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Great idea if this plan goes ahead, the AFL take over the management of the ground and contribute to the rebuilding of the ground.
But what's the catch?
http://www.realfooty.theage.com.au/realfooty/articles/2006/03/02/1141191791166.html
But what's the catch?
http://www.realfooty.theage.com.au/realfooty/articles/2006/03/02/1141191791166.html
Blues set to off-load ground to AFL. By Jake Niall. March 3, 2006
Carlton will seek a radical financial rescue package from the AFL that involves the league assuming control of Princes Park, effectively selling the club's lease on the ground.
Under the plan, which has been discussed at board level, the Blues will ask the AFL to take over the lease of their home base and contribute to the proposed multimillion-dollar redevelopment of Princes Park.
In effect, the AFL would save Carlton the massive cost of maintaining its ground - an estimated $1.5 million - where the Blues no longer play home games. Carlton would remain the principal tenant, but its financial pressures would be greatly alleviated if the AFL paid for the ground's upkeep, while also assisting the State Government and Melbourne City Council in building an elite training and community facility with a swimming pool and gymnasium.
By using the redevelopment and lease sale as a means of improving the club's bottom line, Carlton would not be required to seek emergency funding from the AFL's annual special distribution, which supports the Bulldogs ($1.7 million this year), Kangaroos ($1.4 million) and Melbourne ($1 million). Some club insiders are reluctant to pursue that more straightforward option and prefer the more lateral lease arrangement.
It is unclear whether the Blues also will seek a cash payment in return for relinquishing control of the ground but in the event that they did receive a significant upfront fee, this would enable them to reduce their debt (estimated at $6 million) and boost their greatest financial weakness: cash flow.
The AFL would be able to use the ground for other purposes, including pre-season and practice matches or as a headquarters for the umpires or other parties - right now, it is used as a base for National Rugby League team, Melbourne Storm. With a lease that runs until 2035, taking over the ground might also give the AFL some leverage in its dealings with Telstra Dome and the Melbourne Cricket Club, given that the Dome is about to be sold and the AFL won't take possession for two decades or so.
The imminent merging of the Carlton Social Club with the football club is a key to Carlton's plan because the social club holds the lease and the AFL has indicated it wishes to negotiate only with the football club.
The social club is expected to announce a significant loss, of up to $1 million, next week and its debts are effectively guaranteed by the Carlton Football Club, which will make a small profit.
While Carlton chief executive Michael Malouf confirmed that the club was pursuing AFL funds for the redevelopment through the league's "facilities development reserve" - the fund designed to improve club facilities - but would not comment on whether the club planned to transfer the ground's lease to the AFL. "I'm not prepared to comment on that . . . That's not something the board's been through. I'm just saying there's no decision in that regard.
"We haven't even met with the AFL on these matters yet." Malouf said the redevelopment project was "in train" with the AFL. "They're putting that strategy before the various governments."
One of the three candidates seeking to challenge incumbents at Carlton's election has made the redevelopment of Princes Park his main election platform and expressed "concern" about the direction of the club.
Marcus Clarke, a barrister and social club board member has nominated for a board position, along with businessmen and coterie members Greg Lee and Craig Hart. Clarke said he was not on a ticket with either Lee or Hart and was a supporter of Stephen Kernahan, who is one of the three directors facing the members (John Valmormida and Chris Pavlou are others).
"I think he should be supported. I'm opposing the other two," said Clarke, who said he was "concerned about certain aspects" of the club's direction, but would not elaborate.
Carlton last night was yet to confirm whether the nominations of Clarke, Lee and Hart had been accepted and complied with the club's articles. Hart has been seconded by Carlton's No. 1 ticketholder, Vivienne Kerr, widow of club powerbroker Laurie Kerr.
Carlton will seek a radical financial rescue package from the AFL that involves the league assuming control of Princes Park, effectively selling the club's lease on the ground.
Under the plan, which has been discussed at board level, the Blues will ask the AFL to take over the lease of their home base and contribute to the proposed multimillion-dollar redevelopment of Princes Park.
In effect, the AFL would save Carlton the massive cost of maintaining its ground - an estimated $1.5 million - where the Blues no longer play home games. Carlton would remain the principal tenant, but its financial pressures would be greatly alleviated if the AFL paid for the ground's upkeep, while also assisting the State Government and Melbourne City Council in building an elite training and community facility with a swimming pool and gymnasium.
By using the redevelopment and lease sale as a means of improving the club's bottom line, Carlton would not be required to seek emergency funding from the AFL's annual special distribution, which supports the Bulldogs ($1.7 million this year), Kangaroos ($1.4 million) and Melbourne ($1 million). Some club insiders are reluctant to pursue that more straightforward option and prefer the more lateral lease arrangement.
It is unclear whether the Blues also will seek a cash payment in return for relinquishing control of the ground but in the event that they did receive a significant upfront fee, this would enable them to reduce their debt (estimated at $6 million) and boost their greatest financial weakness: cash flow.
The AFL would be able to use the ground for other purposes, including pre-season and practice matches or as a headquarters for the umpires or other parties - right now, it is used as a base for National Rugby League team, Melbourne Storm. With a lease that runs until 2035, taking over the ground might also give the AFL some leverage in its dealings with Telstra Dome and the Melbourne Cricket Club, given that the Dome is about to be sold and the AFL won't take possession for two decades or so.
The imminent merging of the Carlton Social Club with the football club is a key to Carlton's plan because the social club holds the lease and the AFL has indicated it wishes to negotiate only with the football club.
The social club is expected to announce a significant loss, of up to $1 million, next week and its debts are effectively guaranteed by the Carlton Football Club, which will make a small profit.
While Carlton chief executive Michael Malouf confirmed that the club was pursuing AFL funds for the redevelopment through the league's "facilities development reserve" - the fund designed to improve club facilities - but would not comment on whether the club planned to transfer the ground's lease to the AFL. "I'm not prepared to comment on that . . . That's not something the board's been through. I'm just saying there's no decision in that regard.
"We haven't even met with the AFL on these matters yet." Malouf said the redevelopment project was "in train" with the AFL. "They're putting that strategy before the various governments."
One of the three candidates seeking to challenge incumbents at Carlton's election has made the redevelopment of Princes Park his main election platform and expressed "concern" about the direction of the club.
Marcus Clarke, a barrister and social club board member has nominated for a board position, along with businessmen and coterie members Greg Lee and Craig Hart. Clarke said he was not on a ticket with either Lee or Hart and was a supporter of Stephen Kernahan, who is one of the three directors facing the members (John Valmormida and Chris Pavlou are others).
"I think he should be supported. I'm opposing the other two," said Clarke, who said he was "concerned about certain aspects" of the club's direction, but would not elaborate.
Carlton last night was yet to confirm whether the nominations of Clarke, Lee and Hart had been accepted and complied with the club's articles. Hart has been seconded by Carlton's No. 1 ticketholder, Vivienne Kerr, widow of club powerbroker Laurie Kerr.

