RedmanWasHere
Rarely in kitchens at parties.
- Aug 23, 2010
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Yep.
As many know, Fitzroy attempted to play home games in Tasmania, had a deal done in 1995 to play at least four and possibly up to seven home games in Canberra, only to be refused by the AFL, attempted to enter a merger with Footscray in 1989 to form the Fitzroy Bulldogs, with Melbourne in 1994 to form the Melbourne Lions and with North Melbourne in 1996 to form the North Fitzroy Kangaroos. Details of what was done to force Fitzroy out of the AFL are below.
The following is a list of some of the measures that the AFL took against Fitzroy in the years leading up to 1996.
- Fitzroy were forced to move from the Junction Oval in 1984 as part of VFL's ground rationalisation policy, beginning the process of the Club depending on other clubs such as Carlton and Collingwood (their traditional rivals) to generate significant revenue from a home ground. Not surprisingly Fitzroy recorded losses every year from 1985 to 1992 largely because of a lack of ground revenue. Interestingly in 1981, Fitzroy had the fourth largest membership of any of the twelve VFL clubs.
- the VFL refused to allow Hecron in 1987 to take part ownership of Fitzroy as part of a sponsorship deal, wanting them to pay a full fee for an AFL licence, that had seen Fitzroy reject a relocation to Brisbane in 1986.
- the AFL refused permission for the club to play four home games per year in Canberra from 1995 onwards. The club even offered to play up to seven-eight home games a year in a partial relocation. Upon their application to play four games in Canberra the Club was told that Fitzroy's application to play 4 home games in Canberra (which would have netted the club at least $350,000 annually guaranteed) would not be a "credible exercise in the Canberra market" and would not be enough games to be worthwhile. Ross Oakley later publicly said that Fitzroy was their "worst product" (great for attracting sponsorship) and that the AFL wasn't going to send their "worst product" up to Canberra. Fitzroy then offered to play 7 home games in Canberra, which would have netted Fitzroy at least an extra $700,000 a year on top of what had already been negotiated. This was refused as well. In fact when adding in corporate sponsorship, and ground rights at Bruce Stadium (which would have been upgraded), Fitzroy's projections were they could have made $1 million extra per season. Fitzroy's application had the support of 'AFL for Canberra' organisation, the Canberra Raiders, the Ainslee Football Club and the ACT chief minister who had offered for the ACT government to upgrade Bruce Stadium, if Fitzroy relocated home games there.. However the AFL point blank refused to entertain the idea. An AFL commissioner later admitted that the reason why the AFL knocked it back was because they wanted Port Adelaide in the competition and therefore wanted to keep the pressure on Fitzroy to merge, so there could be a maximum of 16 teams.
- the AFL refused to help financially assist Fitzroy's Tasmanian experiment in 1991-1992. Fitzroy had to pay the whole cost themselves, including accommodation. Fitzroy had to even billet their players in supporters' homes. Since that time, AFL support for Hawthorn, St Kilda and North Melbourne home games in Tasmania has been significant.
- in order to pressure Fitzroy to merge or liquidate, the AFL refused to guarantee Fitzroy's 1992-1993 dividend (which they were going to receive anyway) which Fitzroy wanted re-directed to Westpac, despite AFL club directors agreeing to do so. Westpac wouldn't accept the re-direction unless the AFL guaranteed that Fitzroy would receive at least $1.1 million (which they were). It took the threat of legal action and the support of other clubs for the AFL to finally relent.
- In 1993 the AFL threatened to sue Fitzroy for $250,000 that had been paid to Fitzroy by CUB as part of a club sponsorship, which included selling CUB's product in the Fitzroy Club Hotel. CUB was the AFL's sponsor and the AFL thought they should have received the money instead of Fitzroy. This was despite the fact that CUB had been a minor sponsor of Fitzroy for over ten years previously. The AFL even threatened to reduce the dividend that was due to other clubs by the amount Fitzroy received. This lack of support from the AFL was the major reason the Lions had to consider a better financial deal at the Western Oval, in order to try and raise more revenue which in turn alienated some supporters and players. That new deal included Footscray loaning Fitzroy the $250,000 demanded by the AFL, which was then paid to the AFL. Alistair Lynch later said that Fitzroy's forced move to the Western Oval was the major reason why he decided to leave Fitzroy and sign with the Bears. Broderick, Gale, Elliott and Dundas followed Lynch shortly after with Broderick also citing the move to the Western Oval as a factor in his decision to leave. Robert Shaw the Fitzroy coach lamented at the time that he'd just lost his next three club captains.
- the AFL objected to a Fitzroy sponsorship deal with Schweppes because the AFL were sponsored by Coca Cola. Fitzroy managed to raise $110,000 from this sponsorship.
- it was later discovered that it was the AFL that had been advising player manager Damian Smith on the best way for the Bears to acquire Alistair Lynch from Fitzroy.
- From 1993 the AFL issued a number of solvency notices to Fitzroy where the club had to satisfy AFL criteria that they could meet their financial debts for the next 12 months or their AFL licence would be withdrawn. Fitzroy was the only club to receive a solvency notice, despite several others being in considerable financial difficulty.
- the AFL refused to allow millionaire Bernie Ahern to lend any more money to Fitzroy, after he saved them from merging / folding in 1991. He lent money to Fitzroy for a second time later on, because in his words, he felt Fitzroy had been treated unfairly.
- From 1994 onwards the AFL presented several proposals to the Fitzroy directors to surrender Fitzroy's licence to the AFL and thereby liquidate Fitzroy Football Club Ltd., if it could not effect a merger, in return for "assistance packages" to keep the club going. That way Fitzroy's creditors (including Nauru) wouldn't get paid. One of these AFL proposals included a merger with the Port Adelaide Football Club to form the (I kid you not) "Port Adelaide Power Lions." derisively nicknamed by many as the "Power Lines"
- the AFL regularly leaked sensitive information provided by Fitzroy about their finances to the media, in order for journalists like Mike Sheahan to write negative stories about Fitzroy, which in turn scared off potential sponsors.
- the AFL regularly informed potential sponsors who would make inquiries about the possibility of sponsoring Fitzroy that not to bother because Fitzroy would not be in the competition for much longer (That's from a Fitzroy director at the time)
- Fitzroy's auditors KPMG were even raided by the Australian Securities Commission, under a warrant to investigate Fitzroy for 'suspect trading while insolvent' for 1993 and 1996. The ASC claimed they were acting on information passed to them. Naturally Fitzroy believe it was probably the AFL, who were the only external organisation who had full access to Fitzroy's finances. Nothing ever came of the raid.
- ....and even at the end, the AFL gave Fitzroy and North Melbourne until July 5th 1996 to complete their merger (which was done at 2 pm on July 4th), only to give the go-ahead to a Brisbane - Fitzroy merger (about 7 pm) on July 4th, after a Richmond led protest over the merger conditions (originally agreed to by the AFL and the clubs and communicated as such to both North Melbourne and Fitzroy).
- The reason that Nauru appointed an administrator to recover their $1.25 million loan was because the AFL was telling North that if they held out against Nauru, they wouldn't have to pay them at all and would receive the entire merger amount themselves. Then the AFL threatened to not guarantee the merger money. Faced with the prospect of getting none of their loan, back this forced Nauru to step in and recover the money themselves by appointing an administrator. This was despite the fact that the Fitzroy directors had already done a deal to settle with Nauru out of the merger money. However on the AFL's advice and urging, North Melbourne refused to authorise Fitzroy to pay any more than $550,000, instead of the $1 million asked. The debt to Nauru did not have to be paid back in full until October 2001, given it was a seven year deal. In other words the AFL actively intervened to ensure an administrator would be appointed to Fitzroy, so that they could manipulate the administrator into doing a deal to benefit the Brisbane Bears.
****ING campaigners!