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Author Topic: Winnipeg Football Club Posts Operating Profit of $2.6 Million in 2018  (Read 5567 times)
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« on: April 16, 2019, 01:28:55 PM »

Winnipeg Football Club Posts Operating Profit of $2.6 Million in 2018

WINNIPEG, MB., April 16, 2019 - The Winnipeg Football Club today released its 2018 annual report and announced an overall operating profit of $2.6 million.

"We are pleased with our overall financial results for 2018," said Winnipeg Football Club President & CEO, Wade Miller. "These results are a testament to the strong support from our fans, season ticket members, and corporate partners. Our team should be proud of our financial results."

Total operating profit was down from 2017 as Investors Group Field saw a much quieter year in 2018 with no concerts or other major events other than the Manitoba Marathon.

Total operating revenue reached $33.4 million (an increase of $970,000 over 2017) and is attributable to the Club's decision to internalize food and beverage operations at Investors Group Field in 2018, thus not only improving the game day experience but also earning 100% of the revenues, less the associated expenses. This was offset by decreases in game revenue which was down $1.4 million (10.5%) as the Club did not host a home playoff game in 2018, and stadium management revenue which was down $1.8M in comparison to 2017.   

Operating expenses totaled $30.8 million, an increase of $3.4 million over 2017. While the Club continues to invest in its on-field product, overall football operations expenses increased in 2018 by $470,000 as a result of the Club's success in playing in both the Western Semi-Final and Western Final playoff games. There were expected increases in expenditures in marketing, administration and game day expenses associated with bringing food and beverage into the Club's internal operations. There was also a decrease in overall stadium occupancy costs of $830,000 as a result of fewer non-football events at Investors Group Field.

Consistent with prior years and since the Club moved to Investors Group Field in 2013, the Club alone continues to fund the public transportation program for transit and park and ride services to and from Investors Group Field. The Club has operated the public transportation program since 2013 and has paid for all expenditures related to the program, totalling over $4.6 million. In 2017, Triple B Stadium Inc. formally acknowledged their legal obligation to fund a portion of the public transportation program, retroactive to 2013 and onward. The Club will continue its efforts to recover the payments due from Triple B.

The Club recorded a payment to Triple B of $2.7 million based on the Club's available Excess Cash at December 31, 2018, as defined in and required by the Club's Management Agreement with Triple B. This is the fifth scheduled annual payment the Club has made to Triple B, fulfilling the Club's ongoing obligations. Payments will continue over the next four decades based on the Club's Management Agreement with Triple B that requires the Club to use its best efforts to generate sufficient Excess Cash through the collection of entertainment tax and facility fees to be applied to the annual payments. "Meeting our financial obligations continues to be one of the top priorities of the Winnipeg Football Club." said Miller.
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Sir Blue and Gold
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« Reply #1 on: April 16, 2019, 02:31:54 PM »

Sounds good but it wasn't really a great year financially. The $2.6M is before a $2.7M payment for the stadium which means they had to dip into a reserve fund for the remaining $100,000.
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The Zipp
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« Reply #2 on: April 16, 2019, 02:35:34 PM »

Need more traffic like concerts etc into IGF...the transportation costs is a killer too...

A home playoff game is good too
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GCn19
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« Reply #3 on: April 16, 2019, 02:44:48 PM »

Pretty solid year. Not spectacular but not bad either.
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theaardvark
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« Reply #4 on: April 16, 2019, 03:20:00 PM »

So, does hosting an NFL preseason game make sense?
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GCn19
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« Reply #5 on: April 16, 2019, 03:21:00 PM »

So, does hosting an NFL preseason game make sense?


Not sure what difference last year's profit margin has to do with that?
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Sir Blue and Gold
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« Reply #6 on: April 16, 2019, 03:22:44 PM »

So, does hosting an NFL preseason game make sense?


Of course it would? Hosting any event that draws big crowds "makes sense".
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theaardvark
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« Reply #7 on: April 16, 2019, 03:48:24 PM »

Not sure what difference last year's profit margin has to do with that?

We hosted Womens Soccer in 2017... Outdoor Classic in 2016...  we had a home playoff game in 2018...  need to find something for 2019
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Sir Blue and Gold
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« Reply #8 on: April 16, 2019, 03:49:25 PM »

We hosted Womens Soccer in 2017... Outdoor Classic in 2016...  we had a home playoff game in 2018...  need to find something for 2019

No, we didn't.
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Stretch
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« Reply #9 on: April 16, 2019, 03:55:46 PM »

We hosted Womens Soccer in 2017
And that was 2015. Can't recall what there might have been in 2017.
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theaardvark
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« Reply #10 on: April 16, 2019, 03:58:27 PM »

No, we didn't.

Ok, we didn't.  I wanted to, though, so it counts Wink
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the paw
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« Reply #11 on: April 16, 2019, 04:09:47 PM »

Sounds good but it wasn't really a great year financially. The $2.6M is before a $2.7M payment for the stadium which means they had to dip into a reserve fund for the remaining $100,000.

They made the $2.7 million payment on Dec 31st, which suggests it was based on the Excess Cash estimate at that point in time.  No doubt, after the final accounting adjustments are made as part of the audit, the operating profit shrank to $2.6 million.  It's not really a significant difference in the big picture. 

in 2017, they made a $3.5 million Excess Cash payment, and still managed to bank $1.5 million in profit.  These things are going to ebb and flow a little. 
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GCn19
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« Reply #12 on: April 16, 2019, 04:32:59 PM »

They made the $2.7 million payment on Dec 31st, which suggests it was based on the Excess Cash estimate at that point in time.  No doubt, after the final accounting adjustments are made as part of the audit, the operating profit shrank to $2.6 million.  It's not really a significant difference in the big picture. 

in 2017, they made a $3.5 million Excess Cash payment, and still managed to bank $1.5 million in profit.  These things are going to ebb and flow a little. 

I am satisfied whenever we are not bleeding red ink. This is an acceptable outcome for what was really a challenging year attendance wise.
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blue_or_die
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« Reply #13 on: April 16, 2019, 04:42:56 PM »

Great news!
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Fire101
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« Reply #14 on: April 16, 2019, 05:11:34 PM »

Surprised that playing in the West Semi and West Final cost $470 000. O'Shea and his boys have to find a way to secure a home playoff date this year.
And based on those numbers the league will never go to a 1-6 format, it will always be East vs West. If those Eastern division teams can't host a playoff game then they will never make money.

I wonder if/by how much the new soccer team can help the bottom line.
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The Zipp
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« Reply #15 on: April 16, 2019, 05:34:39 PM »

Was wondering the same thing about the soccer...I guess if the fans show up it will make all the difference- there will be some sort of operating expenses associated with the team and having home games - if they get only a handful showing up it won't be good.  They must know the number try need to break even and how much that will be needed to contribute positively to the bottom line. 
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blueandgoldguy
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« Reply #16 on: April 16, 2019, 05:38:18 PM »

Surprised that playing in the West Semi and West Final cost $470 000. O'Shea and his boys have to find a way to secure a home playoff date this year.
And based on those numbers the league will never go to a 1-6 format, it will always be East vs West. If those Eastern division teams can't host a playoff game then they will never make money.

I wonder if/by how much the new soccer team can help the bottom line.

$470,000 - thanks for that.  Seems awfully high just to transport 60 players, coaches and therapists and provide a few nights accomodations.  So expenses increased by $2.8 million from last year without those two additional road trips.  Why such an increase?

And why have the stadium repayments decreased from $4.5 million to $2.7 million?

They are not doing a good job attracting other events to the stadium.  This will mark the second year in a row there will be no other events.  The soccer team does not count as it is its own entity.  So much for the hope of attracting 3-4 concerts per year as the organization stated when they stadium opened.
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rubanski
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« Reply #17 on: April 16, 2019, 06:48:07 PM »

I wonder if/by how much the new soccer team can help the bottom line.

Bombers own the soccer team. One would hope they'll be hard pressed to lose money on the soccer club. Even if the soccer club itself is losing money, the WPG football club may me making enough off concessions and merchandise sales to offset it or be in a profit position. Owning your venue is usually pretty darn key to making money in the world of professional sports.
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Throw Long Bannatyne
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« Reply #18 on: April 16, 2019, 07:57:54 PM »

$470,000 - thanks for that.  Seems awfully high just to transport 60 players, coaches and therapists and provide a few nights accomodations.  So expenses increased by $2.8 million from last year without those two additional road trips.  Why such an increase?


What about player salaries for the playoff games?  I imagine they get paid their regular game wage plus a league bonus if they win.
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Fire101
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« Reply #19 on: April 16, 2019, 08:25:27 PM »

What about player salaries for the playoff games?  I imagine they get paid their regular game wage plus a league bonus if they win.


League pays salaries for playoff games. I guess that number is due to transportation, hotel, and food.

https://cfldb.ca/faq/compensation/
For the five year term of the 2014 CBA, playoff and Grey Cup compensation is as follows:

First Place Standing (Bye)                    $3,400

Semi-Final Participation                       $3,400

Division Championship Participation      $3,600

Grey Cup Runner-up                           $8,000

Grey Cup Winner                               $16,000
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Throw Long Bannatyne
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« Reply #20 on: April 16, 2019, 09:44:04 PM »


League pays salaries for playoff games. I guess that number is due to transportation, hotel, and food.

https://cfldb.ca/faq/compensation/
For the five year term of the 2014 CBA, playoff and Grey Cup compensation is as follows:

First Place Standing (Bye)                    $3,400

Semi-Final Participation                       $3,400

Division Championship Participation      $3,600

Grey Cup Runner-up                           $8,000

Grey Cup Winner                               $16,000

I think those are just the bonuses, no?  Surely Nichols and Jake Thomas are not paid the same amount for a playoff game?
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Fire101
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« Reply #21 on: April 17, 2019, 12:00:39 AM »

I think those are just the bonuses, no?  Surely Nichols and Jake Thomas are not paid the same amount for a playoff game?


Yes it's the same, playoffs are where owners make their money. The better the team does in the playoffs, the more leverage the players have in contract negotiations in the off-season. And it's in the off-season negotiations where Nichols would separate himself from Jake Thomas.

"The CBA provides playoff compensation to all active roster and injured list players, but not practice roster players. This payment comes from revenue from the playoff and Grey Cup games and a minimum of $469,200 is paid to 46-man rosters of 3 teams (2 semi-finalists, 1 bye) for each of the division semi-finals ($938,400 total), $331,200 to 2 teams for each of the division finals ($662,400 total) and $1.104 million for the Grey Cup (https://cfldb.ca/faq/compensation/#what-is-the-cfl-per-diem)."

The only exception is practice roster players who continue to receive the weekly pay stated in their practice roster agreement paid by their club.

And ditto for the NHL (https://thehockeywriters.com/nhl-player-playoff-compensation/), and NFL (https://www.si.com/nfl/2019/01/05/how-much-do-nfl-players-make-during-playoffs-postseason-payout)




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Throw Long Bannatyne
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« Reply #22 on: April 17, 2019, 12:47:02 AM »


Yes it's the same, playoffs are where owners make their money. The better the team does in the playoffs, the more leverage the players have in contract negotiations in the off-season. And it's in the off-season negotiations where Nichols would separate himself from Jake Thomas.

"The CBA provides playoff compensation to all active roster and injured list players, but not practice roster players. This payment comes from revenue from the playoff and Grey Cup games and a minimum of $469,200 is paid to 46-man rosters of 3 teams (2 semi-finalists, 1 bye) for each of the division semi-finals ($938,400 total), $331,200 to 2 teams for each of the division finals ($662,400 total) and $1.104 million for the Grey Cup (https://cfldb.ca/faq/compensation/#what-is-the-cfl-per-diem)."

The only exception is practice roster players who continue to receive the weekly pay stated in their practice roster agreement paid by their club.

And ditto for the NHL (https://thehockeywriters.com/nhl-player-playoff-compensation/), and NFL (https://www.si.com/nfl/2019/01/05/how-much-do-nfl-players-make-during-playoffs-postseason-payout)

Bizarre if true, Nichols makes aprox. $25,000 per game based on a salary of $450,000, come playoffs he rakes in $3,400 per game.
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Jesse
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« Reply #23 on: April 17, 2019, 12:30:17 PM »

I always thought that was a bonus.
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Sir Blue and Gold
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« Reply #24 on: April 17, 2019, 12:59:31 PM »

It's not a bonus, that's the way it works. Same as in the NFL too.

Quote
Both the Patriots and the Rams have already earned $83,000 per player in postseason play. That number includes $29,000 for the divisional playoff and $54,000 for the conference championship. So each winner could go home with a total of $201,000.

Players on the losing team won?t go home empty handed, though: Each will receive $59,000 for Sunday?s game. With the rest of the postseason earnings, the individual total playoff bonus could total $142,000.

Postseason pay is egalitarian, meaning the starters, backups, and injured players all take home the same amount, as long as they?ve spent at least three games on their team?s active or inactive list.

https://www.cnbc.com/2019/01/31/how-much-money-super-bowl-winners-and-losers-make.html

There's also a cool article about all major sports here:

https://www.sbnation.com/college-football/2017/12/31/16807710/playoff-pay-nfl-nba-mlb-nhl
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Jesse
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« Reply #25 on: April 17, 2019, 01:13:54 PM »

It's not a bonus, that's the way it works. Same as in the NFL too.

https://www.cnbc.com/2019/01/31/how-much-money-super-bowl-winners-and-losers-make.html

There's also a cool article about all major sports here:

https://www.sbnation.com/college-football/2017/12/31/16807710/playoff-pay-nfl-nba-mlb-nhl

This is brand new information for me.

My mind is a little blown.
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Sir Blue and Gold
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« Reply #26 on: April 17, 2019, 01:35:26 PM »

This is brand new information for me.

My mind is a little blown.

Yep. It's kind of cool. I can't find examples now but in the past, I remember quotes from players saying they like the playoffs because everyone is equal. That's what they mean. Of course, players often get compensated in their next contract for playoff results but it is an indirect kind of thing.
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blue_or_die
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« Reply #27 on: April 17, 2019, 01:42:26 PM »

Another cool thing about playoffs is that it's likely viewed in a different way than the regular season. As a player, you negotiate a contract with it in mind you will play just the regular season, whereas playoffs are gravy. You're playing for a championship at that point and can set aside differences in compensation. Really a uniting factor.
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GCn19
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« Reply #28 on: April 17, 2019, 03:23:20 PM »

While there is no per game salary for playoff games, many contracts contain performance bonuses negotiated to offset the lack of playoff salary of varying amounts depending on the player.
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theaardvark
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« Reply #29 on: April 17, 2019, 05:21:56 PM »


League pays salaries for playoff games. I guess that number is due to transportation, hotel, and food.

https://cfldb.ca/faq/compensation/
For the five year term of the 2014 CBA, playoff and Grey Cup compensation is as follows:

First Place Standing (Bye)                    $3,400   $68k

Semi-Final Participation                       $3,400    $68k

Division Championship Participation      $3,600     $72k

Grey Cup Runner-up                           $8,000    $160k

Grey Cup Winner                               $16,000    $320k

Current levels of bonus makes the bolded annual equivalent per game....  so sure, QB's are playing cheap the first two rounds, and the winners get paid a QB like game cheque...
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« Reply #30 on: April 18, 2019, 01:17:26 AM »

$470,000 - thanks for that.  Seems awfully high just to transport 60 players, coaches and therapists and provide a few nights accomodations.  So expenses increased by $2.8 million from last year without those two additional road trips.  Why such an increase?

And why have the stadium repayments decreased from $4.5 million to $2.7 million?

They are not doing a good job attracting other events to the stadium.  This will mark the second year in a row there will be no other events.  The soccer team does not count as it is its own entity.  So much for the hope of attracting 3-4 concerts per year as the organization stated when they stadium opened.

Who is touring that is doing stadium shows aside from the Stones (who postponed their tour) Is there enough big acts out there now that could fill the stadium?
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The Zipp
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« Reply #31 on: April 18, 2019, 01:48:22 AM »

From what I can see the following are in Minneapolis after a quick scan of ticketmaster:

Garth brooks

Pink

Ariana grande

Backstreet boys

Cardi B

- few others but Lots of these would be more BellMTS venues than IGF - there just aren't that many stadium type shows on tour. 



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DM83
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« Reply #32 on: April 19, 2019, 02:19:46 AM »

Garth Brooks was in Phx and sold out the arena with record setting crowd.  Go figure!
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BLUEBOMBER
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« Reply #33 on: April 19, 2019, 08:04:28 AM »

If the Bombers didn't need to repay anything back for the stadium, we could have used all that money to sign more players, coaches, and make the game day experience so much better.
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blue_or_die
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« Reply #34 on: April 19, 2019, 11:54:02 AM »

If the Bombers didn't need to repay anything back for the stadium, we could have used all that money to sign more players, coaches, and make the game day experience so much better.

Don?t know how it works, eh?
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kkc60
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« Reply #35 on: April 19, 2019, 02:47:06 PM »

If the Bombers didn't need to repay anything back for the stadium, we could have used all that money to sign more players, coaches, and make the game day experience so much better.
Except there are salary caps for players and football ops......but ok
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3rdand1.5
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« Reply #36 on: April 21, 2019, 05:29:12 PM »

So if I understand correct if we had an "actual" owner, they would have lost 100k last year.
Again if I understand correctly;
BC-lost significant money
Edm. and Cal. I am not sure but I believe would be in the black
Sask. is in the black
Wpg. in the red
T.O bled money again
Mtrl. faced huge losses and is now without ownership
Hammy.and OTT I am honestly unsure but if both are in the black

That means that roughly half the league lost money or didn't meet financial obligations
 
 
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Blue In BC
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« Reply #37 on: April 21, 2019, 05:35:39 PM »

Who is touring that is doing stadium shows aside from the Stones (who postponed their tour) Is there enough big acts out there now that could fill the stadium?

Kiss, Elton John, Cher are a few doing multi year " last tours " in theory.
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66 Chevelle
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« Reply #38 on: April 21, 2019, 07:20:19 PM »

If the Bombers didn't need to repay anything back for the stadium, we could have used all that money to sign more players, coaches, and make the game day experience so much better.

weren't they just forgiven $100M of that debt recently?
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blue_or_die
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« Reply #39 on: April 22, 2019, 12:22:16 PM »

weren't they just forgiven $100M of that debt recently?

The loan was written off by the Province, not forgiven.

That does open the door to the debt being forgiven, but until then the Bombers still are paying their agreed upon share.

Years where they fall short is why they built a reserve fund. If they had just hosted a playoff game, there would be no issues. Being successful consistently through the regular season to grant a home playoff game also lends to greater attendance through the regular season as well, boosting overall revenue.
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66 Chevelle
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« Reply #40 on: April 22, 2019, 03:19:22 PM »

The loan was written off by the Province, not forgiven.

That does open the door to the debt being forgiven, but until then the Bombers still are paying their agreed upon share.

Years where they fall short is why they built a reserve fund. If they had just hosted a playoff game, there would be no issues. Being successful consistently through the regular season to grant a home playoff game also lends to greater attendance through the regular season as well, boosting overall revenue.

I see, thanks for the clarification...
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Fire101
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« Reply #41 on: June 27, 2019, 07:41:13 PM »

It's all about hosting a playoff game. The Riders just announced net profit of $1,467,062 up from $781,930 the previous year.  And most of that was due to hosting the Western Semi-Final, by hosting the 2018 West Semi-Final the club brought in an additional $1.8 million in revenue, netting $800,000 in profit.



https://www.riderville.com/2019/06/27/roughriders-announce-1-4-million-net-profit/
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66 Chevelle
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« Reply #42 on: June 27, 2019, 08:00:57 PM »

It's all about hosting a playoff game. The Riders just announced net profit of $1,467,062 up from $781,930 the previous year.  And most of that was due to hosting the Western Semi-Final, by hosting the 2018 West Semi-Final the club brought in an additional $1.8 million in revenue, netting $800,000 in profit.



https://www.riderville.com/2019/06/27/roughriders-announce-1-4-million-net-profit/

they're moving the merchandise, aren't they? $6.8M in gross sales? can't complain about that!
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