The axe is out at the AFL

[NoobPie]

And just to confirm, the "loss" is a loss of revenue.

AFL chops Wood after revenue slump

A massive loss of up to $400 million in revenue this year has led to the AFL wielding the axe and jettisoning senior staff, including the league's salary cap policeman Ken Wood.

www.theage.com.au

All told, the clubs and the AFL will lose $300 million-$400 million from their forecast $1.2 billion revenue this year – a reduction of between a quarter and a third.

Those cuts are in line with a projected further loss of revenue next year, when the AFL is prepared to lose at least 20 per cent more revenue, even assuming a 22-game home-and-away season as per usual.

Notwithstanding the costs of hubs, the league and clubs this year would also have had a massive reduction in expenditure with much staff stood down and / or on job keeper. Apparently only 1% of members asked for refunds and we know at least two minnows (melbourne and north) are briefing journos that they aren't accessing it at all

Make no mistake, this is as much an opportunistic reset as anything else.

 

[Gigantor]

So if the $400 loss in revenue is spread across two years of the whole AFL industry (for want of a better term), then we are talking about $400 mill in revenue off total revenue of $3 billion (approx. 13% drop)
Sounds manageable, should have little trouble bringing costs down by that much across the two years.

 

[Kwality]

People getting excited about the "$400M loss" are probably up for bit of disappointment.

-The $400M loss almost certainly refers to revenues, including this year and the next tow in terms of the 13% reduction in TV revenues
-The communication of it in the context of an announcement of lost jobs is almost certainly motivated by a comms excercise
-The use of job keeper and furloughing of most of the staff has reduced a huge part of the wage bill for this year
-The AFL has essentially "never let a crisis go to waste" and made big cuts to head office and carved a massive chunk out of the football department soft cap which will save significantly in its distributions to the smaller clubs
-There is little evidence that the clubs have ultimately required access to the line of credit. Both Melbourne and North Melbourne, of all clubs, have briefed


If you look at last years annual report, you can imagine where the cuts will show on expenditure side of the p&l....

View attachment 944411

In terms of "operating expenses" the AFL removing "20% of its roles" will translate to, say, $40M in savings - perhaps more. They will probably save at least the same again in payments to clubs given they have reduced club spend by $4M through chopping the soft cap on the football department
w
So after all that the AFL will emerge from the crisis leaner, and in better shape "fiscally" than they went in to it.

And I am sorry Winky but the AFL are primed to invest even more in the AFLW going forward.

We are 10 months in to 2019/20 .. the headlines, the PR handouts are by design.

 

[Our Game]

I hope most of the overpaid under worked 10 managers( $800,00 plus bonus PA) get the flick!There is a few million to be saved right away!
The other area is all the hangers on assistant coaches most of whom are just sucking money out of the clubs!A maximum of 3 should be quite enough.
The TV monies have in recent seasons been squandered on a lot of unnecessary things and should be directed to areas like grassroots footy.

 

[Kwality]

I hope most of the overpaid under worked 10 managers( $800,00 plus bonus PA) get the flick!There is a few million to be saved right away!
The other area is all the hangers on assistant coaches most of whom are just sucking money out of the clubs!A maximum of 3 should be quite enough.
The TV monies have in recent seasons been squandered on a lot of unnecessary things and should be directed to areas like grassroots footy.

Clubs have already started shedding staff to fall in line with the new $6.2 million limit with Hawthorn sacking five coaches on Monday.

The soft cap has been wound in almost $60 million collectively. Before COVID-19 it was set at $9.5 million per club.

NoCookies | The Australian

www.theaustralian.com.au

 

[NoobPie]

Clubs have already started shedding staff to fall in line with the new $6.2 million limit with Hawthorn sacking five coaches on Monday.

The soft cap has been wound in almost $60 million collectively. Before COVID-19 it was set at $9.5 million per club.

NoCookies | The Australian

www.theaustralian.com.au

A classic case of never let a crises go to waste. The AFL would have been itching to do something like this for years

 

[BringBackTorps]

1. Might as well stick this here. This appears to be a revenue raiser, to recoup covid-19 losses.




Also covered here "The players don't want a paycut" in 2021, suggests AFLPA is warming to the 28 week possibility.

sportsindustry (@footyindustryAU) | Twitter

The latest Tweets from sportsindustry (@footyindustryAU): "News Wrap | Friday, May 8th | WA AFL teams miss out on home games early, India still plan on coming to Australia, Kayo subs take a 30% hit, RA solvency questions https://t.co/ZI3V1TYArR"

twitter.com

(Scroll to 10.9, then click on 7 News segment).



2. AFL HQ empire had grown to "a staggering 795", before covid-19 cuts occured.

sportsindustry (@footyindustryAU) | Twitter

The latest Tweets from sportsindustry (@footyindustryAU): "News Wrap | Friday, May 8th | WA AFL teams miss out on home games early, India still plan on coming to Australia, Kayo subs take a 30% hit, RA solvency questions https://t.co/ZI3V1TYArR"

twitter.com

(Scroll to Sports Industry tweet 9.9- then click on H./Sun article)

No Cookies | Herald Sun

No Cookies

www.heraldsun.com.au

(Full H./Sun article here- behind a paywall. Can anyone post it here?)

 

[Our Game]

Clubs have already started shedding staff to fall in line with the new $6.2 million limit with Hawthorn sacking five coaches on Monday.

The soft cap has been wound in almost $60 million collectively. Before COVID-19 it was set at $9.5 million per club.

NoCookies | The Australian

www.theaustralian.com.au

I'm talking about the hundreds of pen pusher bludgers at AFL HQ!The Herald Sun had a good article about the over staffing at the AFL a couple of days ago.
"In 2003 the AFL employed around 100 staff members. That number then exploded to the point where staff numbers rivalled player numbers". Australian Football League is a local member-owned unlisted public company, engaged in the control, management and promotion of Australian Rules Football.
The AFL employs approximately 1,280 people, operates throughout Australia, and is administered from its head office in Docklands, Victoria.

 

[big_e]

I'm talking about the hundreds of pen pusher bludgers at AFL HQ!The Herald Sun had a good article about the over staffing at the AFL a couple of days ago.
"In 2003 the AFL employed around 100 staff members. That number then exploded to the point where staff numbers rivalled player numbers". Australian Football League is a local member-owned unlisted public company, engaged in the control, management and promotion of Australian Rules Football.
The AFL employs approximately 1,280 people, operates throughout Australia, and is administered from its head office in Docklands, Victoria.

It's a big number but that includes, I think, the entire staff of AFL Tas, Vic, NSW, etc. And everything from AFL umpires, junior development coaches across the country, etc.

Sure head office has lots of people whose job amounts to pushing paper around and having lots of meetings, but let's not be alarmist about it.

 

[telsor]

It's a big number but that includes, I think, the entire staff of AFL Tas, Vic, NSW, etc. And everything from AFL umpires, junior development coaches across the country, etc.

Sure head office has lots of people whose job amounts to pushing paper around and having lots of meetings, but let's not be alarmist about it.

Exactly.

Every time people want more money spent on something by the AFL (development, supporting lower grades, etc), that money will translate into more staff.

While there is doubtless fat that can be trimmed (every large organisation has it), most of those cuts will be in areas people would rather were expanded.

 

[Our Game]

It's a big number but that includes, I think, the entire staff of AFL Tas, Vic, NSW, etc. And everything from AFL umpires, junior development coaches across the country, etc.

Sure head office has lots of people whose job amounts to pushing paper around and having lots of meetings, but let's not be alarmist about it.

I reckon about 50% of the ones at HQ could go and they would not be missed.The rest would have to work a bit harder for their bucks!
Hopefully the post covid economy in recession will sort a lot of this out.

 

[big_e]

I reckon about 50% of the ones at HQ could go and they would not be missed.The rest would have to work a bit harder for their bucks!
Hopefully the post covid economy in recession will sort a lot of this out.

Really? Which ones?

 

[Our Game]

Really? Which ones?

The 10 that are on $800,000 plus bonuses!I doubt any of them would get that sort of money in the real world!

 

[big_e]

The 10 that are on $800,000 plus bonuses!I doubt any of them would get that sort of money in the real world!

What would be the appropriate salary for someone running an business turning over $800 million a year?

 

[Our Game]

What would be the appropriate salary for someone running an business turning over $800 million a year?

Most businesses don't have 10 managers on almost a million dollars.

My son in law is running a business as CEO turning over $200 million PA and is being paid $500,000 plus a bonus depending on sales figures!Oh and he dosen't have ten managers under him he has two!

 

[Our Game]

Most businesses don't have 10 managers on almost a million dollars.

My son in law is running a business as CEO turning over $200 million PA and is being paid $500,000 plus a bonus depending on sales figures!Oh and he dosen't have ten managers under him he has two!
The AFL has just turned into a massive quango that got bloated on the TV income!

 

[big_e]

Most businesses don't have 10 managers on almost a million dollars.

My son in law is running a business as CEO turning over $200 million PA and is being paid $500,000 plus a bonus depending on sales figures!Oh and he dosen't have ten managers under him he has two!

Ask him what he would want to be paid if the turnover was $800m. And the size of his executive team.