Kennett's letter to Hawks members

Feb 21, 2006
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Kennett was on SEN before with Andy Maher and Bob Murphy to discuss the letter he had written to Hawks members this afternoon.

https://www.hawthornfc.com.au/news/704788/jeff-s-letter-to-members

The critical part of it was he has put the death of clubs back on the table;

That said, it does not reduce the need for the AFL Commission and the AFL to be substantially restructured to be reduced in size and cost, in the same way that the club’s expenditure is being significantly reduced.

The rivers of gold that have flowed to the AFL have finished. We must reduce our costs, not only to limit the draw down on the debt facility secured, but to position ourselves for a future unexpected event.

Whether we are an Assisted or Unassisted Club we must all work together with the AFL to secure our future.

I hope that in the not too distant future we can agree on a set of KPIs for all clubs, which in part will ensure an improvement for all clubs, and the AFL’s financial position.

The timeline for these KPIs should be three years with an evaluation taking place in the third year of performance. If clubs and their Boards do not meet the KPIs set, they should be relegated to the VFL.

No longer can non-performance be supported. This is not directed at any club and is only prospective. Emotion alone is not sufficient a reason for non-performance.

The AFL must take a more commercial view to the conduct of our code.

Please remember in 1996, Hawthorn, Geelong and Collingwood were in serious financial trouble. Each was able to rebuild. The same opportunity exists for every club, and every club must improve its current position.

But enough of that for the moment. Suffice to say, the whole code is going to be involved in structural change in the years ahead.

This is the guy who tried to destroy the state and now he is trying to destroy the competition with his economic rationalist ideology.

You could say it's just a blowhard but the fact he is on the competitions coronavirus committee means his position holds more weight than most and it would be unlikely if he has gone out and said this publicly without similar discussions being had privately.

He has given clubs 3 years to get their finances in order. 3 years despite not knowing how the next season or two will play out. 3 years to try and overcome decades of financial inequities in the competition.

If the competition were serious and the clubs had a backbone they would demand a revenue sharing model as compensation for the AFL's crowd/revenue maximisation policies. Of course the AFL has crippled most clubs so that they are reliant on the AFL and dare not speak out against city hall lest they be punished with poor fixtures and stadium deals and any other decisions the AFL decides on a whim. Look at the way they punished Sydney for daring to steal Buddy Franklin from under the noses of the Giants! Could you imagine if Collingwood or Hawthorn were banned from trading for two trade periods?

Average supporters do not understand the long-term financial ramifications of competition policies over several decades dating back to the impact of the player zoning system and then over more recent decades revenue/crowd maximisation policies and ground rationalisation policies. Clubs need to start standing up for themselves otherwise at some point in the (near?) future the AFL and big clubs will decide it is no longer in their interest to keep clubs on life support and will let them fold despite being victims of AFL policies and the fact their weak financial position was manufactured to balloon the financial positions of the bigger clubs and the AFL executives.
 
Feb 21, 2006
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Won’t happen. AFL won’t boot anyone.

Reading that sounds like he wants all non performing clubs in the VFL.
Including non vics?

They queried that on SEN as they said by stating "VFL" it was clear he was targeting Vic clubs. He said no, he did mean other state leagues too if applicable and Gold COast and GWS were not immune. I find that extremely hard to believe though, there is no way AFL will give up on them (nor should they in my opinion).
 
They queried that on SEN as they said by stating "VFL" it was clear he was targeting Vic clubs. He said no, he did mean other state leagues too if applicable and Gold COast and GWS were not immune. I find that extremely hard to believe though, there is no way AFL will give up on them (nor should they in my opinion).

So what happens if both Queensland teams miss their KPI targets, no football in the state at all? * off Jeff.
 
Feb 13, 2011
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That was a temporary dip in crowds and profits, not a sustained decades long problem that other Melbourne based clubs go through.
It was the 3rd year after the Merger almost killed his club, that's why I chose it.

The point is, no club should live or die based on 3 years of results.
 
Aug 14, 2011
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This is the guy who tried to destroy the state

Short history lesson:

When Jeffrey took the reins, Victoria was called the rust bucket State, do you know why, if not, try this:
 
Aug 14, 2011
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Anyone else hate how the business term "KPI" has become so common these days that it doesn't even need to be elaborated on as everyone already knows what it means?

Key Performance Indicator can be a matter of choice, usually set for you.
In this case ..... the AFL has a letter of credit, the lenders have a covenant, the covenant may include performance criteria aka KPIs.

Coming the day after the TV rights deal for the next couple of years is interesting.

Says Jeff
'....the need for the AFL Commission and the AFL to be substantially restructured to be reduced in size and cost, in the same way that the club’s expenditure is being significantly reduced.

The rivers of gold that have flowed to the AFL have finished. We must reduce our costs, not only to limit the draw down on the debt facility secured, but to position ourselves for a future unexpected event.'
 
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big_e

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The last thing the AFL needs is to disenfranchise hundreds of thousands of footy fans, and break traditions that have lasted for a century or more.

The AFL is much better off having the Hawthorns and Richmonds and Collingwoods and Bulldogs and other clubs that could have been killed off in the last 30 or so years. And losing any one now, particularly a foundation club, would make this competition as soulless as Jeff Kennett.
 
Sep 22, 2011
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This just reeks of Liberal Party ideology, unsurprisingly.

They all want “free market!” “Let everybody sink or swim on merit!”

... when it suits them.

The AFL is not a meritocracy. You can’t tell clubs you’re going to judge them on their performance then put all these controls over what they’re allowed to do to improve that performance.

Can we choose where we play our home games? No

Can we choose how much we charge people to attend? No

Can we boost our revenue and then spend it all on better players, more coaches? No

Can we (if we’re Port Adelaide) even choose what jumper we wear at home to build a brand? No

Can we choose what we’re called for that brand? No

You can’t have it both ways Jeff. If you want everybody to stand on their own two feet you have to let them stand on their own two feet.

The AFLs not like that and won’t be in the foreseeable future.
 

Pessimistic

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This just reeks of Liberal Party ideology, unsurprisingly.

They all want “free market!” “Let everybody sink or swim on merit!”

... when it suits them.

The AFL is not a meritocracy. You can’t tell clubs you’re going to judge them on their performance then put all these controls over what they’re allowed to do to improve that performance.

Can we choose where we play our home games? No

Can we choose how much we charge people to attend? No

Can we boost our revenue and then spend it all on better players, more coaches? No

Can we (if we’re Port Adelaide) even choose what jumper we wear at home to build a brand? No

Can we choose what we’re called for that brand? No

You can’t have it both ways Jeff. If you want everybody to stand on their own two feet you have to let them stand on their own two feet.

The AFLs not like that and won’t be in the foreseeable future.

yep jeff happy to suck public money out of tassie
 
Feb 21, 2006
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This just reeks of Liberal Party ideology, unsurprisingly.

They all want “free market!” “Let everybody sink or swim on merit!”

... when it suits them.

The AFL is not a meritocracy. You can’t tell clubs you’re going to judge them on their performance then put all these controls over what they’re allowed to do to improve that performance.

Can we choose where we play our home games? No

Can we choose how much we charge people to attend? No

Can we boost our revenue and then spend it all on better players, more coaches? No

Can we (if we’re Port Adelaide) even choose what jumper we wear at home to build a brand? No

Can we choose what we’re called for that brand? No

You can’t have it both ways Jeff. If you want everybody to stand on their own two feet you have to let them stand on their own two feet.

The AFLs not like that and won’t be in the foreseeable future.

I have no problem with the AFL pursuing revenue maximisation policies. IF they institute revenue sharing agreements.

You can't pursue policies over a period of decades that favour some clubs financially over others and then complain that the ones who are disadvantaged can't keep up.
 
Sep 17, 2004
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It was the 3rd year after the Merger almost killed his club, that's why I chose it.

The point is, no club should live or die based on 3 years of results.

We were 2 games clear in 16th with 5 rounds left, playing at Waverley Park (after losing the last 8 games of ‘97 and first 4 of ‘98) but still had 28,000 members and turned a profit

That said, whilst I agree with Kennett I don’t feel comfortable with the president of my club commentating on the financial perils of others
 
Aug 18, 2006
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I understand where he is coming from. The AFL makes money hand over fist and one season turns to s**t and they have sfa money and in fact now have a massive loan.

So much money is given to clubs who just spend it knowing they will get the same or more again next year. How many boards fire coaches on big money etc and take no responsibility or just burn money.

Clubs need to become more self reliant. That way the AFL can have money reserved for when s**t hits the fan.

Having said that, it's easy to say it when you are one of the biggest clubs.

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