Not sure how much credit he can take for the band. Cannon and the Loose Cannon are good, nobody was claiming that they’re not.
There *isn’t* certainty about how many games he plans to take away from the Coast, only that there will be some.
The lack of certainty mixed with talk about spreading the gospel gets people reading between the lines and wondering if he simply means that the Coast isn’t big enough, and whether a permanent relocation is inevitable.
We remember the Bears and the Northern Eagles.
We have no idea whether the supposed 20% of Sydney members (and for what it’s worth, I’m probably one of them) *want* games in Sydney rather than Gosford.
There’s an open question – why did they become members in the first place, and what does that tell us about their future behaviour?
For me, it’s because despite where I live *at the moment*, I’m a Coastie. My loyalty is to the Central Coast. My loyalty to our club stems from the club being a Coastie club. f**k with that and you’re f**king with my loyalty to the club over nearly a decade.
On rent, if it’s $75k per game, it amounts to $975k per season. Going on numbers bandied around the place that suggest the average A-League club spends ~$8 million a year, it’s around 12% of total outlays.
For our incomes, we know we get a grant of about $2.5m per annum from the FFA through the TV deal, and if we were running a $1m loss (total guess) that still means we were making some $4.5m from sponsorships, matchday revenue, memberships and merchandise.
Even if we played at another stadium for free, and broke even that way, we’re then f**king around with the $4.5m of our income that is generated from our local market and the attachment we’ve made in the community.
Realistically, even if we got to the best case scenario (Adelaide United’s deal, rumoured to be about half of the $75k figure) we’re still only halving the deficit – saving 6% of outlays, but f**king around with 56% of our revenue.
We’re talking about f**king over 80% of our customers and mucking about with 56% of our revenue for the sake of a 6% saving!
Memo to CCMFC – get a better idea, that one stinks.
I get that we struggled for money before he arrived. I get that he has committed a lot of cash to the club.
But seriously, you’re an accountant, if I'm getting any of this wrong then let me know.
Let’s say he bought the club for $6 million (as in, that’s what left his wallet, combining the cost of taking on the equity *and* the debt) and he’s stumped up another $2 million in operating losses. He only had a licence guaranteed for another year or two.
If he’s a businessman’s little toe, he would only have bought the club if he’d done his due diligence and seen that he’s getting some value there – there’s a sale price he can get down the track.
With a repaired balance sheet, he’s now looking at the profit/loss and trying to repair that. Fine. That means he’s got an ongoing drain.
But we’ve got a cash vs asset issue here.
Future prospects have brightened considerably since he came in. For a start, the TV deal put $600k a year into the bottom line that wasn’t there before. That’s a big structural improvement.
I understand we’ve also made some changes to what we do with the stadium that have cut some costs too – perhaps bringing our break-even crowd under 10k.
Lastly the licences are all extended by 20 years to 2034 (largely in response to his urging!).
We’re now in a situation where very likely the next TV deal will include financing expansion of the league again, and we’re guaranteed a spot for 20 years.
The intrinsic value of the club (and therefore a potential sale price) has just gone up considerably. His asset is appreciating due to basic changes to how we operate and how the league operates.
If he wants to sell, in all likelihood he’ll make back his money and more, but if he wants to stay but needs some help on the cash supply, it’s also far more likely he could find another investor to come in and share the load.
Why would he go screwing with the most fundamental thing about the business – where the club plays – in the context of a rapidly improving business situation?