AFL to ‘take unprecedented control’ of clubs with claims only FOUR could survive without help

[bornadog]

Link (https://www.foxsports.com.au/afl/afl-2020-live-blog-coronavirus-covid19-nathan-buckley-overwhelming-anxiety-brisbane-staff-working-in-mines/news-story/f71a52aad36e61bdd75f7b168199f40b)

Only four AFL clubs would be able to survive through 2020 without help from the league and HQ will need to take further control of their bank accounts, reports Nine.

West Coast, Richmond, Hawthorn and Collingwood are the teams said to be financially strong enough to keep operating if there is no 2020 season and the AFL does not fund the clubs.

Gold Coast and North Melbourne are among the clubs most in danger according to Caroline Wilson, who reported they would need money within the next two weeks to remain solvent.

The AFL plans to “essentially turn league chief Gillon McLachlan and the AFL Commission into the competition’s banker”, as the teams will be able to borrow from the league interest-free until the end of October, before interest of 3.3 per cent is levied.

The league reportedly has $600 million on offer and if the AFL season begins by early August, the Bombers, Bulldogs and “potentially” the Crows would join the Eagles, Tigers, Hawks and Magpies as able to survive without borrowing.

Furthermore, “the clubs were taken aback to learn they will have to cover their players’ seven-figure marketing costs for 2020 - a decision strongly questioned by Hawthorn president Jeff Kennett on behalf of the clubs,” according to the report.

CLUBS GROWING NERVOUS OVER FUTURE PICK TRADES

Years of clever trading by AFL clubs to improve their draft hand may all go to waste if the 2020 Draft ends up compromised by coronavirus.

The AFL is yet to decide on a format for this year’s national draft. It may not change, but with an abbreviated season for teenage talent almost certain and the potential for smaller AFL lists in 2021, the draft could also be abbreviated.

AFL Media reports a number of clubs are concerned they will have minimal chances to evaluate 2020 prospects this year, meaning equations about the value of draft picks could be thrown out the window.

For example, Adelaide, Brisbane, Geelong and North Melbourne all own multiple 2020 first-round picks due to trades involving future selections in recent times.

However with less of a chance to scout players they’ll likely have less knowledge than in a usual draft year. This in turn could lead to worse decision-making.

Every club except Carlton made at least one trade involving a 2020 draft pick last year.

There’s also the potential some draft picks simply won’t happen, because clubs won’t have spots on their list to use.

The draft is already set to be compromised by the number of players tied to certain clubs via academies or father-son links, including potential No.1 pick Jamarra Ugle-Hagan (Western Bulldogs).

[Topdog]

Charging interest :D

[jeemak]

How is us landing JUH compromising the draft...…..?

It's great to see us in a discussion around being financially viable, albeit a bit strange. How Geelong isn't I'm not certain, is it the debt from their ground development?

[bornadog]

How is us landing JUH compromising the draft...…..?

I took it as an example of the academy/FS discussion.



It's great to see us in a discussion around being financially viable, albeit a bit strange. How Geelong isn't I'm not certain, is it the debt from their ground development?

Pretty sure that would be the reason.

[Axe Man]

How is us landing JUH compromising the draft...…..?

It's great to see us in a discussion around being financially viable, albeit a bit strange. How Geelong isn't I'm not certain, is it the debt from their ground development?

The draft is horribly compromised by the academy picks, JUH is just the highest profile example this year.

Not sure about Geelong, just had a quick look at their financials and they don't seem to be carrying much debt, in fact they were aiming to be debt free by the end of 2020. They have significant lease commitments for the stadium so perhaps that's the issue.

It's great that we have limited our exposure financially and with future draft picks. We are better positioned than most clubs to ride this out.

[jeemak]

The draft is horribly compromised by the academy picks, JUH is just the highest profile example this year.

Not sure about Geelong, just had a quick look at their financials and they don't seem to be carrying much debt, in fact they were aiming to be debt free by the end of 2020.

It's great that we have limited our exposure financially and with future draft picks. We are better positioned than most clubs to ride this out.

Mate, I know. It's absolutely fantastic that we can get a lad who was always going to play footy, plays his footy in Melbourne, and is the best prospect in the draft for in all likelihood a mid to late first round pick. Just like so many elements of the AFL, the draft is compromised and I for on am willing to overlook that this year.

[westdog54]

Do we own Whitten Oval outright now?

It gives us a bankable asset in the event we did have to borrow.

[Jeanette54]

Do we own Whitten Oval outright now?

It gives us a bankable asset in the event we did have to borrow.

Did we ever own it? The oval used to be Footscray City Council property.

[Twodogs]

Do we own Whitten Oval outright now?

It gives us a bankable asset in the event we did have to borrow.

No but we own several money making business' (child care and indoor sport arena-although how much money are ether of those making ATM?on the perimeter of the ground.

The state Government has given us the land that runs from behind the scoreboard up underneath Scotsman's hill. I think the idea is to sell it to a developer who will build a retail sector there. At the rate of population the local area is going through it will be needed

[Twodogs]

Did we ever own it? The oval used to be Footscray City Council property.

I'm 100% certain that it still is. In fact they must own it because originally under the terms of the redevelopment grant the oval was supposed to be a community asset and wasn't supposed not be fenced off so the footy club must have bullied somebody into it.

[GVGjr]

Despite being around for years it's a worrying trend that so many clubs are in a vulnerable position to cover the challenges of a horrific season. It's a reminder of what Peter Gordon and the team have done for us all as they been able to record some significant profits over the last 6 years.

It's going to be an important restructure of the football and membership departments for the next couple years as clubs will need to significantly trim departments to reduce costs across the board.

[hujsh]

Is part of our position having more funds in the bank than normal from having sold our pokies?

[bornadog]

Is part of our position having more funds in the bank than normal from having sold our pokies?

Yes the sale of the pokies, plus profits over the last 5 or so years.

Looks like the redevelopment may have to wait if there is no footy this year

[Prince Imperial]

The VCGLR still lists us as being the owner of the gaming machine entitlements.

https://apps.vcglr.vic.gov.au//CA256F800017E8D4/VCGLR/34D244D52F54F707CA257B320077B701?OpenDocument

The club announced on 20 November that we had agreed to terms of sale with the Melbourne Racing Club with settlements to occur over the coming weeks and once all required regulatory approvals were obtained.

https://www.westernbulldogs.com.au/news/308085/bulldogs-to-exit-gaming-industry-

I am not aware of the contractual terms and the legal position but given the passage of time and the impact of the Coronavirus, I suspect it is likely that the MRC has withdrawn from the purchase. A bummer if the case, as the value of the businesses would now have declined sharply.

Geelong appear to be in same boat as us and they also are still listed as owners of their gaming machine entitlements despite their own announcement of the sale to the MRC.

[SonofScray]

Interesting to see us relatively well positioned to deal with this at the front end. Perhaps all the dickheads going straight to merger, relocation and existential crisis headlines should be careful what they wish for. Keep throwing our name in the mix out of habit, but based on what I've read there's plenty going down before we do.

[jeemak]

I really hope the media takes note of this and runs with it. How can Geelong, one of the SA clubs and one WA club be in a worse financial position than us, how can the Crows only be on par with us?

What kind of shit show are these privileged clubs running? How can we be next in line in the sustainability stakes ahead of a powerhouse club like Carlton?

It's almost as if the entire narrative around the clubs sitting below us, unnaturally of course, is completely cooked! If these clubs have supporter bases that deliver so much value to the game, how come the actual clubs are eating shit? It's almost as if we've been fed bullshit about their value, or they've been horribly mismanaged irrespective of the favours they've been afforded.

All this after pretty much subsidising the purchase of Docklands as well, which funnily enough, is going to be the only thing that bails everyone else out.

Oh for some *!*!*!*!ing recognition.

[Twodogs]

I really hope the media takes note of this and runs with it. How can Geelong, one of the SA clubs and one WA club be in a worse financial position than us, how can the Crows only be on par with us?

What kind of shit show are these privileged clubs running? How can we be next in line in the sustainability stakes ahead of a powerhouse club like Carlton?

It's almost as if the entire narrative around the clubs sitting below us, unnaturally of course, is completely cooked! If these clubs have supporter bases that deliver so much value to the game, how come the actual clubs are eating shit? It's almost as if we've been fed bullshit about their value, or they've been horribly mismanaged irrespective of the favours they've been afforded.

All this after pretty much subsidising the purchase of Docklands as well, which funnily enough, is going to be the only thing that bails everyone else out.

Oh for some *!*!*!*!ing recognition.

I'm tweeting that and claiming it as mine!

[Twodogs]

I really hope the media takes note of this and runs with it. How can Geelong, one of the SA clubs and one WA club be in a worse financial position than us, how can the Crows only be on par with us?

What kind of shit show are these privileged clubs running? How can we be next in line in the sustainability stakes ahead of a powerhouse club like Carlton?

It's almost as if the entire narrative around the clubs sitting below us, unnaturally of course, is completely cooked! If these clubs have supporter bases that deliver so much value to the game, how come the actual clubs are eating shit? It's almost as if we've been fed bullshit about their value, or they've been horribly mismanaged irrespective of the favours they've been afforded.

All this after pretty much subsidising the purchase of Docklands as well, which funnily enough, is going to be the only thing that bails everyone else out.

Oh for some *!*!*!*!ing recognition.

And don't forget that pretty much every expansion club have turned to us for marquee players. West Coast-Murray Rance (and Mick Malthouse, we finished last in 1989 partly because Malthouse is distracted negotiating with West Coast and we very nearly merged because of it), Adelaide-Tony MacGuiness, Brisbane-Brad Hardie, GWS-Callan Ward, GCS-Jarrod Harbrow.

And coaches. Cameron, Eade, Malthouse all ex bulldog people who coached expansion clubs. Without us christ knows how the AFL would have any start ups at all.

[mjp]

I really hope the media takes note of this and runs with it. How can Geelong, one of the SA clubs and one WA club be in a worse financial position than us, how can the Crows only be on par with us?



Given how much West Coast have outlaid on their new facility, I am actually surprised they are so well positioned to sail through a year without footy...

I don't think we should be too critical of others in this time - there could have been financial decisions make recently that have compromised a club's ability to survive...and who could have possibly foreseen the potential of a year without footy??? No-one...as you would understand, the biggest challenge about financial modelling is understanding the REAL risks of spending / versus the risks of not spending and making assessments based on that info...no-one could have factored a pandemic based year without footy into their planning - it simply isn't reasonable to think that they might have.

I know this sounds stupid but to come out of this 'intact' we are all going to need 18 functioning clubs...being critical of those who are battling right now doesn't really help.

[Sedat]

Not sure about Geelong, just had a quick look at their financials and they don't seem to be carrying much debt, in fact they were aiming to be debt free by the end of 2020. They have significant lease commitments for the stadium so perhaps that's the issue.
Imagine how much worse Geelong's financial position would be if we all weren't forced to taxpayer fund 90% of their pissant tin shed. What a colossal waste of taxpayer funds for 7 home & away matches and a couple of meaningless BBL matches a year.

[jeemak]

Given how much West Coast have outlaid on their new facility, I am actually surprised they are so well positioned to sail through a year without footy...

I don't think we should be too critical of others in this time - there could have been financial decisions make recently that have compromised a club's ability to survive...and who could have possibly foreseen the potential of a year without footy??? No-one...as you would understand, the biggest challenge about financial modelling is understanding the REAL risks of spending / versus the risks of not spending and making assessments based on that info...no-one could have factored a pandemic based year without footy into their planning - it simply isn't reasonable to think that they might have.

I know this sounds stupid but to come out of this 'intact' we are all going to need 18 functioning clubs...being critical of those who are battling right now doesn't really help.

I agree that we need eighteen teams to try and return the game to where it was as quickly as possible, though I don't agree that measured criticism isn't required right now. Some clubs have inherently more favourable terms and have had for substantial periods of time, and they should be positioned at least as well as we are.

I'm not saying they shouldn't be supported to get through this. While my post was bombastic for effect, what I actually want to see is recognition of what a club like ours can achieve with sound management and some questions about how less financially secure clubs with more favourable fixturing and gate takings than ours can be better.