Financial survival of the AFL and its' 18 clubs

[Kwality]

You'd have to think that at some point, pubs and bars would be closed down, as they are very social locations, and if social distancing is being encouraged, many of the people who want to have a punt/gamble on something, or have a few beers, would just stay at home and do it online with a 6 pack from the Bottle-O.

Public transport to the CBD in peak - let me know when its closed down, pubs & clubs are small fish compared to a full train incubating at peak.

 

[Kwality]

And our media barons are scum* if they are playing hardball. they already had an extra ratings winner with the bushfire game

I hope none of my super is into 7,9,10 or Fox ..... FTA is not travelling well, nor is Fox ..... got plenty of ideology there Pes, bit short in reality.

 

[madmug]

Its not sensationalism; its paraphrasing what the NRL heads have said. The NRL is more reliant on TV rights than the AFL

Well conversely, AFL/clubs would be more reliant on ticket sales.

NRL clubs also rely on leagues clubs for sponsorship. That might get interesting.

As an aside, I'm hoping this provides the impetus for North & Hawks to get the arse from Tasmania. Its a cost we don't need right now. They are of no value.

 

[ReaperX]

Public transport to the CBD in peak - let me know when its closed down, pubs & clubs are small fish compared to a full train incubating at peak.

I do agree with this, however I was replying to somebody talking specifically about pubs and similar venues with pokie machines remaining open

 

[Kwality]

Well conversely, AFL/clubs would be more reliant on ticket sales.

NRL clubs also rely on leagues clubs for sponsorship. That might get interesting.

As an aside, I'm hoping this provides the impetus for North & Hawks to get the arse from Tasmania. Its a cost we don't need right now. They are of no value.

Sorry Mugsta, those sponsorship dollars are worth plenty in this climate, they arent going easily ...

 

[madmug]

Sorry Mugsta, those sponsorship dollars are worth plenty in this climate, they arent going easily ...

If they can't bring footy tourists or generate a crowd or indeed aren't allowed to fly in, well that creates a whole different scenario for Government.

All Governments have other priorities than interstate carpet baggers right now.

 

[Boxhead_31]

its

Monty Pythons Flying Circus?

 

[Dogs_R_Us]

Monty Pythons Flying Circus?

See thread title

 

[jatz14]

In theory Geelong would be at risk, just like any business straddled with capital debt, but the football club is SO important to the local economy I don't think the banks, local government, and local businesses would allow the club to go under. At the end of the day, GMHBA Stadium is not owned by the football club.

ANZ (which is not the club's bank) has already come out and said it will show leniency towards any businesses struggling to repay loans because of the impact of Corona virus. Other banks will follow suit.

Local government and local business could well be in a world of hurt, and in no position to help save football clubs. I am getting to the position that I doubt the AFL is an 18 club comp next year, it may not even be a 16 team comp.

 

[The_Reaper]

Local government and local business could well be in a world of hurt, and in no position to help save football clubs. I am getting to the position that I doubt the AFL is an 18 club comp next year, it may not even be a 16 team comp.

Might be a few mergers.

 

[Our Game]

I had to laugh at Peter V'Landys' statement yesterday:

"An Australia without rugby league is not Australia"

The guy is deluded

V'Landys is just a typical NSW blowhard and came across as trying to blackmail the government to save an organization that has wasted the hundreds of millions in TV monies it has received over the past few years.

 

[Our Game]

But the AFL has its future fund. The NRL decided to liquidate its $50M+ fund several years ago.

The AFL also owns a big stadium as well which is a huge advantage!

 

[Pykie]

So someone finally put a number on it.

On 360, an abandoned season is a $400m black hole for the AFL, in reality I think it’s more than that, given that seems to be just the TV revenue number.

 

[BobbyMorri]

AFL will be fine. That big stadium can be sold off if need be. There would be other assets as well. IF they want 18 clubs, then 18 clubs they will get. Tv rights kinda force them to do so anyway. Banks will loan money, which the AFL will loan to the clubs.

This is going to hurt Tasmania a lot. Not sure if we will be in any possie to continue to bid for a AFL team. On Tassie plus NT(and others), I do hope we have a out clause or get some or all of our money back. We paid for 8 games down here. That won't happen with a reduced season.

Sent from my Moto G (5) Plus using Tapatalk

 

[Kwality]

The AFL also owns a big stadium as well which is a huge advantage!

Didnt it borrow $180 mil at that time?

 

[Kwality]

AFL will be fine. That big stadium can be sold off if need be. There would be other assets as well. IF they want 18 clubs, then 18 clubs they will get. Tv rights kinda force them to do so anyway. Banks will loan money, which the AFL will loan to the clubs.

This is going to hurt Tasmania a lot. Not sure if we will be in any possie to continue to bid for a AFL team. On Tassie plus NT(and others), I do hope we have a out clause or get some or all of our money back. We paid for 8 games down here. That won't happen with a reduced season.

Sent from my Moto G (5) Plus using Tapatalk

Sponsors wont be paying out of the goodness of their hearts, I posted on another thread an example of revenue lost by my club this:

One line from the Eagles 2019 revenue:
Corporate hospitality revenue $14,276,133

Admittedly its the gross revenue, there will be savings in providing the hospitality.

 

[BringBackTorps]

1. Some Sydney NRL clubs rely very heavily on their licensed clubs for financial survival.

NRL clubs and poker machines: is there not another way to raise funds? | Matt Cleary

If clubs really are aspirational and inspirational champions of the community, other less socially damaging revenue streams must be tapped into

www.theguardian.com

If NRL games are played in empty stadia in 2020, & Australia enacts Covid-19 lockouts on restaurants, clubs, pokie palaces etc., will the closure of their affiliated pokie clubs cause their financial demise?


2. Should it not be possible for some, or all, AFL games to be played (or games are played for less than the usual 80 minutes), due to the coronavirus, the AFL would not be legally obliged to pay the players their full wages. The AFL would be protected by the force majeure principles. The employment contracts would become void.

Broadcast rights' payments would not be paid in full either.

It would only be necessary for the AFL to demonstrate it took all reasonable steps (under the corona new laws, crowd restrictions etc.) to attempt that the season be played in full.

Force Majeure in the age of COVID-19

On 27 February, the Prime Minister Scott Morrison announced a Coronavirus Emergency Response Plan, “getting out well ahead of the World Health Organization”, in preparing for a global pandemic.

piperalderman.com.au

The lockouts will cause the AFL to lose far more revenues than the NRL, since the AFL has far bigger crowds & memberships.

NRL clubs face test of fan engagement in the midst of lockout

Coronavirus will affect the budgets of AFL clubs more than NRL clubs, ironically because the rival code has worked harder to grow gate takings and memberships.

www.brisbanetimes.com.au

 

[magpienato]

Can people stop spouting all the s**t about clubs folding/merging after this year. This isn't the 90's, the AFL isn't going to let that happen.

 

[Kwality]

Can people stop spouting all the s**t about clubs folding/merging after this year. This isn't the 90's, the AFL isn't going to let that happen.

Probably because the AFL might have no income from TV, its hoping to get 17 rounds in. Still needs to pay, pay, pay e.g it doesnt have a clause in player contracts that is an out, unlike the NRL.
If they dont meet committments to the stadiums who pays?

Reality is most clubs dont have the resources to meet their outgoings.

Sure its not doom & gloom but dont kid yourself all is NOT WELL.

 

[telsor]

AFL and NRL will both be fine. Why? Because it's content that has to be watched live (it's too hard to avoid spoilers these days). Free to air/pay TV needs live sports, most other programs you can just watch on demand.
There is obviously a huge market of people who want to see AFL/NRL on thier TV so unless ch7, ch9, ch10 and foxtel go arse up they will make sure the comps continue as is.

That money doesn't appear from nowhere.

Media gets their money from advertising.
Advertisers get their money from companies trying to boost sales
Sales come from people willing to spend.
People don't spend (as much) money when they've lost their jobs, or are scared about what the future will bring.

So yeah...The media money isn't as 'sure thing' either...at least, not on the current scale.

 

[joop]

Its not sensationalism; its paraphrasing what the NRL heads have said. The NRL is more reliant on TV rights than the AFL

You honestly believe if this season gets cancelled then the competition is done forever?

 

[telsor]

You honestly believe if this season gets cancelled then the competition is done forever?

For AFL, no...Although a few clubs mightn't make it.
For other comps, quite possibly.


All comps, including the AFL will be in a bad way afterwards though, and their future could depend on just how severely this hits the economy over the longer term. (major additional debts taken on just to survive, coupled with lower revenues going forward makes for a fragile situation)

 

[HavUEvaSeenTheRain]

If worst comes to worst then cut the fat (which there is plenty of) borrow half a billion dollars that will probably come with 2-3% interest ($15mil PA) and accept that people employed in in the game will have to take less $ in the future.

 

[Hallstrom]

That money doesn't appear from nowhere.

Media gets their money from advertising.
Advertisers get their money from companies trying to boost sales
Sales come from people willing to spend.
People don't spend (as much) money when they've lost their jobs, or are scared about what the future will bring.

So yeah...The media money isn't as 'sure thing' either...at least, not on the current scale.

For sure, I was implying something like that when I said about the media going arse up, and sure if there is full scale economic meltdown the AFL and the clubs won't survive.

 

[Sttew]

You honestly believe if this season gets cancelled then the competition is done forever?

AFL? No way. NRL? Perhaps