Small Beer For Collingwood
The Age
Thursday March 13, 2008
COLLINGWOOD, having spent $14.5 million to buy hotels to fireproof itself against the vagaries of onfield performance with independent revenue streams, now is looking to sell two of its underperforming pubs within 12 months.
The Magpies are likely to sell the Beach in Port Melbourne and the Diamond Creek Hotel they bought only last year.The AFL yesterday released data on the state of club finances, which revealed the Magpies earned almost $20 million in gross revenue from non-football sources last year, which was more than double the next highest-earning club, Essendon. But the Magpies' net revenue was almost non-existent.Collingwood's non-football revenue includes several profitable pokies pubs, a travel agency that makes money and a couple of seemingly badly performing venues. "I have seen the figures and the graphs and the remarkably high revenue turnover figure for Collingwood but comparatively low profit result that comes from these venues. That is why we are reviewing our venue portfolio," Magpies chief executive Gary Pert said.Collingwood bought the Beach Hotel last year for $7 million and the Diamond Creek Hotel for $7.5 million. The club also owns the Coach and Horses in Ringwood, the International in Lilydale and the Club in Caroline Springs.
© 2008 The Age
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