Paying back the 500 million dollars

[Kwality]

I’d honestly be surprised if more than 1/3 of clubs could survive this without help

Clubs need to more transparent, tough as it may be.

Freo were open in this advice to members in April:

An update from the CEO

A letter to members and supporters from Fremantle CEO Simon Garlick on the COVID-19 crisis.

www.fremantlefc.com.au

Have other clubs been as open?

There is a good thread on the Saints BF club site on debt - some of the posters clearly know the score, you need to read it all to understand the realists from the dreamers.

 

[deltablues]

all for these other things but getting rid of AFLW will have a massive impact on local footy and their viability going forwards, I'd rather trim a few from the AFL lists and make the savings in other areas than chop the AFLW, I'm not a huge fan of AFLW, but it'd be a huge step backward

Local football survived quite well before the inception of AFLW. So how has this changed? What is this "massive impact.. viability" threat of which you speak?

And if AFLW ceased to exist, then presumably before its existence the stronger sex were, back then, suffering while that huge step forward was yet to be taken? Waiting for subsidies.

 

[Kwality]

Local football survived quite well before the inception of AFLW. So how has this changed? What is this "massive impact.. viability" threat of which you speak?

And if AFLW ceased to exist, then presumably before its existence the stronger sex were, back then, suffering while that huge step forward was yet to be taken? Waiting for subsidies.

IMHO, properly funded local comps are a better proposition for the game.

 

[Kwality]

Seven and the pay television provider were due to deliver their second of four payments of the year by May 31 but the absence of matches has meant this will not go ahead. However, sources close to all parties said the payment could be made up in full - or in part - as part of a new broadcast rights contract, which may be signed as early as next week.

The AFL earns an average of $417 million a year in TV rights as part of its six-year, $2.5 billion deal, with Seven, Foxtel and Telstra, which underpins the entire competition.

The withholding of the latest payment suggests the AFL is going to take at least a 25 per cent hit in the coronavirus-impacted season, highlighted by clubs recently taking a 37 per cent cut in football-department spend compared to the pre-COVID-19 cap.

It also comes at a time when the broadcasters are still renegotiating a revised contract, taking into the account the lost income of this year. As revealed by The Age's Caroline Wilson, the plan is to extend the current contract by two years until 2024, and spread out the financial pain as a result of a weakened economy over this time.

Seven, Foxtel withhold AFL payment but new contract nears

The absence of matches continues to hurt the AFL but a revised contract with broadcasters may help ease the financial pain.

www.smh.com.au

REH on the Port board .. for a far more comprehensive overview including links ... apology for my inability to link that post.

 

[HirdyLannister]

So those empty $50 seats at metricon will be $70 empty seats?

Yup, it will become exclusive now to attend games. Only 10000 live crowds, charge what you want.

 

[JUSTWORK]

Each round is worth what, 10 million ? Play a few more games each year, that’s a good start.

More games on TV should should mean a bigger TV rights deal also.

 

[Cotchins Hair Piece]

The best thing for the competition would have been to save the $500M and to let the non-viable clubs go to the wall.

Bye bye Carlton

Blues will ask the AFL for financial assistance

Carlton will be among, at this stage, 12 AFL clubs receiving assistance from the AFL to survive the COVID-19 financial crisis.

www.sen.com.au

 

[Kwality]

Each round is worth what, 10 million ? Play a few more games each year, that’s a good start.

More games on TV should should mean a bigger TV rights deal also.

You are dreaming of yesteryear, see comments to the NYSE by NewsCorps CEO when releasing NewsCorp last quarter results.

NoCookies | The Australian

www.theaustralian.com.au

News Corp chief executive Robert Thomson .... foreshadowed a “fundamental reset” of sports rights in the longer term following the COVID-19 outbreak, which has had a material impact on subscribers to the company’s sports streaming service Kayo.

While Foxtel’s sports streaming service Kayo had reached 470,000 subscribers by March 22, suspensions of the NRL, AFL and US NBA season have severely impacted numbers, which had dropped to 272,000 by May.

Mr Thomson said there would need to be a “fundamental reset” in terms of the amount paid for broadcast rights for sports such as the NRL and AFL.

“There obviously needs to be a fundamental reset, the idea that things will return to normal this season is absurd.

“It’s not just the quantity of games it’s the quality of experience and that has obviously been diminished. And that reset has to apply longer term to us in Australia.”

 

[Kwality]

Yup, it will become exclusive now to attend games. Only 10000 live crowds, charge what you want.

Are the AFL paying the stadiums for the hire of the stadiums, expensive empty seats those.

 

[CrowsB4hoes]

Sausage sizzles at all home games. Extra 50c for tomato sauce. No exceptions.

 

[SaltPeter]

Yup, it will become exclusive now to attend games. Only 10000 live crowds, charge what you want.

Interesting that the gate at H&A away games go the clubs. Finals games to the AFL.

Essendon have a history of jacking up ticketing prices. A classic example is the ANZAC games, where Collingwood keep ticketing prices the same as their other H&A gate prices. Essendon, on the other hand citing 'block buster' have had no qualms jacking up the price to this game when they are the home team.

It seems the team you support has no problem price gouging the punters. You should be used it by now

 

[Kwality]

Interesting that the gate at H&A away games go the clubs. Finals games to the AFL.

Essendon have a history of jacking up ticketing prices. A classic example is the ANZAC games, where Collingwood keep ticketing prices the same as their other H&A gate prices. Essendon, on the other hand citing 'block buster' have had no qualms jacking up the price to this game when they are the home team.

It seems the team you support has no problem price gouging the punters. You should be used it by now

Paying a bit more is the real world, but what about me??

 

[Scotland]

I just figured North Melbourne would pay it back over a 10-15 year period. SimpkinByTheDockOfTheBay assures me they are good guys and do that sort of thing.

 

[theyellowsash]

You are dreaming of yesteryear, see comments to the NYSE by NewsCorps CEO when releasing NewsCorp last quarter results.

I'm surprised there's that many still subscribed to kayo. With no sports happening and pretty much everyone taking some kind of pay hit, what's the point?

 

[Kwality]

I'm surprised there's that many still subscribed to kayo. With no sports happening and pretty much everyone taking some kind of pay hit, what's the point?

Its why the streaming services wont be prepared to offer the big bucks UP FRONT, that sports need to fund their growth.

 

[Aussie_boy]

I'm surprised there's that many still subscribed to kayo. With no sports happening and pretty much everyone taking some kind of pay hit, what's the point?

Not sure about others but I got offered 2 months for $5 through a membership I have, only reason I currently have an account. Would be safe to assume that's led to the numbers not dropping off dramatically.

 

[Freomaniac]

Get rid of AFLW - saving $20 mill per year
Half Soft cap - $90 mill saving
Decrease Salary Cap by $2 mill - $36 mill saving
Trim the AFL Executive and all the hangers on/superfluous staff (who knows $10 mill say?)

Boom - $156mill Saving. Debt gone in 3 years.

156 million divided by 52 weeks is 3 million a week. thats a lot of cash

 

[The Warlord]

I just figured North Melbourne would pay it back over a 10-15 year period. SimpkinByTheDockOfTheBay assures me they are good guys and do that sort of thing.

I'd say quicker.

 

[The Warlord]

I am yet to see this discussed anywhere by anyone. The AFL has taken out a 500 million dollar loan, they have given the money out. That for me is the easy part. The next question becomes, who pays it back and how? Is it actually even possible?

Lets look at the AFL response to all this vs the NRL first and foremost

NRL adopted a quick approach of re negotiating current contracts. They got into a very very ugly war of words with Channel 9 and Fox Sports. The end result however is the NRL received a 7 year deal and a 115 million dollar line of credit that is directly related to that deal as of yesterday.

The AFL however have tied the 500 million dollar loan to absolutely nothing. Just plucked it out of thin air and prayed for the best. It feels like AFL and co are simply lining it up so the fans pay it back if you ask me, whereas in the case of the NRL they went above and beyond to ensure the credit was paid back with current contract arrangements

Are the fans really going to accept the increased ticket prices, increased games to pay this money back? How come unlike V'landy, Gil was too weak to approach the billion dollar businesses invested in it to ask for a direct line of credit?

To me the leadership by the AFL has been non existent and really showed a complete lack of compassion or empathy to anyone who doesnr wear a suit and earns 1 million+ a year. I hope you all have your wallets ready as me and you have a big ass loan that we need to pay back

It is $600m, I am not sure any has been paid out yet but if it has it isn't much and it is secured against Docklands stadium.

Most observers doubt the AFL will need to access it all.

 

[The Warlord]

The best thing for the competition would have been to save the $500M and to let the non-viable clubs go to the wall.

Geelong will be accessing this.

Are they non viable?

 

[Kwality]

It is $600m, I am not sure any has been paid out yet but if it has it isn't much and it is secured against Docklands stadium.

Most observers doubt the AFL will need to access it all.

Have these observers refunded the seating dollars yet OR is there nothing in the bank, is the AFL debt guarantee fully drawn?

With the media money due in May unpaid, thats a hole in the AFL income .....

The cut in media money will put a $100 mil hole in the AFL budget :

AFL, Seven working to extend broadcast deal

AFL, Seven and Fox Sports explore a marginally reduced contract that would run until 2024.

www.theage.com.au

Wasnt the AFL hub going to cost $2000 per person per day, another hole in AFL bank account.

Maybe you've been down down at the dock in isolation too long, enjoy your dream ...

 

[The 747]

Its why the streaming services wont be prepared to offer the big bucks UP FRONT, that sports need to fund their growth.

If the AFL had a clue about the internet - which they don't as it obvious from their website - they would run their own streaming service.

I agree big bucks up front is looking like a rear view mirror idea now.

 

[Kwality]

If the AFL had a clue about the internet - which they don't as it obvious from their website - they would run their own streaming service.

I agree big bucks up front is looking like a rear view mirror idea now.

Tell us about the money, who pays, who funds it, who provides the pictures, who ... etc.
Back of the coaster stuff 747, more your li'l cousin Max on the 737 side

 

[The 747]

Tell us about the money, who pays, who funds it, who provides the pictures, who ... etc.
Back of the coaster stuff 747, more your li'l cousin Max on the 737 side

The AFL funds the production and staff and sells it through a subscription model and adds a pay per game option.

They earn annually $417 million apparently through TV rights.

For the 2019 season they had approx 94 million viewers.

So per viewer, they are making about $5 per season currently.

34 million of those viewers are already paying for subscription television.

Back of the west coaster sort of calculations of course.......

 

[Kwality]

The AFL funds the production and staff and sells it through a subscription model and adds a pay per game option.

They earn annually $417 million apparently through TV rights.

For the 2019 season they had approx 94 million viewers.

So per viewer, they are making about $5 per season currently.

34 million of those viewers are already paying for subscription television.

Back of the west coaster sort of calculations of course.......

$417 mil TV rights/94 mil viewers/$5 per viewer is AFL cop - with you.

Maybe a whiteboard, another west coast cooler?