2021 AFL Annual Report

[The_Wookie]

Financial

 

[The_Wookie]

Broadcasting

Viewership for the 2021 AFL season saw solid growth at nine per cent for home & away games, compared with pre-COVID 2019 levels. Streaming has been the primary driver in viewership figures increasing almost 296% relative to 2019 adding an average 90,000 viewers per game.

The Toyota AFL Grand Final between Melbourne and the Western Bulldogs, which attracted a national average audience of 4.16 million on the Seven Network, was the highest-watched television program in Australia.

It was with the highest-ever audience in Melbourne and the highest-ever in Perth for an AFL match since 2013 (even exceeding West Coast winning the 2018 premiership).

The AFLW attracted its highest-ever viewership in 2021, with a 58 per cent increase in viewership relative to 2019, reaching 5.4 million viewers

The 2021 AFLW season attracted average audiences of 35,000 across 68 games on Foxtel and Kayo, up 17 per cent on the similar 2019 year and up eight per cent on the shortened 46-game 2020 season.

In SA, Channel Seven-broadcast games dominated viewing timeslots, with SANFL minor round matches achieving 33 per cent market share and SANFL finals an average of 44 per cent. The SANFL Digital Pass live streaming platform grew from 5000 subscribers in 2020 to 11,000 in 2021.

 

[The_Wookie]

Memberships



AFL club membership reached new heights with 1,113,441 members, surpassing the previous record of 1,057,572 set in 2019.

Ten AFL clubs reached membership records (the Brisbane Lions, Carlton, Geelong Cats, Gold Coast Suns, Melbourne, North Melbourne, Port Adelaide, Richmond, St Kilda and West Coast Eagles) with Richmond and West Coast Eagles each exceeding 100,000 club members in consecutive years.

An AFLW membership record was also set in 2021, with 25,782 fans signing up to show their support of elite women’s football in a year that saw the competition ticketed for the first time.


AFL Members continued their unwavering commitment to Australian Football to record our second-highest membership tally of all-time, with 56,552 AFL members signing up for 2021.

 

[The_Wookie]

Development



NSW/ACT

• 2021 saw a return to 98 per cent of community football 2019 participation levels. This represented 18 per cent growth on 2020 community football participation.
• More than 8500 students playing for almost 600 teams contested the Paul Kelly Cup, one of the biggest primary school knockout competitions in Australia. One hundred girls’ teams from 12 schools competed in Independent Schools competition
• Seven players from NSW/ACT were drafted to AFLW clubs – Ally Morphett (Belconnen), Jessica Doyle (Manly Warringah), Brodee Mowbray (Southern Power), Georgie Fowler (East Coast Eagles), Casidhe Simmons (UNSW-ES), Erin Todd (Inner West Magpies) and Isadora McLeay (North Shore).

Victoria

• Registered participation numbers for community club football were up in 2021 compared with pre-COVID 2019 levels – a fantastic outcome for the game
• A total of 28 players from Victoria (out of 59 selected) were picked up by teams at the AFLW Draft, while 45 of the 83 players drafted by AFL clubs were from Victoria, highlighting the strength of the state as the biggest breeding ground for the elite game

South Australia

• Across all of football in SA, participation returned to 2019 pre-COVID levels, with SANFL recording almost 54,000 club registrations for males and females across the state
• SANFL Juniors – one of the largest junior sporting competitions in Australia – completed a full season and continued to grow in participation numbers. The competition saw 14,109 boys and girls, from under-7s through to under-17.5s, play across 704 teams and 60 community clubs.

Western Australia

• There were 70,161 participants in community football in 2021– the largest number ever in WA. Female participation grew 39.65 per cent to 11,762 – the fastest-growing segment of WA football

Northern Territory

• The NTFL saw the expansion of its junior competitions from 67 to 97 teams as it builds towards a completed pathway for boys and girls

Queensland

• A 14 per cent increase in player registrations at all levels of community club football across Queensland surpassed the previous participation record established in 2019. Women and girls now comprise 25 per cent of all registered participants
• An under-9 girls’ competition was launched in South East Queensland with 21 teams, while 50 teams competed in the second year of the under-11s competition.
• More than 1200 girls created history as the Queensland Girls Secondary Schools Sports Association (QGSSSA) staged its first AFL interschool sporting competition

Tasmania

Key growth areas in participation were:

• six per cent growth in total registered participants.
• 12 per cent growth in overall youth football participation.
• 23 per cent growth in female youth football participation.
• two per cent growth in senior football participation.
• 13 per cent growth in registered umpires

International

• The Department of Foreign and Affairs and Trade’s (DFAT) Pacific Sports Partnership (PSP) program continues its work towards the improvement of health in Nauru through participation in Australian Football, while strengthening the ties between the two countries. Almost 30 per cent of the country’s population now participate in the game
• USAFL participation reached 93 per cent of its pre-COVID levels
• In New Zealand, despite 79 of the scheduled 120 school days being impacted by Government Alert Levels related to COVID, there were more than 15,000 KiwiKick participants.
• South Africa experienced ongoing COVID-19 impacts for much of the year, but AFL South Africa achieved strong participation in the time restrictions were eased.

 

[RussellEbertHandball]

'A base distribution to all clubs of $188.0m'

If equal per club, that is $10.444m

In 2020 'A base distribution to all clubs which totalled $161.6 million'

But the clubs didn't all receive an equal base of $8.977m

North and St Kilda who have shown base distributions each year for a decade or more and have shown the same figure, but in 2020 they showed;

North $9,207,459
Saints $9,620,953

The base in 2019 was $11,003,144. That was shown in North's and St Kilda's annual reports.

Hawthorn in their 2020 accounts showed the following with 2019 comparison

AFL distribution and prize money $9,103,741 $11,253,144

Don't know what the $250,000 above the base was for in 2019, as they didn't get any finals prize money.

 

[Prince Imperial]

Interesting to see that there are 32k AFL members in Tasmania. It's long been claimed that the state had 100k which always sounded absurd.

 

[Kwality]

Memberships



AFL club membership reached new heights with 1,113,441 members, surpassing the previous record of 1,057,572 set in 2019.

Ten AFL clubs reached membership records (the Brisbane Lions, Carlton, Geelong Cats, Gold Coast Suns, Melbourne, North Melbourne, Port Adelaide, Richmond, St Kilda and West Coast Eagles) with Richmond and West Coast Eagles each exceeding 100,000 club members in consecutive years.

An AFLW membership record was also set in 2021, with 25,782 fans signing up to show their support of elite women’s football in a year that saw the competition ticketed for the first time.


AFL Members continued their unwavering commitment to Australian Football to record our second-highest membership tally of all-time, with 56,552 AFL members signing up for 2021.

Begs the question of $s ...

 

[The_Wookie]

Interesting to see that there are 32k AFL members in Tasmania. It's long been claimed that the state had 100k which always sounded absurd.

Its also interesting that this is the first time they've ever broken down memberships state by state that i can recall

 

[Bjo187]

Interesting to see that there are 32k AFL members in Tasmania. It's long been claimed that the state had 100k which always sounded absurd.

Was it referring to ex pats included in that figure? As their stats would come in under another state. But I agree seems impossible when w.a and s.a are only in the 100,000s

 

[Bjo187]

A few questions for those in the know. Having read the report I am unsure on the following:

1. Why do the aflpa get sent so much money? What do they do with it?

2. Why are liabilities higher than ever before?

3. Assets are at a few hundred million, but isn't marvel an asset worth over 1 billion on it's own?

4. How much money/ cash do the AFL now have in the bank to spend? Is It more now than a few years back?

6. The money coming in was more than last year and the expenditure was less than previous years, was the 40 mill loss simply due to the big payment to the aflpa this year as a one off big hit?

6. Gillon stated the game is in a better position than ever before, I can't see how it's better than 2019 from the data provided, am I missing something?

 

[Prince Imperial]

Was it referring to ex pats included in that figure? As their stats would come in under another state. But I agree seems impossible when w.a and s.a are only in the 100,000s

Ex pats were never referred to and I don't know how that could easily measured as it is not something that clubs ask members. I'm not sure who originally stated it but it was bandied about a fair bit.

 

[Kwality]

Ex pats were never referred to and I don't know how that could easily measured as it is not something that clubs ask members. I'm not sure who originally stated it but it was bandied about a fair bit.

Mailing address?

 

[Prince Imperial]

Mailing address?

I don't see how that could cause a 68k gap.

 

[The_Wookie]

Ex pats were never referred to and I don't know how that could easily measured as it is not something that clubs ask members. I'm not sure who originally stated it but it was bandied about a fair bit.

The EMRS survey, released yesterday, showed stronger support for the idea in the South. Statewide, 48 per cent of Tasmanians would support a Tasmanian AFL team. The number was 55 per cent in the South, 43 per cent in the North, and 39 per cent in the North-West. However the numbers dropped lower when the survey asked if people would put their money where their mouth was. Overall, 23 per cent of Tasmanians would consider becoming members - a number that would give the possible club about 100,000 members. The North-West led that category, with 25 per cent of respondents being interested in taking a membership, followed by 24 per cent in the North and 22 per cent in the South

Survey adds strength to Tassie AFL bid

SUPPORT for a Tasmanian AFL team is lowest in the North- West, but Coastal fans are willing to...

www.theadvocate.com.au

 

[Prince Imperial]

The EMRS survey, released yesterday, showed stronger support for the idea in the South. Statewide, 48 per cent of Tasmanians would support a Tasmanian AFL team. The number was 55 per cent in the South, 43 per cent in the North, and 39 per cent in the North-West. However the numbers dropped lower when the survey asked if people would put their money where their mouth was. Overall, 23 per cent of Tasmanians would consider becoming members - a number that would give the possible club about 100,000 members. The North-West led that category, with 25 per cent of respondents being interested in taking a membership, followed by 24 per cent in the North and 22 per cent in the South

Survey adds strength to Tassie AFL bid

SUPPORT for a Tasmanian AFL team is lowest in the North- West, but Coastal fans are willing to...

www.theadvocate.com.au

Thanks Wookie. The more recent reporting of actual memberships was a bit less than 100k but still sounded outlandish. Caro reported in 2019 that Tasmania boasted 91,000 members across the 18 AFL clubs.

'No longer if but when': Push grows for a Tasmanian AFL team

Designing a ‘‘respectful’’ exit strategy for Hawthorn and North Melbourne is a part of the plan that would see Tasmania establish its own AFL club by 2026.

www.theage.com.au

The Tasmanian Taskforce also claimed this (at 74 of it report) when it stated "The appetite for the AFL product is strong, with > 90k Tasmanians currently holding memberships with mainland-based teams."

https://www.premier.tas.gov.au/documents/AFL_Taskforce_Report_Tasmania.pdf

 

[Kwality]

I don't see how that could cause a 68k gap.

Referring to how ex pats can be identified, not the numbers.

 

[RussellEbertHandball]

A few questions for those in the know. Having read the report I am unsure on the following:

1. Why do the aflpa get sent so much money? What do they do with it?

The power of collective bargaining. It is used for player training and education, admin, and banking into a pension/health type fund. This last component is the biggest contribution component the players have negotiated, since 1998 when Demetriou was CEO of the AFLPA.

At the end of 2020 financial year, "The players’ retirement account investments totalled $131.5 million. Here is their 2020 annual report."

https://www.aflplayers.com.au/app/uploads/2021/11/2020_Annual-Report.pdf

Prior years at

AFLPA Annual Reports

The AFLPA releases its annual report in March every year in line with its Annual General Meeting. Reports from 2018-present can be accessed below. Please contact bbeaton@aflplayers.com.au if you are…

www.aflplayers.com.au

From the 2017-22 CBA page 63.
Schedule B – Total Player Payments and Benefits

Item 1 is TPP amounts over 6 seasons and item 2 is ASA amounts

2. Why are liabilities higher than ever before?

Borrowed $200m to buy Docklands in 2017 (took out $280m facility so could have working capital for the stadium).


2 years of large covid losses funded by borrowings.

Plus looks like they have got TV monies up front and monies from the Vic government for the upgrade of Docklands, so that is cash in but the other side of the equation isn't revenue but a liability called deferred revenue. See cash comment below for more details.

3. Assets are at a few hundred million, but isn't marvel an asset worth over 1 billion on it's own?

They paid $200m - show it at cost not market value. Then depreciate the stadium value by about $30m each year. This is an expense but its non cash so another reason why profit each year and increase in cash has a large difference. Its standard conservatism accounting principle.

Wouldn't be worth $1bil - not before government has spent $300m on improving it and bought it for $200m in late October 2016. Don't believe everything you read or hear in the media.

4. How much money/ cash do the AFL now have in the bank to spend? Is It more now than a few years back?

Before Docklands was purchased, AFL Ltd had $78.5m cash and cash equivalents AFL Group had $86.8m. Now they only report group consolidated results.

In 2021 - "an increase in deferred income totalling $52.5 million, largely due to the receipt of funds from the Victorian State Government to be spent on the upgrade of Marvel Stadium;"

That's part of reason why cash increased by $69m when making a statutory loss of loss of $29m. But looks like some cash was given by the Vic government but was actually spent as on page 160 it says';

Discussion and Analysis of the Consolidated Statement of Profit and Loss and Other Comprehensive Income
The underlying operating loss in 2021 was $43.0 million which compared with a loss of $22.7 million in 2020. The variance between the underlying operating loss of $43.0 million and the statutory loss of $29.5 million is due to recognition of Government grant revenue of $13.5 million toward the redevelopment of Marvel Stadium and the surrounding precinct.

The previous year
Income
The underlying operating loss in 2020 was $22.7 million which compared with a profit of $27.9 million in 2019. The variance between the underlying operating loss of $22.7 million and the statutory loss of $8.4 million is due to recognition of Government grant revenue of $14.3 million toward the redevelopment of Marvel Stadium and the surrounding precinct.

Below is the group position as the last 3 years the AFL has stopped reporting individual and group accounts lodged with ASIC.

x	Asset	Asset	X	Liability	Liability	X
Year	Cash	Cash in suspense	2 Totals	Deferred Rev	Loans	2 Totals
2016​	86.821​	0.000​	86.821​	19.254​	0.035​	19.289​
2017​	135.307​	0.000​	135.307​	28.570​	185.152​	213.722​
2018​	209.237​	0.000​	209.237​	48.260​	176.660​	224.920​
2019​	184.721​	0.000​	184.721​	48.376​	95.767​	144.143​
2020​	209.101​	14.368​	223.469​	68.362​	199.155​	267.517​
2021​	249.313​	43.586​	292.899​	120.687​	170.003​	290.690​

2017 the 2017-2022 TV deal kicks in with an extra $150+m cash/revenue per year coming in from that item and

2017 is when revenues and expenses of Docklands come thru the group accounts. The deal was signed in October 2016 but settlement happened after the 2017 year started (ie 1st November)

5. The money coming in was more than last year and the expenditure was less than previous years, was the 40 mill loss simply due to the big payment to the aflpa this year as a one off big hit

The biggest area of expenditure increase in 2021, was payment to clubs. That increased by $70m, most of that went to the players salaries which increasing by 35% after a 29% cut in 2020.

Also a lot of clubs have facilities expenditure that they are committed to that the AFL has said they will help fund.

The payments to AFLPA are negotiated upfront as part of the CBA. .

Looks like if you add $18m in 2020 + $60m in 2021 it's basically the same as $36m in 2018 + $37m in 2019.

6. Gillon stated the game is in a better position than ever before, I can't see how it's better than 2019 from the data provided, am I missing something?

Gilligan, Demetriou, Jackson, Oakley all spin or have spun how great things are. The AFL is in good shape compared to where they thought they would be when they shut down in March 2020 and went and negotiated a $600m line of credit to survive a year or two of covid.

They were forced to make some big cuts in areas that weren't really essential. Keep that expenditure under control whilst revenues get back to normal, ie broadcasting, finals ticket sales, commercial revenue, Docklands etc and they will be doing well again.

 

[Bjo187]

The power of collective bargaining. It is used for player training and education, admin, and banking into a pension/health type fund. This last component is the biggest contribution component the players have negotiated, since 1998 when Demetriou was CEO of the AFLPA.

At the end of 2020 financial year, "The players’ retirement account investments totalled $131.5 million. Here is their 2020 annual report."

https://www.aflplayers.com.au/app/uploads/2021/11/2020_Annual-Report.pdf

Prior years at

AFLPA Annual Reports

The AFLPA releases its annual report in March every year in line with its Annual General Meeting. Reports from 2018-present can be accessed below. Please contact bbeaton@aflplayers.com.au if you are…

www.aflplayers.com.au

From the 2017-22 CBA page 63.
Schedule B – Total Player Payments and Benefits

Item 1 is TPP amounts over 6 seasons and item 2 is ASA amounts
View attachment 1343114

View attachment 1343144



Borrowed $200m to buy Docklands in 2017 (took out $280m facility so could have working capital for the stadium).


2 years of large covid losses funded by borrowings.

Plus looks like they have got TV monies up front and monies from the Vic government for the upgrade of Docklands, so that is cash in but the other side of the equation isn't revenue but a liability called deferred revenue. See cash comment below for more details.

They paid $200m - show it at cost not market value. Then depreciate the stadium value by about $30m each year. This is an expense but its non cash so another reason why profit each year and increase in cash has a large difference. Its standard conservatism accounting principle.

Wouldn't be worth $1bil - not before government has spent $300m on improving it and bought it for $200m in late October 2016. Don't believe everything you read or hear in the media.

Before Docklands was purchased, AFL Ltd had $78.5m cash and cash equivalents AFL Group had $86.8m. Now they only report group consolidated results.

In 2021 - "an increase in deferred income totalling $52.5 million, largely due to the receipt of funds from the Victorian State Government to be spent on the upgrade of Marvel Stadium;"

That's part of reason why cash increased by $69m when making a statutory loss of loss of $29m. But looks like some cash was given by the Vic government but was actually spent as on page 160 it says';

Discussion and Analysis of the Consolidated Statement of Profit and Loss and Other Comprehensive Income
The underlying operating loss in 2021 was $43.0 million which compared with a loss of $22.7 million in 2020. The variance between the underlying operating loss of $43.0 million and the statutory loss of $29.5 million is due to recognition of Government grant revenue of $13.5 million toward the redevelopment of Marvel Stadium and the surrounding precinct.

The previous year
Income
The underlying operating loss in 2020 was $22.7 million which compared with a profit of $27.9 million in 2019. The variance between the underlying operating loss of $22.7 million and the statutory loss of $8.4 million is due to recognition of Government grant revenue of $14.3 million toward the redevelopment of Marvel Stadium and the surrounding precinct.

Below is the group position as the last 3 years the AFL has stopped reporting individual and group accounts lodged with ASIC.

x	Asset	Asset	X	Liability	Liability	X
Year	Cash	Cash in suspense	2 Totals	Deferred Rev	Loans	2 Totals
2016​	86.821​	0.000​	86.821​	19.254​	0.035​	19.289​
2017​	135.307​	0.000​	135.307​	28.570​	185.152​	213.722​
2018​	209.237​	0.000​	209.237​	48.260​	176.660​	224.920​
2019​	184.721​	0.000​	184.721​	48.376​	95.767​	144.143​
2020​	209.101​	14.368​	223.469​	68.362​	199.155​	267.517​
2021​	249.313​	43.586​	292.899​	120.687​	170.003​	290.690​

2017 the 2017-2022 TV deal kicks in with an extra $150+m cash/revenue per year coming in from that item and

2017 is when revenues and expenses of Docklands come thru the group accounts. The deal was signed in October 2016 but settlement happened after the 2017 year started (ie 1st November)


The biggest area of expenditure increase in 2021, was payment to clubs. That increased by $70m, most of that went to the players salaries which increasing by 35% after a 29% cut in 2020.

Also a lot of clubs have facilities expenditure that they are committed to that the AFL has said they will help fund.

The payments to AFLPA are negotiated upfront as part of the CBA. .

Looks like if you add $18m in 2020 + $60m in 2021 it's basically the same as $36m in 2018 + $37m in 2019.


Gilligan, Demetriou, Jackson, Oakley all spin or have spun how great things are. The AFL is in good shape compared to where they thought they would be when they shut down in March 2020 and went and negotiated a $600m line of credit to survive a year or two of covid.

They were forced to make some big cuts in areas that weren't really essential. Keep that expenditure under control whilst revenues get back to normal, ie broadcasting, finals ticket sales, commercial revenue, Docklands etc and they will be doing well again.

Thanks a great breakdown there. A few points.

• The funding for the AFLPA is massive, I understand the injury fund but all the other stuff seems like massive overs. I would have thought they'd just get super whilst playing similar to everybody else but they have an extra retirement fund too. It also looks like they withheld some payment in 2020 which they had to make up for in 2021.

• On docklands i thought 1 billion includes the land the stadium is on too, which in that location and that size would be accurate I think. I wonder if owning and operating a stadium is a big money maker or not in usual times?

• I'd be interested to see a breakdown of the wealth of all the football codes, I know 2019 the AFL was significantly in front but some of the others may have caught up or gone further backwards themselves.

 

[RussellEbertHandball]

Thanks a great breakdown there. A few points.

• The funding for the AFLPA is massive, I understand the injury fund but all the other stuff seems like massive overs. I would have thought they'd just get super whilst playing similar to everybody else but they have an extra retirement fund too. It also looks like they withheld some payment in 2020 which they had to make up for in 2021.

The $130m fund is mainly for injury issues rather than a pension, but they also help out ex players who have fallen on hard times.

Looming concussion issues might see that fund have to make some big payouts.

They would have learnt a lot from the NFLPA and structured a lot around what they do.

The players only get 28% of AFL industry football revenue ( NFL its low 50%) when the last CBA was struck. Certain things don't get counted as football revenue, ie gaming revenue, bequests and donations, AFLW revenue, government grants etc.

Demetriou always refused to put a set % payout like the cricketers got a fixed 25% of a list of revenue stream in the first few MOU's between ACA and CA. It's one way the players get more and the clubs don't get the distribution passed thru them.

This is why CBA negotiations take a long time.

• On docklands i thought 1 billion includes the land the stadium is on too, which in that location and that size would be accurate I think. I wonder if owning and operating a stadium is a big money maker or not in usual times?

The land as a piece of vacant land isn't worth that much. The $30mil the AFL put in, in 2000 to be able to buy the freehold land and stadium and any buildings which were built and owned by the consortium on 31/12/2025 for $30, basically bought the land.

The land and stadium has 2 values.

1) as a going concern as a stadium and buildings built on it and the AFL now owns and can rent out.

2) as a development piece of land where the stadium is knocked down, the land is empty and the government approves a proposal say to build 2,000 apartments on the land.

That development proposal is the one that might be worth a billion dollars (which I'm skeptical of the figure) not the site as it is with a stadium on it, but like Waverley, the AFL would have to go into some sort of development partnership and get the billion dollars paid out probably over a decade, if indeed the developer is prepared to give the AFL a billion dollars. The AFL wouldn't be getting a billion up front.

When AFL sold Waverley and went into partnership with Mirvac they got $100m but paid out over 7 years. Mirvac wouldn't have offered $100m upfront with no basic masterplan design done and approved by the council. But that was approved when the AFL was still the legal owner of the land and the documents for approval would have been a joint AFL + Mirvac proposal.

Mirvac spent $785m all up developing the new suburb. From an article dated April 2021.

19 years later and there's just one townhouse remaining in the $785 million project in Melbourne's South East. Just five lake and park front homes were put up for sale in the established 80-hectare community, which has created 1,274 homes over the last 19 years.

Same thing has happened at Footy Park in Adelaide. Total site is 23 hectares, about 1,660 apartments and houses are being built there, around 80% has been built, the SANFL got $10mil up front and $71mil in total over 11 years - I think the final payment is in 2025.

• I'd be interested to see a breakdown of the wealth of all the football codes, I know 2019 the AFL was significantly in front but some of the others may have caught up or gone further backwards themselves.

I don't think you will get a true figure. All you will get is what the books of the organisation at the head of the codes say. There are a lot of components that make up any code.