Sorry I don't know the financial history of the club. Thanks for the info.
So if we had such a good financial history why would the old board only give us 5 years existence?
Okay so in the 2008 Financial year the LC made a loss of about 5 Million dollars, or at least that was what was declared. In the next years financial statement which indicated a 9 Million dollar loss, it stated that the club was using a new accounting model and based on that the previous years figures would have been a 1 million dollar profit.
The LC's 9 Million dollar loss, was a paper loss, the value of the properties went down by 4 million and the remodeling for Reno Gardens the outdoor pokies area, was included for the first time (having just been completed in late 2009). This meant that all of the depreciation on those purchases (not the purchases themselves but the fact that they depreciate over time) saw the other 4 million loss. With the club actually using about 1 million of savings to pay its mandated grants. $500,000 to the Rugby side, but since it was sold (the premises) it would be the last time that grant had to be paid and another $500,000 to other charities.
The Before that the club has been making solid profits since the Super League war ended.
The clubs Board did not say it only had 5 years worth of existence left to it. In reality neither did Denis, Denis simply stated that he could not Guarantee the Eels would be around in 5 years and there was an implication that the states poker machines taxes could be the cause.
Denis urged all members at the FC AGM in 2007 to write to their local MP and voice their concerns about the Pokie tax and what it was doing to our Sport.
Interestingly I believe there was a piece in the Sunday paper, that had Barry O'Farrell, Tim Mannah and a Tigers player pictured in the LC's reception area, saying that a Liberal government would roll back the poker machine taxes.
Now it is true that Ovo was the Chairman of the board when we had the Parramatta power. Which yes cost 12 million over 5 years, but in some of those years the club was spending between 4 and 6 million per year on the Football side and was still making 5 million profit per year.
Yes we bought a Rugby Team, well actually we bought a Rugby Club's licensed premises and the commitment to the team it was involved with. We bought that club cash, and still made the profits we made.
In 2004 when the poker machines taxes came in, the Power were cut, and other things that were not making money were as well. Perhaps you have heard of a few of them? The TAB at Sterlos. The Cumberland lounge was turned into a Money making Chinese restaurant! Yet the taxes started to cut into our bottom line.
I came onto this site in 2007 or maybe 2006 and spoke about my concerns that the LC was only making 1 million profit that year, yet most of the time my concerns went without much comment. I spoke with Ovo about them and he agreed it was a concern and told me that changes were being put in place to become more profitable with Bakers Mews.
I think that brings you pretty much up to date.
people have short memories.....
