No AFL team for Tasmania, league boss Gillon McLachlan announces

[Isaac Cumming No 1]

The AFLW runs at a loss currently despite the low wages of the players. It's never going to generate revenue for the game overall because any increases will go directly into the players' pockets so as to make them legitimate professionals.

It's the second year. Bear in mind you've got part time professionals who are drafted interstate. It's pretty harsh financially.

Clubs are extracting money from AFLW memberships but it's tough while entry is free.

It's early days and there'll be rapid change for a few years yet. Way too early to say it cant ever generate a surplus.

 

[Rob]

Except they are saving funds which can be used for tassie which wont effect other spending.

Saved funds still get spent on something eventually. There is always an opportunity cost with everything the AFL do.

 

[telsor]

It's the second year. Bear in mind you've got part time professionals who are drafted interstate. It's pretty harsh financially.

Clubs are extracting money from AFLW memberships but it's tough while entry is free.

It's early days and there'll be rapid change for a few years yet. Way too early to say it cant ever generate a surplus.

So you agree AFLW is going to take increasing amounts of money...but somehow the AFL's profits are all available to be thrown at Tas? How does that work?

 

[Isaac Cumming No 1]

So you agree AFLW is going to take increasing amounts of money...but somehow the AFL's profits are all available to be thrown at Tas? How does that work?

That the AFL is capable of walking and chewing gum at the same time.

A tasmanian team would have some setup costs initially but the investment will mostly be spread over a long period. The AFLW is similar.
I actually clearly didn't say the AFLW will never make money. It wont in the next few years though. Every step forward will be met with growth and additional expense for a few years yet I'd think.

 

[Starburns_]

It's the second year. Bear in mind you've got part time professionals who are drafted interstate. It's pretty harsh financially.

Clubs are extracting money from AFLW memberships but it's tough while entry is free.

It's early days and there'll be rapid change for a few years yet. Way too early to say it cant ever generate a surplus.

This is my point though. The AFLW will never generate a surplus because any increases in revenue will all need to go into wages and expansion (40 players making $50k each across 18 clubs requires $36million per year). So at best it'll free up what it currently costs, which is a drop in the ocean really, and will have no impact on the league's ability to pour money into Tassie as was suggested.

 

[telsor]

This is all irrelevant, my question was concerning the 49m profit, not the operating surplus.

Do you have any idea of accounting and/or finance?
Because that comment makes no sense.

In other words, an ongoing cost that won't be onerous in any particular year.

Like, the particular years where they try and pay off those debts?

I doubt the game development funds in Tasmania will keep growing at the same pace as revenue. As for AFLW it's clearly an investment, it will rise in popularity and I predict revenues will increase over time, paying back at least some of that investment.

Point was, they'll all take their part in chipping away at that 'profit' in coming years, leaving less free/available to spend on a Tas team.

I certainly do. Any Tasmanian team will almost certainly have funds tipped into it by the state government so the cost will not be as high as many think.

Why would they do that once they get a team?
Those funds would gain them no benefit (indeed, it would cost them as it would mean less money coming in from outside). They might sign a deal for the first few years in order to get the team in the first place, but long term (and as time goes on, the sums required would increase), they'd be fools to throw money at something that gains them nothing.

 

[telsor]

That the AFL is capable of walking and chewing gum at the same time.

A tasmanian team would have some setup costs initially but the investment will mostly be spread over a long period. The AFLW is similar.
I actually clearly didn't say the AFLW will never make money. It wont in the next few years though. Every step forward will be met with growth and additional expense for a few years yet I'd think.

Can they organise 2 new things at once? Well, setting up GC & GWS seemed to strain them (some would say break)...and currently they still have to hold the hands of those 2, and there is the small matter of AFLW and have just taken over ownership/management of Docklands. (Yes, I know you're going to claim you're running yourselves, but when the league is paying the majority of your budget and appointing the board, they clearly have a sizable hand in it).

Mostly I was just talking money though, and a Tas team will be in the tens of millions, yearly and ongoing. (minimum would be the ~11m distribution, but noticeably more would be likely). Setup costs would be on top of that.

This isn't pocket change that the AFL can spend without significantly cutting back elsewhere.

 

[Ando727]

Can they organise 2 new things at once? Well, setting up GC & GWS seemed to strain them (some would say break)...and currently they still have to hold the hands of those 2, and there is the small matter of AFLW and have just taken over ownership/management of Docklands. (Yes, I know you're going to claim you're running yourselves, but when the league is paying the majority of your budget and appointing the board, they clearly have a sizable hand in it).

Mostly I was just talking money though, and a Tas team will be in the tens of millions, yearly and ongoing. (minimum would be the ~11m distribution, but noticeably more would be likely). Setup costs would be on top of that.

This isn't pocket change that the AFL can spend without significantly cutting back elsewhere.

So, let them make some cuts. There would be endless ways they can make cuts that are barely even noticeable. AFL is a big organisation. They can do this. They can make a cool million just by ditching the foreign "entertainment" at the Grand Final.

 

[Kappa]

Imagine trying to get star players to live in Hobart... Good luck with that.

 

[Isaac Cumming No 1]

Can they organise 2 new things at once? Well, setting up GC & GWS seemed to strain them (some would say break)...and currently they still have to hold the hands of those 2, and there is the small matter of AFLW and have just taken over ownership/management of Docklands. (Yes, I know you're going to claim you're running yourselves, but when the league is paying the majority of your budget and appointing the board, they clearly have a sizable hand in it).

Mostly I was just talking money though, and a Tas team will be in the tens of millions, yearly and ongoing. (minimum would be the ~11m distribution, but noticeably more would be likely). Setup costs would be on top of that.

This isn't pocket change that the AFL can spend without significantly cutting back elsewhere.

In no way has the expansion strained the AFL financially, and more product has increased revenue. It's not all downside. Our governance is similar to the Swans and other clubs.

At the end if the day it's clear the AFL can set up a team in Tasmania, with another new club in WA the most logical setup.

It's matter of opinion whether they should. In my view enfranchising a traditional footy state should have been done some time ago, and the sooner the error is corrected the better.

 

[Benny78]

There will be a team in Wentworth before there's a team in Tasmania. That's just how the AFL roll.

If you want teams in Tasmania and places like the Northern Territory my only suggestion is setup a union

 

[General Giant]

Saved funds still get spent on something eventually. There is always an opportunity cost with everything the AFL do.

Yep hense they can be spent on Tassie.

Sent from my SM-G960F using Tapatalk

 

[Johnny Bananas]

Do you have any idea of accounting and/or finance?
Because that comment makes no sense.

Yes, do you? You even acknowledge there's a profit left over after you've accounted for those expenses. I'm asking what became of that.

Like, the particular years where they try and pay off those debts?

Yes. Is there a point to your comment?

Point was, they'll all take their part in chipping away at that 'profit' in coming years, leaving less free/available to spend on a Tas team.

And there will still be enough left over. Or the money for a Tasmanian team can be quarantined and paid first before the rest of the pile. Unless you think revenues are about to suddenly stagnate and expenses shoot up enormously.

Why would they do that once they get a team?

Do you understand how corporate welfare works? They don't always simply ask for one-off favours, they leverage commitments into ongoing payments or benefits if they can. Which is what the car manufacturers did, until the government finally pulled the plug on them. And then what happened? They shut down. Getting the team isn't sufficient, Tasmania also has to keep the team. What's the point of a one-off commitment if the team goes belly up a few years later? Then it's money down the drain. If the AFL are smart, they'll leverage their position to get an ongoing subsidy. As far as I'm aware, the Tasmanian government is already providing an ongoing subsidy to get AFL games played in Tasmania as is, so the precedent has already been set.

 

[Johnny Bananas]

Can they organise 2 new things at once? Well, setting up GC & GWS seemed to strain them (some would say break)...

Broke the AFL? Are you actually serious?

 

[madmug]

Saved funds still get spent on something eventually. There is always an opportunity cost with everything the AFL do.

Yes their is. Gil seems finally to have worked it out that Tasmania has a value to the game. We've produced a lot & got SFA back out of it. You can't keep draining the place & expect nothing to change. It has changed. The game has been repeatedly drained by the VFL/AFL,underfunded to bugry & has been decimated as result.

So again, clearly thats been recognised & we may finally get some equity back into the system. Maybe even at the highest level.

Fact, Tasmania is a football state.

Fact, its been sucked dry.

Fact, enough is enough.

 

[Cold Sober]

The sooner they put a team in Tassie the sooner it will fail, then we wont have to stick up with another 50 years of ' Put a team in Tassie '.

 

[rfctiger74]

Can, sure, they 'can' afford lots of things...but it would still mean cutting back spending somewhere.

Fine

Kill overseas programs and AFL X for a start

 

[tony__montana]

In no way has the expansion strained the AFL financially, and more product has increased revenue. It's not all downside. Our governance is similar to the Swans and other clubs.

At the end if the day it's clear the AFL can set up a team in Tasmania, with another new club in WA the most logical setup.

It's matter of opinion whether they should. In my view enfranchising a traditional footy state should have been done some time ago, and the sooner the error is corrected the better.

Its hasnt strained the AFL yet and expansion brought a massive amount of revenue into the game via TV rights. But why do you think the AFL panicked this year about the state of the game? With TV audience down, its conceivable that the next TV rights will be less which WILL put a strain on the competition. If the falling audience trend continues next season, it will be fascinating to see the fallout

 

[Gigantor]

Imagine trying to get star players to live in Hobart... Good luck with that.

Not just star players, if you can't get 18 year olds to live the idyllic lifestyle on the Gold Coast, you aren't going to get them living in Hobart.

 

[BringBackTorps]

Gil seems finally to have worked it out that Tasmania has a value to the game. We've produced a lot & got SFA back out of it. You can't keep draining the place & expect nothing to change. It has changed. The game has been repeatedly drained by the VFL/AFL,underfunded to bugry & has been decimated as result.

What has not received much comment, re the H./Sun article above, is that (paraphrasing) it said most AFL CEO's seemed cautiously open or in favour of a Tas. stand-alone AFL team.

Only two Clubs were said to be not in favour (most likely these 2 unnamed Clubs are HFC & NMFC; & exposure of their public "pro-Tasmania" lies & hypocrisy). It is noteworthy that Kennett/HFC/NMFC never mention the male GR & elite comp. AF decline in Tas.- because they know they cannot defend the indefensible.

What, also, hasn't received much comment is why McLachlan raised the issue of a new Tas. AFL team now; & allowed these AFL pro-Tas. AFL team comments to become public? Intriguing.

But why do you think the AFL panicked this year about the state of the game? With TV audience down, its conceivable that the next TV rights will be less which WILL put a strain on the competition. If the falling audience trend continues next season, it will be fascinating to see the fallout

IF the big fall in TV ratings occur again in 2019, it will be very worrying for the AFL & the game- & AFL executives will be wearing brown corduroy trousers.

The sooner they put a team in Tassie the sooner it will fail, then we wont have to stick up with another 50 years of ' Put a team in Tassie '.

Independent financial analyses have shown that a Tas. AFL team will be self sufficient financially ie similar to other heartland states, but would still receive the AFL annual distribution of other heartland states. Good state govt. & private sector support, superb ground deals, probably the most fanatical (per capita) AF state in the country.
Also, Tas. would, almost certainly, come in with a 20th new team- therefore a further increase in broadcasting Rights' $.

Not just star players, if you can't get 18 year olds to live the idyllic lifestyle on the Gold Coast, you aren't going to get them living in Hobart.

Tas. is a 45 minute flight to Melb. Flight bookings well in advance cost c. $150 return.
If Canberra can support professional teams, then Hobart can also (but games split 6/5 with Launy).

Are you aware of the Melb. extended peak hour times, & peak hour traffic gridlock? And Melb.'s general congestion, increasing crime rate & ridiculously expensive real estate?
Geelong is a very successful AFL Club, & is not part of Melb.

It can be assumed that if Tas. got its own team, the disastrous decline of AF there would quickly be rectified; & within 7-10 years, the once fabled Tas. recruitment goldmine of champions & good players would be resurrected. Most would prefer to play for Tas.
It is this once traditional recruitment goldmine the AFL desperately wants (or should want desperately)- much more valuable than the Tas. team Balance Sheets and P & L statements.

 

[BobbyMorri]

Not just star players, if you can't get 18-year-olds to live the idyllic lifestyle on the Gold Coast, you aren't going to get them living in Hobart.

This is the biggest load of horse crap which always gets trotted out on this discussion.

1. They don't have a say on where they go in the draft. If they did, then every Northern club would be in big trouble because of Mommy and Daddy. They go where they get drafted.

2. several years ago, no kid wanted to stay in BRISBANE. The 3rd largest city in Australia. Suddenly, they do. Club culture has far more to do with player retention than location. Talk to Adelaide about that.

And if that isn't true, then GWS and GCS will always be feeder clubs to other clubs and you might as well go home. You never going to win anything if the last several years is anything to go by.

3. We might not be a destination city for free agents. Who cares. How many free agents(A-grade players) have gone to a place not of their home state. And even if they are in that state, doesn't mean they stand a chance. North has had several shots at star players with money. Should close them down as well i guess.

We would have a very good shot at any Tassie grown talent working overseas(ala Matthew Wade in that cricket team/s which doesn't have any players according to BF, or doesn't exist at all according to another idiot on this forum).

4. Check our housing prices. Tassie is so vogue atm.

5. The biggest reason Sydney and Brisbane have gotten players to move to them(outside of money) is anonymity. A Tassie side could be a goldfish bowl of pressure, a mini Adelaide. Or It could be relaxing for a country boy to live in an actual rural location to raise a family. Who bloody knows. Being a destination club have done F-all to several Victorian clubs.

6. We live in a small world. Its an hour flight.

 

[Rob]

Fine

Kill overseas programs and AFL X for a start

How much do you think the AFL spends on overseas programs? Last time I checked it was bugger all.

 

[tigertigertiger]

Tasmania should of been before Gold Coast and GWS, ffs!

 

[rfctiger74]

How much do you think the AFL spends on overseas programs? Last time I checked it was bugger all.

I did say for a start

 

[madmug]

Tasmania should of been before Gold Coast and GWS, ffs!

Should doesn't help.

Its what happens from now on that matters.

The fact Gil brought it up with AFL CEO's. That the State Government has made a move. That the local AFL office isn't part of it, & the fact Kennet is bitching, as as are NM.

Its all good news at the moment.