Paying back the 500 million dollars

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Kwality

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Bad news Kwality ! The AFL losses this year, including the clubs, is apparently only $100M!

Its a bit hard to believe, the spin this time of year is for the true believers, not cynics like me.
Back of the beer coaster calculations are limited to the Eagles at this point & its about AFL distributions.
 

NoobPie

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Its a bit hard to believe, the spin this time of year is for the true believers, not cynics like me.
Back of the beer coaster calculations are limited to the Eagles at this point & its about AFL distributions.
Yeah I reckon it is not hard to believe at all and there is no reason to seriously doubt it.

The figures ($40M for the AFL and $60M for the clubs) was put (by Caro) directly to somebody in the meeting (eddie).

For what purpose would Caro and Eddie be part of a big conspiracy to lie to the "true believers" that the losses are smaller than they actually are?
 

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Rob

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Do they even know the extent of their losses/non revenue yet?
They'd have a pretty good idea. They'd know their income, and have a pretty decent idea of expenses for the rest of the year.

Next year? Who knows. It'll be interesting to see how they account for those memberships where members get a credit for next year. I'd imagine that it should be included in income for next year and not this year, but who knows. If they do that then their 2020 loss is going to look a lot worse than their net cash position.
 

The_Wookie

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Yeah I reckon it is not hard to believe at all and there is no reason to seriously doubt it.

The figures ($40M for the AFL and $60M for the clubs) was put (by Caro) directly to somebody in the meeting (eddie).

For what purpose would Caro and Eddie be part of a big conspiracy to lie to the "true believers" that the losses are smaller than they actually are?
If all they really lost was gate revenue and had no drops in other areas, this is theoretically possible.
 

NoobPie

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If all they really lost was gate revenue and had no drops in other areas, this is theoretically possible.
More than "theoretically" possible. They also stood down the bulk of the staff for at least part of the year across the AFL and clubs on job keeper

I would say that there is no reason to believe otherwise.
 

HairyO

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Ask clubs to add $20 to every 11 game membership, $10 to every 3 game and 5 game membership.

Add $10 to every game day ticket.

Etc.

And massive cutback on the spending. In fact the clubs should refuse to assist with the above unless they cut spending by 20% without reducing grass roots spending by even $1.
 

Rob

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More than "theoretically" possible. They also stood down the bulk of the staff for at least part of the year across the AFL and clubs on job keeper

I would say that there is no reason to believe otherwise.
Yeah I agree. If you account for the big drop in wages as a result of both layoffs and pay cuts for players, combined with jobkeeper - and I suspect every employee of all clubs would be on it - it's not a stretch to account for that number.
 

dundee61

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Its a bit hard to believe, the spin this time of year is for the true believers, not cynics like me.
Back of the beer coaster calculations are limited to the Eagles at this point & its about AFL distributions.
the original money the afl had access to was a line of credit of 500 million. it was the max they could access it doesnt mean they maxed it out. they had cut backs of expenture and employee wise along with apparent wage cuts in propanda house .
at years end they will produce the usual colorful glossy brocher fulled with selected figures missing important details like any local council or greens publication does! we wont know the full details until another 24 to 36 months down the track
 

Kwality

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'Up to $300 million has been drawn on a credit line of $1 billion secured in the aftermath of the season suspension in March' according to The Australian in a bigger article on a proposed review of the AFL, root & branch.

Eddie is quoted:
“Everybody is very focused on the figures and what needs to happen and Andrew Pridham’s position was that maybe it is time to have a good look at everything.

“Not that there’s anything necessarily wrong, but after 27 years, which was the term that was used, maybe it is time to have a look at what is going on.”

 

Tas

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Its a bit hard to believe, the spin this time of year is for the true believers, not cynics like me.
Back of the beer coaster calculations are limited to the Eagles at this point & its about AFL distributions.
According to our Chairman, we will turn a profit this year, despite no games in Tasmania and none of that revenue, we didn't need to borrow any money from the AFL and have reduced what little existing debt we had down further.

I think the AFL wastes too much money. Broadcasting rights alone would have allowed the AFL to distribute $23m to each club and broadcasting rights is about half of the AFL's revenue. I think the Swan's chairman is on the money, we need an major review of the AFL and it's operation. This economic downturn caused by the pandmeic should have been a blip on the radar if the AFL distributed the vast majority of the revenue generated back to the clubs.

Given the revenue the clubs generate, they should be getting in the ball park of $30m each, we see barely half that, other clubs are lucky to see more than a third. It is insane that this farce has been allowed to go on.
 

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Kwality

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According to our Chairman, we will turn a profit this year, despite no games in Tasmania and none of that revenue, we didn't need to borrow any money from the AFL and have reduced what little existing debt we had down further.

I think the AFL wastes too much money. Broadcasting rights alone would have allowed the AFL to distribute $23m to each club and broadcasting rights is about half of the AFL's revenue. I think the Swan's chairman is on the money, we need an major review of the AFL and it's operation. This economic downturn caused by the pandmeic should have been a blip on the radar if the AFL distributed the vast majority of the revenue generated back to the clubs.

Given the revenue the clubs generate, they should be getting in the ball park of $30m each, we see barely half that, other clubs are lucky to see more than a third. It is insane that this farce has been allowed to go on.
The Eagles are going to battle to break even ..... is that the letter from Ben Buckley in the last 24 hours you are referring to? If so can you post it.
 

big_e

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The Eagles are going to battle to break even ..... is that the letter from Ben Buckley in the last 24 hours you are referring to? If so can you post it.
Full letter below, have bolded the finances bit.

North Melbourne chairman Ben Buckley has penned the below update to the club's members and supporters.

Thank you for your ongoing support and patience since the conclusion of the season. I know it’s been a terribly testing and difficult year for everyone, and I sincerely hope you and your loved ones are keeping well in the circumstances and are taking care of each other.

On the field, we have had a difficult year too and are looking forward to putting a full stop to 2020. I am pleased to say, we are already well down the path in planning for next season and have identified many areas where we can improve.

While the season didn’t pan out the way we would have liked or intended, we are buoyed by a promising future and the undeniable support of our members. To have retained 97 per cent of our membership base in what’s been a challenging year for us all, particularly for those in Victoria, it is remarkable and says so much about the type of people we have supporting our great club. Your commitment and resilience is extraordinary and we thank you for everything you’ve done for us and hope to welcome you back to our games next season.

In no way can we afford to brush over what was a year below our standards and while we know our team was restricted by injury which compromised our ability to field our best side, our performances were not at the level we expect. As a result, and like we do at the end of every year, we are looking at our football department structure, list-management, coaching panel, high-performance, and medical areas and programs in an effort to improve across the board. There has been change, and there will be more, but we are not going to apologise for trying to make this club better.

To those we’ve recently bid farewell to, I’d like to personally thank you for your hard work, and wish you well for the future.

I’m delighted John Blakey will be returning to his spiritual home for next season and beyond as senior assistant coach. He is a person of great character, has wonderful experience having coached at the Brisbane Lions during their successful era, and more recently was part of the foundation of the culture that led to the success of the Sydney Swans. We will continue to add more resources and expertise to our coaching panel.

Late last year we brought in high-quality individuals to lead the football department in Brady Rawlings, Scott Clayton and this year promoted Glenn Luff to list manager. We have every confidence in the upcoming Trade, Free Agency and Draft periods and will add more talent that will lead us back up the ladder in coming years. As I’ve said many times before, the group leading our football department will build something special, but they need time to do it; we can’t be too quick to judge such a major transformation.

On the field, Luke McDonald enjoyed his best season to date, Todd Goldstein showed no signs of slowing down along with the ever-reliable Robbie Tarrant. Jy Simpkin emerged as a genuine midfielder and Jed Anderson took his game to a new level, both ably supported by the super consistent Trent Dumont. We found a fantastic player in Josh Walker and have an exciting crop of talented players coming through the ranks with five Rising Stars in the past two years and a strong hand in the upcoming national Draft with two first-round picks (currently 2 & 9). We will also look to add more talent through all the avenues available to us over the next two to three years. At our core, we have some seasoned and experienced players that will guide and develop this new wave of players and help us push for success sooner rather than later. I for one, can’t wait to have a fit Ben Cunnington, Kayne Turner, Taylor Garner and Jack Ziebell back out there mixing it with our next generation including the likes of Luke Davies-Uniacke, Tarryn Thomas, Curtis Taylor, Jy Simpkin, Nick Larkey, Cam Zurhaar, Ben McKay, Bailey Scott, Kyron Hayden and last year’s draftees – Jack Mahony, Flynn Perez and Charlie Comben.

We have been acutely aware of speculation regarding our head coach, but we have not been in a position to say anything as we are respecting the wishes of Rhyce and his family. Rhyce has asked for some time and space away from football and we have provided him support during this period. We thank the media for their ongoing cooperation and trust they understand we can’t make further comment at this time.

In the meantime, we will forge ahead. From a Board perspective, our decision-making centres around one ambition: how we can build a team and a football program that will win our fifth flag.

I’d also like to take this opportunity to set out the facts about our financial position and business:

- We have recorded a profit for each of the last eight years (and 12 out of the last 13 years). Despite the challenges of 2020, we will post another small surplus this year, to make it nine years in a row. This has been achieved through prudent financial management and despite not playing any games in Tasmania in 2020

- We have achieved these outcomes while ensuring we allow the football department to pay the soft cap and TPP limits

- Our debt hit a peak of $9M at the end of 2011. At the commencement of 2012, we put in place a debt reduction campaign and thanks to our members and sponsors, debt is expected to be completely eliminated by the end of 2021

- Debt could have been paid off in 2019 but a strategic decision was made to invest in a facility redevelopment to accommodate our expansion, including our AFLW team

- That $6.2M redevelopment of our facilities in 2019 was mostly funded by the Club and we thank all the wonderful North Melbourne people who contributed generously to that project

- At the end of 2019, we had a debt position of $650K. We will reduce this by a further $250K bringing the debt down to $400K at the end of October 2020. By 2021 we hope to have wiped debt completely – that’s $9M in just 10 years while investing in football and our facilities

- Like the other unassisted clubs, we have not needed to access AFL funding assistance in 2020 from the AFL’s line of credit during this COVID-19 period (since April 2020)

- While the majority of AFL clubs receive variable funding from the AFL above the base distribution, in 2019 North received the 6th highest variable funding. Variable funding is a key plank of the equalisation policy and why the AFL competition has been so successful in recent decades

- We have the bulk of our sponsorship revenue secured for next year and are proud to welcome global insurance brand, AIA, to our partner family and we are particularly grateful for the ongoing support of our major partner, Mazda, as well as Spirit of Tasmania, Hello Solar, PFD Foods and McDonald’s. We will also have some further big announcements to make in due course

- We are viewed as an anchor tenant, critical to the success of the exciting Arden Precinct urban renewal project; Melbourne's largest urban renewal project earmarked to create more than 34,000 jobs and become home to 15,000 residents. This presents a generational opportunity for us to cement our future in North Melbourne and expand our home base at Arden St. We have invested significant energy into getting the best outcome for the club and our community. We will update you on our plans as they evolve.


I hope the information above gives you a better understanding of where things are at and why we are supremely confident of our future and direction. These are just a few of the facts, and the reason why our club is in a strong position off the field.

In closing, thank you again for your patience, loyalty and support. None of the above would be possible without you - the very lifeblood of our club.

We look forward to seeing what our AFLW team can achieve with new coach, Darren Crocker at the helm. Last year our girls were destined for great things after topping their conference, but the season was ended prematurely, and no premier was determined. This year, we expect them to start where they left off and go all the way.

Go Roos!

Ben Buckley
Chairman, NMFC
 

The_Wookie

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According to our Chairman, we will turn a profit this year, despite no games in Tasmania and none of that revenue, we didn't need to borrow any money from the AFL and have reduced what little existing debt we had down further.
Who needs to borrow money when you get a handout through the disequalisation fund?

I think the AFL wastes too much money. Broadcasting rights alone would have allowed the AFL to distribute $23m to each club and broadcasting rights is about half of the AFL's revenue.
Clubs going to chip in to fund grassroots, state leagues, umpires, insurances, ground costs and other things outside their local remit?

I think the Swan's chairman is on the money, we need an major review of the AFL and it's operation. This economic downturn caused by the pandmeic should have been a blip on the radar if the AFL distributed the vast majority of the revenue generated back to the clubs.
Yeah because it didnt affect any other league that distributes more to its clubs too. Clubs sign off on the funding deal every 5 or 6 years, its not just handed to them.
 

Kwality

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The Weakened Australian suggesting the industry as a whole loss will total $100 mil, & given the devil is in the detail, that is a bloody good result going into 2021.


“In March, April, when the season stopped, we had a notional hole of about $965 million,” McLachlan told The Weekend Australian. “Through sacrifice and commitment from all parts of the industry and hard work and great partnership with our broadcasters and our sponsors, and the incredible loyalty of our members and supporters and the commitment to get this season away, the industry loss between the clubs and the AFL will be something under $100 million. It will be significantly lower and (that is) a credit to our players and our clubs and our supporters.”

....

The improved bottom line adds an additional element to negotiations between the AFL and the players union, who are set to negotiate a new Collective Bargaining Agreement.

Both the league and all 18 clubs have endured a significant reduction in staff this season, while the football soft cap will be cut by one-third for 2021.

 

the big lebowski

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Who needs to borrow money when you get a handout through the disequalisation fund?
What garbage. Aside from the fact North didn’t even get the most disequal funding from Melbourne clubs, let alone the northern clubs, the disequal funding is paid as compensation from a fixture that aims to maximise revenue at the expense of smaller clubs.

You understand that right?
 

BringBackTorps

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The Australian C. Walsh 23.10

Mc Lachlan said 23.10
"...the industry loss between the Clubs & AFL will be something under $100m. It will be significantly lower...".
Because Mc Lachlan said in the link also, on 23.10, in March 2020 the "hole" (loss) was feared to be $965m (clearly revenues only- not a P & L actual net loss), the $100m loss to the AFL clearly relates to lost revenues only.


EDIT:

(Go to Sports Industry tweet 24.10- then Click on The Australian C. Walsh).
 
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Kwality

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The Australian C. Walsh 23.10

Mc Lachlan said 23.10
"...the industry loss between the Clubs & AFL will be something under $100m. It will be significantly lower...".
Because Mc Lachlan said also, on 23.10, in March 2020 the "loss" was feared to be $965m (clearly revenues only- not a P & L actual net loss), the $100m loss to the AFL clearly relates to lost revenues only.

What is the equivalent number to the $100m ? Is it just revenue as suggested in the quote ?

or is it 'the industry as a whole loss will total $100 mil' refers to the P & L number?
 
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NoobPie

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What is the equivalent number to the $100m ? Is it just revenue as suggested in the quote ?

or is it 'the industry as a whole loss will total $100 mil' refers to the P & L number?

It would definitely be P&L bottom line not just revenue. Still a remarkable number
 

BringBackTorps

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It would definitely be P&L bottom line not just revenue. Still a remarkable number
1. I applied the Latin maxim noscitur-a-sociis Rule of Legal Interpretation to McLachlan's comments.


McLachlan's comment re the $100m "loss" was immediately preceded by him saying "the hole was feared to be $965m" in March 2020. The AFL was never going to have a P & L actual net loss of $965m in 2020!- I, therefore, applied the Noscitur Rule that the $100m referred to loss of revenues.


2. Back Of The Napkin Nos.?

We know that the AFL suffered a reduction in Rights' revenue of 12-13% in 2020. Thus it received c. $366m in 2020 for its Rights.
C. 95%+ of Club members paid for their memberships in 2020, & did not request a refund. Perhaps $150m?
IIRC, virtually all Sponsors paid their sponsorship funds in full for 2020-c.$200m+?
I'm not sure of other funds received by the AFL & Clubs in 2020.

There was obviously a huge loss of funds actually paid at the gate (non-members) to attend matches.

AFL HQ & Club costs were slashed.

For your view it was an actual net loss of $100m, would you care to provide a very rough estimate of the AFL & Clubs' incomings for 2020- & their expenses?







EDIT:

And (if your view is correct) much more importantly, why didn't the AFL & Clubs cut their costs much MORE severely, to at least break even?

The AFL, "the keeper of the code", is supposed to be protecting the game from actual net losses. It is a NFP organisation, justified primarily by promoting the game of AF & the GR.
Or is it, in a time of trouble, when all the little elite piggies can't quickly run to the trough as is their custom, "socialising its losses"- to the detriment of the game & the GR?
 
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Kwality

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Quick look at last years club results, total accumulated operating profits were $30 mil, reported profits $60 mil.
The AFL reported $28 mil profit.
note: approx numbers from http://www.footyindustry.com/

To me that reads as industry profit last year of $60mil, but I understand some will read it as $90 mil.

So if the industry is down $100 mil, what does that really tell us?
 

NoobPie

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Quick look at last years club results, total accumulated operating profits were $30 mil, reported profits $60 mil.
The AFL reported $28 mil profit.
note: approx numbers from http://www.footyindustry.com/

To me that reads as industry profit last year of $60mil, but I understand some will read it as $90 mil.

So if the industry is down $100 mil, what does that really tell us?
If reported losses equal last years reported profits than the balance sheets will be roughly where they were at at the end of 2018
 

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