Financial survival of the AFL and its' 18 clubs

Which AFL clubs are in the most financial danger due to the Coronavirus situation?

  • Adelaide

    Votes: 5 3.2%
  • Brisbane

    Votes: 36 23.1%
  • Carlton

    Votes: 17 10.9%
  • Collingwood

    Votes: 6 3.8%
  • Essendon

    Votes: 10 6.4%
  • Fremantle

    Votes: 9 5.8%
  • Geelong

    Votes: 12 7.7%
  • Gold Coast

    Votes: 81 51.9%
  • Greater Western Sydney

    Votes: 48 30.8%
  • Hawthorn

    Votes: 8 5.1%
  • Melbourne

    Votes: 53 34.0%
  • North Melbourne

    Votes: 96 61.5%
  • Port Adelaide

    Votes: 38 24.4%
  • Richmond

    Votes: 12 7.7%
  • St. Kilda

    Votes: 108 69.2%
  • Sydney

    Votes: 16 10.3%
  • West Coast

    Votes: 6 3.8%
  • Western Bulldogs

    Votes: 55 35.3%

  • Total voters
    156

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bellpark

Team Captain
Aug 18, 2009
410
1,228
Adelaide
AFL Club
Geelong
I think you might have to back out of the ball park the Virgin sponsorship maybe now they are going into voluntary administration. In addition, no flights for the AFL to stage matches maybe, and Qantas will no doubt be setting monopoly prices if Virgin is a much reduced carrier owned by PE after administration.
 

Kwality

Brownlow Medallist
Aug 14, 2011
27,415
10,148
Tootgarook
AFL Club
West Coast
Other Teams
Renault F1
I think you might have to back out of the ball park the Virgin sponsorship maybe now they are going into voluntary administration. In addition, no flights for the AFL to stage matches maybe, and Qantas will no doubt be setting monopoly prices if Virgin is a much reduced carrier owned by PE after administration.
Symptomatic of the value of sponsorships in the future across Sport everywhere.
E.g is the Tas Govt paying the Hawks to not play in Tas?
 

Rob

Brownlow Medallist
Nov 8, 2000
29,141
15,891
South of the river
AFL Club
Fremantle
Other Teams
Peel Thunder
I think you might have to back out of the ball park the Virgin sponsorship maybe now they are going into voluntary administration. In addition, no flights for the AFL to stage matches maybe, and Qantas will no doubt be setting monopoly prices if Virgin is a much reduced carrier owned by PE after administration.
I'd wait and see what comes out of the Virgin administrators first. IMO Virgin will be back.
 

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bellpark

Team Captain
Aug 18, 2009
410
1,228
Adelaide
AFL Club
Geelong
I think it depends on timing. Virgin will be back but probably only in a much reduced fashion, so shedding all 'nice to have expenditures, which will include expensive sponsorships I think. A large chunk of present value to the AFL would be contra flying, but the new owners will have no problem filling a reduced capacity airline, even at the likely gouging prices we will no doubt see from Qantas and a much smaller Virgin. So, I think the challenge for the AFL will be if no airline will fly the players around for free, then the cost model for a national comp gets even tougher. Fundamentally, unless Virgin retains its current sponsorship, I think the AFL business model for a national comp is in big strife.
 

Boxhead007

Cancelled
Mar 20, 2020
713
1,014
Sunny QLD
AFL Club
Richmond
I don't think even the clubs know yet.
They don’t as the don’t have the soft cap. I heard the other night from someone in the know that 2 million will be snipped off the soft cap bringing it to around 7 million. Essentially it is the level at which clubs will be at when they re- employ their full time staff upon resumption. It will then be trimmed even more.
Clubs have no idea which areas they will need to trim. Recruiting and development is one area that has been flagged
 

Kwality

Brownlow Medallist
Aug 14, 2011
27,415
10,148
Tootgarook
AFL Club
West Coast
Other Teams
Renault F1
I think it depends on timing. Virgin will be back but probably only in a much reduced fashion, so shedding all 'nice to have expenditures, which will include expensive sponsorships I think. A large chunk of present value to the AFL would be contra flying, but the new owners will have no problem filling a reduced capacity airline, even at the likely gouging prices we will no doubt see from Qantas and a much smaller Virgin. So, I think the challenge for the AFL will be if no airline will fly the players around for free, then the cost model for a national comp gets even tougher. Fundamentally, unless Virgin retains its current sponsorship, I think the AFL business model for a national comp is in big strife.
Why would an administator honour this expenditure, albeit contra.
 

Our Game

Club Legend
Sep 30, 2014
2,544
1,452
Sandringham
AFL Club
Geelong
Virgin are a long way from being dead.
The government dosen't want a Qantas monopoly and there are a number of companies interested in Virgin according to the administrator.The story still has a long way to go.
I expect they will be revived in a much smaller state dump Tiger and maybe drop the international routes and just concentrate locally.
 

big_e

Premium Platinum
Apr 28, 2008
6,469
18,487
The Championship
AFL Club
North Melbourne
Other Teams
Wycombe Wanderers
I think you might have to back out of the ball park the Virgin sponsorship maybe now they are going into voluntary administration. In addition, no flights for the AFL to stage matches maybe, and Qantas will no doubt be setting monopoly prices if Virgin is a much reduced carrier owned by PE after administration.
Ansett was a major sponsor of the AFL, too.*







*Correlation does not equal causation...
 

Kwality

Brownlow Medallist
Aug 14, 2011
27,415
10,148
Tootgarook
AFL Club
West Coast
Other Teams
Renault F1
Virgin are a long way from being dead.
The government dosen't want a Qantas monopoly and there are a number of companies interested in Virgin according to the administrator.The story still has a long way to go.
I expect they will be revived in a much smaller state dump Tiger and maybe drop the international routes and just concentrate locally.
Owner

 

Haynefan#1872

Debutant
Aug 28, 2015
114
193
AFL Club
Adelaide
The failed business model will need adjustment, you need to make a profit to provide for a rainy day, turnover doesnt crack it.
I was watching Alan Kohler today ( I think) and the business model was basically to provide Australian flights delivered by the overseas owners, all airlines, so they didn't really care if they made money or not it was just about making flights to Aus more attractive for tourists.
 

Rob

Brownlow Medallist
Nov 8, 2000
29,141
15,891
South of the river
AFL Club
Fremantle
Other Teams
Peel Thunder
Why would an administator honour this expenditure, albeit contra.
I would have thought remaining as the official AFL carrier would give them a level of credibility at a time when they desperately need it. Convincing people to book with the airline 6 or 12 months in advance is going to be tough.
 

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bellpark

Team Captain
Aug 18, 2009
410
1,228
Adelaide
AFL Club
Geelong
With the amount of available seats being cut back dramatically between QF and Virgin, their need to market for a few years is pretty much 'nice to have', as they will sell all these seats regardless, and at raised prices. I cant see them being willing to give up these seats when they can sell them as they come out of administration. I think the messaging coming out that it will be Virgin continuing shortly, and there are plenty of suitors, deflects from the reality that is will be a very much cut back airline in terms of overheads. Before Macquarie Bank bid on Qantas some years ago, they bid on Olympic Airways in Greece, with the plan to turn it into a low cost airline. The PM of Greece killed the deal after it was agreed with the Finance Minister. They have good corporate knowledge of pulling our costs in a full service airline and converting to a low cost airline, so if they get it, then that's where I expect them to go. One of their investment vehicles also owned Sydney Airport. If Westfarmers get it then I expect they will 'Bunnings' it and put a low cost culture in. In either of those cases, hard to see Sponsorship of the AFL either continuing or if so being only a fraction of previous amount.
 

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