Rumour AFL asks WAFC to commit 65 mill to competition over 3 years

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Kwality

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Hard to get a read on this one.

If true that AFL is already essentially tapped out (ie cant raise any further funds via commercial loans), and have already drawn down more than $400M of their existing line of credit (rumoured at $500-$600M), how is it possible the competition survives even with $65M from WAFC?

What does the $65M over 3 years accomplish, if the AFL have 20 - 30% left of a $500-$600M line of credit, how are they possibly going to continue for another year if COVID impacts on next year.

Also why are there rumours that list cuts will only be 4 players if the situation is that dire?
Cos this claim is a figment of the OPs thought process, that apparently resulted from a couple of confused guys (he cant/wont say who) on ABC Grandstand in Perth, that was unreported anywhere else at the time.
It sure hasnt got a hearing in Melbourne & there are heaps of journos/commentators here looking for a rumour.

We are going to get lots of ill informed commentary before the Financials start to be released.
 
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Kwality

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Not just TV rights but a part of the revenue share they have. I was just using TV rights as 1 example of a contracted amount. Other things like sponsorship etc change a fair bit and is the changed amount....

In W.A and S.A clubs it doesnt just all go to the clubs. Part goes to WAFC/SANFL . Been like that since the competition began

Did you think the WAFC agreed to be part of the AFL and then said "Nah we dont want any money"?
Why is it you can not support any of your claims?

Are you aware of the different business models that support footy across Aus?
 

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Obeanie1

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If it was me I’d like to see the AFL executive’s salaries and the entire AFL financials before I leant them any money.

I don’t trust the people running the competition at all.
Well that may well be the silver lining to this 'dark cloud'.

When you borrow that much money the lending covenants, audits and scrutiny follows. You start missing KPI's set by the lender then they start installing their own people in the organisation to police expenditure and question decisions / budgets.
 

GoEaglesGoSGIO

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Why is it you can not support any of your claims?

Are you aware of the different business models that support footy across Aus?


Believe it or not im not in a position to post legal contracts that Eagles and WAFC have with the AFL as some form of firm evidence for you.

As far as different business models Would not have a clue. I just know how WAFC/Eagles operate since someone who works for both has told me.

In any case im not the one arguing that WAFC only receive charitable donations from the AFL and that Eagles/WAFC are two seperate legal entities with zero relations despite the fact one owns the other...

I think those things need proving first and foremost over the common sense approach of "WAFC are given money by the AFL based on contractual agreements" and "WAFC have access too profits made by a legal entity it owns"
 

MaxHunt

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I'm still struggling to understand the amount lost so far this season. I thought they said 400 million in lost revenue not over 400 mil in loses.
 

GoEaglesGoSGIO

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Cos this claim is a figment of the OPs thought process, that apparently resulted from a couple of confused guys (he cant/wont say who) on ABC Grandstand in Perth, that was unreported anywhere else at the time.
It sure hasnt got a hearing in Melbourne & there are heaps of journos/commentators here looking for a rumour.

We are going to get lots of ill informed commentary before the Financials start to be released.
Bullshit. The journos and commentators are writng what Gil asks them to write

Why do you think he refuses to accept interviews over here for?

Gil only has staged press conferences with cherry picked questions. How the hell is this news to anyone?
 

GoEaglesGoSGIO

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I'm still struggling to understand the amount lost so far this season. I thought they said 400 million in lost revenue not over 400 mil in loses.
They do not know the answer themselves yet. They do know it was more then anticipated when they borrowed the 500 mill. When they borrowed that they didnt take into account them paying hotel fees galore to play in QLD infront of 300 people for example.

The real thing we should all be struggling to understand is why no one in the press is trying to ask these questions to the guy with the answers.... Because they want the juicy story and all
 

Kwality

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Well that may well be the silver lining to this 'dark cloud'.

When you borrow that much money the lending covenants, audits and scrutiny follows. You start missing KPI's set by the lender then they start installing their own people in the organisation to police expenditure and question decisions / budgets.
This scrutiny is in place courtesy of the NAB/ANZ line of credit & I understand on Nov 1 a line will be drawn for all clubs that have required AFL assistance (whatever that means).
 

Kwality

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They do not know the answer themselves yet. They do know it was more then anticipated when they borrowed the 500 mill. When they borrowed that they didnt take into account them paying hotel fees galore to play in QLD infront of 300 people for example.

The real thing we should all be struggling to understand is why no one in the press is trying to ask these questions to the guy with the answers.... Because they want the juicy story and all
Look to journos like John Stensholt to write it. He's not AFL accreditted
 

GoEaglesGoSGIO

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Look to journos like John Stensholt to write it. He's not AFL accreditted
Yes, lets look for 1 person to do all the AFL press work.

Quite simply, if Gil has nothing to worry about why is he refusing 28 requests to go on W.A radio?

Did you not see what Gil does to journos who step out of line btw? Cant even copy a Instagram photo without the threat of getting the sack. Revealing the financial tragedy the AFL has would be the end of you in this town...
 

EasternTiger

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Come on Tige, just put your membership rates up to the same level as the Eagles - the Tiges are still kings of the 3 game memberships arent they.
Why dont you get those pseudo members who send their subs to the AFL to pay the money to the club - those blood sucking leeches of the AFL Members Club bleed the Melbourne clubs dry & get treated as up market members, DO SOMETHING you Easty Tiger ... maybe a membership badge with a leech not a Tiger !!
My goodness! So you want our members to pay more?

Most of our supporters are based in Victoria, which is in a lockdown at the moment.

Pretty heartless to even suggest such a thing Mr Inekwality. :(
 

Kwality

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My goodness! So you want our members to pay more?

Most of our supporters are based in Victoria, which is in a lockdown at the moment.

Pretty heartless to even suggest such a thing Mr Inekwality. :(
I understand your malaise here in greater Melbourne, but my point is not time specific. These AFL members/leeches have been using their nominated Melbourne clubs, in cahoots with the AFL since day # 1,& your club pays, so its a bit rich to expect WA club members to be paying 'a pauper tax' to subsidise the leeches.

Give these leeches the sars & as long as their ill gained seating were available GF day*, WA fans may well hit the poor box.

* exclusively for competing club members.
 

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ghostbat12

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Hand over the dosh you arrogant WA lanky pillocks.

Us poor little struggletown melbourne clubs are doing it tough, while you lot want to flaunt your wealth and rub it in our faces.

You just don't want the working class battlers to have a fair go.

Don't be so greedy. Share the wealth.
Haha for some reason I read this with Yorkshire accent.
 

GoEaglesGoSGIO

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So new info

1. Was wrong about the 500 mill being max credit. Max credit is more. AFLs line of credit will be upped to 600 mill very shortly. Already done as the option was already on the table, just waiting announcement. The line of credit is against the net value of Marvel stadium which is 600 something million
2. This has played out over the last fortnight . The initial 500 milll was expected to last 3 years. Its now appearing likely to last 18 months based on 2019/2020 financial reports. The WAFC will not be the only party to be asked for and to give the AFL more money also. The AFL arnt asking for 65 mill to tide them over. They are searching for a few hundred million and WAFC is just 1 of the many being asked to chip in
 

ghostbat12

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So new info

1. Was wrong about the 500 mill being max credit. Max credit is more. AFLs line of credit will be upped to 600 mill very shortly. Already done as the option was already on the table, just waiting announcement. The line of credit is against the net value of Marvel stadium which is 600 something million
2. This has played out over the last fortnight . The initial 500 milll was expected to last 3 years. Its now appearing likely to last 18 months based on 2019/2020 financial reports. The WAFC will not be the only party to be asked for and to give the AFL more money also. The AFL arnt asking for 65 mill to tide them over. They are searching for a few hundred million and WAFC is just 1 of the many being asked to chip in
And how will afl pay this back if next year has same issues due to coronavirus?
 

Obeanie1

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It will be paid back over 15 years via improved revenue sharing.

With the line of credit from the banks theyd just seize Marvel Stadium if the AFL cant pay it back
And what would the WAFC and Eagles seize if it wasn't paid back?

I'd suggest the banks have every bit of security they can get rights over. It's called a fixed and floating charge over all assets.

So a unsecured loan is made with WAFC and the Eagles, revenues don't bounce back and the comp is insolvent. Goes into receivership and the banks always get paid first, then employee entitlements and then unsecured loans last.

That is why this isn't simple.
 

GoEaglesGoSGIO

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And what would the WAFC and Eagles seize if it wasn't paid back?

I'd suggest the banks have every bit of security they can get rights over. It's called a fixed and floating charge over all assets.

So a unsecured loan is made with WAFC and the Eagles, revenues don't bounce back and the comp is insolvent. Goes into receivership and the banks always get paid first, then employee entitlements and then unsecured loans last.

That is why this isn't simple.
Id imagine Nisbett is aware this is a horrific financial investment and it is why he was raging hard over the last week on Perth radio (raging hard for him anyway).

Can only see what gets negotiated at the end of it all I spose to see just how we get it back and what not. I got nothing on that front. I cant really imagine what will play out there. Do we get to keep on extra staff?, do we ask for extra home games?, do we ask for fixture preferences and first choice? f’ed if I know how it will all work out
 

BF Tiger

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So you’re saying the AFL is burning $25-30 million every month? And now they are looking for a few hundred million more on top of the $600 million they already have access to (and are burning through at $25-30 million/month), such that come the end of 2022 they may be close to a billion dollars in debt?
 
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