Season 2020 & the money if cancelled

[Kwality]

No, and the season will eventually be cancelled as well.

The AFL will delay the inevitable by giving people hope that everything will start as normal at the end of April, until they realise this is a losing battle and abandon the season.

If its cancelled who pays, who is left holding the empty bank account.

No games, no TV money? Sponsorship?
Who pays the stadium agreements?

Salary caps minimums?
Performance incentives in player contracts ...

Bit early know, the mind fairly boggles !!

 

[The_Wookie]

AFL might have to dip into its reserve fund and cash holdings.

 

[Kwality]

The effect on the NRL is well covered below, are the AFL any different, are our clubs any different?

FINANCIAL IMPLICATIONS LOOM LARGE

One of the biggest talking points from Sunday’s press conference was the commercial implication postponing the 2020 NRL premiership would have on the sport.

V’landys said the financial impact of the pandemic would be “catastrophic” if the season is suspended, but didn’t put a specific number on it. The NRL’s main income is its $2 billion broadcast deal.

ABC sports broadcaster Julian Abbott tweeted: “The NRL is obviously on life support now and that’s why they are playing round two even without crowds … Their books are a catastrophe.”

ABC journalist Sam Wilkinson tweeted: “Many NRL clubs also rely heavily on revenue from their Leagues Clubs (pokies), which would take a massive hit if forced to close in the coming weeks/months”.

Sporting world reacts to NRL’s contentious coronavirus decision

The sporting community has reacted with scepticism to Sunday’s announcement Round 2 of the NRL will go ahead, despite the ongoing threat of the coronavirus.

www.news.com.au

 

[Prince Imperial]

The impact of this on the AFL and clubs will also be catastrophic when the season is cancelled. I think it is very likely that the League will suffer a nine figure loss and most if not all clubs will face an eight figure loss. Brutal decisions to cut expenditure (such as non-player football department and game development) now and for future years will have to be made.

I don't know the in and outs of the contracts but many of the AFL and club sponsors will be seeking their money back or not making instalment payments.

The only positive I can see is that interest rates are very low.

Clubs that are highly dependent on additional AFL funding and/or have high levels of debt are now at extreme risk and the AFL may have a Sophie's Choice of a couple of clubs to make.

 

[telsor]

It'll be interesting.

Lots of contracts will have lawyers and accountants going through them very closely over the next few months.

AFL has over a billion a year in revenue (between clubs and league, not counting transfers)...If even half of that falls though, the banks are going to need to have some long conversations (although really, that's likely to be the case in many industries), as I don't imagine a lot of the expenses will be able to be cut.

 

[The_Wookie]

Its a fun one

AFL clubs highly reliant on attendance based revenues from the gate, corporates and memberships. Not to mention the AFL takes a hit from Marvel not being used and no MCG revenue. If they play on, they should be able to not have broadcasting revenues and sponsorships affected. The league has a 60m reserve fund and 180+million in cash. unlike the NRL, the AFL is the guarantor for all sorts of club loans and such.

NRL clubs need the attendance based revenues but generally have a lot less. If this goes to June, then the NRL takes a massive hit from Origin revenues as these and finals make up a large part of their commercial revenues. In addition the NRL cant afford to lose the broadcast revenue -its already taken 100m in advances from the broadcasters. The NRL has no reserve fund, and has 118m in cash - mostof its cash is probably required to meet its payable liabilities.

 

[Hornberger]

The AFL currently has a very healthy balance sheet with $184m cash and none of the $88m of the marvel stadium loan due to be repaid in the next 6 months.

In addition each of the Collingwood, Hawthorn and Richmond and West Coast each have in excess of $10m in net cash (cash - debt). On the other side you have Brisbane, Port Adelaide and St Kilda with net debt (debt - cash) of $15m, $6m and $12m respectively.

The AFL is a good place to weather the storm if they have to play a few rounds behind closed doors, or suspend the season for a couple of months and then play a 17 week season.

In the event the full season has to be cancelled, I expect that salaries (players, coaches and AFL execs) will need to cut (probably some sort of sliding scale, 0% for the first 100k, 10% for 100k - 200k, ..., 50% for everything over 500k).

 

[Kwality]

Its a fun one ....

AFL clubs highly reliant on attendance based revenues from the gate, corporates and memberships. Not to mention the AFL takes a hit from Marvel not being used and no MCG revenue. If they play on, they should be able to not have broadcasting revenues and sponsorships affected. The league has a 60m reserve fund and 180+million in cash. unlike the NRL, the AFL is the guarantor for all sorts of club loans and such.

NRL clubs need the attendance based revenues but generally have a lot less. If this goes to June, then the NRL takes a massive hit from Origin revenues as these and finals make up a large part of their commercial revenues. In addition the NRL cant afford to lose the broadcast revenue -its already taken 100m in advances from the broadcasters. The NRL has no reserve fund, and has 118m in cash - most of its cash is probably required to meet its payable liabilities.

View attachment 840020

 

[Taylor]

The AFL currently has a very healthy balance sheet with $184m cash and none of the $88m of the marvel stadium loan due to be repaid in the next 6 months.

In addition each of the Collingwood, Hawthorn and Richmond and West Coast each have in excess of $10m in net cash (cash - debt). On the other side you have Brisbane, Port Adelaide and St Kilda with net debt (debt - cash) of $15m, $6m and $12m respectively.

The AFL is a good place to weather the storm if they have to play a few rounds behind closed doors, or suspend the season for a couple of months and then play a 17 week season.

In the event the full season has to be cancelled, I expect that salaries (players, coaches and AFL execs) will need to cut (probably some sort of sliding scale, 0% for the first 100k, 10% for 100k - 200k, ..., 50% for everything over 500k).

I don't think the football department spending needs to get a haircut at all. To minimise the impact of this season I wouldn't be opposed to the idea of all contracts rolling forward 12 months so the 2020 year of all contracts becomes the 2021 year and the rest roll back - then all players are paid the average amount for 4 to 5 months worth of worth for this season and get six months off.

This year doesn't count for free agency etc.

 

[Professor Knowall]

The NRL today has already demanded (just listen to V'Landy's press conference language - it certainly amounted to a demand) that the government fund them for hundreds of millions of $$$$$, as "the coronavirus is not their fault".

It's probably true that the coronavirus is not the NRL's fault. It's even more true that V'Landy is a total ****wit.

 

[NoobPie]

The AFL currently has a very healthy balance sheet with $184m cash and none of the $88m of the marvel stadium loan due to be repaid in the next 6 months.

In addition each of the Collingwood, Hawthorn and Richmond and West Coast each have in excess of $10m in net cash (cash - debt). On the other side you have Brisbane, Port Adelaide and St Kilda with net debt (debt - cash) of $15m, $6m and $12m respectively.

The AFL is a good place to weather the storm if they have to play a few rounds behind closed doors, or suspend the season for a couple of months and then play a 17 week season.

In the event the full season has to be cancelled, I expect that salaries (players, coaches and AFL execs) will need to cut (probably some sort of sliding scale, 0% for the first 100k, 10% for 100k - 200k, ..., 50% for everything over 500k).

 

[NoobPie]

There will be, at most, 5 or 6 weeks of empty stadiums. The AFL will be fine. It will be the richest sport in the country by solar margins whatever happens

People have no *ingg idea if they think Australia is in a similar situation to Europe of even America. The first is in the grip of a genuine catastrophic epidemic and the second is half way there.

Australia has had a few dozen community transmissions with small numbers not of known source. We have just enforced a two week self isolation for anyone coming from overseas.

 

[Hornberger]

I don't think the football department spending needs to get a haircut at all. To minimise the impact of this season I wouldn't be opposed to the idea of all contracts rolling forward 12 months so the 2020 year of all contracts becomes the 2021 year and the rest roll back - then all players are paid the average amount for 4 to 5 months worth of worth for this season and get six months off.

This year doesn't count for free agency etc.

I think you are under estimating how much a cancelled season will cost.

Even if clubs kept 100% of membership money, that is TV rights money and match day income gone, and most of your sponsorship money will also go. You are looking at minimum $500m blackhole. The AFL can't afford that.

Player, Coaches and executive salaries would have to cut. It would be a PR disaster if back office and support staff, earing $80k p.a. are laid off while AFL footballers are getting paid $1m+ pa to do SFA.

 

[Kwality]

The NRL today has already demanded (just listen to V'Landy's press conference language - it certainly amounted to a demand) that the government fund them for hundreds of millions of $$$$$, as "the coronavirus is not their fault".

It's probably true that the coronavirus is not the NRL's fault. It's even more true that V'Landy is a total ****wit.

Lets not turn this thread into a 'kick the other code' free for all.
V'Landys, courtesy of his racing role is listened to as much or more than Gil is in Vic.

 

[NoobPie]

Lets not turn this thread into a 'kick the other code' free for all.
V'Landys, courtesy of his racing role is listened to as much or more than Gil is in Vic.

No, the guy is objectively a tool. The chairman of the help asking for hundreds of millions of government money in this environment is a perfect exhibit of this

Yet again you are confused by your own inability to read anything on this forum without a childish code war lens

 

[Kwality]

I think you are under estimating how much a cancelled season will cost.

Even if clubs kept 100% of membership money, that is TV rights money and match day income gone, and most of your sponsorship money will also go. You are looking at minimum $500m blackhole. The AFL can't afford that.

Player, Coaches and executive salaries would have to cut. It would be a PR disaster if back office and support staff, earing $80k p.a. are laid off while AFL footballers are getting paid $1m+ pa to do SFA.

From Nine:
While the threat of the coronavirus possibly causing the NRL to postpone its season, players face the prospect of losing millions if the 2020 season continues to be played behind closed doors.

Reports emerged on Saturday that an "act of god clause" in every NRL player's contract stipulates that some of the costs associated with the fan lockout will be passed onto the players.

The Australian's Brent Read told Triple M that a provision in the Collective Bargaining agreement allows the NRL to cut and suspend payments to players in the event of the game suffering an unforeseen financial catastrophe.


The clause gives the clubs and NRL officials power to renegotiate the 2020 salary cap and cut payments if the game doesn't meet financial obligations, including the NRL losing revenues of $10 million or more in a year.

'Act of God' clause could bring NRL to its knees

'That's the thing we all live in fear of'

wwos.nine.com.au

 

[Professor Knowall]

Lets not turn this thread into a 'kick the other code' free for all. V'Landys, courtesy of his racing role is listened to as much or more than Gil is in Vic.

Maybe - but I was angered by, what is on any measure, an appalling disregard of their New Zealand players welfare, taking into account solely their own self-interest by the NRL executive, leading now to an inevitable player revolt -

Warriors reject NRL coronavirus plea

The 2020 NRL season is again on the brink of collapse after Warriors stars reportedly voted to ignore the league’s plea for the entire Warriors team to remain in Australia for the foreseeable future.

www.news.com.au

And then V'Landys follows this up today with the press conference where all he did was bleat about money, money and nothing else. Now is not yet the time for that - there are far more pressing human issues to be addressed.

 

[Kwality]

Maybe - but I was angered by, what is on any measure, an appalling disregard of their New Zealand players welfare, taking into account solely their own self-interest by the NRL executive, leading now to an inevitable player revolt -

Warriors reject NRL coronavirus plea

The 2020 NRL season is again on the brink of collapse after Warriors stars reportedly voted to ignore the league’s plea for the entire Warriors team to remain in Australia for the foreseeable future.

www.news.com.au

And then V'Landys follows this up today with the press conference where all he did was bleat about money, money and nothing else. Now is not yet the time for that - there are far more pressing human issues to be addressed.

Dont disagree ...

 

[The_Wookie]

From Nine:
While the threat of the coronavirus possibly causing the NRL to postpone its season, players face the prospect of losing millions if the 2020 season continues to be played behind closed doors.

Reports emerged on Saturday that an "act of god clause" in every NRL player's contract stipulates that some of the costs associated with the fan lockout will be passed onto the players.

The Australian's Brent Read told Triple M that a provision in the Collective Bargaining agreement allows the NRL to cut and suspend payments to players in the event of the game suffering an unforeseen financial catastrophe.


The clause gives the clubs and NRL officials power to renegotiate the 2020 salary cap and cut payments if the game doesn't meet financial obligations, including the NRL losing revenues of $10 million or more in a year.

'Act of God' clause could bring NRL to its knees

'That's the thing we all live in fear of'

wwos.nine.com.au

this clause isnt in the AFLPA CBA

 

[BobbyMorri]

I feel sorry for the Wellington Phoenix. Best year in the club's history, give or take, undefeated at home in 2020 and now will be forced to based itself in Australia. On top of that, there are stories of players who will miss the birth of their first kids. Just doesn't seem right, but the a-league is going to be forced to continue. They were already losing money.

NBL and cricket will be the best placed sports after all this.

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[precarious]

The NRL today has already demanded (just listen to V'Landy's press conference language - it certainly amounted to a demand) that the government fund them for hundreds of millions of $$$$$, as "the coronavirus is not their fault".

It's probably true that the coronavirus is not the NRL's fault. It's even more true that V'Landy is a total ****wit.

The longer the situation lasts, the more we are likely to see these kinds of calls coming from industry in general.

The limits on a currency-issuing government are not financial. It can spend in nominal terms without limit (which is not to say that it should). The relevant questions concern real resource availability (i.e. what consequences will the government support have on the overall level of spending in the economy relative to the economy's capacity to supply output in a timely fashion) and distributive/equity/public purpose considerations (e.g., to the extent the federal government provides support to industry, who will get it and on what basis? etc).

Some of the same people who like to pretend that a currency issuer is "out of money" when it comes to government support for the unemployed and disadvantaged or public funding of education, health care or the ABC are likely to be among the first to call for government largess when it suits their interests.

 

[NoobPie]

I feel sorry for the Wellington Phoenix. Best year in the club's history, give or take, undefeated at home in 2020 and now will be forced to based itself in Australia. On top of that, there are stories of players who will miss the birth of their first kids. Just doesn't seem right, but the a-league is going to be forced to continue. They were already losing money.

NBL and cricket will be the best placed sports after all this.

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Yes the NBL has the AFL right where it wants it.....FFS

 

[BobbyMorri]

Yes the NBL has the AFL right where it wants it.....FFS

Best placed as in best balance books and least losses out of the other codes/leagues.

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[telsor]

Best placed as in best balance books and least losses out of the other codes/leagues.

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They'll take a hit from losing the finals revenue, but they're lucky that their season is coming to a close and, hopefully, by the time they start up again this will have mostly passed by (full economic repercussions will probably take years).

Same is true for most summer sports.

 

[BobbyMorri]

They'll take a hit from losing the finals revenue, but they're lucky that their season is coming to a close and, hopefully, by the time they start up again this will have mostly passed by (full economic repercussions will probably take years).

Same is true for most summer sports.

It could be an unique opportunity for some sports if they can stay playing. Heard the NBL had its highest ratings for the year for Sunday's game for example. Sports lovers of the world will be wanting to watch any sport and might watch things they don't normally. They got to fill hours of programming after all.

The a-league has nothing to lose really. Tv ratings can't get lower With its biggest competition out of play(EPL), it could get in those guys who love soccer but snob the local league. If they can continue (big if), they be one of few soccer leagues continuing in any way

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