Analysis With so many clubs in jeopardy during the coronavirus, is it time for WA to bail out VIC again?

Sep 22, 2011
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Essendon
Coronavirus shutdown: AFL eyes off Bank of West Coast for rescue bid
Mark Duffield and Jon RalphThe West Australian
Wednesday, 25 March 2020 5:00AM


The AFL faces a potential legal battle with WA football if it attempts to use West Coast’s $45 million cash reserve to help guarantee a financial bailout of the code worth up to $500 million.
It has been suggested that the league could use the reserves of the Eagles ($45 million), Richmond ($24.5 million) and Collingwood ($30 million with a $17 million future fund) as part of the surety for a package they are seeking from the Victorian State Government or the NAB Bank to offset the financial devastation of the coronavirus pandemic.
The league — which has already told clubs to cut their 2020 wages bill by up to 80 per cent, cut their own bill by the same amount and demanded a 70 to 80 per cent pay cut from players — would scrap annual distributions to clubs and replace them with a scaled-down liquidity package as part of the proposal. It is also possible that the league’s stadium, Marvel, would be part of the bailout’s surety.
Clubs have been told their football department soft cap would be cut by 30 per cent by next year to about $7 million in a bid to increase the viability of the code and all 18 clubs.
But business sources which The West Australian spoke with last night said any attempt to use West Coast’s cash reserves would create a legal minefield. The Eagles are 100 per cent owned by the WA Football Commission which also owns their AFL licence.

One source said Eagles board members could be putting themselves in an “invidious” position legally if they agreed to use funds from a viable financial entity to guarantee the bailout of clubs which may not prove financially viable.
The crisis has forced West Coast, despite its cashed-up status, to take austerity measures.
A significant number of West Coast staff were told this week they would lose their jobs. Others have been urged to take leave without pay until football resumes.
Fremantle are likely to announce the extent of staff and pay cuts in the next few days.
North Melbourne chief executive Ben Amarfio claimed clubs were banding together to ensure they had enough collateral for a bailout.
“The AFL has asked all clubs for transparency over their cash flow but also their reserves,” he said.
“It won’t be stealing their money, it will basically act as a surety for the massive loan the industry will have to take.
“The AFL has told us already we will all get a liquidity package.
“The old distribution is gone and replaced by a new distribution which will be a very small amount of money and we will have to make do with that small amount of money on the skeleton staff we have.”
Meanwhile, Hawthorn president Jeff Kennett warned the AFL season could be cancelled and all 850 players stood down if they refused to accept the league’s demand for an immediate 80 per cent pay cut.
Players are holding firm to their offer of a 50 per cent wages reduction until the fate of the 2020 season becomes clearer.
A tentative restart date has been set for May 31.
Talks between AFL boss Gillon McLachlan, who has volunteered to take a 20 per cent pay cut, and AFL Players’ Association boss Paul Marsh yesterday failed to resolve the stand-off.
“I understand their concern but this is about survival between now and when the competition starts again,” Kennett, a member of the AFL’s emergency war cabinet, said.
“And if an impasse cannot be resolved, one of the alternatives is the players don’t get paid at all until, and if, the season opens again.
“No one is trying to mislead or gain here. We are simply trying to survive.”

Ben Amarfio 🙄 Jesus

The AFL’s security would be Docklands. It’s by far their biggest asset and worth a lot more than any cash the clubs have.
 

fomoco04

1992, 1994, 2006, 2018
Jun 18, 2007
1,956
1,928
West
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West Coast
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Swan Districts, Deportivo, Man U
I wouldn't give the ungrateful @rsesoles another cent more than we have to, if the attitude I am seeing in here is mirrored by the wider community then I say let the whole Vic Biased League go under.

Couldn't agree more. This is one soulless franchises member who would welcome some natural selection to the comp. Been a long time coming the chance for equality.
 
Something a lot of people on the east coast don't know......"The Eagles are 100 per cent owned by the WA Football Commission which also owns their AFL licence".

Yes, a 100% owner that is going to need cash...and has the right to strip it from 100% subsidiaries at will.


How much spare cash did WCE have again?
 
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Cotchins Hair Piece

Bouffant Flat Top
Mar 6, 2019
4,774
10,355
AFL Club
Melbourne
I wouldn't give the ungrateful @rsesoles another cent more than we have to, if the attitude I am seeing in here is mirrored by the wider community then I say let the whole Vic Biased League go under.
Eye argwee bugga da Vico byasd dawgs wet em go unda eye saye. Knot won moor sent!! Minaz rool!!
 

Yippy Yi Yeo

Premiership Player
Jul 10, 2015
3,138
4,607
Perth
AFL Club
West Coast
Of course i F**king do i've only been living here for 30 years

We make less in Pokie/Hospitality then WCE do in crowds, Pokie's only closed yesterday. Optus wont have anyone putting a foot in the stadium till start of June. Looks like we're eating the same s**t samwich but you have the lack of brains to mock others for it.


Why did the WAFC just ask the government for a 3 million dollar bailout if the backyard is doing fine? It's not. The WAFL may literally be dead next year., 3 clubs are worried they will drop out. The backyard is not fine mate. Your here ragging on Vic clubs when the WAFL is absolutely f’ed. "Backyard is fine" Absolutely full of s**t mate. Im happy to tell you that of a fan of a club staring into oblivion and being asked for a second time this year to open my wallet or there wont be a club.


Ild be sweating If i was WCE as you probably know a lot of their value is held in stock, Which has taken an absolute bath in recent weeks, considering as well its it funds the WAFC so they will pull a big chunk of value out to try to salvage the absolute loss in grassroots level we're facing

We're the second most valuable club in terms of assets+Cash and we're looking at being put back 5 years. Great time to buy a new stadium
Being the most profitable club in the country, we aren't going anywhere whether or not the WAFC will be taking out value to salvage the WAFL/grassroots level football, because without WC the money to do so would be non existent. We're going to take a massive hit no doubt, but we have the biggest cash reserves of any club, and have the best ability to generate future profit. We aren't going anywhere.
 

sprockets

Cancelled
Crime Board Sleuth BeanCoiNFT Investor
Oct 15, 2004
5,562
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It just tells me that there aren’t a lot of brains in WA. I mean only an idiot would not only beg to join a football league that was broke but then gladly cough up a large financial penalty just to join said bankrupt league. If they had any smarts about them they would have started their own comp and pick off teams from the VFL’s rotting carcass. Now the OP wants WA to repeat their past mistakes 😳
Aaand that league was all the way over the other side of the country, don't forget. Who'd be silly enough to do that? Yes, Western Australians.
 
Aaand that league was all the way over the other side of the country, don't forget. Who'd be silly enough to do that? Yes, Western Australians.


As as per their *real* state initials "WAAAAAH", they bought in so their could incessantly complain about how badly they have in in this league they begged to join and agreed to all the terms offered (AKA the very things they now complain about).
 
We're the biggest cash generator in all of australian sports, the WAFC isn't going to strip the club bare and sacrifice the future just to pay for everything else in the short term.

They wont kill the golden goose, no (well, probably not...). But that doesn't mean they wont strip away as much as they think they can get away with.

They could easily take, say $30M, that would still leave WCE roughly as well off as other clubs (and better than most).

Or maybe they take all $45M, and tell you to borrow to survive (being a good cash generator, the banks should lend you plenty after all).



Point being, your ownership structure means that the boasts about having massive amounts of cash reserves aren't nearly as impressive as they sound.
 

fomoco04

1992, 1994, 2006, 2018
Jun 18, 2007
1,956
1,928
West
AFL Club
West Coast
Other Teams
Swan Districts, Deportivo, Man U
Yes, a 100% owner that is going to need cash...and has the right to strip it from 100% subsidiaries at will.


How much spare cash did WCE have again?

Going by that argument, how much of it will the VFL get? How many VFL clubs will go under?

For the sake of the argument VFL = AFL
 

Yippy Yi Yeo

Premiership Player
Jul 10, 2015
3,138
4,607
Perth
AFL Club
West Coast
They wont kill the golden goose, no (well, probably not...). But that doesn't mean they wont strip away as much as they think they can get away with.

They could easily take, say $30M, that would still leave WCE roughly as well off as other clubs (and better than most).

Or maybe they take all $45M, and tell you to borrow to survive (being a good cash generator, the banks should lend you plenty after all).



Point being, your ownership structure means that the boasts about having massive amounts of cash reserves aren't nearly as impressive as they sound.
All in all our situation means we're much better positioned to weather this storm than other clubs, the aim of the game right now is survival.
 
Going by that argument, how much of it will the VFL get? How many VFL clubs will go under?

For the sake of the argument VFL = AFL

AFL gets nothing from WCE, they don't own it. (suggestions of the AFL forcing WCE to hand over money are just another case of WA paranoia)

They can (and quite possibly will) stop giving money to WAFC however.
 
Jan 26, 2006
40,446
31,699
Perth
AFL Club
West Coast
Other Teams
East Fremantle
Coronavirus shutdown: AFL eyes off Bank of West Coast for rescue bid
Mark Duffield and Jon RalphThe West Australian
Wednesday, 25 March 2020 5:00AM


The AFL faces a potential legal battle with WA football if it attempts to use West Coast’s $45 million cash reserve to help guarantee a financial bailout of the code worth up to $500 million.
It has been suggested that the league could use the reserves of the Eagles ($45 million), Richmond ($24.5 million) and Collingwood ($30 million with a $17 million future fund) as part of the surety for a package they are seeking from the Victorian State Government or the NAB Bank to offset the financial devastation of the coronavirus pandemic.
The league — which has already told clubs to cut their 2020 wages bill by up to 80 per cent, cut their own bill by the same amount and demanded a 70 to 80 per cent pay cut from players — would scrap annual distributions to clubs and replace them with a scaled-down liquidity package as part of the proposal. It is also possible that the league’s stadium, Marvel, would be part of the bailout’s surety.
Clubs have been told their football department soft cap would be cut by 30 per cent by next year to about $7 million in a bid to increase the viability of the code and all 18 clubs.
But business sources which The West Australian spoke with last night said any attempt to use West Coast’s cash reserves would create a legal minefield. The Eagles are 100 per cent owned by the WA Football Commission which also owns their AFL licence.

One source said Eagles board members could be putting themselves in an “invidious” position legally if they agreed to use funds from a viable financial entity to guarantee the bailout of clubs which may not prove financially viable.
The crisis has forced West Coast, despite its cashed-up status, to take austerity measures.
A significant number of West Coast staff were told this week they would lose their jobs. Others have been urged to take leave without pay until football resumes.
Fremantle are likely to announce the extent of staff and pay cuts in the next few days.
North Melbourne chief executive Ben Amarfio claimed clubs were banding together to ensure they had enough collateral for a bailout.
“The AFL has asked all clubs for transparency over their cash flow but also their reserves,” he said.
“It won’t be stealing their money, it will basically act as a surety for the massive loan the industry will have to take.
“The AFL has told us already we will all get a liquidity package.
“The old distribution is gone and replaced by a new distribution which will be a very small amount of money and we will have to make do with that small amount of money on the skeleton staff we have.”
Meanwhile, Hawthorn president Jeff Kennett warned the AFL season could be cancelled and all 850 players stood down if they refused to accept the league’s demand for an immediate 80 per cent pay cut.
Players are holding firm to their offer of a 50 per cent wages reduction until the fate of the 2020 season becomes clearer.
A tentative restart date has been set for May 31.
Talks between AFL boss Gillon McLachlan, who has volunteered to take a 20 per cent pay cut, and AFL Players’ Association boss Paul Marsh yesterday failed to resolve the stand-off.
“I understand their concern but this is about survival between now and when the competition starts again,” Kennett, a member of the AFL’s emergency war cabinet, said.
“And if an impasse cannot be resolved, one of the alternatives is the players don’t get paid at all until, and if, the season opens again.
“No one is trying to mislead or gain here. We are simply trying to survive.”

I have no problem with West Coast cash reserves being used to guarantee the WAFC or WAFL, hell even Freo, but not a cent should be used to bail out the east.
 
All in all our situation means we're much better positioned to weather this storm than other clubs, the aim of the game right now is survival.

Than most other clubs, yes.

Your ownership structure is a bit of a liability/risk at times like this however, so it's not all sunshine and roses.
 
I have no problem with West Coast cash reserves being used to guarantee the WAFC or WAFL, hell even Freo, but not a cent should be used to bail out the east.

and it can't.

The AFL has no claim over it.

The entire article is WA paranoia/conspiracy theory.
 
Jan 26, 2006
40,446
31,699
Perth
AFL Club
West Coast
Other Teams
East Fremantle
Than most other clubs, yes.

Your ownership structure is a bit of a liability/risk at times like this however, so it's not all sunshine and roses.

WCE resources absolutely should be used to help the WAFC.
Reality is that there is still no risk of WCE going under.
 

JinmboJones

All Australian
Jun 18, 2005
960
730
Perth
AFL Club
West Coast
Other Teams
Birds of Prey
Of course i F**king do i've only been living here for 30 years

We make less in Pokie/Hospitality then WCE do in crowds, Pokie's only closed yesterday. Optus wont have anyone putting a foot in the stadium till start of June. Looks like we're eating the same s**t samwich but you have the lack of brains to mock others for it.


Why did the WAFC just ask the government for a 3 million dollar bailout if the backyard is doing fine? It's not. The WAFL may literally be dead next year., 3 clubs are worried they will drop out. The backyard is not fine mate. Your here ragging on Vic clubs when the WAFL is absolutely f’ed. "Backyard is fine" Absolutely full of s**t mate. Im happy to tell you that of a fan of a club staring into oblivion and being asked for a second time this year to open my wallet or there wont be a club.


Ild be sweating If i was WCE as you probably know a lot of their value is held in stock, Which has taken an absolute bath in recent weeks, considering as well its it funds the WAFC so they will pull a big chunk of value out to try to salvage the absolute loss in grassroots level we're facing

We're the second most valuable club in terms of assets+Cash and we're looking at being put back 5 years. Great time to buy a new stadium
God that is an absolute load of drivel. I'm assuming you were drunk whilst positing or have Corona-like symptoms and/or are otherwise under duress, hence the incoherent rambling.

In short, without needing to resort to personal insults or bother with directly addressing your many incorrect assumptions/internet-researched facts, WCE are one of if not the most financially secure club in the entire competition and will not be going anywhere. If this entire season is abandoned (which I personally suspect it might be) we'll sit tight on our wads of cash and bunker down until the storm blows over. Meanwhile, other clubs will again run cap in hand to the AFL who obviously have their own issues right now.

Regardless, none of the WAFL/VFL/SANFL/AFL are going anywhere. They may look different in the future, but they will still be around.
 
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