TOPIC:

Looks like we have posted a profit of about $165k.
Good result during the pandemic.
Obviously boosted by the Government support.

Demons Forever wrote: Looks like we have posted a profit of about $165k.
Good result during the pandemic.
Obviously boosted by the Government support.

A few clubs have posted profits 3 or 4 times that amount. Why couldn’t we do that or did we write off some assets? Can someone prod the WAFC to make sure WP pay their taxes and creditors from their massive windfall? We are not bailing those frauds out again.

Don't worry DD its all getting done, that's why they don't spend any money recruit anyone, they have also fixed the deal with the ground, it is now more inline with other clubs.

Falcon that deal with those leeches at venues west was daylight robbery, good to hear your now on the same playing field as most other clubs and your addressing the other issues.

I do not mind admitting that I struggle to fully understand financial reports and the creative accounting that goes into producing the type of results which a body wishes to present.
These previously unheard of huge profits by WAFL clubs are being explained as resulting, in the main, from all the Government handouts during the pandemic and which will continue into the New Year.
My understanding was that the Job Keeper payments were supposed to prop up wages and salaries so that workers would keep their jobs during the pandemic.
All these 6 figure profits confuse me. Are these government handouts not being used for the purpose for which they were intended and just being squirrelled away by the employers as a windfall?
No doubt someone out there will enlighten me.

smokey wrote: I do not mind admitting that I struggle to fully understand financial reports and the creative accounting that goes into producing the type of results which a body wishes to present.
These previously unheard of huge profits by WAFL clubs are being explained as resulting, in the main, from all the Government handouts during the pandemic and which will continue into the New Year.
My understanding was that the Job Keeper payments were supposed to prop up wages and salaries so that workers would keep their jobs during the pandemic.
All these 6 figure profits confuse me. Are these government handouts not being used for the purpose for which they were intended and just being squirrelled away by the employers as a windfall?
No doubt someone out there will enlighten me.

What raises my eyebrows Smokey apart from the huge profits is clubs forced players to take massive pay cuts, I think around 60%,then proceed to post record profits. Did they slash their wages knowing Jobkeeper will top it up?

IMHO, and not professing to fully understand accounting, there is something "fishy" about these huge profits by WAFL clubs which in normal years they would be pleased with modest profits of, say, under $50,000.
Clubs will say that their accounts have been audited, as they should be, but the comparison of Claremont's profit to Perth's just doesn't make sense to me. Perhaps the Tigers and other clubs have far better creative financial advisers, while some claim their profits are propped up by massive asset depreciation and write-offs. Do they have assets of that value?? And, there is the question of player payment cuts?? How do these fit into the overall scheme?

I did not think that Job Keeper payments would produce profit of these proportions.
As you suggest DD, clubs may just have a huge day of reckoning with the ATO.