It's money time as clubs seek a greater share of TV riches

[The_Wookie]

Not entirely unexpected. There have been rumbles about this since the AFLPA had its demands met in the last deal.

Fairfax reports thats the fight for a greater share of the record $2.508 billion broadcast rights spoils has begun, with AFL clubs pushing for the league to follow the NRL and markedly increase the amount distributed to each club.

Geelong president Colin Carter said the equalisation tax had been "poorly designed" and that, if the league compensated for fixture and stadium cost disadvantages, the issue would be mostly solved.

"The AFL's equalisation tax is problematic in that it excessively hits the 'middle class' rather than the wealthiest," he said.

"We aren't that far off – about $3 to 4 million per annum to a few clubs would do the trick. Remember, if a club receives a cheque for $3 million, that substitutes for them having to find a business that delivers $30 million or more in revenue and which may leave them [with luck] around $3 million in profit."

 

[Kappa]

What will clubs do with more money? It'll just give a big boost to the Football Department arms race.

At least the AFL can use it to fund more grassroots things, get more kids into the sport

 

[The_Wookie]

Give them the money and cap football department spending - hell have the AFL directly pay the debt - most club debt is an afl guarantee anyway. The clubs deserve the money - and more than the players do I believe. The club is around a lot longer than the players. The players got looked after last time, the clubs should this time.

3 million over 3 years pays off the Lions debts. 3 million over 5 years pays off all their debts incuding the money they owe the league. 3 million puts Gold Coast close to an operating profit, pays of Carltons debt within 18 months, the Saints within 2 years, Cats and dogs within 4.

Buyout Etihad early. That fixes most of the stadium return issues (although not in Brisbane). Who knows what Perth will have in store, but id bet a lot of money it wont be peppercorn rent like the WAFC has enjoyed for a long time, so an extra 6 million into its AFL clubs might not hurt replace lost revenue there too.

 

[Armitage_Shanks]

Give them the money and cap football department spending - hell have the AFL directly pay the debt - most club debt is an afl guarantee anyway. The clubs deserve the money - and more than the players do I believe. The club is around a lot longer than the players. The players got looked after last time, the clubs should this time.

Agreed. As long as it is spent to reduce debt. Not silly innovative practices. Crawl before you walk.

3 million over 3 years pays off the Lions debts. 3 million over 5 years pays off all their debts incuding the money they owe the league. 3 million puts Gold Coast close to an operating profit, pays of Carltons debt within 18 months, the Saints within 2 years, Cats and dogs within 4.

Agree.

Buyout Etihad early. That fixes most of the stadium return issues (although not in Brisbane). Who knows what Perth will have in store, but id bet a lot of money it wont be peppercorn rent like the WAFC has enjoyed for a long time, so an extra 6 million into its AFL clubs might not hurt replace lost revenue there too.

Do the analysis of buying it out early. Make a decision asap.

 

[The_Wookie]

For some time now, we armchair economists have believed that the asking price - at 200-250 million was higher than the cost of simply compensating the clubs an extra 10 million or so a year for a decade. Im not sure thats changed much in the mindset - especially when if they wait, the stadium has to be turned over to them as 'state of the art" in 2025, meaning no upgrade costs for the league for a while, they take it now, and the league will find itself having to do its own upgrades a lot sooner.

 

[Gigantor]

For some time now, we armchair economists have believed that the asking price - at 200-250 million was higher than the cost of simply compensating the clubs an extra 10 million or so a year for a decade. Im not sure thats changed much in the mindset - especially when if they wait, the stadium has to be turned over to them as 'state of the art" in 2025, meaning no upgrade costs for the league for a while, they take it now, and the league will find itself having to do its own upgrades a lot sooner.

I didn't release the deal was that it comes across "as new" in 2025 - that's definitely something which needs to be weighed up carefully.

 

[RUNVS]

The clubs don't need a greater share since they will be getting more money with the new TV rights deal anyway but what I think is vital is for the AFL to keep the soft cap on football department spending the same as it is now, even with more money coming in from the TV rights deal. Maybe it can go up with inflation but that is it. If the AFL made sure the soft cap did not increase then within a few years every club in the AFL will be making profits.