Kildonan
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Melbourne clubs may reap $1m extra from stadiums
Jake Niall | June 24, 2009
MELBOURNE'S nine clubs would receive upwards of an extra million dollars each a year under the latest proposed deal from the MCG and Etihad Stadium.
The MCG and Etihad are now willing to pay about an extra $100,000 a home game for every club — a significant increase in revenue for the clubs, possibly enough to ensure the survival of some, such as Melbourne, the Bulldogs and North Melbourne, that have poor stadium returns.
If the AFL can reach agreement on the details of the discussions, this would mean an extra $1.1 million a year for those clubs that play all 11 home games in Victoria, though the deal is not yet settled, and the final package would also involve other factors, such as the total attendances at the two venues; and the AFL required to give more back to the stadiums.
But sources have confirmed that the AFL has made significant progress in its discussions with the venues and has reported to clubs that the latest offer would see them receive an estimated additional $100,000 a game. The MCC had already made public its previous offer of $90,000 a game.
AFL chief executive Andrew Demetriou and league chairman Mike Fitzpatrick met Bulldogs president David Smorgon, Collingwood president Eddie McGuire and Carlton chief executive Greg Swann, who represent the nine Victorian clubs in discussions, on Monday to brief them on how the negotiations were progressing.
Under the current offer from the stadiums, the clubs would receive a flat payment of $100,000 for each (home) game, regardless of what they currently receive.
For instance, if North Melbourne was receiving nothing at all for a game that attracted 30,000 fans at Etihad, it would now receive $100,000. If North had to write a cheque to Etihad for $50,000 for a poorly attended, loss-making match, it would now receive about $50,000.
Collingwood, which receives a guaranteed $200,000 for its two home games at Etihad, would have that amount boosted to about $300,000 a home game at the same venue.
Essendon, which has by far the most favourable deal at Etihad, would receive an extra $100,000 on top of its current return.
While the AFL has enlisted the State Government — which appoints the MCG trust — in its bid for a better return from the MCG, its main bargaining chip with Etihad Stadium has been the contract it has with the Docklands venue that it will take over in 2025.
The AFL has scheduled 46 games at Etihad Stadium this year, but under the terms of the contract, the minimum number reduces to just 30 in 2015, and it understood that the league has made it clear to Etihad's management that it would cut the number of games if it did not increase returns substantially.
The MCG contract is much more favourable than Etihad's. The MCG is guaranteed 45 games a year, including four finals, any preliminary final in Melbourne, the grand final and "reasonable endeavours" to ensure at least 2.1 million spectators; last year, with seven finals hosted at the ground, it drew about 2.8 million.
Geelong, whose president Frank Costa is also on the committee representing the clubs, benefits only from the two or three home games that it plays in Melbourne, and so would only get an extra $200,000 or $300,000 under the proposed formula. The Cats make up to $650,000 a game in Geelong.
MCC secretary Stephen Gough would not comment on the discussions last night.
Jake Niall | June 24, 2009
MELBOURNE'S nine clubs would receive upwards of an extra million dollars each a year under the latest proposed deal from the MCG and Etihad Stadium.
The MCG and Etihad are now willing to pay about an extra $100,000 a home game for every club — a significant increase in revenue for the clubs, possibly enough to ensure the survival of some, such as Melbourne, the Bulldogs and North Melbourne, that have poor stadium returns.
If the AFL can reach agreement on the details of the discussions, this would mean an extra $1.1 million a year for those clubs that play all 11 home games in Victoria, though the deal is not yet settled, and the final package would also involve other factors, such as the total attendances at the two venues; and the AFL required to give more back to the stadiums.
But sources have confirmed that the AFL has made significant progress in its discussions with the venues and has reported to clubs that the latest offer would see them receive an estimated additional $100,000 a game. The MCC had already made public its previous offer of $90,000 a game.
AFL chief executive Andrew Demetriou and league chairman Mike Fitzpatrick met Bulldogs president David Smorgon, Collingwood president Eddie McGuire and Carlton chief executive Greg Swann, who represent the nine Victorian clubs in discussions, on Monday to brief them on how the negotiations were progressing.
Under the current offer from the stadiums, the clubs would receive a flat payment of $100,000 for each (home) game, regardless of what they currently receive.
For instance, if North Melbourne was receiving nothing at all for a game that attracted 30,000 fans at Etihad, it would now receive $100,000. If North had to write a cheque to Etihad for $50,000 for a poorly attended, loss-making match, it would now receive about $50,000.
Collingwood, which receives a guaranteed $200,000 for its two home games at Etihad, would have that amount boosted to about $300,000 a home game at the same venue.
Essendon, which has by far the most favourable deal at Etihad, would receive an extra $100,000 on top of its current return.
While the AFL has enlisted the State Government — which appoints the MCG trust — in its bid for a better return from the MCG, its main bargaining chip with Etihad Stadium has been the contract it has with the Docklands venue that it will take over in 2025.
The AFL has scheduled 46 games at Etihad Stadium this year, but under the terms of the contract, the minimum number reduces to just 30 in 2015, and it understood that the league has made it clear to Etihad's management that it would cut the number of games if it did not increase returns substantially.
The MCG contract is much more favourable than Etihad's. The MCG is guaranteed 45 games a year, including four finals, any preliminary final in Melbourne, the grand final and "reasonable endeavours" to ensure at least 2.1 million spectators; last year, with seven finals hosted at the ground, it drew about 2.8 million.
Geelong, whose president Frank Costa is also on the committee representing the clubs, benefits only from the two or three home games that it plays in Melbourne, and so would only get an extra $200,000 or $300,000 under the proposed formula. The Cats make up to $650,000 a game in Geelong.
MCC secretary Stephen Gough would not comment on the discussions last night.
