Analysis Stadium deals - what, how, when - why we need a new one and the SA footy paradigm shift happening

[AdamMarrett]

Can someone clarify these points for me about this whole stadium farce-
1.The SANFL made the current AO deal as the holders of ours and Adelaide's license, knowinh full well the money was skewed in the SANFL's favour.
2.The catering company for Adelaide Oval is basically run by the SANFL?
3.Ollsen is the SANFL and SMA president?

If all that is true how is any of it legal the whole thing stinks

 

[RussellEbertHandball]

Can someone clarify these points for me about this whole stadium farce-
1.The SANFL made the current AO deal as the holders of ours and Adelaide's license, knowinh full well the money was skewed in the SANFL's favour.
2.The catering company for Adelaide Oval is basically run by the SANFL?
3.Ollsen is the SANFL and SMA president?

If all that is true how is any of it legal the whole thing stinks

1. Yes
2. No - but the SANFL and SACA get a Sales Commission on all catering sales during their period of "control". The SMA charged the SANFL for catering their box and the SANFL were pissed off because at Footy Park that was free.
3. Yes - but for 4 years before that Ian McLachlan was SACA + SMA President

 

[AdamMarrett]

1. Yes
2. No - but the SANFL and SACA get a Sales Commission on all catering sales during their period of "control". The SMA charged the SANFL for catering their box and the SANFL were pissed off because at Footy Park that was free.
3. Yes - but for 4 years before that Ian McLachlan was SACA + SMA President

So the whole thing was rigged from the start for the SANFL to rake in all the profits or vast majority of.I knew the SANFL was going to have one last grab of the cash when they let our license go, but this thing stinks.

 

[Portress Hill]

arooooooooo. who is that?

 

[RonSon]

It might be $2m on paper to make everything look good to fans. But I bet the actual benefit the Crows get is nowhere near that number.

If you are paying someone $2m to do $1m worth of work they are going to be doing ok.

They'd probably be very generous in return with a nice deal like that in place with you.

 

[LFC2010]

Rowe the campaigner at it again shouting over Caro and backing the SANFL to the hilt. Caroline Wilson saying that Jay Weatherill has been in discussions with John Olson and if there isn't a resolution soon the Government will step in and make sure there is a resolution for the clubs.

We all know where stoopid's stance is on this, as long as the SNAFL keep on hurting both AFL clubs and the SACA he doesn't really give 2 shits. As long his beloved club Norwood get 'dirty money' from the SNAFL scum he's happy.

I really hope Caro winds him up so much he gets the sack from that amateur radio station.

 

[LFC2010]

That Rucci article states the SANFL's uplift as around 4.5 million!!! WHAT THE F@#$.

Break that down in quite simple terms and that should equate to about another $2.1 mill for Port and $2.4 mill for the crows.

The SANFL are taking too much from AFL as it is and not only have they taken that money but they've taken MORE. What a joke.

Thieving bastards.

 

[Quadzilla]

Shouldn't that be SANFL pigs in the trough not sheep?

... I approve other pic

 

[RussellEbertHandball]

I wrote this on the main board, but it may go a little way to explaining things:

The SMA have 32 corporate boxes at $120,000 each.
This equals $3,840,00 per year but let's assume it is shared between footy and cricket. Half is $1,920,000
SMA have the Audi Club. 1,440 places at $4,315. That equals $6,213,000 per year. again we assume this is shared 50/50 with cricket. This equals $3,106,800.
Sharing with cricket 50/50 might be a bit generous to cricket as there is more footy than than there is meaningful cricket, but hey, I'll err on the side of conservatism.
SMA have 8,000 22 game footy tickets at $550 a pop. These are not shared with cricket. The revenue from these is $4,400,000.

So there is nearly $9.5 million in revenue before we take into account all the other smaller corporate facilities, room hire, food and beverage, as well as the many many other functions/concerts etc the Oval now handles.

None of these type of arrangements/stadium memberships occur at Subiaco. The Clubs run it all and all revenue goes to them. From there, they pay a rent to the ground.

From our friend the Auditor General and his annual report and his audit of the AOSMA Limited. The AOSMA changed its accounting year to 31st October to line up with the footy season financial year and the SMA does little activity for cricket between the official - in relation to SACA—a period commencing on 8 October in each year and expiring on 14 March in the next year (both dates inclusive) - so we only get a 4 month 2013/14 report vs a 12 month 2012/13 comparison. The full 1st November 2013 to 31st October 2014 has just finished and the AG will present their accounts and his figures to parliament in February sometime. I wonder if the stadium deal will be sorted by then??

Oh - you guys forget GST - its 1/11th of all the revenue figures quoted in the media - you gotta make the adjustment for that.

https://www.audit.sa.gov.au/Portals/0/Documents/Audit Reports/2013-14/B/Part B_Vol_1.pdf

Page 100


In November 2012 people who wanted to buy the 12 month AO Ultimate membership for all cricket and footy games had to pay $75 rego fee with the balance $720 due in August 2013. but that flopped and the AOSMA Football Membership was introduced and you got your $75 back if you didn't want that or it was applied to the $550 footy membership leaving $475 to pay.

The Stadium Club membership required a deposit of $250 inc GST when it was released in early 2013 and the balance $4,000 inc GST was payable on 1st March 2014. The 18 seat Corporate Suites a deposit of $5,500 inc GST when it was released in early 2013 and the balance $120,000 inc GST was payable on 1st March 2014.



Those amounts under SACA and SANFL and my calculation of 69.7% and 77.0% came from the AG's report page 104 - if its too small look it up. I'm not sure if those percentages stay the same once the full amounts were paid.

Footy gets the oval for 208 days - 15th March to 7th October ie 56.7% of the year and cricket 157 days ie 43.3%.

 

[tribey]

Nah - this happens a lot in the 4 professional sports in North America over the last 25 years. Private owners threaten to move their team to another city and screw down city governments and state governments to build them stadiums and give them sweat heart deals on rents. The public panics thinking they will lose their team, put pressure on politicians and they panic and they pony up. But the smarter cities/states have over the last decade or so either said no, or we will only contribute part of the expense ie x%, the even smarter ones cap it to a $ figure so the private owners have to pay the cost overruns and the smartest ones take it al to a referendum to get the voters approval to give them the $$$ but which taxes to increase and/or introduce to pay for it.

The big difference is the feds in the USA dont spend money on stadiums - the republicans wont let the democrats spend the monies. That changed in the 2000's when Australian Commonwealth government was flush with mining resources boom generated company and PAYG taxes, so rather than putting all the money into the Future Fund, they started giving cash hand outs ie buying votes- some of that cash handouts went into stadiums, big capital city based ones as well as suburban grounds and regional grounds.

I think that gravy train has pulled into the station for the feds spending and will be mothballed for a few years.

Did Brian Cook do an Al Davis and threaten to move the team to Maroochydore?

Bit different, Jeeves.

 

[RussellEbertHandball]

Did Brian Cook do an Al Davis and threaten to move the team to Maroochydore?

Bit different, Jeeves.

Different yes, but Cook has played a political game, with assistance from the AFL to screw down government for $$$. If Labor gets in on the weekend looks like they will get $70mil for the stage 4 upgrade.

 

[RussellEbertHandball]

So the whole thing was rigged from the start for the SANFL to rake in all the profits or vast majority of.I knew the SANFL was going to have one last grab of the cash when they let our license go, but this thing stinks.

Power can''t be given it must be taken! Who was going to take that power away when they had legally binding agreements locking in their monopoly power??

 

[AdamMarrett]

Power can''t be given it must be taken! Who was going to take that power away when they had legally binding agreements locking in their monopoly power??

Yep.They locked all the doors and kept all the keys.

 

[RussellEbertHandball]

Yep.They locked all the doors and kept all the keys.

That's why I say - but people argue with me - Weber ****ed up by not getting us over the line in 1990. That is an argument for the other thread but if we got in, in 1990, we wouldnt be subject to any of this shit ( or very little of it). Mind you I don't think AO would have got a half billion dollar plus government funded redevelopment if we got over the line in 1990.

 

[Grave Danger]

arooooooooo. who is that?

Leigh Macpherson

 

[*PAF]

...
The WAFC gave WCE a clean stadium deal
...

IIRC it is rent plus a percentage of profits, not % of turnover but profits.

 

[RussellEbertHandball]

IIRC it is rent plus a percentage of profits, not % of turnover but profits.

Nope you are mixing up two items
1. Its Rent for the stadium
2. And the following licence/royalty fee payment to WAFC
70% of first million profit +
60% of 2nd million profit +
50% of rest
But some revenue items are removed when making this calculation eg proceeds from sale of Waverley Park.

 

[*PAF]

Nope you are mixing up two items
1. Its Rent for the stadium
2. And the following licence/royalty fee payment to WAFC
70% of first million profit +
60% of 2nd million profit +
50% of rest
But some revenue items are removed when making this calculation eg proceeds from sale of Waverley Park.

Yeah nah. I was talking about total money WCE give to the WAFC on a yearly basis but couldn't remember the actual break ups.

I am making the assumption that if there was no license/royalty fees then the stadium deal would be structured differently.
I think that would be a fair assumption and personally I think their system is simpler to both manage and monitor, and thus better.

 

[Ant Bear]

It's not about rent. It's about the upkeep of their training facilities.

SANFL bears that cost at AAMI.
Port bears that cost at Alberton.

We even pick up our own used toilet rolls!

 

[Kwality]

Cook is an excellent administrator, but getting Kardinia Park converted into a spaceship isn't happening without all the porkbarreling.

On the flipside, Port Adelaide is one of the safest seats in the country. The last thing to be built there was an asbestos-fibre pennyfarthing factory.

The issue at hand is stadium management Tribester, ang Geelong has a model similar to WA, that was my point.

 

[Smithy7]

http://www.news.com.au/sport/afl/ad...aide-oval-review/story-fndv7pj3-1227130075984
THE SANFL is the major financial winner from the first AFL season at Adelaide Oval, banking $14.9 million - $3.7 million more than at Football Park in 2013.
By comparison, the Adelaide Football Club reaped $12.86 million in revenue from its 11 home games the Oval this year (up by $3 million in it last season at West Lakes).
The Port Adelaide Football Club scored a $9.75 million revenue stream at the Oval, up by $4 million.
None of the key parties in the review - the AFL, SANFL, Crows or Power - would comment on the financial spreadsheets gathered by The Advertiser yesterday.
http://www.news.com.au/sport/afl/ad...aide-oval-review/story-fndv7pj3-1227130075984

The review is hotting up

 

[Papa G]

I really would like to know what these figures are made up of. I think Rucci pulls figures out his arse and makes mistakes in his haste to get the story out. The 36K crowd and 32k members line makes no sense for example.

Any rate, if we believe these figures, if these figures were posted last year, Adelaide would be only behind West Coast and we'd be only behind those 2 and then just behind Collingwood and Freo.

 

[Grave Danger]

http://www.news.com.au/sport/afl/ad...aide-oval-review/story-fndv7pj3-1227130075984
THE SANFL is the major financial winner from the first AFL season at Adelaide Oval, banking $14.9 million - $3.7 million more than at Football Park in 2013.
By comparison, the Adelaide Football Club reaped $12.86 million in revenue from its 11 home games the Oval this year (up by $3 million in it last season at West Lakes).
The Port Adelaide Football Club scored a $9.75 million revenue stream at the Oval, up by $4 million.
None of the key parties in the review - the AFL, SANFL, Crows or Power - would comment on the financial spreadsheets gathered by The Advertiser yesterday.
http://www.news.com.au/sport/afl/ad...aide-oval-review/story-fndv7pj3-1227130075984

The review is hotting up

Wow - with financial management skills like that, this Olsen fellow should be running the state!

 

[RussellEbertHandball]

I really would like to know what these figures are made up of. I think Rucci pulls figures out his arse and makes mistakes in his haste to get the story out. The 36K crowd and 32k members line makes no sense for example.

Any rate, if we believe these figures, if these figures were posted last year, Adelaide would be only behind West Coast and we'd be only behind those 2 and then just behind Collingwood and Freo.

I think that should be 52,000 members - he used the figure the other day. Rucci rush typing and no checking.

Re WCE their 2013 annual report see my post for more info and Freo's 2013 result
http://www.bigfooty.com/forum/threa...-shift-happening.554729/page-77#post-33755636

Match revenue....................... 1,569,184
Membership revenue................. 17,725,213
Corporate hospitality revenue..... 12,040,168

Sponsorship revenue.................. 7,656,558
Functions and special events revenue 3,601,830

Rucci wrote the following which I take to mean Membership + Gate + Corporate Hospitality

By comparison, the Adelaide Football Club reaped $12.86 million in revenue from its 11 home games the Oval this year (up by $3 million in it last season at West Lakes).

The crows aren't even in the same league as WCE and not even in Freo's league whose first 3 items total over $22mil and have sponsorship of $4.3mil

 

[PAFC forever]

We all know where stoopid's stance is on this, as long as the SNAFL keep on hurting both AFL clubs and the SACA he doesn't really give 2 shits. As long his beloved club Norwood get 'dirty money' from the SNAFL scum he's happy.

I really hope Caro winds him up so much he gets the sack from that amateur radio station.

Yeah the stooge really gave me the shits today, I wanted to listen to what Caro had to say on the matter and he just constantly shouted over the top of her much like last week like a fox news commentator (someone said that last week on here and I liked the analogy). Good thing is no amount of shouting by stupid will stop what the clubs deserve. He was bleating that Jay Weatherill should butt out and got shut down by elbows and caro that the government has poured over half a billion dollars into Adelaide Oval and he is more than entitled to have a say.