Discuss



Edited by chris: 2/1/2011 10:12:11 PM






Edited by chris: 2/1/2011 10:16:20 PM

either post evidence to support your claim Chris or I am going to move this to the rumour section.

Source, or close thread.

Many similar entities lose money in the first few years of operation. Come back in five years once their place in the market (be it stable or unstable) is confirmed.

Every club in its first season posted a multi-million dollar loss. this is a no f*n brainer :roll:

The start-up costs associated with these ventures combined with virtually no market share upon commencement results in these losses.

[size=9]Joffa

since you are so keen to moderate - in fairness when the teams submit their balance sheets - and my title is correct - you should stop being a moderator on this forum[/size]

Edited by chris: 2/1/2011 10:25:48 PM

I <3 you Joffa

this.

What about when you post a link to support your $6 million first season loss claim i just move the thread back...or do you disagree that without supportive evidence your statement is a rumour?

You may note I haven't commented either way as to the factualness of your statement...

What does this mean?

:-k

Well according to the thread title it's actually a 60,000,000 loss, albeit with a few commas in the wrong place.

$6,000,0000

Is this a new numerical figure that has just been invented??

Maths-greek style:p

Didn't the Greeks invent maths in the first place? :p

Pretty sure our system is Arabian

Sorry I must have been thinking of drachmas

Should be 6 million australian dollars

Actually it's Indian.

really . there u go u learn something everyday :P

Pretty sure the Indians developed the system, passed it on to the Arabs, then on to Europe, hence the name Hindu-Arabic numerals.

No, he shouldn't. At this point in time, what you have stated is a rumour. Unless you give us a source, we have no choice but to move it here - irrespective of whether it comes true or not.

1. Joffa has the support of the majority on here. He stays.
2. I think the Heart are gay and a laugh, but still, you need to substantiate your claim.

Happy New Year.

i dont support Joffa i think he is a bad person, bans anyone who has a different opinion to the pro-FFA people, i know guys that if they knew who he was they would hunt him down like a savage dog.

But this thread proves to my point yesterday.

Bye Bye heart, oh ffa you are a pack of morons

In news that can be confirmed.....Heart are currently playing South Melbourne in a praccy match at LaTrobe Uni. Wish I'd known this last night, probably would've stayed in the city and gone for a look.

It's a love heart...

Cheers:d

Obviously there is no link - I would love to see their financial at the end of the fin year - but not sure they will become public - but Heart and smfc do have a relationship largely due to the Heart approaching us for a stake on more than 1 occassion already

I can go on - but will not name names nor will I compromose existing relationships

The sad truth is that the Heart also have a very favourable tennacy agreement at AAMI for the 1st 3 years - however this agreement will not remain

I do not see them reversing the trend

Sidwell has done well to get others to invest $$$ - and they are the ones hurting - pretty much the Lowy method by fully endirsing and backing a product - yet getting others sucked in to finance it

It is these investoirs that are hurting = more people backing our game and getting burnt from it....not a good image

For the record - I think Joffa is a good bloke - definately a football tragic - but then again aren't we all - if anything he needs to broaden his view on certain matters - but a good bloke I sence


Edited by chris: 3/1/2011 12:59:37 PM

I also would like to see the financial statements of all clubs and the FFA made public on an annual basis...I don't think it would suprise anyone if the Heart make a loss this season...as long as they are withn their budgeted targets most people would be happy.

If as you say Chris, and I have no reason to doubt you, the Heart are heading for a $6 million loss this season then at an average of $20 per ticket that is an extra 300,000 tickets they would need to sell, which means they would need an extra 20,000 at each home match. This would mean the heart would need to be currently averaging about 29,300 per match.

Edited by joffa: 3/1/2011 04:27:42 PM

I still think this season's balance will be deceptive as the start up costs would be staggering. Remember that Heart have had to generate their market share out of nothing - that is plenty of money being put into advertising. As Joffa alluded to, start-up costs will have been budgeted for.

I would liken it to buying a car. The initial outlay is significant, but once you have paid the initial cost, the ongoing costs are significantly less.

joffa are you married?

Final score in Heart/South Melb friendly. Melbourne Heart 6-1 South Melbourne. Including a Jason Hoffman hat-trick. Can't really take much out of it other than it was a good exercise for both parties to get some run in their legs. Hopefully when Lakeside Park is redeveloped it can become a regular event.

Heart wont be alive by then

No wonder Greece went broke. Your understanding of finance leaves a bit to be desired. At least Melbourne Heart aren't signing refugees.

Detective Columbopoulos?

What about the pack of morons at belmore that cant come up with the 300000 for olympic. So much for the revolution, when they may not even be playing in the NSWPL next season

seriously is this guy serious? Olympic had a massive stall yesterday at one of sydney beaches with over 10 thousand people, given away junior passes, selling memberships and collecting emails the club is signing players everyday preseason training starts this week wtf r u on about

So when is Alex getting banned again? Personal threats against Joffa?

:d :d

I noticed the threat as well, impressed Ultragirl is still posting after that.

Almost as good as the Aussie maths that had us comfortable in the first round of voting for the world cup, eh? ;)

Apparently we hired the same guy as the English, he is from Sunderland

Yep, they started at the top of the league and worked down until they found someone they could afford. Obviously, Newcastle didn't come into the equation. ;)

Well obviously we don't like to pay 2.575 million AUD per goal for a striker. :-"

I'll just be leaving this here.....

900k pounds a goal thank you very much [-(

Now this is why they didn't go to Newcastle to get a numbers man...

In order for your value-for-money equation to work you have to first ignore the fact that Owen was on double Gyan's wages, and then assume that Gyan won't score another 6 goals whilst at Sunderland. As witnessed last night - the bloke doesn't even have to play that well to get goals - they just bounce in off him.

And I'll raise you a...

Not as bad as

i'm sorry but i doubt they lost 60 million

we cant have possibly been that bad

That's it, deflect attention from the real problem by concentrating on a typo. Always the best policy.

thats what the a-league is all about though benjamin

As many people have already pointed out, there will be start-up costs associated with the Heart that is likely to result in posting a large loss for their inaugural season. For example, set-up costs for administration, marketing costs, legal and related costs (eg for signing sponsorship agreements, tenancy agreements, etc).

It's also proven difficult to break in to a market with a clearly established existing brand like the Victory (please note, this is not a comment on the relative merits of each club). Consequently, attendances at games have not been perhaps as good as initially hoped. I suspect that if the FFA did not provide them with a helping hand in scheduling 2 of the 3 derbies as Heart home games, they would be even deeper in the red (so to speak) - these two games served to inflate the average home attendances. In addition, it was also not clear exactly who the Heart were targeting to be supporters - was it only disaffected Victory fans (ie a larger slice of the pie) or new fans (ie grow the pie)?

In addition, my personal view is that the Heart possibly priced themselves out of the reach of many potential supporters. For example, my $225 gets me a premium C membership and reserved seat on the east side, in line with the goal line. From memory (I am ready to stand corrected) a basic Heart $225 membership entitles one to a reserved seat at either end of the ground. For my money, therefore, a Victory membership offers slightly better value in terms of seating possibilities.

However, if given the chance, the club will continue to grow - there is no reason why two teams cannot thrive in Melbourne - the sporting capital of the world!

Melbourne Heart will be around for a while as the FFA own the Intellectual Property (the IP). While the current owners of the Franchise may not. If the current franchise owners find losses are too high with little or no oppurtunity to turn to profitability then they may decide to hand in their franchise ownership back to the FFA.
The FFA as in the past with other franchise IP's that have been handed back will cover the losses, continue the operation until a new franchisee is found.

On that basis Melbourne Heart will be around for some time. Just who owns the franchise agreement will probably change.

This is another key for me. Heart need to differentiate themselves from Victory as much as possible. Slashing admission prices and marketing themselves as the 'team of the people', would give them a great chance of increasing their supporter base both on different levels (some would get behind them as 'the people's team', and others simply because they were the cheap night out.

As has often been said, 20,000 paying $10 each is better than 10,000 paying $20 each - and as they are already paying for a 31,000 seat venue, what have they got to lose?

More like $2.5 Mil.

http://www.theaustralian.com.au/news/sport/m-hole-in-hearts-first-season/story-fn63e0vj-1226005959033