Gillon stepping down 2022 - Press Conference at 11:30am EST

[The_Wookie]

My understanding after reading the financial report was 20 million loss in 2020 and 40 million loss in 2021.

So if you take into account aflw is costing over 20 million annually to run and covid costs reportedly exceed 70 million, there has to be a significant contribution from having so many aflw teams, special flights, accommodation, testing requirements for the players, staff and admin costs over a bigger number of players and running of a bigger competition for longer.

As I said I actually like the concept of AFLW, I just think for the quality of product there are too many teams and some players getting over 100k for a 3 month season in a low quality competition that generates next to no revenue is a significant issue. A gradual increase over decades is more sensible.

Total losses for the AFL were 8m in 2020 and 29m in 2021.
COVID costs were 76m.

 

[Bjo187]

It's not poor decision making at all. I will keep this short. They can't wait decades so they have to push it.

The standard of the women's competition and the revenue it generates is secondary to being able to target 50% of population and putting local teams in key markets.

A loss leader is a product that makes a loss but brings in business, in this case female viewers.

I get your overall point but a few things I'll contend on:

• AFL already has the highest percentage of female viewers in Australia's big 5 sports. It's close to 50 percent from memory (I do agree the stats indicate participation results in viewers later in life, but participation at grassroots level isn't related to how many teams are in the top flight league).
• I don't think it makes a difference if you have all 10 clubs in Vic compared to say 5, people are more likely to watch a product if it's good quality as opposed to simply if their club is represented.
• Key markets are the other states (mostly expansion ones), not Victoria which could be represented by half the number of clubs ensuring a better standard until the talent pool catches up in about 10 years time.

 

[Bjo187]

Total losses for the AFL were 8m in 2020 and 29m in 2021.
COVID costs were 76m.

While the AFL recorded a cash surplus, the AFL’s underlying operating loss for 2021 was $43.0 million, compared to an underlying operating loss of $22.7 million in 2020. This result includes the AFL’s controlled state subsidiaries, Marvel Stadium and Champion Data.

Where are you getting 8 and 29 mill from?

 

[RussellEbertHandball]

While the AFL recorded a cash surplus, the AFL’s underlying operating loss for 2021 was $43.0 million, compared to an underlying operating loss of $22.7 million in 2020. This result includes the AFL’s controlled state subsidiaries, Marvel Stadium and Champion Data.

Where are you getting 8 and 29 mill from?

Contribution from Vic government for Docklands upgrade is why there is a difference each year.

Page 160 of 2021 AFL annual Report

Discussion and Analysis of the Consolidated Statement of Profit and Loss and Other Comprehensive Income

The underlying operating loss in 2021 was $43.0 million which compared with a loss of $22.7 million in 2020. The variance between the underlying operating loss of $43.0 million and the statutory loss of $29.5 million is due to recognition of Government grant revenue of $13.5 million toward the redevelopment of Marvel Stadium and the surrounding precinct.

Page 156 of 2020 AFL Annual Report

Discussion and Analysis of the Consolidated Statement of Profit and Loss and Other Comprehensive Income

The underlying operating loss in 2020 was $22.7 million which compared with a profit of $27.9 million in 2019. The variance between the underlying operating loss of $22.7 million and the statutory loss of $8.4 million is due to recognition of Government grant revenue of $14.3 million toward the redevelopment of Marvel Stadium and the surrounding precinct.

 

[The 747]

I get your overall point but a few things I'll contend on:

• AFL already has the highest percentage of female viewers in Australia's big 5 sports. It's close to 50 percent from memory (I do agree the stats indicate participation results in viewers later in life, but participation at grassroots level isn't related to how many teams are in the top flight league).
• I don't think it makes a difference if you have all 10 clubs in Vic compared to say 5, people are more likely to watch a product if it's good quality as opposed to simply if their club is represented.
• Key markets are the other states (mostly expansion ones), not Victoria which could be represented by half the number of clubs ensuring a better standard until the talent pool catches up in about 10 years time.

We can agree to disagree on this, no problem. I think the clubs need to be aligned with the men's clubs especially in Victoria.

But for me the key point is time, they don't have a decade or more. They have to push or they will get left behind by other sports, cop it from sponsors/media and lose athletes to other sports.

 

[The_Wookie]

While the AFL recorded a cash surplus, the AFL’s underlying operating loss for 2021 was $43.0 million, compared to an underlying operating loss of $22.7 million in 2020. This result includes the AFL’s controlled state subsidiaries, Marvel Stadium and Champion Data.

Where are you getting 8 and 29 mill from?

Im making it all up.

Its from the leagues concise annual report.

 

[Bjo187]

Contribution from Vic government for Docklands upgrade is why there is a difference each year.

Page 160 of 2021 AFL annual Report

Discussion and Analysis of the Consolidated Statement of Profit and Loss and Other Comprehensive Income

The underlying operating loss in 2021 was $43.0 million which compared with a loss of $22.7 million in 2020. The variance between the underlying operating loss of $43.0 million and the statutory loss of $29.5 million is due to recognition of Government grant revenue of $13.5 million toward the redevelopment of Marvel Stadium and the surrounding precinct.

Page 156 of 2020 AFL Annual Report

Discussion and Analysis of the Consolidated Statement of Profit and Loss and Other Comprehensive Income

The underlying operating loss in 2020 was $22.7 million which compared with a profit of $27.9 million in 2019. The variance between the underlying operating loss of $22.7 million and the statutory loss of $8.4 million is due to recognition of Government grant revenue of $14.3 million toward the redevelopment of Marvel Stadium and the surrounding precinct.

Appreciate that I remember reading that at the time and I should have done accounting because I'm confused. Doesn't this mean that the 'actual' loss was for the year was 43 million, but because they got a fortunate government grant for docklands (which won't happen every year and will need to be spent on the redevelopment later anyway) that they can say it brought it down to 29 mill as that grant money was sitting in the bank?

If that's the case they really lost 43 mill which is a bad result, but I may be misinterpreting it again.

 

[RussellEbertHandball]

Appreciate that I remember reading that at the time and I should have done accounting because I'm confused. Doesn't this mean that the 'actual' loss was for the year was 43 million, but because they got a fortunate government grant for docklands (which won't happen every year and will need to be spent on the redevelopment later anyway) that they can say it brought it down to 29 mill as that grant money was sitting in the bank?

If that's the case they really lost 43 mill which is a bad result, but I may be misinterpreting it again.

Its relatively straight forward, normal operations they lost $43m but got a $13.5m freebie to build an asset, not expense it, which means the $13.5m freebie goes straight to the bottom line in the P&L, so net assets only decreased by $29.5m.

Is $43m normal operating loss a bad loss?

Depends what you consider a bad loss is in a covid affected period. Depends what sort of loss you think is reasonable for an organisation that needs people to attend its venues to make money ie they can't sell goods and services on the net. It's a lot less than national airlines have lost, who need people to turn up to the airports and jump on their planes.

Compare a pubs alcohol take away shop profits, to its bar and restaurant profits when they can't have patrons, or have restriction of the number of patrons allowed. After comparing the two, you get an idea of what is reasonable.

Financial year ended 31/10/2020 the AFL comp and its subsidiary comps and Docklands and operations associated with the stadium, was only impacted by Covid fo 7.5 months.

The financial year ended 31/10/2021 it was affected by covid for a full 12 months.

So a little bid less than a doubling of the normal operations loss from $22.7m to $43.0m when the time frame involved with covid impact was a bit less than double, seems reasonable to me.

The AFL's ownership of Docklands is probably the biggest area it lost money across the AFL group. And the depreciation expense associated with Docklands - which is non cash was $21.3m last year and $25.3m in 2020.

I haven't seen the 2020 or 2021 AFL Stadia Pty Ltd annual reports, but I have seen the 2018 and 2019 ones, thanks to The_Wookie

In 2021 the AFL group had non cash depreciation expenses was $33.5m and $40.5m in 2020.

Cash at Bank increased from $223.5m to $292.9m the unrestricted cash amounts ie not related to government grants which must be spent for reasons of the grant, increased from $209.1m to $249.3m.

If a $43m loss was a bad thing (given Covid) how much cash do you want the AFL to have at the end of October last year.

On 31/10/2019 they had a $95m loan left on the $200+m to buy Docklands in November 2016. before covid hit. They only borrowed $18m in 2020, and then in 2021 they drew down and borrowed $90m, but repaid $116.8m which means they net repaid debt of $26.8m.

Pretty decent considering they went and organised a $600m line of credit from the ANZ+NAB banks for the worst case scenario.

Below is a screen shot from the AFL financials lodged at ASIC, note 18. It is a summary of AFL Ltd's position the last 2 years ie just the parent companies books. The AFL stopped showing the difference between parent company and consolidated group financials after 2018.

Not sure if that was Goyder wanting to limit info, or because Docklands is such a big asset and towers over the impact of owing the state footy leagues, Champion Data and other companies that it said lets just report the Group's consolidated financials, as we have 100% control of the stadium.

When you own Docklands and depreciation is over $20m a year, you can't cut back on that expense, even if the venue is closed to patrons. You can cut back on operating expenses, ie no game day employee expenses and other game day expenses related to people not turning up to the venue, but not depreciation of roughly $400,000 a week.






You can see when comparing the AFL Ltd parent companies figure in the above graphic, to the Consolidated Group's figures in the graphic below, that in 2021 all the AFL subsidiary companies in the group had income of around $83m and expenses of $102m and additional interest expense of $5m. In 2020 it was $75m income and expenses of $101m and additional interest of $5m.

In 2019 all the AFL subsidiary companies in the group had income of around $115m and expenses of $128m, and additional interest expense of $6.5m.

So you get an idea of the Covid effect on the group outside the AFL parent company is income decreased in the $35-$40m range and expenses only were cut back by around $25m.

In 2019 The Docklands group of companies ie AFL Stadia Pty Ltd (see below for further info) had income of $79.9m and expenses of $76.7m for a profit $3.2m. Now on consolidation some income and expenses would be eliminated as they are intra group and consolidated accounts have to show only income and expenses from outside the group. Maybe $2m or $3m would be eliminated from these figures from transactions between AFL Ltd and AFL Stadia PTY Ltd group of companies.

But the 2019 accounts showed in addition to the $3.2m profit, they had interest income of $242k and interest expense of $7.071m and a loss of $3.6m in that group of companies.

The AFL when it paid $200+m for Docklands left the asset in AFL Stadia's books. So what it did was borrow $200+m and show that as a liability, then set up an asset called Loan to controlled entities for $200+m, the money is lent to AFL Stadia Pty Ltd, to fund its $170+m of negative net assets ie accumulated losses and to purchase the stadium business/cash flow stream until 31/12/2025 from the owners who were a group of super funds.

That way AFL Stadia Pty Ltd pays a big interest charge to the AFL, as it is a taxable entity/group of entities, so it makes a loss, and the AFL shows $7m of interest income but has a $7m interest expense to its bankers. See below re the tax position.

I only know this, because once again thanks to The_Wookie who got the AFL's 2017 and 2018 ASIC accounts and they showed AFL Parent company financials next to the AFL Consolidated group financials.





And here are all of the AFL's subsidiaries.

All the ones associated with Docklands, Champion Data and Sports Wagering are subject to Income Tax, (as per note 7 of the financials) the rest are tax exempt entities under Section 50-45 of the Income Tax Assessment Act 1997 as the activities fall under the are solely for the promotion, administration and development of sports definition under that Sports, Culture and Recreation exemption section.








All the entities between AFL Stadia Pty Ltd and TD Goal Stadiums Pty Ltd are 1 group of companies.

Don't know what Southern Retail Unit Trust No. 1 is, but it might be related to developments around Docklands stadium precinct land the AFL own, but not the actual stadium. Ie the government $$$ are for the stadium, but AFL might be investing into the precinct.

 

[Bjo187]

Its relatively straight forward, normal operations they lost $43m but got a $13.5m freebie to build an asset, not expense it, which means the $13.5m freebie goes straight to the bottom line in the P&L, so net assets only decreased by $29.5m.

Is $43m normal operating loss a bad loss?

Depends what you consider a bad loss is in a covid affected period. Depends what sort of loss you think is reasonable for an organisation that needs people to attend its venues to make money ie they can't sell goods and services on the net. It's a lot less than national airlines have lost, who need people to turn up to the airports and jump on their planes.

Compare a pubs alcohol take away shop profits, to its bar and restaurant profits when they can't have patrons, or have restriction of the number of patrons allowed. After comparing the two, you get an idea of what is reasonable.

Financial year ended 31/10/2020 the AFL comp and its subsidiary comps and Docklands and operations associated with the stadium, was only impacted by Covid fo 7.5 months.

The financial year ended 31/10/2021 it was affected by covid for a full 12 months.

So a little bid less than a doubling of the normal operations loss from $22.7m to $43.0m when the time frame involved with covid impact was a bit less than double, seems reasonable to me.

The AFL's ownership of Docklands is probably the biggest area it lost money across the AFL group. And the depreciation expense associated with Docklands - which is non cash was $21.3m last year and $25.3m in 2020.

I haven't seen the 2020 or 2021 AFL Stadia Pty Ltd annual reports, but I have seen the 2018 and 2019 ones, thanks to The_Wookie

In 2021 the AFL group had non cash depreciation expenses was $33.5m and $40.5m in 2020.

Cash at Bank increased from $223.5m to $292.9m the unrestricted cash amounts ie not related to government grants which must be spent for reasons of the grant, increased from $209.1m to $249.3m.

If a $43m loss was a bad thing (given Covid) how much cash do you want the AFL to have at the end of October last year.

On 31/10/2019 they had a $95m loan left on the $200+m to buy Docklands in November 2016. before covid hit. They only borrowed $18m in 2020, and then in 2021 they drew down and borrowed $90m, but repaid $116.8m which means they net repaid debt of $26.8m.

Pretty decent considering they went and organised a $600m line of credit from the ANZ+NAB banks for the worst case scenario.

Below is a screen shot from the AFL financials lodged at ASIC, note 18. It is a summary of AFL Ltd's position the last 2 years ie just the parent companies books. The AFL stopped showing the difference between parent company and consolidated group financials after 2018.

Not sure if that was Goyder wanting to limit info, or because Docklands is such a big asset and towers over the impact of owing the state footy leagues, Champion Data and other companies that it said lets just report the Group's consolidated financials, as we have 100% control of the stadium.

When you own Docklands and depreciation is over $20m a year, you can't cut back on that expense, even if the venue is closed to patrons. You can cut back on operating expenses, ie no game day employee expenses and other game day expenses related to people not turning up to the venue, but not depreciation of roughly $400,000 a week.



View attachment 1374161


You can see when comparing the AFL Ltd parent companies figure in the above graphic, to the Consolidated Group's figures in the graphic below, that in 2021 all the AFL subsidiary companies in the group had income of around $83m and expenses of $102m and additional interest expense of $5m. In 2020 it was $75m income and expenses of $101m and additional interest of $5m.

In 2019 all the AFL subsidiary companies in the group had income of around $115m and expenses of $128m, and additional interest expense of $6.5m.

So you get an idea of the Covid effect on the group outside the AFL parent company is income decreased in the $35-$40m range and expenses only were cut back by around $25m.

In 2019 The Docklands group of companies ie AFL Stadia Pty Ltd (see below for further info) had income of $79.9m and expenses of $76.7m for a profit $3.2m. Now on consolidation some income and expenses would be eliminated as they are intra group and consolidated accounts have to show only income and expenses from outside the group. Maybe $2m or $3m would be eliminated from these figures from transactions between AFL Ltd and AFL Stadia PTY Ltd group of companies.

But the 2019 accounts showed in addition to the $3.2m profit, they had interest income of $242k and interest expense of $7.071m and a loss of $3.6m in that group of companies.

The AFL when it paid $200+m for Docklands left the asset in AFL Stadia's books. So what it did was borrow $200+m and show that as a liability, then set up an asset called Loan to controlled entities for $200+m, the money is lent to AFL Stadia Pty Ltd, to fund its $170+m of negative net assets ie accumulated losses and to purchase the stadium business/cash flow stream until 31/12/2025 from the owners who were a group of super funds.

That way AFL Stadia Pty Ltd pays a big interest charge to the AFL, as it is a taxable entity/group of entities, so it makes a loss, and the AFL shows $7m of interest income but has a $7m interest expense to its bankers. See below re the tax position.

I only know this, because once again thanks to The_Wookie who got the AFL's 2017 and 2018 ASIC accounts and they showed AFL Parent company financials next to the AFL Consolidated group financials.


View attachment 1374164


And here are all of the AFL's subsidiaries.

All the ones associated with Docklands, Champion Data and Sports Wagering are subject to Income Tax, (as per note 7 of the financials) the rest are tax exempt entities under Section 50-45 of the Income Tax Assessment Act 1997 as the activities fall under the are solely for the promotion, administration and development of sports definition under that Sports, Culture and Recreation exemption section.




View attachment 1374191

View attachment 1374197

All the entities between AFL Stadia Pty Ltd and TD Goal Stadiums Pty Ltd are 1 group of companies.

Don't know what Southern Retail Unit Trust No. 1 is, but it might be related to developments around Docklands stadium precinct land the AFL own, but not the actual stadium. Ie the government $$$ are for the stadium, but AFL might be investing into the precinct.

Thanks for that a really detailed breakdown, so much appreciated . It helps me understand most of it but a few left over questions and statements for you and seeking some clarification.

1. My thoughts of it being a bad result is through comparing it to the NRL, we still had much more revenue but they had a 20 mill loss and 40 mill profit across the 2 years, plus spent the same on grassroots as the AFL did (going by my memory of reading their report). So in that sense it came across poorly on first read.

2. Only half of the 2021 season didn't have crowds, I think it was round 10 or so (plus i think there were cricket crowds over summer from memory), therefore the losses from stadium management shouldn't be as bad as expected.

3. Gill has been getting praise for the early purchase of marvel as they could loan against it, the NRL didn't have this but still got a loan and still seemed to have made a large profit despite their interest rates likely being much higher. Is owning the stadium worth the little profit it appears to make annually? On top of the 200 mill they had to pay by not waiting till 2025? Also how is champion data a cost during covid, isn't it just stats that wouldn't be covid affected?

4. The NRL had more covid disruption last year than the AFL, season - inc finals, origin, hubs, pokies venues etc.

5. Overall are you saying the AFL's losses were mostly due to owning a stadium and paying down debts? If so not a bad thing to clear debts and save on interest payments.

Questions for you:

- Are you saying the AFL is in a better overall or worse overall financial position than pre covid? It appears they have paid down debts and more in the actual bank, is this worth the losses inflicted in 20 and 21?

- Has the gap between the AFL and NRL's financial strength considerably closed due to the past 2 years?

Overall I think it would appear an ok outcome across covid, I suppose my main issue was when comparing with the other big league in Australia, their results seemed significantly better despite them not being in anywhere near as good of a position pre covid compared to the AFL.

 

[RussellEbertHandball]

Thanks for that a really detailed breakdown so much appreciated. Helps me understand most of it but a few left over questions and statements for you.
1. My thoughts of it being a bad result is through comparing it to the NRL we still had much more revenue but they had a 20 mill loss and 40 mill profit, plus spent the same on grassroots (going by my memory of reading their report). So in that sense it came across poorly.

2. Only half of the 2021 season didn't have crowds (plus were cricket crowds over summer from memory), therefore the losses from stadium management shouldn't be as bad as expected.

3. Gill has been getting praise for the early purchase of marvel as they could loan against it, the NRL didn't have this but still got a loan and still seemed to have made a large profit despite what you would think that their interest rates would be much higher. Is owning the stadium worth the little profit it appears to make annually?

4. The NRL had more covid disruption last year than the AFL, season, finals, origin, hubs, pokies venues.

5. Overall are you saying the AFL's losses were mostly due to owning a stadium.

Questions for you:
- Are you saying the AFL is in a better overall or worse overall financial position than pre covid? It appears they have paid down debts and more in the actual bank, is this worth the losses in 20 and 21?

- Has the gap between the AFL and NRL financial strength considerably closed due to the past 2 years?

Overall I think it would appear an ok outcome across covid I suppose my main issue was comparing with the other big league in Australia and their results across the same period appearing on the surface to be much better.

Where are the links and info to the NRL. Sorry but I'm not going to accept a 4 word statement about the NRL's position. Until I see that I can't make a comparison.

Virtually no organization outside the pharmaceutical industry is better off now than they were pre covid.

 

[Bjo187]

Where are the links and info to the NRL. Sorry but I'm not going to accept a 4 word statement about the NRL's position. Until I see that I can't make a comparison.

Virtually no organization outside the pharmaceutical industry is better off now than they were pre covid.

I can't attach the file, but click the first link and it will download.

nrl 2021 financial report - Google Search

www.google.com

 

[The_Wookie]

 

[RussellEbertHandball]

I can't attach the file, but click the first link and it will download.

nrl 2021 financial report - Google Search

www.google.com

That tells you very little compared to full accounts you get from ASIC.

The big difference is the AFL owns a stadium and the NRL don't, and during a pandemic, landlords have done worse than the tenants.

Landlords have fixed costs they can't avoid, tenants don't have the same sort of fixed costs associated with not owning a stadium, and have been able to negotiate good deals.

 

[The_Wookie]

That tells you very little compared to full accounts you get from ASIC.

The big difference is the AFL owns a stadium and the NRL don't, and during a pandemic, landlords have done worse the the tenants.

Landlords have fixed costs they can't avoid, tenants don't have the same sort of fixed costs associated with not owning a stadium, and have been able to negotiate good deals.

http://footyindustry.com/docs/NRL%202021%20Concise%20Annual%20Report.pdf

also

Annual Report Data 2021
Body	Total Revenue	Profit/Loss	Cash & Equivelants	Assets	Liabilities	Reserves	Equity
AFL	$738,137,000	-$29,487,000	$249,313,000	$658,707,000	$457,745,000	$0	$200,962,000
NRL	$575,080,000	$43,057,000	$165,113,000	$264,524,000	$125,547,000	$2,228,000	$138,977,000
Football Australia	$34,284,000	$11,813,000	$20,751,000	$45,632,000	$29,288,000	$0	$16,344,000
Cricket Australia	$414,705,000	$4,862,000	$101,556,000	$265,201,000	$205,751,000	$534,000	$59,450,000
Tennis Australia	$358,034,000	-$75,182,525	$25,932,881	$211,790,000	$209,396,000	$33,071	$2,393,998

 

[Bjo187]

That tells you very little compared to full accounts you get from ASIC.

The big difference is the AFL owns a stadium and the NRL don't, and during a pandemic, landlords have done worse than the tenants.

Landlords have fixed costs they can't avoid, tenants don't have the same sort of fixed costs associated with not owning a stadium, and have been able to negotiate good deals.

Yeah it's why I found it strange the media were singing the praises of the afl for buying out marvel early, indicating that it saved the whole competition. It actually seems like it was a burden during covid and gave our competitors without a stadium a leg up.

Also I think a number of businesses came out of covid much stronger. My company I work for, my dad's business and my best mates business had their best years ever due to job keeper and no drop off in workload. Plus obviously tv and media from people being at home more, pretty much all companies where the product was still in demand and available came out better off due to job keeper.

 

[RussellEbertHandball]

Where the NRL has done well, is they got a better % of their 2019 media rights in 2020 and 2021 than the AFL did for their % of their 2019 media rights in 2020 and 2021.

 

[RussellEbertHandball]

Yeah it's why I found it strange the media were singing the praises of the afl for buying out marvel early, indicating that it saved the whole competition. It actually seems like it was a burden during covid and gave our competitors without a stadium a leg up.

Also I think a number of businesses came out of covid much stronger. My company I work for, my dad's business and my best mates business had their best years ever due to job keeper and no drop off in workload. Plus obviously tv and media from people being at home more, pretty much all companies where the product was still in demand and available came out better off due to job keeper.

Owning Docklands adds $20+mil depreciation cost to the bottom line. Big deal. It's not cash

Owning Docklands meant the AFL could get a $600m line of credit. NRL couldn't get that they didn't have that fixed asset and the only thing they could borrow against was their TV revenue contract. Remember V'landys screaming the government has to help them.

Owning Docklands meant the government got $225m freebie from the Vic government to do it up over the next few years, and $50m+ for grass roots footy, NRL didn't get anything like that from NSW government. But the tradeoff is 20 more GF's at the MCG.

Not owning a stadium does mean NRL gets to play at the new $890m SFS, think games start in September next year, no idea what the stadium deal and stadium yields will mean for NRL and its clubs.

The heartland of both codes being affected by covid affected the two national bodies differently over 2 years because of NSW v Vic government lock down rules and approach. AFL 2 years in a row had to shift out of Victoria, NRL only had small periods of shifting out of NSW.

Looks like the NRL did a better job renegotiating TV deals as a %, not necessarily an absolute dollar figure than AFL.

NRL digital might be starting to earn significantly more revenue for NRL during pandemic years, but no detailed breakdown is provided.

 

[Chief]

My company I work for, my dad's business and my best mates business had their best years ever due to job keeper and no drop off in workload.

Wait... how did you get JobKeeper if you didn't lose any business? You had to show a drop in income didn't you?

 

[Bjo187]

Wait... how did you get JobKeeper if you didn't lose any business? You had to show a drop in income didn't you?

Only for a month or two was my understanding, then you got it for 6 months or something. A lot of companies took a hit initially because all this covid stuff was new and people freaked out, but it didn't last long and everything bounced back to normal quickly for a lot of businesses that were cashing in from basically not having to pay wages for an extended period. My mate that runs a bathroom company reckons he came out of it 120k better off than if covid and job keeper had never happened.

It's the same with the AFL tv deal, they gave massive discounts but in fact 2020 the ratings were higher despite the season being shorter. Then they gave the networks reduced deals in 23 and 24 too for some reason, despite tv having a successful period with people staying home more.

 

[Bjo187]

Owning Docklands adds $20+mil depreciation cost to the bottom line. Big deal. It's not cash

Owning Docklands meant the AFL could get a $600m line of credit. NRL couldn't get that they didn't have that fixed asset and the only thing they could borrow against was their TV revenue contract. Remember V'landys screaming the government has to help them.

Owning Docklands meant the government got $225m freebie from the Vic government to do it up over the next few years, and $50m+ for grass roots footy, NRL didn't get anything like that from NSW government. But the tradeoff is 20 more GF's at the MCG.

Not owning a stadium does mean NRL gets to play at the new $890m SFS, think games start in September next year, no idea what the stadium deal and stadium yields will mean for NRL and its clubs.

The heartland of both codes being affected by covid affected the two national bodies differently over 2 years because of NSW v Vic government lock down rules and approach. AFL 2 years in a row had to shift out of Victoria, NRL only had small periods of shifting out of NSW.

Looks like the NRL did a better job renegotiating TV deals as a %, not necessarily an absolute dollar figure than AFL.

NRL digital might be starting to earn significantly more revenue for NRL during pandemic years, but no detailed breakdown is provided.

I'm pretty sure NRL sold their digital arm to not compete with 9 and fox. They got rid of all their staff from it to cut costs too.

 

[HairyO]

Wait... how did you get JobKeeper if you didn't lose any business? You had to show a drop in income didn't you?

Like Harvey Norman ?

 

[Chief]

Like Harvey Norman ?

I don't know how they did it either.

 

[HairyO]

I don't know how they did it either.

Terribly written law which allowed crooks to steal from taxpayers.

 

[RussellEbertHandball]

I'm pretty sure NRL sold their digital arm to not compete with 9 and fox. They got rid of all their staff from it to cut costs too.

They haven't sold it. Its supposed to be worth about $1bil - this article in May 2020 says $2bil, but even if it was worth $300m the NRL haven't received that sort of sales proceeds for any asset.

'Two-billion-dollar asset': Don't sell digital arm, Grant warns

Selling NRL.com to Nine would be a major mistake, according to the man who helped build rugby league's digital arm.

www.smh.com.au

Edit October 2021 they are scaling back to keep media partners happy, but haven't sold it.

NRL scales back digital arm following broadcaster pressure

The National Rugby League’s online website NRL.com will move way from publishing breaking news.

www.smh.com.au

 

[RussellEbertHandball]

Another couple of reasons why NRL did better than in 2019 when they made $28m profit.

2021 had 2 State of Origin series - 2020 was delayed until November, ie after the 2020 financial year ended, and Foxtel TV deal until 2027 hasn't been revealed, but supposedly they are contributing $75m for 17th team, Redcliffe Dolphins entering in 2023, so if they made a big contribution in 2021, and little monies have been spent by the NRL o the Dolphins, and NRL showed it all as income, then that would be a decent reason for improvement over 2020 ( and 2019).