Tasmania AFL Say No To Tassie Team

[DERIBERATE]

AFL CEO Gillon Mclachlan told the National Press Club on August 19, 2015, that while Tasmania deserved a club, it probably couldnt afford it, predicting it would need 45 million in revenue.



This seems odd given the number of teams in the league (8, almost half the comp) that as of their 2014 Annual Reports fail to make that grade.

2014 Revenue

• Collingwood - $76,256,915,
  
• Hawthorn - $67,663,161,
  
• Essendon - $61,258,047,
  
• West Coast - $57,616,027,
  
• Carlton - $56,641,156,
  
• Geelong - $51,356,479,
  
• Fremantle - $49,161,997,
  
• Port Adelaide - $48,219,475,
  
• Brisbane - $46,538,187,
• Sydney - $46,519,605,

_______________________________________________

• Richmond - $44,408,127,
  
• Melbourne - $42,093,064,
  
• Adelaide - $39,366,673,
  
• Bulldogs - $37,538,814,
  
• North - $34,390,355,
  
• Gold Coast - $33,798,619,
  
• GWS - $32,448,830,
  
• St Kilda - $30,235,195,

Tassie needs 6 million more than Adelaide in the lowest cost market to do business in Australia. Sure Gil. Translation: we have set a bar for the amount of rent we want to extract from each state's tax payers.

 

[The_Wookie]

Tassie needs 6 million more than Adelaide in the lowest cost market to do business in Australia. Sure Gil. Translation: we have set a bar for the amount of rent we want to extract from each state's tax payers.

it is important to note that of the teams below the line only one of them is genuinely profitable - Richmond. The rest are coming off a string of losses or still taking heavy support from the league to make a profit.

 

[DERIBERATE]

it is important to note that of the teams below the line only one of them is genuinely profitable - Richmond. The rest are coming off a string of losses or still taking heavy support from the league to make a profit.

It's also important to note consolidated figures of football clubs and gaming revenue.

I'll take West Coast's 57 million over Collingwood's 76 any day. Theirs is the sort of revenue that results in actual cash landing on the balance sheet.

 

[The_Wookie]

It's also important to note consolidated figures of football clubs and gaming revenue.

I'll take West Coast's 57 million over Collingwood's 76 any day. Theirs is the sort of revenue that results in actual cash landing on the balance sheet.

Tell Collingwood that.

 

[sherb]

Half arsed was the effort you refer to in the NRL - IF the AFL try a relocated Melbourne team I can see Taswegians rejecting it. No more teams please, the player pool cant provide for what we've got now.
It needs to be 100% owned & operated out of Tas, i.e a club stripped of its licence, the player squad alone offered a relocation to Tas, all admin & coaches made redundant, Tas board appointed, experienced CEO appointed & off they go.

Yes, its tough, but footy cant keep ducking the harsh realities to keep the princess set happy - WA & SA made their sacrifice last century.

Yep, most of them already support an AFL club. They are not going to suddenly support a club they have regarded as an opponent all their lives.

A completely Tasmanian club would mean they don't have that concern. Far more likely to support it and do so parochially.

 

[Kwality]

Tell Collingwood that.

Try & question the business model of any financially successful club, even try & compare the headline number Profit - very rubbery !!

 

[madmug]

I note out premier Will Hodgman was on radio yesterday & said that 'yes Tasmania could afford an AFL team'. So apart from the obvious question as to why Gil McLachlan said Tasmania deserves & team but said we couldnt afford the $45million price tag, who is full of BS or downright lying, & what would the actual costs be?

I'm sure others on here have a better immediate grasp of what the real costs of running a club would be. It does seem to vary hugely between them. For a start, Footy department costs seem to vary between about $18 mill & $25 mill. So the average mat be Say $22mill

The rest would be administration costs, Stadium costs & other club operational costs like Insurances, social clubrooms, pokie venues etc etc.

So in earning say $30 mill from corporate incomes (sponsors, game day boxes) is great except if you are paying $25 mill to earn it. If Corporate income is $10 mill & that costs you $5 mill, you are equal. The revenue difference is obvious.

Same with Pokies. Generating $30mill revenue is good but what if venue operation & license costs are $28 mill, but some one else earns $10mill in non pokie venues & profits by $2 million, its the same but again, a big revenue difference.

You need to know your costs.

So what do you need to earn? Yes, again its cost dependent. We know the Footy dept need about $20-$22 mill. The rest is admin costs, including costs of servicing supporters & sponsors. Stadium hire costs. If that is $10mill you'd need find from supporters & sponsors. then your target is about $32million.

I note the AFL pay clubs about $12mill out of its surpluses. More to GC, GWS, Lions, Melbourne, Bulldogs, StKilda.

Basic memberships of say a minimum of $30k @ average $150 gives $4.5mill, then say the premium supporters say 2000 at $500, add club apparel, then the range of large & medium sponsorships.

Then for Tasmania their already is already Gument support via the tourism & economic drivers.

So how much does one really need to pay ones way? Certainly not $75mill to generate a $2mill profit, nor even $45mill in Tasmanias case. Its probably more like $32-$35mill?

Any new club would be operated by the AFL & State Gument & with notable & capable people on a board. Perhaps some directors being voted in by popular membership votes.

Anyway what an AFL fkup

 

[thegreig]

Caroline Wilson just grilled the AFL comision over their handling of the Tasmainan situation on footy classified, gave them the arrow.

 

[madmug]

Caroline Wilson just grilled the AFL comision over their handling of the Tasmainan situation on footy classified, gave them the arrow.

What was her point of questioning? The confused approach? The never ending questions? The inconsistency of the AFL message? The never ending story?

 

[thegreig]

I'll try find a link tomorrow, but pretty much all of the above. She also couldn't believe that a national woman's comp will be up and running before a Tas AFL team

 

[madmug]

I'll try find a link tomorrow, but pretty much all of the above. She also couldn't believe that a national woman's comp will be up and running before a Tas AFL team

Its about time the media took the AFL to task on the matter. To say we do deserve a team them makeup figures which are lies, refuted by the state Premier, needs explanation.

The AFL's arrogance & disrespect has been laid bare by their own words & total lack of action.

I suppose the rest of the sycophantic media will look the other way. We know Its an inconvenient truth. Its the AFLs problem. They caused it. They need to explain themselves.

 

[Papa G]

Any Tas team in the short to medium term means shafting a Vic team in some way. The Vic media will not get behind that.

 

[Colonial]

http://m.theage.com.au/afl/afl-news...urges-tassie-footy-chief-20150831-gjbjyz.html

 

[telsor]

I note out premier Will Hodgman was on radio yesterday & said that 'yes Tasmania could afford an AFL team'. So apart from the obvious question as to why Gil McLachlan said Tasmania deserves & team but said we couldnt afford the $45million price tag, who is full of BS or downright lying, & what would the actual costs be?

I'm sure others on here have a better immediate grasp of what the real costs of running a club would be. It does seem to vary hugely between them. For a start, Footy department costs seem to vary between about $18 mill & $25 mill. So the average mat be Say $22mill

The rest would be administration costs, Stadium costs & other club operational costs like Insurances, social clubrooms, pokie venues etc etc.

So in earning say $30 mill from corporate incomes (sponsors, game day boxes) is great except if you are paying $25 mill to earn it. If Corporate income is $10 mill & that costs you $5 mill, you are equal. The revenue difference is obvious.

Same with Pokies. Generating $30mill revenue is good but what if venue operation & license costs are $28 mill, but some one else earns $10mill in non pokie venues & profits by $2 million, its the same but again, a big revenue difference.

You need to know your costs.

So what do you need to earn? Yes, again its cost dependent. We know the Footy dept need about $20-$22 mill. The rest is admin costs, including costs of servicing supporters & sponsors. Stadium hire costs. If that is $10mill you'd need find from supporters & sponsors. then your target is about $32million.

I note the AFL pay clubs about $12mill out of its surpluses. More to GC, GWS, Lions, Melbourne, Bulldogs, StKilda.

Basic memberships of say a minimum of $30k @ average $150 gives $4.5mill, then say the premium supporters say 2000 at $500, add club apparel, then the range of large & medium sponsorships.

Then for Tasmania their already is already Gument support via the tourism & economic drivers.

So how much does one really need to pay ones way? Certainly not $75mill to generate a $2mill profit, nor even $45mill in Tasmanias case. Its probably more like $32-$35mill?

Any new club would be operated by the AFL & State Gument & with notable & capable people on a board. Perhaps some directors being voted in by popular membership votes.

Anyway what an AFL fkup

I know facts wont bother you in your crusade, but here's Sydney's figure. I picked them because they're closest to the $45M figure (apart from Richmond, but Richmond does a few wierd things using net figures in some places and the like, so this is far more relatable). Feel free to look at the annual reports thread for many more examples.

I rounded to the nearest 100K, they made a profit of a bit over 800K.

Expenses (total 45.5)
football dept 23.5
academy 1.1
membership & match day 6.8
sponsorship & marketing 9.4
admin 3.4
depreciation 0.6
occupancy 0.8

Revenue (total 46.4)
AFL distribution 12.0
Prize money 0.6
Merch 0.6
membership & match day 14.8 (net 8.0)
Sponsorship & marketing 17.1 (net 7.7)
Other 1.3

 

[telsor]

http://m.theage.com.au/afl/afl-news...urges-tassie-footy-chief-20150831-gjbjyz.html

But but but...madmug tells us all of Tasmania is one unified market and they'd *ALL* support his plan for a team in Hobart playing some games in Launceston!

 

[Kwality]

Tassie needs 6 million more than Adelaide in the lowest cost market to do business in Australia. Sure Gil. Translation: we have set a bar for the amount of rent we want to extract from each state's tax payers.

The WA Govt are not happy subsidising the game in WA when the AFL take the surpluses under the guise of equalisation.

 

[Kwality]

Any Tas team in the short to medium term means shafting a Vic team in some way. The Vic media will not get behind that.

The AFL accredited media.

 

[The_Wookie]

The WA Govt are not happy subsidising the game in WA when the AFL take the surpluses under the guise of equalisation.

Id love to see a quote from a WA Gov official expressing that disatisfaction, and Id be willing to bet when everything is taken into account that theres no subsidy at all.

 

[madmug]

But but but...madmug tells us all of Tasmania is one unified market and they'd *ALL* support his plan for a team in Hobart playing some games in Launceston!

I promote a whole of Tasmania team with 1/2 games played in each stadium. You seem not to be able to discuss it sensibly any more. A bit like the AFL itself.

 

[madmug]

[QUOTE="telsor, post: 40580837, member: 11861"]I know facts wont bother you in your crusade, but here's Sydney's figure. I picked them because they're closest to the $45M figure (apart from Richmond, but Richmond does a few wierd things using net figures in some places and the like, so this is far more relatable). Feel free to look at the annual reports thread for many more examples.

I rounded to the nearest 100K, they made a profit of a bit over 800K.

Expenses (total 45.5)
football dept 23.5
academy 1.1
membership & match day 6.8
sponsorship & marketing 9.4
admin 3.4
depreciation 0.6
occupancy 0.8

Revenue (total 46.4)
AFL distribution 12.0
Prize money 0.6
Merch 0.6
membership & match day 14.8 (net 8.0)
Sponsorship & marketing 17.1 (net 7.7)
Other 1.3[/QUOTE]


Whos' up your back passage? Thank you for the figures applicable to Sydney, the nations most expensive market.

Got anything for StKilda?

 

[Lemma]

I think the main reason AFL don't want a Tassie team right now is that it would mean an odd number of teams

 

[madmug]

I think the main reason AFL don't want a Tassie team right now is that it would mean an odd number of teams

Hmm, thanks.

 

[Colonial]

I think the main reason AFL don't want a Tassie team right now is that it would mean an odd number of teams

Not like they could add 2 teams. That would be nuts

 

[telsor]

Whos' up your back passage? Thank you for the figures applicable to Sydney, the nations most expensive market.

True, but they wouldn't have the added expense of maintaining 2 'homes'.

Got anything for StKilda?

Did you miss this bit?

Feel free to look at the annual reports thread for many more examples.

Not that St Kilda is a great example...After all, they're practicably bankrupt and losing a lot of money, although they are in a market that's got a lot more growth potential than Tasmania.

 

[Lemma]

Not like they could add 2 teams. That would be nuts

Where would the 20th team be based then?