Notes from the 2021 AGM

South Melbourne Hellas members are now well used to AGMs being delayed for unorthodox reasons, but the pandemic is the unimpeachable get out clause for everything these days. Attendance from committee members was poor, but that of the members was worse. A lot of regular faces at these things did not show up. Why, I do not know. Indifference? Covid? Inconvenient time-slot? Heaven help us if the senior men's preferred match day discussion ever gets combined with this topic.

And goodness knows where the armada of junior parents now eligible to attend such meetings was - thanks to Football Victoria constitutional changes some years back - because they weren't there, and have seldom ever attended since they have bee able to. Well, maybe they were at junior games. Still the meeting went ahead, and some useful information was parlayed to the small audience. 

As per usual, this is not a complete account of the AGM, because I did not take such detailed notes; nor should everything be made known to people who did not attend the meeting, or so I'm told. Then again, some people don't like any AGM details making their way into the public domain, but that ship sailed a long time ago.

There were two key presenters on the day, treasurer Mario Vinaccia, and president Nick Maikousis. At times the meeting resembled a conversation rather than a one-way information session, with the odd spiky exchange. But we get but one formal opportunity per year  (on average) to grill our representatives, and one would be wise to take it. 

Insofar as the treasurer's report went, there was generally good news in regards to the club's financial position as it ended at June 2021. The club made a profit of about $160,000, a good result considering the difficulties created by the pandemic with regards to sponsorship and match day revenue. The club is also on target to clear its external debts by June 2022. 

The club's business structure was once again explained. Essentially, the South Melbourne Hellas Club acts as the umbrella for a set of subsidiary organisations. Half of these are for profit businesses (the Bar & Grill, the Futsal Court, etc), and the other half are the various teams and clubs we operate (NPL and NPLW teams, miniroos, state league women's teams).

The assertion was made by the board that contrary to popular wisdom, it is the finances of the senior men's team which fills in the budgetary gaps (if and where they exist, though most teams break even) in other parts of the football business. How one gets that message out to a soccer public which takes as gospel that junior money funds senior wages (across many clubs, not just ours) is a difficult task. Because much more of the 2021 season was played compared to the 2020 season, there was less damage done in terms of refunds of fees to junior players due to the cancellation of the season.

The Bar & Grill more or less breaks even on match days, but does much better on special events. Of course, club hosted special events and the hiring of the function room by the general public have been hindered by the pandemic, but one hopes that will change as things open up again. The club's leasing of the futsal space to the Combat Institute of Australia for use as its National Performance Centre, which became official in January 2022, will see the club receive an annual six figure sum in rental fees. I think most of us will be glad that that space is finally earning its keep, albeit in an unorthodox manner. 

On the question of why no Sunday matches, it was made reiterated that much of the cost savings achieved by the club in recent times have been due to avoiding hosting Sunday matches, and especially the staff penalty rates that make Sunday games unappealing from a financial point of view. The four senior men's Friday night matches in 2022 are also being used as part of the attempt to garner and maintain sponsor networks.

Sponsorship is in a strong position, with the number of principle partners increasing substantially, as the club continues to leverage the business links of the current board. What might happen to that generosity should those members of the board - especially in the financial services sector, which we seem to have a focus on - depart, is a question left to the future. This approach is a variant of the construction industry funded teams in our league. Realistically, there would be few clubs in Victoria who can get by predominantly on gate takings, and in that sense we are not an outlier.

In short, gate takings and membership dues play second fiddle to sponsorship and other business ventures. While the club made a reasonable sum on the 2022 Melbourne City FFA Cup game given the circumstances, restrictive pandemic related trading circumstances diminished what could have been a higher taking. Still, it's nice to know that the club has a not insignificant item for its next financial report. Also to be taken into account for next year, is the already improved takings from merchandise sales. 

Though hampered by Lakeside Stadium being under the control of the state government rather than a local council, the club has improved its accessing of government grants. Most of these grants are relatively small, but collectively they help offset costs across our various football departments.

The president's report had some crossover with the treasurer's report, but also included other matters as you would expect. The relationship with the regular, match day staff of the Trust is currently good. However, the high turnover of bureaucrats at the Trust continues to make the management of that part of the relationship more difficult.

There was some discussion about further cementing our presence at some of our other locations, and the hope that there would be funding made available for the relaying of the synthetic pitches at Middle Park, among other improvements to our amenities.

With regards to Lakeside being used as a training venue for the 2023 Women's World Cup, there was little concrete news as of yet. There is the possibility of minor improvements being made to player amenities. It is also possible that the venue may be unavailable for several weeks, but otherwise there is scant detail on what the 2023 Women's World Cup will mean for us in an operational sense. That's something to keep an eye on for next year.

There was also discussion on the prospects of a National Soccer Division, but precious little of certainty to latch on to. There remain many open-ended questions about whether the NSD would be held during a winter or summer season; how long inaugural NSD clubs would be given to settle in, without the threat of being relegated themselves; how quickly full-time professionalism would be introduced; and of course, about how many clubs could realistically be expected to participate.

There was an acknowledgment that there would be need to be significant increases to membership, sponsorship, and attendance in order to the transition to an NSD work, with the club needing a large increase in turnover from its current position. The board however asserted confidence in its ability to make a successful transition to an NSD. In addition, the board was confident that the club could participate successfully in an NSD regardless of the ultimate format of the NSD,

Those members in attendance, while sharing the club's ingrained ambition to play at the highest level possible, generally had a more a wary disposition on the matter. Having said that, there are a wide range of opinions within the South community about the merits of an NSD, and the course of action the club should take. Thus it was disappointing not to have a greater attendance to have the range of those views considered. One hopes that the next AGM, which will hopefully see more concrete details released on the actual NSD format, will attract more interest from members.

A full-time sponsorship person has been hired.

The membership database issue is still an ongoing matter. 

Medium term, if the circumstances allow, the board is interested in re-aligning AGM dates and financial reporting to match the senior men's season, rather than going by the financial year.

At the end of the meeting, it was announced that Mario Vinaccia would be stepping down as treasurer, due to increased family commitments. The change will happen as soon as a suitable successor for the treasurer position is found. The membership thanked Mario for his efforts not only in cleaning up the club's books, but also for his efforts in changing the club's culture around transparency on these matters.