AFL Club Ownership Summary

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The_Wookie

Queenslander
Jul 2, 2010
33,360
31,084
Scamander
AFL Club
Carlton
Quick little video we made outlining the various ownership structures in the AFL... lets see how long this stays up to date for :rolleyes:

its not just the tigers who can appoint up to 3 members of the board directly by the board - theres 3 other clubs that can including Brisbane (up to 4 board appointments), Western Bulldogs and Essendon.

And while Port and Adelaide are both currently AFL controlled that has a definitive end in 2029.
 

RussellEbertHandball

Flick pass expert
Nov 16, 2004
62,808
90,788
SE Oz
AFL Club
Port Adelaide
Other Teams
The Mighty Blacks
And while Port and Adelaide are both currently AFL controlled that has a definitive end in 2029.
Where is that written Wookie? If its in Port's constitution, I either completely missed it when I read the new 2013 Constitution that went up on the website in early 2014 and several times since, or they have amended the constitution and I haven't seen that amendment.
 

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The_Wookie

Queenslander
Jul 2, 2010
33,360
31,084
Scamander
AFL Club
Carlton
Where is that written Wookie? If its in Port's constitution, I either completely missed it when I read the new 2013 Constitution that went up on the website in early 2014 and several times since, or they have amended the constitution and I haven't seen that amendment.
its in the adelaide one.

Development Grant Completion Date means 31 October 2028 (or such earlier time as the AFC and the AFL agree);
7.2 Cessation of AFL Membership
(a) The AFL will cease to be a Member on the Development Grant Completion Date.
 

RussellEbertHandball

Flick pass expert
Nov 16, 2004
62,808
90,788
SE Oz
AFL Club
Port Adelaide
Other Teams
The Mighty Blacks
definitely not in there, last constitution is the 2013 one (its the same as the one uploaded to ASIC in may 2014)
Probably need a lawyer to clarify it but the way I read all of 7.1 and 7.2 and 8.1, I interpret those three clauses read together as the AFL no longer is a member after 31/10/28 and therefore can't attend meetings but under clauses 19 to 26 the AFL still retain their power to appoint directors.

7. Members
7.1 Classes of Membership
The AFC will consist of the following classes of Members:
(a) AFL
The AFL, who through its delegate will have the right to attend, debate and vote at general meetings for and on behalf of the AFL.

(b) Life Members
The Board may from time to time and in its absolute discretion nominate a Member to become a life member of the AFC, including any player of the AFC who has, in the opinion of the Board, rendered special service to the AFC or to football (Life Member).

(c) Electing Member A person who:
(i) will be 18 years of age or older as at the date of completing the Membership Application;
(ii) has completed and submitted the current Membership Application and complied with all other applicable application and renewal procedures required by the AFC from time to time; and
(iii) has paid the applicable Membership Fee, may be admitted by the Board as an electing member (Electing Member).

(d) Other Classes of Membership & Variations to Existing Classes
(i) Subject to the Corporations Act and clause 7.1(d)(ii), the Board in its absolute discretion has the right to establish other classes of membership, or vary existing classes of membership, from time to time.
(ii) The Board may not amend any of the rights of the AFL before the Development Grant Completion Date without the prior consent of the AFL.

7.2 Cessation of AFL Membership
(a) The AFL will cease to be a Member on the Development Grant Completion Date.

(b) From the Development Grant Completion Date, the Board may grant all of the rights held by the AFL to any other class of Member that is in existence on the Development Grant Completion Date or is otherwise established by the Board.

(c) If the Board does not grant the rights of the AFL Voting Member to another class or classes, the Board will grant all of the rights held by the AFL to the Electing Members.

8. Membership Rights

Members have the following rights (according to the class of Membership they belong to):
(a) The AFL, through its delegate, is entitled to attend, speak and vote at any general meeting of the AFC.

I think that means all the rights the AFL holds under 7.1 (a) and not as having rights to stop appointments to the board and to stop changes to the constitution.

 

RussellEbertHandball

Flick pass expert
Nov 16, 2004
62,808
90,788
SE Oz
AFL Club
Port Adelaide
Other Teams
The Mighty Blacks
The_Wookie this clause I think says you are right.


56. AFL Licence
(a) The terms of the Licence Agreement prevail to the extent of any inconsistency between this constitution and the Licence Agreement.

(b) Notwithstanding any other provision of this constitution, until the Development Grant Completion Date this constitution may not be amended in any way unless the relevant amendment has been approved by the AFL in its absolute discretion. Each resolution seeking or approving an amendment to this constitution will by virtue of this clause be conditional on the approval of the AFL.
 

Kwality

Brownlow Medallist
Aug 14, 2011
27,454
10,161
Tootgarook
AFL Club
West Coast
Other Teams
Renault F1
The_Wookie this clause I think says you are right.


56. AFL Licence
(a) The terms of the Licence Agreement prevail to the extent of any inconsistency between this constitution and the Licence Agreement.

(b) Notwithstanding any other provision of this constitution, until the Development Grant Completion Date this constitution may not be amended in any way unless the relevant amendment has been approved by the AFL in its absolute discretion. Each resolution seeking or approving an amendment to this constitution will by virtue of this clause be conditional on the approval of the AFL.
So how does the money flow?
 

Kwality

Brownlow Medallist
Aug 14, 2011
27,454
10,161
Tootgarook
AFL Club
West Coast
Other Teams
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And the WAFC is owned by...... WAFL Clubs?
No

WA Football financial sustainability measures Thursday, March 26, 2020 - 6:35 PM
The West Australian Football Commission today announced a broad range of financial sustainability measures to support WA Football during the Coronavirus crisis.
 

tandino

Brownlow Medallist
Mar 16, 2007
11,085
7,643
Showers Stand
AFL Club
Essendon
No

WA Football financial sustainability measures Thursday, March 26, 2020 - 6:35 PM
The West Australian Football Commission today announced a broad range of financial sustainability measures to support WA Football during the Coronavirus crisis.
Who elects the board?
 

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Kwality

Brownlow Medallist
Aug 14, 2011
27,454
10,161
Tootgarook
AFL Club
West Coast
Other Teams
Renault F1
What do you mean?

The crows and Port are buying back their licence from the SANFL over 15 years. 2028 is the final instalment.

There is nothing apart from that, that is different to the club owned by members in Victoria.
So the money flows from the clubs to the SANFL? I've not looked as I should, sorry.
 

RussellEbertHandball

Flick pass expert
Nov 16, 2004
62,808
90,788
SE Oz
AFL Club
Port Adelaide
Other Teams
The Mighty Blacks
the Nominee Members of the WAFC (WA’s AFL and WAFL Clubs), for example here. One of the many things the WAFC got right and the SANFL got wrong IMO, was giving the AFL clubs representation on the state governing body.
And from very early on, pre V/AFL days they appointed independent people onto the WAFC, with no specific club allegiance, ie they may have been a member of a WAFL club, but weren't or even been CEO or on the board on a WAFL club.
 

Kwality

Brownlow Medallist
Aug 14, 2011
27,454
10,161
Tootgarook
AFL Club
West Coast
Other Teams
Renault F1
Only in respect to that licence fee purchase. They didn't have te monies to buy it up front so 15 year buyback was set up as part of move to Adelaide Oval.
I'm happy WA resisted the AFLs desire to do that over there. Paying to own your own club doesnt sit right with me, a recipe to be poor for 10 years.
A shame the SANFL doesnt have any redeeming features.

Do the clubs carry the liability on the Balance Sheet?
 

RussellEbertHandball

Flick pass expert
Nov 16, 2004
62,808
90,788
SE Oz
AFL Club
Port Adelaide
Other Teams
The Mighty Blacks
Crows pay a small dividend every year - about 600k I think - port havent made enough to pay for a while, or they dont have to - im unclear on this, but REH will know
I did a spreadsheet when the deal was done in early 2014 and the starting point was approx crows 630k and Port 350k and they were both indexed each years by 2.5% to get the final figure that was published in the media at the time. The total contribution over 15 years is crows $11.X mil and Port $7.Y mil and total was a touch under $19 mil.

Yeah crows highlight it as a abnormal costs in their P&L ie after the mickey mouse operating profit figure despite it being an ongoing cost every year, and port don't reveal how much they pay and just included it as part of football department expenses.

It's strange because the AFC used to announce an $X profit figure and then say but that includes after paying the SANFL $Y for royalty fee and $Z for northern grandstand contribution and Port would say we have made $X profit before making a royalty payment $Y royalty fee and after that we made a next $A. Port contributed to the northern grandstand like the crows per reserved seat sold but we had few members buy tickets there so didn't announce that contribution.
 

RussellEbertHandball

Flick pass expert
Nov 16, 2004
62,808
90,788
SE Oz
AFL Club
Port Adelaide
Other Teams
The Mighty Blacks
I'm happy WA resisted the AFLs desire to do that over there. Paying to own your own club doesn't sit right with me, a recipe to be poor for 10 years.
A shame the SANFL doesnt have any redeeming features.

Do the clubs carry the liability on the Balance Sheet?
Port treat it as an operating lease, and crows effectively treat it as a finance lease with out calling it that. In 2014 to hide a large loss they showed an abnomal expense of Development of Football in SA (15 yr grant) $(8,440,845), with was the discounted cash flow figure of that $11.xm so they hid a large operating loss, but the other side was a large non current payable liability

They also had a capital gain and showed as abnormal income Initial recognition of Adelaide Oval facilities $3,679,170

So each year in the crows' cash flow figures you see what the cash payment to the SANFL clearly as an investing activities, Port don't show it there they just show it as a cash flow payment to suppliers in the cash flows or operating activities.

But because their is a difference between the actual cash paid and the reduction of that discounted cash flow liability the difference is reported as an abnormal expense called - Unwind of discount on deferred liabilities.It was $(205,778) representing 9 months in 2014, $(308,398) in 2015 and in 2018 it was $(270,291)

Its all politics and spin of part of football in SA which WA footy luckily dodged, after the AFL stepped in 2001, and said to WAFC stop screwing around with Freo otherwise you will get yourself into the mess like in SA.

Crows say, look, look how much we are paying the SANFL and don't look at our bottom line real million dollar losses between 2013-2016 years.
Port say, don't let our fans know we are still pay fees to the SANFL, because they hates those bastard and will be hassling us why we even pay them 1 cent.
 
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tandino

Brownlow Medallist
Mar 16, 2007
11,085
7,643
Showers Stand
AFL Club
Essendon
the Nominee Members of the WAFC (WA’s AFL and WAFL Clubs), for example here. One of the many things the WAFC got right and the SANFL got wrong IMO, was giving the AFL clubs representation on the state governing body.
On the surface that's a positive, tempered somewhat by the fact that the WAFC appoints all the directors of both AFL clubs anyway.

At least in WA if you trace the links far enough you will end up at individual members of WAFL clubs 'owning' everything. They elect their club boards which as a collective have a majority of votes to elect the WAFC, and the WAFC owns the two licenses and the power that gives them in regards to the AFL Commission.

I can tend to fall down the rabbit hole on this sort of stuff. The relationship between the club members and the clubs and the AFL has been a bit of a focus for me and this week sort of ticked me off a bit.
 

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