Western Bulldogs among the six clubs to go it alone

[bornadog]

Link (https://www.theage.com.au/sport/afl/western-bulldogs-among-the-six-clubs-to-go-it-alone-20200406-p54hnt.html)
https://static.ffx.io/images/$zoom_0.14%2C$multiply_2.1164%2C$ratio_1.5%2C$width_756%2C$x _0%2C$y_0/t_crop_custom/q_62%2Cf_auto/ff31d0beb2ec091d7e6684b38dcabd105a593951


In a remarkable turn of events, the Western Bulldogs will be one of at least six AFL clubs who draw on their own funds to survive, outside of player payments, during the game’s financial crisis.


The Bulldogs have confirmed that, due to their balance sheet – which includes substantial cash reserves – they will be among what the AFL is referring to as ‘‘unassisted’’ clubs who will self fund during the COVID-19 lockdown period.

The other five clubs known to be funding their operations, besides player payments, are West Coast, Richmond, Collingwood, Hawthorn and Adelaide.


The Crows have emerged as the club who intend to borrow from their bank instead of from the AFL, revealing that they are looking to obtain a loan from the Bendigo Bank.


All of the clubs are expected to sign up to the AFL’s program, which will ensure all 18 clubs have their total player payments fully funded, but there is a split between clubs who intend to borrow from the AFL – the clear majority of clubs – and those who will be self-funded in the remainder of their football department and administration.


The prevailing view is that the ‘‘unassisted’’ clubs, even though they are still signing up to AFL terms to get their players paid, will have less scrutiny from headquarters, which will exercise greater control on the "assisted'' clubs and demand more accountability.

Bulldogs president Peter Gordon said the Bulldogs ‘‘will be an unassisted club,’’ adding, ‘‘it’s our expectation we will remain unassisted for the duration of it [the COVID-19 crisis]’’.


Gordon, who was president of the club when the Bulldogs survived the prospect of a merger with Fitzroy in 1989, said the club had worked hard ‘‘for 10 years to get a substantial asset base’’.


The Bulldogs had a debt in excess of $10 million back in 2012 and had long been among the clubs – along with North Melbourne, St Kilda and Melbourne – that struggled to stay afloat until the AFL decided to vary the distributions to the clubs. The Dogs, who like Collingwood and Geelong have also sold their gaming interests, have one of the better balance sheets in the AFL.


Gordon said while there had been a ‘‘significant underestimation of our liquidity position,’’ the club had spent a long time and knew what it was like to be ‘‘in a precarious position’’.


He said the ‘‘continued support of our members is important to us’’, along with their sponsors.


Adelaide chairman Rob Chapman said the Crows looked like they would be borrowing from their bank, Bendigo Bank, rather than taking a loan from the AFL.


The Crows are taking the view that, because they will need to borrow – not having sufficient cash reserves at the moment after paying down debt over the years – they would be better to borrow from their bank rather than the AFL.


While the richer clubs that choose to be "unassisted'' will deplete their cash reserves, they gain in another sense – that those that have only 75 per cent or so of their player payments funded by the AFL (as in the cases of West Coast, Collingwood and Hawthorn), will now have 100 per cent of their player payments paid for, with the exception of the marketing payments, which are about $1 million and will need to be self-funded by all clubs rich or poor.


The assisted clubs are expected to get a better interest rate from the AFL than they would from a bank and they can get an injection of money immediately, but will subject to increased scrutiny from the AFL. They will be drawing on the AFL's line of credit of up to $600 million, for which Marvel Stadium was used as security.

[Hotdog60]

Who would have thought we would read that sort of statement.
Makes you very proud of the work the club has done to move itself from dependent to unassisted.
Those other clubs supporters listed with us wouldn't understand about sinking into oblivion.

[Yankee Hotel Foxtrot]

Very proud of all the people across the many years who worked so hard and smart to enable us to be in this position of relative safety.

Not such a pathetic club after all hey Mr. Elliott?

[GVGjr]

Who would have thought we would read that sort of statement.
Makes you very proud of the work the club has done to move itself from dependent to unassisted.
Those other clubs supporters listed with us wouldn't understand about sinking into oblivion.


Very proud of all the people across the many years who worked so hard and smart to enable us to be in this position of relative safety.

Not such a pathetic club after all hey Mr. Elliott?

We can't underestimate the work Gordon and the team have done to set-up the club for the longer term
We all need to get behind them as much as we can to do our bit as well

[SonofScray]

Remarkable.

The immediate, post COVID competition becomes so important now. We must support the club financially and keep growing the base. The Club must perform across each competition. The next few flags are incredibly valuable and could be a huge disruption in the pecking order. All those pre-written reflexive articles that disregard reality and cast us as strugglers, dole bludgers etc will need to be shredded.

Imagine a lifetime where we saw The Day, Another Day and Yet Another Day, completely shored up our financial stability and just started kicking everyone else while they are down during a recovery phase. Snap up new sponsors entering the market, dominate the airwaves, fill the history books.

I will sneer at these dole blushing, tin rattling, corrupt, failed pissant clubs like Essendon and Carlton etc.

[comrade]

Apologies if I missed it in the article, but what are the benefits to being one of the 'sustainable six'?

Surely we get long term rewards for using our own resources vs relying on the AFL to survive.

I'm hoping we are able to leverage our self sufficiency and secure guarantees for things such as: x amount of guaranteed Friday night games for next 3-5 years, Good Friday locked in for 5 years, guaranteed games at Whitten Oval within the next 3 years, improved Marvel deal.

[jeemak]

Apologies if I missed it in the article, but what are the benefits to being one of the 'sustainable six'?

Surely we get long term rewards for using our own resources vs relying on the AFL to survive.

I'm hoping we are able to leverage our self sufficiency and secure guarantees for things such as: x amount of guaranteed Friday night games for next 3-5 years, Good Friday locked in for 5 years, guaranteed games at Whitten Oval within the next 3 years, improved Marvel deal.

Less AFL intervention. The feeling is that the AFL will need the clubs who borrow funds to show higher levels of accountability in spending direction etc.

[jeemak]

Anyway, it looks like I got my wish and some recognition for our good work has hit the headlines.

[mjp]

Apologies if I missed it in the article, but what are the benefits to being one of the 'sustainable six'?

Surely we get long term rewards for using our own resources vs relying on the AFL to survive.



Well, this is what it says:

======
While the richer clubs that choose to be "unassisted'' will deplete their cash reserves, they gain in another sense – that those that have only 75 per cent or so of their player payments funded by the AFL (as in the cases of West Coast, Collingwood and Hawthorn), will now have 100 per cent of their player payments paid for, with the exception of the marketing payments, which are about $1 million and will need to be self-funded by all clubs rich or poor.
==================


So...I don't get it?

Then it also says:
The assisted clubs are expected to get a better interest rate from the AFL than they would from a bank and they can get an injection of money immediately, but will subject to increased scrutiny from the AFL.

So, ummmm...what sort of scrutiny and WHY if the interest rate is "BETTER" would Adelaide choose to self fund through BB?

[comrade]

Well, this is what it says:

======
While the richer clubs that choose to be "unassisted'' will deplete their cash reserves, they gain in another sense – that those that have only 75 per cent or so of their player payments funded by the AFL (as in the cases of West Coast, Collingwood and Hawthorn), will now have 100 per cent of their player payments paid for, with the exception of the marketing payments, which are about $1 million and will need to be self-funded by all clubs rich or poor.
==================


So...I don't get it?

Then it also says:
The assisted clubs are expected to get a better interest rate from the AFL than they would from a bank and they can get an injection of money immediately, but will subject to increased scrutiny from the AFL.

So, ummmm...what sort of scrutiny and WHY if the interest rate is "BETTER" would Adelaide choose to self fund through BB?

Yeah, what gives? I would have thought using the AFL's cash would be better than using our own UNLESS there are significant incentives not to...the incentives are what I'm interested in.

[comrade]

Less AFL intervention. The feeling is that the AFL will need the clubs who borrow funds to show higher levels of accountability in spending direction etc.

That seems like a pretty small benefit compared to draining your own cash reserves in a time of unprecendented economic uncertainty.

[GVGjr]

Apologies if I missed it in the article, but what are the benefits to being one of the 'sustainable six'?

Surely we get long term rewards for using our own resources vs relying on the AFL to survive.

I'm hoping we are able to leverage our self sufficiency and secure guarantees for things such as: x amount of guaranteed Friday night games for next 3-5 years, Good Friday locked in for 5 years, guaranteed games at Whitten Oval within the next 3 years, improved Marvel deal.

I suspect the pay back might come later via the AFL as you have suggested but it's mainly a strong reminder of the progress that the club has made in the last 6 years or more. Better draws and a Marvel stadium deal would be a great boost for us in the coming years

[bornadog]

Yeah, what gives? I would have thought using the AFL's cash would be better than using our own UNLESS there are significant incentives not to...the incentives are what I'm interested in.

The AFL have secured a bank loan of $600 million that can be accessed by the clubs and they will wear someone of the interest.

We are in a position where we don't need to borrow money and go into debt as are the other 5 clubs. The rest like Carlton, Essendon will have to borrow money. There are clubs with debts of over $10 million and will need to go into further debt.

I am so glad we don't need to go into debt, just to survive. Unfortunately this will be a setback for our redevelopment of VU Whitten Oval.

[Mofra]

Well, this is what it says:

======
While the richer clubs that choose to be "unassisted'' will deplete their cash reserves, they gain in another sense – that those that have only 75 per cent or so of their player payments funded by the AFL (as in the cases of West Coast, Collingwood and Hawthorn), will now have 100 per cent of their player payments paid for, with the exception of the marketing payments, which are about $1 million and will need to be self-funded by all clubs rich or poor.
==================


So...I don't get it?

Then it also says:
The assisted clubs are expected to get a better interest rate from the AFL than they would from a bank and they can get an injection of money immediately, but will subject to increased scrutiny from the AFL.

So, ummmm...what sort of scrutiny and WHY if the interest rate is "BETTER" would Adelaide choose to self fund through BB?
Commercial lending manager on the Adelaide board?
Might be prepared to 'donate' his commission back to the club so the effective comparison rate is lower.

There would be handshake agreements all over the place.

[comrade]

The AFL have secured a bank loan of $600 million that can be accessed by the clubs and they will wear someone of the interest.

We are in a position where we don't need to borrow money and go into debt as are the other 5 clubs. The rest like Carlton, Essendon will have to borrow money. There are clubs with debts of over $10 million and will need to go into further debt.

I am so glad we don't need to go into debt, just to survive. Unfortunately this will be a setback for our redevelopment of VU Whitten Oval.

If the interest rate is low enough (and I'm guessing it is pretty freaking low right now), taking on some debt via the AFL may not be a negative thing if it allows us to maintain some cash reserve and utilise it effectively once we get out of this thing.

If not being in debt is the only incentive to churn through our own hard earned cash, I think we're being stiffed.

[bornadog]

If the interest rate is low enough (and I'm guessing it is pretty freaking low right now), taking on some debt via the AFL may not be a negative thing if it allows us to maintain some cash reserve and utilise it effectively once we get out of this thing.

If not being in debt is the only incentive to churn through our own hard earned cash, I think we're being stiffed.

I have followed the club for a very long time (yeah I know- sorry) and have seen us sell star players in the 70s to keep alive, nearly merge with Fitzroy after racking up huge debts, nearly fold in 1996, only to be rescued again and countless talk about relocation in the 80s to Brisbane, and who knows where.

Now that we are debt free, and in a good position, I would not like to see the club back in debt, even if the interest rate is low. You never know what will happen in the next few years.

[jeemak]

I think I read somewhere the clubs would have to pay back the AFL at ~3%. If you're sitting on cash and earning less than half of that in interest then why would you borrow?

[Remi Moses]

The magnitude of the work at the club is so significant
Kudos to Peter Gordon and his team and the tireless work .

[comrade]

I think I read somewhere the clubs would have to pay back the AFL at ~3%. If you're sitting on cash and earning less than half of that in interest then why would you borrow?

Where has the 3% figure come from?

[Axe Man]

If the interest rate is low enough (and I'm guessing it is pretty freaking low right now), taking on some debt via the AFL may not be a negative thing if it allows us to maintain some cash reserve and utilise it effectively once we get out of this thing.

If not being in debt is the only incentive to churn through our own hard earned cash, I think we're being stiffed.

You think that Gordon, Bains and Co are inept and are being stiffed by the AFL? Right. I'm guessing they have a little more information on the subject than we do to make the right decisions.

[jeemak]

Where has the 3% figure come from?

I've had a quick look but have actually had to work this morning.....which is a massive injustice! We're not a sovereign government, nor is the AFL, so we're not going to get funding as attractive we might like.

[Ozza]

I, for one, am sick of how we and the other big clubs, have to prop up the small impoverished clubs like Carlton, Essendon & Geelong.

I'm not sure that the Victorian market can support having all of these poor clubs.

:p

[angelopetraglia]

How times have changed. Amazing position to be in.

[Dancin' Douggy]

Wow. The world really has turned upside down. What an incredible situation for us to be in.

[GVGjr]

You think that Gordon, Bains and Co are inept and are being stiffed by the AFL? Right. I'm guessing they have a little more information on the subject than we do to make the right decisions.

I don't think comrade was being critical just inquisitive

[comrade]

I don't think comrade was being critical just inquisitive

Yep, and the point is, we don’t have the information or context behind our decision which is what I am speculating about. Would be a pretty boring period if we weren’t able to comment on things we have less than perfect information on.

[Axe Man]

Yep, and the point is, we don’t have the information or context behind our decision which is what I am speculating about. Would be a pretty boring period if we weren’t able to comment on things we have less than perfect information on.

I've got no issue with that other than the "I think we're being stiffed" bit. I have the same queries as you do but I don't for one second think the people responsible for putting the club in such a strong position are likely to drop the ball here.

[comrade]

I've got no issue with that other than the "I think we're being stiffed" bit. I have the same queries as you do but I don't for one second think the people responsible for putting the club in such a strong position are likely to drop the ball here.

You're probably right and I 100% hope you are.

[bornadog]

Peter has been reading this thread and just commented on SEN.

If the AFL know you are liquid then you can't ask for assistance.

[comrade]

Peter has been reading this thread and just commented on SEN.

If the AFL know you are liquid then you can't ask for assistance.

Fair enough, I guess. So you can assume no extra leverage/benefit to churning through your own cash reserves then?

Won't be surprised if we have to ask for our own hand out if the lockdown goes on long enough.

One positive from the PG interview is that it sounds like he has the ear of Gil, so we're not going to be blindsided at any point.

[bornadog]

Fair enough, I guess. So you can assume no extra leverage/benefit to churning through your own cash reserves then?

Won't be surprised if we have to ask for our own hand out if the lockdown goes on long enough.

One positive from the PG interview is that it sounds like he has the ear of Gil, so we're not going to be blindsided at any point.

PG is on a special committee for the Coronavirus, along with Eddie and two others (can't remember who)

[GVGjr]

You can have a listen

Dwaynes World (https://www.sen.com.au/programs/dwaynes-world/)

[Eastdog]

How times have changed. Great to be so ahead now on the financial front. Challenging times at the moment but our club is in a great position.

[jeemak]

How times have changed. Great to be so ahead now on the financial front. Challenging times at the moment but our club is in a great position.

Damn you and your overly political rhetoric Eastdog!

[jeemak]

You can have a listen

Dwaynes World (https://www.sen.com.au/programs/dwaynes-world/)

Very pragmatic response from the Pres in reference to the options faced by clubs with respect to borrowing from the AFL in this instance. Possibly the best PR to come out of the club in years was him suggesting that we weren't eligible for assistance from the AFL at this time. I'm pretty confident a few adjustments to the sheet would have changed that if we thought it was to our benefit, but we'll never know.

[Eastdog]

Damn you and your overly political rhetoric Eastdog!

:D :D

Politics is very interesting but don’t like to get too political on woof as woof is not that type of forum.

[FrediKanoute]

Just a thought. Yes its commendable that the bulldogs are cashed up and thus don't need to rely on the AFL and can use their existing cash reserves to fund their operations. Is that necessarily the right move? If the AFL is offering finance and relatively good terms, wouldn't it be better to hang onto the cash and take the AFL loan. Once corona is over the loan could be restructured and paid down over time.

The problem with relying on cash reserves is that once depleted they are gone. So if there is another crisis in the enxt couple of years what then? You go from being a strong self sufficient club to a club begging for a hand out.

[Hotdog60]

You can have a listen

Dwaynes World (https://www.sen.com.au/programs/dwaynes-world/)

Is there a way of taking the Dwayne out of world before I listen.
I have sensitive hearing.

[bornadog]

Just a thought. Yes its commendable that the bulldogs are cashed up and thus don't need to rely on the AFL and can use their existing cash reserves to fund their operations. Is that necessarily the right move? If the AFL is offering finance and relatively good terms, wouldn't it be better to hang onto the cash and take the AFL loan. Once corona is over the loan could be restructured and paid down over time.

The problem with relying on cash reserves is that once depleted they are gone. So if there is another crisis in the enxt couple of years what then? You go from being a strong self sufficient club to a club begging for a hand out.

You have to be eligible to get the loan, ie no cash reserves.

[bornadog]

Essendon to go it alone financially - they have decided if they don't their independence will be compromised.

[Yankee Hotel Foxtrot]

Essendon to go it alone financially - they have decided if they don't their independence will be compromised.

Well i guess they have to protect something, it surely hasn't been their integrity!

[Axe Man]

Essendon to go it alone financially - they have decided if they don't their independence will be compromised.

Paul Little bailing them out again?

[bornadog]

Paul Little bailing them out again?

Why not he is loaded.

[Dry Rot]

I, for one, am sick of how we and the other big clubs, have to prop up the small impoverished clubs like Carlton, Essendon & Geelong.

I'm not sure that the Victorian market can support having all of these poor clubs.

:p

Post of the century. :D

**** them.