Paying back the 500 million dollars

[GoEaglesGoSGIO]

I am yet to see this discussed anywhere by anyone. The AFL has taken out a 500 million dollar loan, they have given the money out. That for me is the easy part. The next question becomes, who pays it back and how? Is it actually even possible?

Lets look at the AFL response to all this vs the NRL first and foremost

NRL adopted a quick approach of re negotiating current contracts. They got into a very very ugly war of words with Channel 9 and Fox Sports. The end result however is the NRL received a 7 year deal and a 115 million dollar line of credit that is directly related to that deal as of yesterday.

The AFL however have tied the 500 million dollar loan to absolutely nothing. Just plucked it out of thin air and prayed for the best. It feels like AFL and co are simply lining it up so the fans pay it back if you ask me, whereas in the case of the NRL they went above and beyond to ensure the credit was paid back with current contract arrangements

Are the fans really going to accept the increased ticket prices, increased games to pay this money back? How come unlike V'landy, Gil was too weak to approach the billion dollar businesses invested in it to ask for a direct line of credit?

To me the leadership by the AFL has been non existent and really showed a complete lack of compassion or empathy to anyone who doesnr wear a suit and earns 1 million+ a year. I hope you all have your wallets ready as me and you have a big ass loan that we need to pay back

 

[BigPond101]

They probably got it at such a low interest rate they don't need to pay it back. Once we have 30 % unemployment and the government is printing money by the trillions inflation will take care of it in 5-10 years

 

[Cotchins Hair Piece]

The AFL however have tied the 500 million dollar loan to absolutely nothing. Just plucked it out of thin air and prayed for the best.

Childish comment. The AFL’s collective debt due to Covid-19 is in the 100’s of millions. The loan (or line of credit to be correct) was needed for the AFL and all clubs to survive.

 

[HTT]

Wait where’s the link they actually distributed money? Last I heard was they had access to it when they needed, though that was a while ago.

 

[GoEaglesGoSGIO]

They probably got it at such a low interest rate they don't need to pay it back. Once we have 30 % unemployment and the government is printing money by the trillions inflation will take care of it in 5-10 years

Not sure ANZ is in the line of charity unfortunately. Its gonna get paid back . A part of this could be true re: low repayments but anyone who dare make such a risky powerplay so to speak isnt fit for purpose id argue

Putting the sport at risk because you are too much of a whimp too ask someone in a suit for some money is the type of leadership we have. For some reason, we just all accept it like blind sheep.

 

[GoEaglesGoSGIO]

Childish comment. The AFL’s collective debt due to Covid-19 is in the 100’s of millions. The loan was needed for the AFL and all clubs to survive.

Huh? Its direct fact

NRLs loan is tied to a improved revenue stream

AFLs deal is tied to what?

 

[GoEaglesGoSGIO]

Wait where’s the link they actually distributed money? Last I heard was they had access to it when they needed, though that was a while ago.

Its already being distributed, just not widely announce. Eagles/Fremantle relocation was paid for entirely by the AFLs line of credit for example. Vozzo mentioned it. This is why both Eagles/Freo asked for extra staff. Something we are going to pay ourselves....

 

[Pykie]

Back to s**t stadium deals for the Roos, Dogs and Saints and up to their fans to pay it off (again) I guess?

No doubt during the same period all the other teams lambasting the same teams for poor profits and being a drain on the competition....

 

[GoEaglesGoSGIO]

Back to s**t stadium deals for the Roos, Dogs and Saints and up to their fans to pay it off (again) I guess?

No doubt during the same period all the other teams lambasting the same teams for poor profits and being a drain on the competition....

It is a concern for a Eagles fan for example. My membership costs 700+ dollars a year. If my wage stays the same this year and AFL demands it go up to 1000, should I just accept that, knowing full well that my club for example is financially safe?

 

[Cotchins Hair Piece]

Wait where’s the link they actually distributed money? Last I heard was they had access to it when they needed, though that was a while ago.

Exactly right, it’s not a loan as the OP states but a line of credit. Accessed more like a credit card, when the funds are needed.

 

[HTT]

Its already being distributed, just not widely announce. Eagles/Fremantle relocation was paid for entirely by the AFLs line of credit for example. Vozzo mentioned it. This is why both Eagles/Freo asked for extra staff. Something we are going to pay ourselves....

They spent $500 million on that?

 

[GoEaglesGoSGIO]

They spent $500 million on that?

No but they are distributing it as of now. We are probably not going to find out where it goes but one thing is for sure, Gold Coast will receive more then any other club and Eagles will receive less then any other club.

The second gurantee I have. Gold Coast membership prices will rise the least, Eagles membership prices will rise the most

 

[HTT]

No but they are distributing it as of now. We are probably not going to find out where it goes but one thing is for sure, Gold Coast will receive more then any other club and Eagles will receive less then any other club.

The second gurantee I have. Gold Coast membership prices will rise the least, Eagles membership prices will rise the most

I've got a third guarantee then, I don't have evidence of it but its pretty clear, the AFL will pay back the money no worries.

 

[blue harvest]

Huh? Its direct fact

NRLs loan is tied to a improved revenue stream

AFLs deal is tied to what?

What do you mean by tied to? NRL is making even more revenue now than before?
What if NRL revenue doesn't improve?
What if NRL can't repay their loan? Do the lenders want something in return?

The AFL $500m is already dished out? That's news to me, although admittedly I haven't been following closely.
Why does a loan have to be 'tied to' something, wouldn't it be better to retain control of things?
AFL players have taken a 50% cut, staff have been cut and clubs have agreed to terms and conditions in order to access any borrowed money, some clubs even opted out. Seems like the AFL have it under control so far.

 

[iBeng]

Next media rights is is $500million more expensive.

 

[NoobPie]

I am yet to see this discussed anywhere by anyone. The AFL has taken out a 500 million dollar loan, they have given the money out. That for me is the easy part. The next question becomes, who pays it back and how? Is it actually even possible?

Lets look at the AFL response to all this vs the NRL first and foremost

NRL adopted a quick approach of re negotiating current contracts. They got into a very very ugly war of words with Channel 9 and Fox Sports. The end result however is the NRL received a 7 year deal and a 115 million dollar line of credit that is directly related to that deal as of yesterday.

The AFL however have tied the 500 million dollar loan to absolutely nothing. Just plucked it out of thin air and prayed for the best. It feels like AFL and co are simply lining it up so the fans pay it back if you ask me, whereas in the case of the NRL they went above and beyond to ensure the credit was paid back with current contract arrangements

Are the fans really going to accept the increased ticket prices, increased games to pay this money back? How come unlike V'landy, Gil was too weak to approach the billion dollar businesses invested in it to ask for a direct line of credit?

To me the leadership by the AFL has been non existent and really showed a complete lack of compassion or empathy to anyone who doesnr wear a suit and earns 1 million+ a year. I hope you all have your wallets ready as me and you have a big ass loan that we need to pay back

You have got be joking right?

The fact the AFL has got a line of credit at a very low interest rate rather than have to accept a massively downward readjusted TV deal is surely a good thing?

Also, the AFL has apparently placed a soft cap of $3M + lower on the football department and achieved a higher level of savings in its pay deal with the players. The NRL is giving its clubs $100M in addition to the originally intended distributions

VLandys has essentially had to agree a whole lot of bad deals to get the NRL back on May 28. The AFL line of credit has prevented the AFL from having to do the same.

You are confused, dude

 

[NoobPie]

It is a concern for a Eagles fan for example. My membership costs 700+ dollars a year. If my wage stays the same this year and AFL demands it go up to 1000, should I just accept that, knowing full well that my club for example is financially safe?

Wow, you are really confused aren't you?

 

[Pykie]

I've got a third guarantee then, I don't have evidence of it but its pretty clear, the AFL will pay back the money no worries.

What do you mean the "AFL"

The clubs and their revenues (i.e the fans and sponsors) will be paying back the loans.

With interest (as already stated by the AFL).

 

[GoEaglesGoSGIO]

For me

You have got be joking right?

The fact the AFL has got a line of credit at a very low interest rate rather than have to accept a massively downward readjusted TV deal is surely a good thing?

Also, the AFL has apparently placed a soft cap of $3M + lower on the football department and achieved a higher level of savings in its pay deal with the players. The NRL is giving its clubs $100M in addition to the originally intended distributions

VLandys has essentially had to agree a whole lot of bad deals to get the NRL back on May 28. The AFL line of credit has prevented the AFL from having to do the same.

You are confused, dude

Good for who though? To me this is great for everyone but the fans is it not, hence why initial point

Id much rather NRLs approach of getting the money from Channel 9 as opposed to AFLs clear approach of getting the money from the fans and player pay cuts thereafter....

NRL runs as a non for profit organization, AFL operates as a profit making exercise for highly paid executives and TV bigwigs.....

 

[NoobPie]

What do you mean by tied to? NRL is making even more revenue now than before?
What if NRL revenue doesn't improve?
What if NRL can't repay their loan? Do the lenders want something in return?

The AFL $500m is already dished out? That's news to me, although admittedly I haven't been following closely.
Why does a loan have to be 'tied to' something, wouldn't it be better to retain control of things?
AFL players have taken a 50% cut, staff have been cut and clubs have agreed to terms and conditions in order to access any borrowed money, some clubs even opted out. Seems like the AFL have it under control so far.

Exactly.

The guy has probably just swallowed the nonsense that news limited has been spewing out about VLandys as he basically hands them the game until the end of this decade at bargain basement prices.

The AFL line of credit was apparently achieved because of the ownership of the docklands. If the NRL's alleged line of credit (from anonymous UK banks because the Australian banks presumably couldn't do it under prudential regs) was probably tied to future revenue because it had nothing else to tie it to. As far as we know, it may well be why it was forced to sell its rights to foxtel out to 2027 at less than it is getting now.

The AFL is in a better position as it had substantial assets and has an independent commission that runs the game (rather than the game and the media rights holders running it). The line of credit and the agreed haircuts across the board are why it will emerge from this far stronger than the NRL

 

[Cotchins Hair Piece]

Huh? Its direct fact

NRLs loan is tied to a improved revenue stream

AFLs deal is tied to what?

It’s not a loan, it’s a line of credit which they have access to if/when required.
It doesn’t have to be tied to anything. You have no idea what you’re talking about.

 

[NoobPie]

What do you mean the "AFL"

The clubs and their revenues (i.e the fans and sponsors) will be paying back the loans.

With interest (as already stated by the AFL).

The interest is very low. The loans will be paid back primarily through the AFL managing the games costs.

 

[NoobPie]

For me


Good for who though? To me this is great for everyone but the fans is it not, hence why initial point

Id much rather NRLs approach of getting the money from Channel 9 as opposed to AFLs clear approach of getting the money from the fans and player pay cuts thereafter....

NRL runs as a non for profit organization, AFL operates as a profit making exercise for highly paid executives and TV bigwigs.....

Again, dude, you are very very confused.

What does it mean the NRL "getting the money from channel 9"? Channel 9 have somehow managed to get out of over $100M in the last three years of the contract. The cost of the NRL needing to rely on its broadcast partners to give it an advance is massively at the expense of future revenues.

The AFL will be getting similar $s from the fans as it would have if Covid never happened.

 

[Papa G]

Get rid of AFLW - saving $20 mill per year
Half Soft cap - $90 mill saving
Decrease Salary Cap by $2 mill - $36 mill saving
Trim the AFL Executive and all the hangers on/superfluous staff (who knows $10 mill say?)

Boom - $156mill Saving. Debt gone in 3 years.

 

[Taylor]

Huh? Its direct fact

NRLs loan is tied to a improved revenue stream

AFLs deal is tied to what?

Ownership of a stadium.