Analysis AFC finances - Rich Club, Poor Club?

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Mego Red

The Artist Formerly Known As Kristof
Oct 3, 2003
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AFL has already done that by decreeing 40% reduction to footy cap. I expect the AFLs interest will extend only as far as limiting wasteful expenditure. I bet that we'll enjoy the 2021 season as much as 2019 despite 40% footy dept spend reduction and the screws being tightened on admin spend. If we're running lean and mean, AFL review of our admin spend should cause us no concern whatsoever. Which admin costs would you be concerned they'll try and cut? Noting that footy dept and player costs are already fully controlled by and reported to AFL House. What is it about our admin spend do we need to protect from prying eyes?
What we're investing in training facilities? Member retention? IT and tech infrastructure?

I have no idea really. But I wouldn't want AFL House having to approve every expense that's not bound by the cap. That literally removes every competitive advantage you have being a stronger club.
 

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Jarman3

Premiership Player
Oct 22, 2013
3,624
7,143
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What we're investing in training facilities? Member retention? IT and tech infrastructure?

I have no idea really. But I wouldn't want AFL House having to approve every expense that's not bound by the cap. That literally removes every competitive advantage you have being a stronger club.
Based on the evidence before us, you'd have to think we're not really making the most of those advantages anyway.
 

1970crow

Hall of Famer
Jun 7, 2011
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What we're investing in training facilities? Member retention? IT and tech infrastructure?

I have no idea really. But I wouldn't want AFL House having to approve every expense that's not bound by the cap. That literally removes every competitive advantage you have being a stronger club.
If it's not being fed into the footy dept how does it help us perform better on the field.
 

Mego Red

The Artist Formerly Known As Kristof
Oct 3, 2003
22,931
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Soft spot for Brisbane
If it's not being fed into the footy dept how does it help us perform better on the field.
The footy department is just wages of a few dozen staff, isn't it?

I assume there's a bunch of ways to invest in the club outside of footy department - like giving them the best training facility, and recovery equipment, and strength and conditioning gear, and recruiting data. I'm sure there would be a massive list of things that could be done better with more resources.
 

Geoffa32

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Perhaps. But the AFL demanding that a line of credit is paid back before money is spent on new training facilities would be a lot worse.
This is probably the main reason for going the commercial LoC over AFL handout.


With historically low interest rates, the repayment amount going commercial instead of the handout works be negligible.


Could even be part of the Bendigo Bank sponsorship, ie pay even less interest instead of cash received on sponsorship.

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1970crow

Hall of Famer
Jun 7, 2011
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Port MacDonnell yay!!!
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The footy department is just wages of a few dozen staff, isn't it?

I assume there's a bunch of ways to invest in the club outside of footy department - like giving them the best training facility, and recovery equipment, and strength and conditioning gear, and recruiting data. I'm sure there would be a massive list of things that could be done better with more resources.
I don't think so. I think it's all football related costs, not just wages. The below certainly suggests it'll limit spending on gym equipment. Reality is that even the mega earners (Eagles, pies, hawks and tigers) don't go over the cap and incur the 100% tax. There's been very little overspend since it came into force.

 

1970crow

Hall of Famer
Jun 7, 2011
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Perhaps. But the AFL demanding that a line of credit is paid back before money is spent on new training facilities would be a lot worse.
Not really, the covid thing is a couple of years. Moving to new training facilities should take longer than that. But Olsen does seem keen to get into bed with the SANFL at Thebby in a hurry. Not that he impacted on the borrowing decision, that direction was decided months ago. Must have been tight seeing how long it took.
 

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CrowsB4hoes

Brownlow Medallist
Sep 30, 2014
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Not really. The selected candidate could have come at a cost within the AFL's approved budget but they vetoed the person despite the $ being ok.
Opposite. Port had a preferred candidate. AFL wouldn’t sign off on the spend. Notice that Richardson’s role as “executive general manager” hasn’t been replaced. They are basically the exact same structure but without Keith Thomas.
 

Geoffa32

Hall of Famer
Aug 17, 2007
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Not really, the covid thing is a couple of years. Moving to new training facilities should take longer than that. But Olsen does seem keen to get into bed with the SANFL at Thebby in a hurry. Not that he impacted on the borrowing decision, that direction was decided months ago. Must have been tight seeing how long it took.
Olsen should have nothing to do with the negotiations for financing. Not that he was with the club when it was actually negotiated.

CEO and other staff negotiate, then present to the Board for sign off.


Board should not be involved in the day to day. Including Roo.

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1970crow

Hall of Famer
Jun 7, 2011
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Opposite. Port had a preferred candidate. AFL wouldn’t sign off on the spend. Notice that Richardson’s role as “executive general manager” hasn’t been replaced. They are basically the exact same structure but without Keith Thomas.
I wasn't suggesting either, just submitted a hypothetical that contradicted Sanders statement. My view is that Port need to resource fir a better CEO than us, much more financially challenged business.
 

1970crow

Hall of Famer
Jun 7, 2011
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Port MacDonnell yay!!!
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Olsen should have nothing to do with the negotiations for financing. Not that he was with the club when it was actually negotiated.

CEO and other staff negotiate, then present to the Board for sign off.


Board should not be involved in the day to day. Including Roo.

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Not really. Keep the board out of football operations and micro managing the business for sure. But if you've access to high level banking expertise at board level that's willing to pitch in for the benefit of the club, then you take that opportunity every day of the week. Having Chappy on the football strategy committee is where it all goes wrong.
 

CrowsB4hoes

Brownlow Medallist
Sep 30, 2014
13,176
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Port Power fans. If you think I’m wrong, grow a set of balls and debate me on here so I can correct you. Don’t tag me onto your board, you ******* cowards.
 

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