Financial survival of the AFL and its' 18 clubs

[Kwality]

Lol you do realise it was only switching off every second machine

Direct effect on clubs with venues including those that close sometime in the future !!

 

[sumavich]

Foxtel could easily go under as well in this climate

 

[Kwality]

Foxtel could easily go under as well in this climate

Understand as pretty much everything can be questioned.

Foxtel have big savings in outgoings to sport.

 

[BringBackTorps]

The Age M. Gleeson et al 20.3

Some good news for the AFL.

Gleeson said

"Marvel Stadium is not only a valuable asset but it promises future cash flows for parties willing to offer credit. The League is in a strong credit position to access debt (at very low interest rates- my words)...Clubs are also examining the equity in their own assets to be able to draw against ...".

Marvel Stadium key asset as AFL acts to survive financial calamity

With revenues falling off a cliff due to games being played in front of no crowds the AFL is working on an emergency response.

www.theage.com.au

There have also been reports the AFL is seeking $250m interest-free govt. loans.





















EDIT:

The Age P. Ryan 21.3

"...the AFL would take a minimum of 5 years to recover financial ground with many...predicting the game's economic model would look different forever"

" Marvel Stadium being raised as a potential asset they could use to securitise loans (ie offer the stadium as collateral to access very cheap loans- my words).

Five-year recovery as smaller Victorian AFL clubs battle for survival

Industry analysts say the AFL will need to assist smaller Victorian clubs such as Melbourne and St Kilda so they can survive coronavirus epidemic

www.theage.com.au

It was very prescient that the AFL bought DS earlier than 2025. As the new owner, the AFL can use it to obtain very cheap loans: a salvation, now, for the AFL.

 

[Kwality]

The Age M. Gleeson et al 20.3

Some good news for the AFL.

Gleeson said

"Marvel Stadium is not only a valuable asset but it promises future cash flows for parties willing to offer credit. The League is in a strong credit position to access debt (at very low interest rates- my words)...Clubs are also examining the equity in their own assets to be able to draw against ...".

Marvel Stadium key asset as AFL acts to survive financial calamity

With revenues falling off a cliff due to games being played in front of no crowds the AFL is working on an emergency response.

www.theage.com.au

There have also been reports the AFL is seeking interest-free govt. loans.

Is Gleeson getting his info from AFL Media?

The MCC/Vic Govt combo favour the MCG.

The AFL have been actively transferring games from Marvel for a long time now. Its been done for a reason.

 

[telsor]

Understand as pretty much everything can be questioned.

Foxtel have big savings in outgoings to sport.

Their revenue could go both ways...

People sitting at home will want to be entertained, so they could get more sales. (sales of toys, games & gaming systems have boomed lately)

That said, people sitting at home could also have their incomes cut and need to cut their spending, and Foxtel is the kind of 'luxury' that could easily be cut. (and the longer this goes, the more true this will be).


Arguable which will be bigger, but as you say, outgoings will be lower, so they're probably relatively safe.

 

[telsor]

Is Gleeson getting his info from AFL Media?

The MCC/Vic Govt combo favour the MCG.

The AFL have been actively transferring games from Marvel for a long time now. Its been done for a reason.

As a sideline, the more they rely on Docklands to provide income/loan coverage, the safer Vic clubs are.

After all, they're the ones who will need to play there to earn that income, and fewer clubs = fewer games.

 

[BringBackTorps]

SEN Melb. Radio 24.3

The asset that puts the AFL in a much stronger survival position than the NRL

“It might ultimately save the game."

www.sen.com.au

AFAIK, DS land & stadium have a total value of c. $1.25 billion.

Docklands Stadium is likely to bail out the AFL from any serious long term problems. All 18 AFL clubs & 14 AFLW teams likely to survive.

The AFL, which will likely have "limited/manageable" effects from covid-19, will have relative comparative advantages, cf other Aust pro. sports.
Will this provide a relative competitive advantage for the AFL? And a relative boost for GR AF?

 

[Kwality]

As a sideline, the more they rely on Docklands to provide income/loan coverage, the safer Vic clubs are.

After all, they're the ones who will need to play there to earn that income, and fewer clubs = fewer games.

With the MCC/Vic Govt combo pulling the strings? Does the way games are transferred already not suggest its not worth opening the facility?
Its an interesting situation ...

 

[telsor]

With the MCC/Vic Govt combo pulling the strings? Does the way games are transferred already not suggest its not worth opening the facility?
Its an interesting situation ...

Currently both MCG & Docklands get as many games as they can realistically cope with without dropping standards below what is deemed acceptable (surface, cleaning, etc).

Dropping clubs* would mean fewer games at Docklands, which means the AFL would make less money, and thus be less able to service this debt.

* - note the plural...dropping one vic club could be covered by stopping games sold to Tas, NT, etc. which currently cannot be hosted at MCG/Docklands due to the aforementioned limits on how many games they can handle. Of course, dropping those games would be problematic in other ways (AFL PR about being 'national' for one).


Of course, the other, related issue would be how the teams that don't play at Docklands would pay their share....The league bought the ground off the back of Vic clubs (some more than others), it would be rather unfair to mortgage it to save all clubs only to have those same Vic clubs do all the heavy lifting to pay it off again.

 

[BringBackTorps]

The AFL is seeking a $500m loan- offering DS as collateral, thus being able to achieve a loan at low interest rates.

This will ensure the long term security of ALL 18 AFL clubs & 14 AFL teams.

AFL to seek $500m plus loan during unprecedented crisis

The bank loan that the AFL is seeking to secure the game's future as the coronavirus takes a stranglehold on the 2020 season is expected to exceed half a billion dollars.

www.theage.com.au

 

[Squarehammer]

Indeed. If the only lifeline for the AFL and all the clubs is a large line of credit from the Victorian government, then that government is going to insist that the credit be directed to save Victorian clubs rather than interstate clubs.

going by the news of late about the victorian government. the line of credit would be coming from the communist chinease party

 

[Rob]

I have to say this is a poor analysis.

Rating every AFL club's viability during shutdown crisis

Healthy, battling or on the breadline: Every AFL club's chances of surviving shutdown

www.foxsports.com.au

The author seems to have looked at the last P&L result and the number of members a club has, and ignored the main indicator of ability to survive this - net liquid assets.

 

[big_e]

I have to say this is a poor analysis.

Rating every AFL club's viability during shutdown crisis

Healthy, battling or on the breadline: Every AFL club's chances of surviving shutdown

www.foxsports.com.au

The author seems to have looked at the last P&L result and the number of members a club has, and ignored the main indicator of ability to survive this - net liquid assets.

I don't think he even did that.

 

[telsor]

I have to say this is a poor analysis.

Rating every AFL club's viability during shutdown crisis

Healthy, battling or on the breadline: Every AFL club's chances of surviving shutdown

www.foxsports.com.au

The author seems to have looked at the last P&L result and the number of members a club has, and ignored the main indicator of ability to survive this - net liquid assets.

Yes/no. It's important, but I wouldn't call it THE main indicator. Maybe 'one of' the main indicators. I do agree the article is woefully superficial though.

Assets that can be realised (including liquid assets, but also other things that can theoretically be sold or used as collateral...e.g. Pokies licences)
Revenue (cut back though it will be, there will still be some, and membership will be a big point here as they're more likely to accept the club taking their money anyway than, say, sponsors).
Expenses (again, after cut backs)
History of profitability (being profitable in previous years will improve likelihood of banks loaning you money if needed)
Members (if push comes to shove, having a quantity and quality of membership who can donate to keep the club alive could be a deciding factor).

 

[Rob]

Yes/no. It's important, but I wouldn't call it THE main indicator. Maybe 'one of' the main indicators. I do agree the article is woefully superficial though.

Assets that can be realised (including liquid assets, but also other things that can theoretically be sold or used as collateral...e.g. Pokies licences)
Revenue (cut back though it will be, there will still be some, and membership will be a big point here as they're more likely to accept the club taking their money anyway than, say, sponsors).
Expenses (again, after cut backs)
History of profitability (being profitable in previous years will improve likelihood of banks loaning you money if needed)
Members (if push comes to shove, having a quantity and quality of membership who can donate to keep the club alive could be a deciding factor).

I don't disagree that all of those things are relevant, but that doesn't mean that net liquid assets aren't the most important thing in a footy club right now. You cannot analyse a club's ability to ride this out and ignore that.

 

[BringBackTorps]

The Australian 30.3

"The AFL has secured the cash that it hopes will help it survive...". ie C. $600m, with Marvel offered as collateral.

NoCookies | The Australian

www.theaustralian.com.au

All 18 AFL clubs & 14 AFLW teams should remain in 2021- & have a very long term existence in the future.

 

[Coolangatta]

If they've secured the cash to save the league and 18 clubs, then they should quit ******* around and cancel the season. They should be able to start again next year in March, full crowds, 22 rounds, etc. They could even use the same fixture as this seasons.

 

[Walshawk]

Keep the shorter quarters, go to 26 rounds (no byes). Rolling fixture over each two year period each team plays the other three times plus one extra derby/showdown. More $$$ into the game with 36 extra games plus a more equitable draw.

 

[Rob]

If they've secured the cash to save the league and 18 clubs, then they should quit ******* around and cancel the season. They should be able to start again next year in March, full crowds, 22 rounds, etc. They could even use the same fixture as this seasons.

Why? They still need to pay this money back, never mind just about every stakeholder in the game wants to get playing when it's safe.

 

[Coolangatta]

Why? They still need to pay this money back, never mind just about every stakeholder in the game wants to get playing when it's safe.

It won't be safe with crowds, and the game is nothing without the fans. That's why.

 

[Colonial]

It won't be safe with crowds, and the game is nothing without the fans. That's why.

We have no idea what’s happening in 6 weeks let alone 6 months so how about we wait and see.


Sent from my iPhone using Tapatalk

 

[Our Game]

Understand as pretty much everything can be questioned.

Foxtel have big savings in outgoings to sport.

But they are losing tens of thousands of subscriptions daily something that will overtake the sports savings.
They will struggle to survive.

 

[Our Game]

Keep the shorter quarters, go to 26 rounds (no byes). Rolling fixture over each two year period each team plays the other three times plus one extra derby/showdown. More $$$ into the game with 36 extra games plus a more equitable draw.

The AFL should also go to 16 a side to save money.

 

[Kwality]

But they are losing tens of thousands of subscriptions daily something that will overtake the sports savings.
They will struggle to survive.

People have been running the 'battle to survive' line for years - sports would be silly to include the same dollars from media rights in any survival plan.