ONE of the central planks of James Brayshaw's survival plan for the Kangaroos will be the adoption of the unique business strategy that enabled the former St Kilda administration of Rod Butterss to post million-dollar profits for many of its years in power.
With a keen interest in how the Saints transformed their financial position in the early part of the decade from debt-ridden pauper to consistent seven-figure profit-maker, the new Kangaroos chairman met with Butterss and former St Kilda director Glen Casey six weeks ago.
Brayshaw was not in power at the time — he was elected chairman four weeks later — and Butterss and Casey, along with St Kilda directors Ray King and Andrew Bassat, had resigned in the face of a board challenge only weeks earlier. The three discussed what Brayshaw says will now be the fundamental financial principles guiding his attempt to secure a future for the Roos in Melbourne.
"I spoke with Rod Butterss and Glen Casey about how they were able to make such a success, a financial success, of St Kilda while working with a revenue base very similar to ours," Brayshaw said.
"I went along and basically asked them how they did it, because our revenue is almost identical but we make losses while they make profits.
"Our business is slightly different in that our revenue streams aren't exactly the same but the fact is they make money and we don't and yet we're both working with roughly the same amount of money.
"It (the meeting) was a real eye-opener for me and I left convinced that their direction was the one we have to follow."
On turnover of about $21 million, the Kangaroos posted a meagre profit of $100,000 this year despite paying only 92.5% of the salary cap and with as much as $2.6 million of AFL assistance masking the true operating position of the club.
The Roos received $1.4 million of relief funding and $400,000 per match for the three games it transferred to the Gold Coast as part of the league's now-dashed hope of relocating the club to the famous tourist strip by 2010.
The Saints, on similar turnover, have produced five successive profits in excess of $1 million, although the club's new administration of president Greg Westaway has indicated that it will post something closer to a break-even result on the year by taking the opportunity to write off the costs of capital works at Moorabbin, now that the club is going to relocate its headquarters to Frankston in three years.
In the seven years Butterss was at the helm, the historically impoverished club recorded only one loss, and that was in 2002, when similar write-offs were made.
Brayshaw said that the former St Kilda pair, who are now in business together rescuing or restoring financial health to troubled companies through their firm, Transition Group, convinced him that there are enormous savings to be made as long as costs are properly understood.
"Fundamentally, you analyse everything you do and if it doesn't make you money, don't do it. It's as simple as that," Brayshaw said.
"Given our situation, I think we'd be stupid not to adopt their model. I've said all along that we've got to be a lot more efficient with the revenue base we're working off."
