Analysis While the AFL pretend they don't have cash reserves, what can the Club do to bring revenue in during the shutdown?

[Jimmae]

AFL season shut-down: Doubts over footy in 2020 after 'unprecedented' coronavirus threat

AFL boss Gillon McLachlan says there is no guarantee that any more football will be played this year, as he admitted the industry faces a fight for the survival of its 18 clubs.

www.theage.com.au

The AFL has been talking to the NAB, the league's banker, about obtaining a significant line of credit to help the game survive a shut-down that will see savage cuts to clubs and unprecedented
austerity measures.

AFL sources said the amount borrowed is likely to easily exceed the mooted media figure of $250 million, but that the AFL may borrow from multiple financial institutions, given the likes of the NAB may prefer to spread the risk.
The massive borrowing would, in effect, allow the AFL to underwrite the 18 clubs, most of whom would struggle to stay afloat otherwise.

So apparently the AFL doesn't have enough money to keep things afloat, which seems entirely ridiculous given their figures in recent years, but we're talking about a very unimaginative industry here, so who knows what their forecasting looks like. Under this new paradigm, perhaps clubs can do more to engage supporters and generate new revenue sources?

I don't know how extensive the digital aspect of the rights agreement is, but I would think live-streaming and other innovative video content would be an easy revenue spin on YouTube (or other platforms).

What else can we think of?

 

[BlueGum]

Bottling the spirit of the aflw team

 

[Jabba73]

Could run a replay of the best game between each club at the time they are scheduled to play in the fixture. At least there would be some interesting games to watch. Not going to help with revenue as advertising may be the first budget casualty, but fills the void on the TV.

 

[SBYM]

Remember when they used to call members flogging raffle tickets?

Not that.

 

[blue89]

pokies

 

[blue89]

another option is to get into the Mukbang industry. Have supporters pay to watch past or present players eat over webcam. Would be great to see how much both MM and old mate Lance can eat in a session.

 

[Arr0w]

Plenty of revenue streams the AFL and or clubs could create

Unfortunately none will satisfy the lost revenue

Players will have to take severe pay cuts, some in the 70% range

Other non playing staff will be stood down/terminated

 

[Coops93]

Carlton have recently put a big emphasis on "non-traditional" revenue streams, ie investing in businesses. I guess we'll see if those investments are going to help in this environment, though, given the stresses across the board.

 

[agro]

They can sell Marvel Stadium like they sold Waverley.

 

[Carlton_Blues]

Aggressively promote merchandise sales to members and supporters, and employ a marketing company to maximise sales?

 

[jj1978]

They can sell Marvel Stadium like they sold Waverley.

Should of held off buying it for another year or two would of saved millions.

 

[jj1978]

Can't see why AFL can't broker a deal with players that for every player your first 100K of salary is locked in and for the remainder a 50% deduction for the 2020 season, with the premise that the lost wages be paid outside the cap in 2021 and 2022. I can't see how players could be completely against something of that ilk.

 

[T2B_]

another option is to get into the Mukbang industry. Have supporters pay to watch past or present players eat over webcam. Would be great to see how much both MM and old mate Lance can eat in a session.

Underrated post. Maybe also a special guest appearance by Stewie Dew.

 

[Gethelred]

They could use the archives the way that the cricket does, and play 3 of the best games of the AFL era on Friday night, 3 grand finals on Saturday, and I don't know, use the Sunday slots for local archives.

Get people involved with the VFL, WAFL, SAFL, etc a bit more. If people are truly desperate for footy, they'll watch anything, and nostalgia usually plays fairly well.

 

[Robbo's my hero]

Essentially everyone has lost their job. They’ve got nothing to do now and, like the players, they should stay home. If they don’t have enough money to ride out the next six months then they should be contacting their bank and suspending mortgage/s. Then they should be applying for jobseeker’s allowance and the virus supplement. If they’re married or in a relationship the partner can qualify for payments. If they have children the family tax benefit is available. The one off payments of $750 are available on 31/3/20 as well.

As you can see I’ve got nothing about generating revenues. Essentially it will be about not spending money.

 

[azlou]

What about all the teams on an island massive surviver series

 

[Gointocarlton]

Its an interesting topic. I heard somewhere that the UK based F1 teams are assisting (using technology they have) in the manufacturing of special breathing masks that are in short supply. Now thats thinking.

 

[CFCtragic]

There are a number of things that could be tried I think. And maybe we could use this emergency to build our community?

We have a website, supply chain, large follower base and high public recognition. We could possibly use these to provide huge community value, here are some off the cuff ideas.

1) Use the website to feature, good news stories about the Carlton faithful, advertise the services of those businesses in the area that are able to still provide delivery services. Connect members who are now out of work with those industries that now need extra labour, get the players producing corona updates, promoting safe practices, endorsing local companies, etc. There is probably a big fat Gov't Grant for the first club that gets this going. and some cash for advertising, etc.

2) call our suppliers, the Govt, etc and see if we can fill our retail spaces and storage with hard to get items that dickheads are panic buying. Hire a few vans, a few out of work members, and allow members and the elderly to order these items for delivery. Again good community service, cash in selling the items, and Gov't money to the service, might even sell a few extra memberships as well??

having worked in the retail industry for years (well at least the it portion of it) I know that the issue here is not supply, its the number of outlets x the available space. Supermarkets are designed to store the bare minimum product that they might sell in a day. the answer is more storage and more outlets, we could help with this, hell Coles, Safeway might even rent space from us as local offsite storage.

3) Use our membership database to hook our members up with services, we know so much about our members, ages, addresses, phone numbers, etc. While the players are home, give them list of numbers each day ang get them to call the most vulnerable, and see if they are OK, feed back issues to the club, provide reassurance, etc. Locate those who are out of work and hook them up if possible, etc.

Going down this sort of road, might help us get through this financially, but also add massive value to our brand, and build community goodwill that we will need to get back on our feet once we are through this.

Anyway just a few thoughts.

 

[V_23]

Remember when they used to call members flogging raffle tickets?

Not that.

Yeah, that was unbelievable...but not as unbelievable as the number of prizes in our new club lottery. For just $2 a ticket you can play, while the senior team can't!

 

[blue89]

So, they could start an “investing club” with supporters. $10k buy in with high returns (50% plus) within 6 months. Tell as many people about it as you can as the more people that join the more money to be made. And then Those people can tell more people so that more people join. And then those people tell even more people so that even more people join. And it just keeps going and going and the club makes a lot of money just by word of mouth.

if that doesn’t work, they can come up with a product, and get supporters to pay a lump sum to sell the product. And then those supporters can sign up other people to sell the product who also get other people to sell the product etc etc.

both these are tried and tested ways of making huge cash. With the clubs large membership database it’s a no brainer really.

 

[Wickzki]

Yeah, that was unbelievable...but not as unbelievable as the number of prizes in our new club lottery. For just $2 a ticket you can play, while the senior team can't!

We might improve on the field.

 

[Cliffords Blues]

Have each club pick their best PlayStation 4 player, and have that player represent the club and go head to head with other club representatives, live streaming AFL Evolution.
Play the entire 2020 season.
Just for laughs

 

[Gethelred]

Have each club pick their best PlayStation 4 player, and have that player represent the club and go head to head with other club representatives, live streaming AFL Evolution.
Play the entire 2020 season.
Just for laughs

I love this idea. It'd be terrible, because no AFL game has been any good ever, but it'd be entertaining, at least.

 

[HBF]

There are a number of things that could be tried I think. And maybe we could use this emergency to build our community?

We have a website, supply chain, large follower base and high public recognition. We could possibly use these to provide huge community value, here are some off the cuff ideas.

1) Use the website to feature, good news stories about the Carlton faithful, advertise the services of those businesses in the area that are able to still provide delivery services. Connect members who are now out of work with those industries that now need extra labour, get the players producing corona updates, promoting safe practices, endorsing local companies, etc. There is probably a big fat Gov't Grant for the first club that gets this going. and some cash for advertising, etc.

2) call our suppliers, the Govt, etc and see if we can fill our retail spaces and storage with hard to get items that dickheads are panic buying. Hire a few vans, a few out of work members, and allow members and the elderly to order these items for delivery. Again good community service, cash in selling the items, and Gov't money to the service, might even sell a few extra memberships as well??

having worked in the retail industry for years (well at least the it portion of it) I know that the issue here is not supply, its the number of outlets x the available space. Supermarkets are designed to store the bare minimum product that they might sell in a day. the answer is more storage and more outlets, we could help with this, hell Coles, Safeway might even rent space from us as local offsite storage.

3) Use our membership database to hook our members up with services, we know so much about our members, ages, addresses, phone numbers, etc. While the players are home, give them list of numbers each day ang get them to call the most vulnerable, and see if they are OK, feed back issues to the club, provide reassurance, etc. Locate those who are out of work and hook them up if possible, etc.

Going down this sort of road, might help us get through this financially, but also add massive value to our brand, and build community goodwill that we will need to get back on our feet once we are through this.

Anyway just a few thoughts.

That is a damn good read and its very clear you know what you are talking about.
I'd encourage you to email this through to the club (Cain Liddle needs to see this) and see if anything comes from it.

 

[Kruezing]

There are a number of things that could be tried I think. And maybe we could use this emergency to build our community?

We have a website, supply chain, large follower base and high public recognition. We could possibly use these to provide huge community value, here are some off the cuff ideas.

1) Use the website to feature, good news stories about the Carlton faithful, advertise the services of those businesses in the area that are able to still provide delivery services. Connect members who are now out of work with those industries that now need extra labour, get the players producing corona updates, promoting safe practices, endorsing local companies, etc. There is probably a big fat Gov't Grant for the first club that gets this going. and some cash for advertising, etc.

2) call our suppliers, the Govt, etc and see if we can fill our retail spaces and storage with hard to get items that dickheads are panic buying. Hire a few vans, a few out of work members, and allow members and the elderly to order these items for delivery. Again good community service, cash in selling the items, and Gov't money to the service, might even sell a few extra memberships as well??

having worked in the retail industry for years (well at least the it portion of it) I know that the issue here is not supply, its the number of outlets x the available space. Supermarkets are designed to store the bare minimum product that they might sell in a day. the answer is more storage and more outlets, we could help with this, hell Coles, Safeway might even rent space from us as local offsite storage.

3) Use our membership database to hook our members up with services, we know so much about our members, ages, addresses, phone numbers, etc. While the players are home, give them list of numbers each day ang get them to call the most vulnerable, and see if they are OK, feed back issues to the club, provide reassurance, etc. Locate those who are out of work and hook them up if possible, etc.

Going down this sort of road, might help us get through this financially, but also add massive value to our brand, and build community goodwill that we will need to get back on our feet once we are through this.

Anyway just a few thoughts.

I really like option two ... I’d love to be part of something like that ...