SANFL debt falls.

Interesting figures published today,

SANFL operating profit rose from $300 000 to $1 000 000

Debt has fallen from $37 mil to $26 mil.

Figures would have been better had the SANFL not had to cover 1.3 mil for the Crows and 1.5 mil for Port Adelaide in debt reduction.

SANFL Assets increased from $27.89 mil to $111.37 mil with the addition of Adelaide Oval.

John Olsen has announced the SANFL wants to clear its $26 million debt profile within seven years, tackle the combined SANFL club debt that ranges from $16-18 million and set up a “future fund” underwriting SA football by 2027.

All sounds pretty good!

http://www.adelaidenow.com.au/sport/afl/sanfl-the-main-winner-at-adelaide-oval-after-football-moves-to-the-city/story-fnii0294-1227265064399

It is a funny way that these accounting principles work.

The oval is not owned by the sanfl.
Sure they have a lease for portion of the year.

But how you treat that as an asset is a little odd to me.
I guess certain leases can be treated as an asset.

It would be interesting to see if SACA does the same and to what value.
And would the SMA also have dibs in it and Adelaide Council too?

it's a complicated old set up.

Apologies to the Accounting profession, but you blokes make simple add ups and subtracts more complicated than advanced calculus.

Fair call Chambo. hopefully Lee can shed more light on it. I've often wondered at times the true worth (other than perhaps borrowing power) of certain assets that in reality are not saleable (ie, in ground clubrooms), difficult to sell, or are never going to fetch the $$ listed as Asset value.

Having the rights to Adelaide Oval is certainly an asset, but would be shown as an intangible asset and written off as expense over the term of the ownership.

I'm in Brisbane between flights so will post again later.

See what I mean!

Correct Chambo and we accountants like it as obscure and esoteric as possible.

bring back the abacus

bayman wrote:bring back the abacus

Thats no way to refer to Lee

bayman wrote:bring back the abacus

No I think accountants would think it is just some sort of percussion instrument.

Anyone seen a hand facet machine? For those that haven't, they were basically mechanical calculators.
That's what my old boss was comfortable using. Computers? He couldn't even use an electronic calculator.

Chambo Off To Work We Go wrote:It is a funny way that these accounting principles work.

Funny AND accounting in the same sentence. You crack me up!

Dusting off my Accounting 101 notes

The lease is an entitlement to future cash flows so it is counted as an asset. If there is an expiry date then the value of the asset reduces each year so that in the final year it would be zero. If there is no expiry date the value of the asset wouldn't reduce and would be calculated on what all the future cash flows are worth when discounted back (a bit like what the value of a share like Telstra is worth - the value of future dividends).

"I've often wondered at times the true worth (other than perhaps borrowing power) of certain assets that in reality are not saleable (ie, in ground clubrooms), difficult to sell, or are never going to fetch the $$ listed as Asset value."

This is trickier and is as much an art as a science. As it is difficult to sell you cannot usually use a market value as you would for a normal commercial premises like a factory who's value is usually a factor of the required rate of return on the rent generated.

It could be valued on future cash flows that the facility could generate e.g bar sales, hiring fees but this would be unlikely as it is a bit too variable.
The asset value may be as simple as the total amount that has been spent on it to date with an adjustment for inflation to reflect the current replacement cost.

I read your post and this is how it registered in my brain.....

UncleHuey wrote:Dusting off my Accounting 101 notes  

The lease is an entitlement to future cash flows so it ZZZZZZZZZZZ as an asset. If there is ZZZZZZ  then the value of the ZZZZZZZZ each year so that in the final ZZZZZZZZZZZZZZZZZZZZZZZZZZZ. If there is no expiry date ZZZZZZZZZZZZZZZ



Give up GN you idiot.

Gingernuts wrote:I read your post and this is how it registered in my brain.....

UncleHuey wrote:Dusting off my Accounting 101 notes  

The lease is an entitlement to future cash flows so it ZZZZZZZZZZZ as an asset. If there is ZZZZZZ  then the value of the ZZZZZZZZ each year so that in the final ZZZZZZZZZZZZZZZZZZZZZZZZZZZ. If there is no expiry date ZZZZZZZZZZZZZZZ



Give up GN you idiot.

I looked at a doughnut, wiggled my fingers and thought "Don't mind if I do!"

Cheers UH