Opinion Financial impact on structure of Port, the AFL and long lasting Covid issues

[Hammer#8]

Were our salary cap issues reported in the media last year ever rebuked by our administration?

Port Adelaide is struggling so badly off the field that the club has reportedly asked some of its best players to roll over their 2019 salaries over to the 2020 season.

Speaking on Footy Classified, veteran AFL reporter Caroline Wilson revealed that the Power's dire profit-and-loss situation had resulted in the desperate calls made to some of it's most prolific players.

"They've got a profit-and-loss issue and my understanding is that several senior players have been asked to roll money over from 2019 to 2020," Wilson said.

"I'm talking about Robbie Gray, Travis Boak and several other players as well.

"Because of their profit-and-loss situation and the money they will lose this season, they are being asked to roll their salaries over to next year. That is not a usual situation."

Robbie Gray and Travis Boak are understood to be among the players asked to roll over their 2019 salaries (AAP)
According to Wilson, due to having turned to a youth policy through the recruitment of the likes of Zak Butters, Connor Rozee and Xavier Duursma, the Power is currently operating "more than half a billion dollars" under the salary cap.

Wilson stressed that the likes of Gray and Boak had no problem being asked to roll over their salaries, but shed doubt on the club's immediate future.

"If they're not making enough money to pay to 100 percent of their salary cap, what hope are they going to have in the next few years?" she said.

Cash-strapped Power's desperate plea to stars

'It's a massive disadvantage'

wwos.nine.com.au

You have to wonder what sort of financial dissidence the current playing group would be facing in light of further pay cuts. I don't mean to alarmist, but I'm seriously concerned about our club's finances after the dust has settled. I think KT is keeping a straight face and being diplomatic but you wonder what more will be revealed out of this in the coming months.

 

[RussellEbertHandball]

Done deal: Players agree to pay cuts after intense negotiations

AFL players have reached agreement on new pay structures with the AFL in a landmark decision which will allow for the return of matches post-coronavirus outbreak.

After two weeks of intense negotiations, the players on Friday agreed to take a 50 per cent for at least April and May, and 70 per cent from June if matches are unable to be played.

AFL CEO Gillon McLachan confirmed the deal on Friday night, and thanked the players for their preparedness to sacrifice big pay cuts to assist the overall industry.

"I want to thank the players for how they handled this," McLachlan told AFL.com.au. "They have made a decision which will ensure we can keep going. "This issue has been so complex, so fast-moving and we have been able to achieve in a couple of days what would normally take months."

McLachlan also said the AFL was close to officially securing bank loans of more than $500 million.

UPDATE: Pay cut deal ensures 'certainty' in AFL industry: AFLPA

Landmark decision allows for matches to return after coronavirus crisis

www.afl.com.au

 

[RussellEbertHandball]

KT reckons We Will Survive.

But it will take more than the club administrators and board to pull us through this and be able to thrive at the other end.

We need everyone to step up, volunteer to help, be agile, be innovative, improvise just like we are seeing businesses out there adapt to the virus crisis. Rum and Gin distilleries turning their stills to make liquid hand sanitiser, restaurants and cafes making takeaway food for for frontline health staff, a cafe starts selling fresh veggies and eggs as an alternative to supermarkets, services business delivering online rather than face to face, manufacturers tooling up to make ventilators etc.

The time is now to tap into the full abilities, knowledge and desire to help of what I call the Port Adelaide Network across the city, across the state, across the nation and across the globe. And welcome them on board with open arms and not suspicion.

There are always opportunities when disasters strike.

‘We will survive’:Keith Thomas says Port Adelaide is in a ‘life threatening situation’ but it won’t go under

Port Adelaide chief executive Keith Thomas says the club is in for “a pretty significant fight’’ but insists it will survive the coronavirus pandemic. Describing the decision last week to stand down 80 per cent of club staff to get through the global health crisis as the toughest of his life, a resolute Thomas said the Power – under threat of folding in the early 2010s – would re-emerge as a powerful AFL club.

And he expressed confidence that a 17-round season would still be played this year. “The club will survive, we won’t let it go under,’’ he said. “It’s in a life-threatening situation but it will not go under.’’ Port – like its AFL rivals – will lose millions of dollars as the game comes to a grinding halt because of COVID-19.

Matches have stopped after one round until May 31 and the delay could be longer as Australia battles the virus. “It’s been a very tough week for our club and for the entire community,’’ Thomas said, adding “at AFL level we’re really committed to playing the season out, even if that takes us into December’’.

“We’re in a similar position to everyone else where we feel as if we’re preparing for a pretty significant fight.’’ Thomas said that financially Port – in its 150th year and easy round one winners against Gold Coast – was in much better shape now than it was when he took over in 2011 when it needed a “rebuild’’ and “wasn’t in good shape’’. “The reality in this situation now is that the club is in good shape and it will be there at the end of this,’’ he said. But Thomas said drastic measures had to be taken during the week, with massive staff cuts – eight administrative employees were let go and 50 staff stood down but the football department was temporarily spared of any redundancies – to survive the loss of incoming revenue from no games.

.......

“But we’re going to do the best we can, show a bit of resilience and we’ll come out really quickly and really strongly. But the conversations this week, you could see it really hitting home.’’ Thomas said one of the most difficult parts of the predicament AFL clubs found themselves in was “the lack of certainty’’ over when the season will resume. “I think that’s what’s causing the most anxiety, the lack of certainty,’’ he said.

“But the AFL is really committed to playing the season out and I think that’s really important because it helps me with the discussion I’m having with my team about staying focused, getting into the mindset of getting over this hump because at the end of it we’ve got a season to play out, which enables us to keep our purpose.’’

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[Lockhart Road]

KT reckons We Will Survive.

But it will take more than the club administrators and board to pull us through this and be able to thrive at the other end.

We need everyone to step up, volunteer to help, be agile, be innovative, improvise just like we are seeing businesses out there adapt to the virus crisis. Rum and Gin distilleries turning their stills to make liquid hand sanitiser, restaurants and cafes making takeaway food for for frontline health staff, a cafe starts selling fresh veggies and eggs as an alternative to supermarkets, services business delivering online rather than face to face, manufacturers tooling up to make ventilators etc.

The time is now to tap into the full abilities, knowledge and desire to help of what I call the Port Adelaide Network across the city, across the state, across the nation and across the globe. And welcome them on board with open arms and not suspicion.

There are always opportunities when disasters strike.

‘We will survive’:Keith Thomas says Port Adelaide is in a ‘life threatening situation’ but it won’t go under

Port Adelaide chief executive Keith Thomas says the club is in for “a pretty significant fight’’ but insists it will survive the coronavirus pandemic. Describing the decision last week to stand down 80 per cent of club staff to get through the global health crisis as the toughest of his life, a resolute Thomas said the Power – under threat of folding in the early 2010s – would re-emerge as a powerful AFL club.

And he expressed confidence that a 17-round season would still be played this year. “The club will survive, we won’t let it go under,’’ he said. “It’s in a life-threatening situation but it will not go under.’’ Port – like its AFL rivals – will lose millions of dollars as the game comes to a grinding halt because of COVID-19.

Matches have stopped after one round until May 31 and the delay could be longer as Australia battles the virus. “It’s been a very tough week for our club and for the entire community,’’ Thomas said, adding “at AFL level we’re really committed to playing the season out, even if that takes us into December’’.

“We’re in a similar position to everyone else where we feel as if we’re preparing for a pretty significant fight.’’ Thomas said that financially Port – in its 150th year and easy round one winners against Gold Coast – was in much better shape now than it was when he took over in 2011 when it needed a “rebuild’’ and “wasn’t in good shape’’. “The reality in this situation now is that the club is in good shape and it will be there at the end of this,’’ he said. But Thomas said drastic measures had to be taken during the week, with massive staff cuts – eight administrative employees were let go and 50 staff stood down but the football department was temporarily spared of any redundancies – to survive the loss of incoming revenue from no games.

.......

“But we’re going to do the best we can, show a bit of resilience and we’ll come out really quickly and really strongly. But the conversations this week, you could see it really hitting home.’’ Thomas said one of the most difficult parts of the predicament AFL clubs found themselves in was “the lack of certainty’’ over when the season will resume. “I think that’s what’s causing the most anxiety, the lack of certainty,’’ he said.

“But the AFL is really committed to playing the season out and I think that’s really important because it helps me with the discussion I’m having with my team about staying focused, getting into the mindset of getting over this hump because at the end of it we’ve got a season to play out, which enables us to keep our purpose.’’

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Concur.

 

[Jones2ByrneJones]

All I can say is thank Boak we didn't chop Hinkley off with his payout.

 

[TeeKray]

KT reckons We Will Survive.

Well that's ... comforting.

 

[DaTBird187]

Well that's ... comforting.

Yep. At first I was afraid. I was petrified.

 

[GremioPower]

Yep. At first I was afraid. I was petrified.

I kept thinking I couldn't live without Port by my side.

 

[RussellEbertHandball]

Step 1 get agreement with players done last week. Step 2 secure line of credit and give security to clubs. That is now done.

Next step for clubs now they have some security - 1) sort out coaches 2) sort out members refunds - everything else was shut down post Sunday 22nd announcement comp shutdown until at least 31st May.

AFL SECURES LINE OF CREDIT TO KEEP GAME ON LIFE SUPPORT

THE AFL has taken a huge step towards securing its future after gaining approval for a bank loan. Clubs have been told that the league has secured a line of credit - understood to be more than $500 million - to keep the game on life support.

That loan will compensate for the massive shortfall created by the absence of broadcast revenue and attendances while the competition is suspended.

The AFL yesterday wrote to clubs seeking the return of a signed document.

That document broadly asks clubs to abide by the financial instructions of the AFL and to refrain from any private commercial arrangements while the league grasps the financial olive branch.

Clubs are yet to be given a detailed description of what their financial pictures will look like. League chiefs has been in discussions with the NAB, the AFL’s banker and corporate partner about seeking a loan.

Marvel Stadium – the AFL’s biggest asset - made that line of credit possible. The AFL bought the stadium in 2016, gaining management rights and freehold ownership of the Docklands venue. The AFL Commission elected to buy out the owner’s share for a reported $200 million, rather than wait until 2025 when it was due to automatically acquire the stadium for $30. It has proven to be masterstroke, not only in gaining a line of credit, but also in the most likely condensed staging of games to get through the 2020 season.

AFL secures line of credit to keep game on life support

The AFL has taken a huge step towards securing its future.

www.sen.com.au

 

[VineValerian]

So assuming it's going to be a brave new world order when everything resumes, well at least from next year on anyway, does that provide Port with more leverage to argue it's case to the AFL regarding wearing the PB guernsey twice a year every year?

They could argue the merits of it being that all clubs will have to be inventive to secure additional revenue in order to survive.

Bigger competitions around the world have multiple (ie. two - or more) clubs with the same colours, just varying designs, and they get along just fine and dandy.

We should argue that it will not harm nor diminish the AFL brand in any way. It should not impact on Eddiewood's brand and bottom line as we have a different design to theirs. And it will be a merchandising bonanza for Port, lifting our revenue streams.

Grow some kahunas Kochie and GET IT DONE!
There should be no impediment to this! All cards are on the table, and we should hit them and hit them mighty hard to get it through.

,

"You gotta hit 'em low, you gotta hit 'em fast, and you gotta hit 'em hard. And if they get up - you hit 'em again!"

 

[RussellEbertHandball]

So assuming it's going to be a brave new world order when everything resumes, well at least from next year on anyway, does that provide Port with more leverage to argue it's case to the AFL regarding wearing the PB guernsey twice a year every year?

They could argue the merits of it being that all clubs will have to be inventive to secure additional revenue in order to survive.

Bigger competitions around the world have multiple (ie. two - or more) clubs with the same colours, just varying designs, and they get along just fine and dandy.

We should argue that it will not harm nor diminish the AFL brand in any way. It should not impact on Eddiewood's brand and bottom line as we have a different design to theirs. And it will be a merchandising bonanza for Port, lifting our revenue streams.

Grow some kahunas Kochie and GET IT DONE!
There should be no impediment to this! All cards are on the table, and we should hit them and hit them mighty hard to get it through.

View attachment 849245,

"You gotta hit 'em low, you gotta hit 'em fast, and you gotta hit 'em hard. And if they get up - you hit 'em again!"

We should be pushing for at least 2 games.

We need to get rid of Koch, Cardone and KT when dealing with the AFL re the PB's. They have about as much punch as being hit by a wet lettuce leaf on this issue.

The members will be keeping Port alive especially if they don't ask for their membership fees back. The club has to reward the members by getting more games guaranteed with the AFL that we wear the bars more often and AFL has to tell Collingwood to piss of.

The PB's are a revenue driver for the club. When this thing is over we tell the AFL stop denying us our history and our opportunity to wear the bars and making more revenue which means we don't have to draw down on your loan as much.

In 2021 we should be allowed to wear the bars to celebrate every different premiership associated with an significant anniversary of a flag, so that we have a different logo on each time we wear one and the memorabilia nuts will buy every different one

In 2021 we celebrate 1921, 1951, 1981, 1996 25th anniversary and 65th anniversary 1956, flags

So that is 4 maybe 5 games, if a 65th anniversary is considered as significant as a 75th, different years are put somewhere above the heart on the jumper of which year we are celebrating that game, and if you want that year anniversary you buy that version jumper.

 

[jac147]

We should be pushing for at least 2 games.

We need to get rid of Koch, Cardone and KT when dealing with the AFL re the PB's. They have about as much punch as being hit by a wet lettuce leaf on this issue.

The members will be keeping Port alive especially if they don't ask for their membership fees back. The club has to reward the members by getting more games guaranteed with the AFL that we wear the bars more often and AFL has to tell Collingwood to piss of.

The PB's are a revenue driver for the club. When this thing is over we tell the AFL stop denying us our history and our opportunity to wear the bars and making more revenue which means we don't have to draw down on your loan as much.

In 2021 we should be allowed to wear the bars to celebrate every different premiership associated with an significant anniversary of a flag, so that we have a different logo on each time we wear one and the memorabilia nuts will buy every different one

In 2021 we celebrate 1921, 1951, 1981, 1996 25th anniversary and 65th anniversary 1956, flags

So that is 4 maybe 5 games, if a 65th anniversary is considered as significant as a 75th, different years are put somewhere above the heart on the jumper of which year we are celebrating that game, and if you want that year anniversary you buy that version jumper.

I’d be going for more than two games a season for the bars, however it may be advisable to use “baby steps” at first. Then make it our “home” guernsey.

 

[Holden Hillbilly]

PORT Adelaide chief executive Keith Thomas admits the future of the club's long-standing state league outfit could be in jeopardy as the sport grapples with the financial crisis caused by the coronavirus pandemic.

The Port Adelaide Magpies are South Australia's most successful Australian Football team with 36 SANFL premierships - a national record across the major state-based competitions.

Grave fears for one of Australian Football's most famous clubs

Port chief Keith Thomas admits the future of the club's long-standing state league outfit could be in jeopardy

www.afl.com.au

 

[tribey]

Marvel Stadium – the AFL’s biggest asset - made that line of credit possible.

Well would you look at that.

 

[PowerBaz]

PORT Adelaide chief executive Keith Thomas admits the future of the club's long-standing state league outfit could be in jeopardy as the sport grapples with the financial crisis caused by the coronavirus pandemic.

The Port Adelaide Magpies are South Australia's most successful Australian Football team with 36 SANFL premierships - a national record across the major state-based competitions.

Grave fears for one of Australian Football's most famous clubs

Port chief Keith Thomas admits the future of the club's long-standing state league outfit could be in jeopardy

www.afl.com.au

Time to push for a better oval deal out of this, blind Freddie can see the two biggest assets (Port/Crows) create so much wealth for the state, the oval, the SANFL etc... that they deserve to keep more money out of what they generate, because without them it's all irrelevant, meaningless and non-existent.

Disclaimer: The SMA, SANFL will screw them both over harder now......

 

[GremioPower]

Time to push for a better oval deal out of this, blind Freddie can see the two biggest assets (Port/Crows) create so much wealth for the state, the oval, the SANFL etc... that they deserve to keep more money out of what they generate, because without them it's all irrelevant, meaningless and non-existent.

Disclaimer: The SMA, SANFL will screw them both over harder now......

Get Mr. Guy on the phone and check if he is in for a whole season in Shanghai. Call MG, too.

If they are in, we use that as leverage in the negotiation with the SMA. If SMA calls our bluff, we play a year in China and seat with the SMA again.

P.S.: It wouldn't need to be a whole season. Perhaps, we could use Ballarat, Alice's Springs, and Alberton as venues for games as well. Regardless, I think the SMA wouldn't risk losing our games.

 

[Us against the rest]

This is going to impact the less financial clubs very hard. Hopefully the AFL and SANFL can work something out to secure the future of all clubs.

 

[Lockhart Road]

We should be pushing for at least 2 games.

We need to get rid of Koch, Cardone and KT when dealing with the AFL re the PB's. They have about as much punch as being hit by a wet lettuce leaf on this issue.

The members will be keeping Port alive especially if they don't ask for their membership fees back. The club has to reward the members by getting more games guaranteed with the AFL that we wear the bars more often and AFL has to tell Collingwood to piss of.

The PB's are a revenue driver for the club. When this thing is over we tell the AFL stop denying us our history and our opportunity to wear the bars and making more revenue which means we don't have to draw down on your loan as much.

In 2021 we should be allowed to wear the bars to celebrate every different premiership associated with an significant anniversary of a flag, so that we have a different logo on each time we wear one and the memorabilia nuts will buy every different one

In 2021 we celebrate 1921, 1951, 1981, 1996 25th anniversary and 65th anniversary 1956, flags

So that is 4 maybe 5 games, if a 65th anniversary is considered as significant as a 75th, different years are put somewhere above the heart on the jumper of which year we are celebrating that game, and if you want that year anniversary you buy that version jumper.

The ‘restraint of trade’ defensive legal argument has raised its voice, maximum volume.

Hear it, Eddie?

 

[Frank Hansen II]

We should be pushing for at least 2 games.

We need to get rid of Koch, Cardone and KT when dealing with the AFL re the PB's. They have about as much punch as being hit by a wet lettuce leaf on this issue.

The members will be keeping Port alive especially if they don't ask for their membership fees back. The club has to reward the members by getting more games guaranteed with the AFL that we wear the bars more often and AFL has to tell Collingwood to piss of.

The PB's are a revenue driver for the club. When this thing is over we tell the AFL stop denying us our history and our opportunity to wear the bars and making more revenue which means we don't have to draw down on your loan as much.

In 2021 we should be allowed to wear the bars to celebrate every different premiership associated with an significant anniversary of a flag, so that we have a different logo on each time we wear one and the memorabilia nuts will buy every different one

In 2021 we celebrate 1921, 1951, 1981, 1996 25th anniversary and 65th anniversary 1956, flags

So that is 4 maybe 5 games, if a 65th anniversary is considered as significant as a 75th, different years are put somewhere above the heart on the jumper of which year we are celebrating that game, and if you want that year anniversary you buy that version jumper.

I don't know any supporters who are asking for their membership money back. I completely agree that they should reward this loyalty (the kind that you wouldn't expect a franchise club to necessarily have so let's hope those clubs are alright) by fighting harder for the PB to be our home guernsey.

 

[Magus]

This is going to impact the less financial clubs very hard. Hopefully the AFL and SANFL can work something out to secure the future of all clubs.

Ain't got time to worry about other clubs.

 

[chiwigi]

I wonder what impact this will have on what seemed to be an unstoppabLe march to AFL reserves.
I’m hoping it increases the likelihood, but will the AFL now be gun shy?

 

[tribey]

Ain't got time to worry about other clubs.

I’m openly rooting for the SANFL as it stands to fall over. The tail has wagged the dog for too long.

Re-order with a priority on junior development.

 

[Magus]

I’m openly rooting for the SANFL as it stands to fall over. The tail has wagged the dog for too long.

Re-order with a priority on junior development.

I mean it'd really just be speeding up the inevitable anyway. The competition and it's clubs have been on a slow march to irrelevancy for decades.
They can either learn to live within their means and stop trying to be the second best league in the land or face the consequences.

 

[HinkleysHeroes]

I’m openly rooting for the SANFL as it stands to fall over. The tail has wagged the dog for too long.

Re-order with a priority on junior development.

Heard that central's was in financial trouble before this hit. They are in trouble of folding.
Watch the SANFL demand more money from the AFL for poor old central's and their grand history.

 

[Nelso]

Heard that central's was in financial trouble before this hit. They are in trouble of folding.
Watch the SANFL demand more money from the AFL for poor old central's and their grand history.

Westies are asking for 50k in donations.

I’m openly rooting for the SANFL as it stands to fall over. The tail has wagged the dog for too long.

Re-order with a priority on junior development.

Yep no more ex AFL hacks from interstate coming over to line their pockets under the pretence that they are desperate to get back into the AFL system.