Club revenue and pokies

[Aprilbr]

While I totally concur with the above assessment of the evil of pokies I would like to add another element on them. This is essentially the revenue versus profit argument. When one considers the above graph it would seem that the Swans are a middling club when it comes to financial performance. This in fact is not correct because while some clubs earn substantial revenue from this source it is also a relatively low margin business. This is because a high volume of revenue is returned to punters, the govt takes a cut and there are significant fixed costs in running a pokies venue I.e. Cost of leasing machines and the venue. These costs are not shown in the above table.

The upshot is that while some Clubs like Hawthorn are probably doing very nicely given their high revenues in the area others like Port, Adelaide, Rich, Dogs and the Saints are probably not making much out of it at all after extracting these costs. So our financial performance overall is probably in that group below the Big 4 of Pies, Hawks, WCE and Essendon. A long way from the bad old days of the early 1990s when we would have been at the very right end of any financial tables.


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[Mug Punter]

While I totally concur with the above assessment of the evil of pokies I would like to add another element on them. This is essentially the revenue versus profit argument. When one considers the above graph it would seem that the Swans are a middling club when it comes to financial performance. This in fact is not correct because while some clubs earn substantial revenue from this source it is also a relatively low margin business. This is because a high volume of revenue is returned to punters, the govt takes a cut and there are significant fixed costs in running a pokies venue I.e. Cost of leasing machines and the venue. These costs are not shown in the above table.

The upshot is that while some Clubs like Hawthorn are probably doing very nicely given their high revenues in the area others like Port, Adelaide, Rich, Dogs and the Saints are probably not making much out of it at all after extracting these costs. So our financial performance overall is probably in that group below the Big 4 of Pies, Hawks, WCE and Essendon. A long way from the bad old days of the early 1990s when we would have been at the very right end of any financial tables.


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You are not right there. The Pokie revenue IS profit, it's not what the poor buggers put in, it is the consolidated losses of the gambling addicts that prop up these Melbourne clubs.

What it also does is illustrate how far ahead the WA teams, in the only state of Australia that doesn't have pokies (and they don't seem to be doing too bad without them), would be if the Vic clubs ran ethical businesses.

Almost in three dollars coming into the Hawthorn Football Club is from the pockets of punters who drain their salary or savings into their steel traps. Absolutely disgraceful

[Ludwig]

What it also does is illustrate how far ahead the WA teams, in the only state of Australia that doesn't have pokies (and they don't seem to be doing too bad without them), would be if the Vic clubs ran ethical businesses.

Thanks to the lack of pokies West Australians have so much more to spend on drugs.

[AnnieH]

Thanks to the lack of pokies West Australians have so much more to spend on drugs.

Bwa ha ha ha ha ha ha ha

[mcs]

You are not right there. The Pokie revenue IS profit, it's not what the poor buggers put in, it is the consolidated losses of the gambling addicts that prop up these Melbourne clubs.

What it also does is illustrate how far ahead the WA teams, in the only state of Australia that doesn't have pokies (and they don't seem to be doing too bad without them), would be if the Vic clubs ran ethical businesses.

Almost in three dollars coming into the Hawthorn Football Club is from the pockets of punters who drain their salary or savings into their steel traps. Absolutely disgraceful

Pokies are a scourge on society, and I'd be happy to 'blow them up' and ban the whole lot of them. I think the WA strategy, with them only in the casino, is the way to go if we must have them. The way they have decimated the pub and club scene in NSW and Victoria in particular is very sad, and they are not a net 'beneficiary' to the community that the club sector in particular suggests they are.

The AFL should help clubs like the wees and poos wean themselves off this reliance ASAP and also give up the links to gambling more generally. But that's about as likely as the AFL admitting just how @@@@@@ over we got in the GF in search of the 'fairytale'.

[R-1]

While I totally concur with the above assessment of the evil of pokies I would like to add another element on them. This is essentially the revenue versus profit argument. When one considers the above graph it would seem that the Swans are a middling club when it comes to financial performance. This in fact is not correct because while some clubs earn substantial revenue from this source it is also a relatively low margin business. This is because a high volume of revenue is returned to punters, the govt takes a cut and there are significant fixed costs in running a pokies venue I.e. Cost of leasing machines and the venue. These costs are not shown in the above table.

The upshot is that while some Clubs like Hawthorn are probably doing very nicely given their high revenues in the area others like Port, Adelaide, Rich, Dogs and the Saints are probably not making much out of it at all after extracting these costs. So our financial performance overall is probably in that group below the Big 4 of Pies, Hawks, WCE and Essendon. A long way from the bad old days of the early 1990s when we would have been at the very right end of any financial tables.


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Just to clarify the revenue figure is the amount lost by punters to the license holders. It's net takings, not gross amount bet.

You're right that revenue isn't the whole picture, because assets have a cost to maintain. The post I linked also contains assets/liabilities, and profit and loss for each club as shown here:



Clubs are mostly getting a few million from their machines though.

I think I worked out Brisbane are spending 12m on their club venue and getting 16m income from it, 15m being pokies takings. Vic clubs might be a bit less profitable, and SA will be substantially less so.