities?
who actually runs it? Council?
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Re: Adelaide Footy League D7 - 2017

Postby morell » Wed Aug 09, 2017 9:20 am

jo172 wrote:FTE Bar Manager!!???

Salaried too. I love him, but its the single biggest mistake the club has ever made. Was done in about 2008-ish I think.

I think the idea was at the time with someone there full time solely dedicated to run the place that we could then hire the place out more often and generate more revenue. The reality is that we hire the place out at exactly the same rate - if not less - but now have a much larger overhead.

Then when it is peak times, he can't manage 100 people on his own, so needs to hire staff. Ditto if he wants a day or night off, hence the 2x casual bar staff in addition. Its a shitty situation. Anyone reading this would just say "well lay him off". The guy is a beloved community member and stalwart of the club - with familial and social connection everywhere. It would create social upheaval and severely dent the numbers coming in. Plus, this is just school of thought #2, thre are still lots of people that are reading this with steam coming out of their ears. Hi Cricket Club! :)

The business restructure has to be done carefully and with empathy. Which is what we're slowly trying to do.
Last edited by morell on Wed Aug 09, 2017 9:22 am, edited 1 time in total.
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Re: Adelaide Footy League D7 - 2017

Postby morell » Wed Aug 09, 2017 9:21 am

MW wrote:Its a sports and community club right? not just MPFC facilities?
who actually runs it? Council?
Correct.

The Mitchell Park Sports and Community Club have the lease and oversight on the administration of the bar and kitchen business.
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Re: Adelaide Footy League D7 - 2017

Postby S Demon » Wed Aug 09, 2017 10:44 am

Short Term pain for long term gain. You need to cease paying a barman. The quicker you do it the better.

Our Sporting Club had a paid barman for about 7 years up until 2014. We nearly closed the doors because it simply wasn't viable, but no one wanted to make the tough call

Since we went to full volunteer mode behind the bar we have already installed new carpet, new air conditioners, renovated the toilets, fixed up a lot of things that needed fixing, installed a new till and scanner. Early next year will see us remove and replace the centre square with better drainage and install an electronic scoreboard. Once a few other big ticket items are complete, then the SC will look to give back more of the profit share to the affiliates. No longer having a paid barman was the best thing we ever did

We currently give the affiliates 2 x functions per year where they get 25% of the 'revenue' from that function. Bar takes $5k, affiliate gets $1250. The more they support it, the more they get back in $$
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Re: Adelaide Footy League D7 - 2017

Postby morell » Wed Aug 09, 2017 11:06 am

Mate I totally agree, but the Football Club aren't able to make any of those kinds of decisions. It's the Sports Club that own the lease and control of the administration - including staffing. To make it even more difficult there is a large amount of outstanding TOIL and AL on the books which would require a significant hand shake - which of course the Sports Club cannot afford.

Its fundamentally a business problem - and its clear to anyone and everyone what the issue is, but there are specific levels of bureaucracy and structural limitations which limit the Football Club's ability to control our own destiny. This is why I used to always get into fights with people like Jetters who seemed to think it was all just a case of us not having smart people off field. You could hire Elon Musk and it would require time and patience to fix.

To give you an idea - up until last year, the treasurer of the Sports Club was the barman's wife! :D
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Re: Adelaide Footy League D7 - 2017

Postby Executive Member » Wed Aug 09, 2017 11:14 am

morell wrote:Mate I totally agree, but the Football Club aren't able to make any of those kinds of decisions. It's the Sports Club that own the lease and control of the administration - including staffing. To make it even more difficult there is a large amount of outstanding TOIL and AL on the books which would require a significant hand shake - which of course the Sports Club cannot afford.

Its fundamentally a business problem - and its clear to anyone and everyone what the issue is, but there are specific levels of bureaucracy and structural limitations which limit the Football Club's ability to control our own destiny. This is why I used to always get into fights with people like Jetters who seemed to think it was all just a case of us not having smart people off field. You could hire Elon Musk and it would require time and patience to fix.

To give you an idea - up until last year, the treasurer of the Sports Club was the barman's wife! :D


Big call here - that is the silliest thing you have ever written on here
Musk would pay it out of the cash in his ashtray 8)
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Re: Adelaide Footy League D7 - 2017

Postby MW » Wed Aug 09, 2017 11:16 am

morell wrote:Mate I totally agree, but the Football Club aren't able to make any of those kinds of decisions. It's the Sports Club that own the lease and control of the administration - including staffing. To make it even more difficult there is a large amount of outstanding TOIL and AL on the books which would require a significant hand shake - which of course the Sports Club cannot afford.

Its fundamentally a business problem - and its clear to anyone and everyone what the issue is, but there are specific levels of bureaucracy and structural limitations which limit the Football Club's ability to control our own destiny. This is why I used to always get into fights with people like Jetters who seemed to think it was all just a case of us not having smart people off field. You could hire Elon Musk and it would require time and patience to fix.

To give you an idea - up until last year, the treasurer of the Sports Club was the barman's wife! :D


Is the Sports Club run as an independent organisation and they lease the grounds from the council?
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Re: Adelaide Footy League D7 - 2017

Postby morell » Wed Aug 09, 2017 11:20 am

Executive Member wrote:
morell wrote:Mate I totally agree, but the Football Club aren't able to make any of those kinds of decisions. It's the Sports Club that own the lease and control of the administration - including staffing. To make it even more difficult there is a large amount of outstanding TOIL and AL on the books which would require a significant hand shake - which of course the Sports Club cannot afford.

Its fundamentally a business problem - and its clear to anyone and everyone what the issue is, but there are specific levels of bureaucracy and structural limitations which limit the Football Club's ability to control our own destiny. This is why I used to always get into fights with people like Jetters who seemed to think it was all just a case of us not having smart people off field. You could hire Elon Musk and it would require time and patience to fix.

To give you an idea - up until last year, the treasurer of the Sports Club was the barman's wife! :D


Big call here - that is the silliest thing you have ever written on here
Musk would pay it out of the cash in his ashtray 8)

Hahahah yeah ok, fair point. I've been tempted to act as an investor if I could have full control as I reckon it would be quite a neat little business if ran ruthlessly - but there are all sorts of things that prevent that sort of thing from happening.

Again, it seems simple reading it on here - but the barriers are social and political in nature.
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Re: Adelaide Footy League D7 - 2017

Postby morell » Wed Aug 09, 2017 11:20 am

MW wrote:
morell wrote:Mate I totally agree, but the Football Club aren't able to make any of those kinds of decisions. It's the Sports Club that own the lease and control of the administration - including staffing. To make it even more difficult there is a large amount of outstanding TOIL and AL on the books which would require a significant hand shake - which of course the Sports Club cannot afford.

Its fundamentally a business problem - and its clear to anyone and everyone what the issue is, but there are specific levels of bureaucracy and structural limitations which limit the Football Club's ability to control our own destiny. This is why I used to always get into fights with people like Jetters who seemed to think it was all just a case of us not having smart people off field. You could hire Elon Musk and it would require time and patience to fix.

To give you an idea - up until last year, the treasurer of the Sports Club was the barman's wife! :D


Is the Sports Club run as an independent organisation and they lease the grounds from the council?

Correct. Building (includes the bar and kitchen) and grounds.
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Re: Adelaide Footy League D7 - 2017

Postby Trader » Wed Aug 09, 2017 11:21 am

morell wrote:To make it even more difficult there is a large amount of outstanding TOIL and AL on the books which would require a significant hand shake - which of course the Sports Club cannot afford.


So they are running at break even, with increasing TOIL and AL on the books that they have no way of paying?
Sounds like they are possibly trading insolvent.
Serve the papers and you'll have them out within 2 weeks.
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Re: Adelaide Footy League D7 - 2017

Postby morell » Wed Aug 09, 2017 11:29 am

It was close to getting that way. I said as much two years ago but once it got beyond the world of spreadsheets and into the world of industrial negotiations I didn't really have the knowledge or skill set to offer sound advice - this could've been fixed by now, I really don't know what the Sports Clubs balance sheet looks like anymore. They could be rolling in it for all I know.

And to be really clear as this is getting way too detailed and I do need to be careful - we don't want that to happen. We don't want people to lose their livelihoods like that. We are a community club and we need to protect our community and restructure the business with empathy, not ruthlessness. We're talking about people that have been part of the club for 30 years.
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Re: Adelaide Footy League D7 - 2017

Postby S Demon » Wed Aug 09, 2017 11:41 am

morell wrote:Mate I totally agree, but the Football Club aren't able to make any of those kinds of decisions. It's the Sports Club that own the lease and control of the administration - including staffing. To make it even more difficult there is a large amount of outstanding TOIL and AL on the books which would require a significant hand shake - which of course the Sports Club cannot afford.

Its fundamentally a business problem - and its clear to anyone and everyone what the issue is, but there are specific levels of bureaucracy and structural limitations which limit the Football Club's ability to control our own destiny. This is why I used to always get into fights with people like Jetters who seemed to think it was all just a case of us not having smart people off field. You could hire Elon Musk and it would require time and patience to fix.

To give you an idea - up until last year, the treasurer of the Sports Club was the barman's wife! :D


Your predicament sounds almost identical to ours. Our barman was also the assistant treasurer at one point :shock:
We also had annual leave to consider and the barman was also on work cover at the time just to further complicate things. Lawyers were involved.

We had someone from junior footy, senior footy and cricket put their hand up to take over the SC executive. It was messy and even nasty at times, but we got through it and have never looked back. We are now in a stronger position financially than ever before and have the ability to reinvest funds back into continuous improvement of the facilities
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Re: Adelaide Footy League D7 - 2017

Postby morell » Wed Aug 09, 2017 11:51 am

Oh wow, good to know we're not alone! haha

We're looking to go through the same process I would suggest, but need those people to put their hands up. Also with perhaps a slightly more gentle approach. It might cost a couple more years of pain doing it "nicely" but I'd prefer that to be honest.

Or at least I think we should. Again, there are people at Mitchell Park who would vehemently disagree.
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Re: Adelaide Footy League D7 - 2017

Postby X Runna » Thu Aug 10, 2017 7:31 pm

The Old Fellow wrote:
Off The Wall wrote:
Trader wrote:
morell wrote:The bar turns over about $220k a year, if not more and *just* breaks even. When I looked at the MYOB database I calculated that football provides, conservatively, about 65% of that revenue. Approx 50% goes in employee costs - wages, insurance, annual leave, super etc. My very strong position is that for 6 months of the year during footy season that bar should be run using volunteers of the football club and the profits after costs of sales returned to the football club.

I'll do the math: (220*0.65)*0.5=71.5


What number have you tried to calculate?
Are you saying $71,500 would be the profit if the footy club ran the bar using volunteers?

Need to also look at utility costs


You mention that the turn over is $220k pa, Footy club generate about 65%, if 50% goes on employee costs once you take into the cost of the stock you sell you are in a loss situation.

Calculation should be more like turnover of $220k at 100% mark up = $110k profit as your starting point not $220k


100% mark up, AND the rest. If your bar products are costing half your turnover, you are buying in the wrong places.
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Re: Adelaide Footy League D7 - 2017

Postby Brodlach » Sat Aug 12, 2017 8:21 pm

Para Hills just fall over the line against North Pines :shock:
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Re: Adelaide Footy League D7 - 2017

Postby The Dark Knight » Sat Aug 12, 2017 8:57 pm

Brodlach wrote:Para Hills just fall over the line against North Pines :shock:
Incredible score.
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