A club’s financial position includes capital assets, annual income and debts.
In 2015, the Club’s capital assets were $29.8 million minus the bank debt of $2 million. So the net worth was $27.8 million (Annual Report, 2015).
In that year, the Club’s businesses (rent, hospitality, poker machines) brought in $2.7 million dollars.
Since then, net assets have fallen to $18.6 million; that is a capital loss of $9.2 million. For almost four years (2016 – 2019), the Club has lost $2.3 million in capital per year. The President likes to say that the Club has $18 million in assets – at this rate there will be no capital left by 2027.
At the same time, annual revenue fell from $2.7 million a year income to an operating loss of $656,000 in the 2018/2019. Revenue has fallen by $3.5 million compared to the takings in 2015 (‘Accounts’ Information Meeting, 21.7.19). You get a clue to why the Club is not making a profit when their idea of communicating with members about a close-down is sticking a notice on the door!
We don’t know where most of the capital losses have gone because it’s almost impossible for members to get information about financial decisions, but we do know two things;
These are just the headlines on the finances. Further details will follow.