Analysis Stadium deals - what, how, when - why we need a new one and the SA footy paradigm shift happening

[Doctor Feel]

It was only a few years ago that I only hated Carlton. Now I hate Carlton, Essendon and North. I have an incredibly ir(rational) hatred of Norf though, everything about them pisses me off yet I can't really point out why.

 

[chiwigi]

It was only a few years ago that I only hated Carlton. Now I hate Carlton, Essendon and North. I have an incredibly ir(rational) hatred of Norf though, everything about them pisses me off yet I can't really point out why.

For me it's because they have been one of our biggest critics as they've hoped we'd fold to make sure they were safe.

 

[Schulzenfest]

Brayshaw's comments are fairly disingenuous but his overall point is valid. North would be better off playing its home games against non-Victorian teams at Arden Street, which is just totally wrong. The model is broken and needs fixing.

North Melbourne and Brayshaw can EAD.

Kids, stop fighting. You're both right.

 

[RussellEbertHandball]

It was only a few years ago that I only hated Carlton. Now I hate Carlton, Essendon and North. I have an incredibly ir(rational) hatred of Norf though, everything about them pisses me off yet I can't really point out why.

Have you joined the drongo collective lately?? That might explain it. The only thing I really hate about North is losing to them when we are in winning positions. **** I hate that.

 

[Papa G]

I hate them because they forever ruined the dream that we'd have a far more representative national league rather than a glorified VFL. I hate them because they beat us a lot. I hate them because of Brent ****ing Harvey.

 

[Joelg]

The SANFL have put their 2014 Annual Report on line ( The_Wookie this one and the report in my post above can be added to your Sky Drive documents link). Last year they had 3 pages of financials Balance Sheet, P&L and Cash Flow Statement. This year they have drop the Cash Flow Statement - dont want to give us too much info. It's a little difficult to work it all out from suh little info but there is some useful stuff if you dig around the comments See

http://www.sanfl.com.au/files/_system/File/PDFs/2015/2014AR.pdf

The show a net profit of $77,331,455 from continuing operations? How did they do that? They introduced on their books the value of
Adelaide Oval leased asset value.................................... $73,461,000
Net Present Value of future AFL licence transfer payments.... $9,983,416 ( ie the $18.31mil the crows and Port pay between 1st Nov 2013-31st Oct 2028)
But Wrote of the value of AFL Licence value in SANFL books ($6,081,000)
Net Loss after netting out these book adjustments.................. ($31,961) - but they never say that loss anywhere after allowing for these book entries

Also as they sold the land in November and received a $10m deposit after the books closed but they booked a $10,870,000 revaluation of property increase (effective profit) which made their comprehensive profit for the year $88,201,455. In the Group accounts ie + Port and Crows - they booked a loss of ($25,650,720) from discontinued operations ie for selling the Port's and crows' licences.

So whilst all these entries are book entries the SANFL has given us a sneak look into how well they might do out of the AO deal. In their 2011 Annual Report they said

From the 2014 financial year, however, the SANFL will be able to bring a “leased” asset onto its balance sheet that represents the fair value of future net earnings from Adelaide Oval. This asset has been estimated at approximately $55 million. This will offset a large part of the AAMI Stadium write-down.

Using an interest or discount rate of 6% in both 2011 and 2014 the SANFL is saying they effectively will get an annual net cash flow from AO deal in perpetuity of $3.3mil back in 2011 and at the end of 2014 they had upped that to $4.4mil. I basically took the figures they said in their annual reports and calculated a net cash flow annuity in perpetuity.

Some interest things from the AR

Page 3
FINANCIAL PERFORMANCE
The SANFL recorded an increase in cash reserves of $1.34 million following the first full year of operations at Adelaide Oval.
The SANFL achieved a positive net cash flow from operating activities of $1m compared to $0.3m in 2013
and, at 31 October 2014, had cash on hand of $1m and a further $2m offsetting debt.
Some key points regarding the 2014 financial result include:
• A statutory net profit of $77.33m and an increase in net assets of $83.48m from $27.89m to
$111.37m. This was mainly due to recognising the Adelaide Oval leased asset of
$73.46m representing the estimated net present value of future cash flows and the net present
value of future AFL Licence transfer payments of $9.98m; and
• An estimated net improvement in stadium generated revenue from moving from AAMI
Stadium to Adelaide Oval of approximately $3.78m.

In May 2014, SANFL refinanced its debt facilities to Bendigo Bank who provided the SANFL with five year
committed facilities. As part of its debt reduction strategy, the SANFL applied the $10m received from the sale of
the first parcel of land at AAMI Stadium in December 2014 to reducing debt. Debt is expected to be fully amortised within seven years.

The League is anticipating a moderate surplus in 2015 – the first year of the new Adelaide Oval financial model, which will return more revenues to the AFL clubs.

Page 3
AAMI STADIUM
In November 2014, the SA Football Commission formally signed a contract with developer Commercial & General
for the sale and 20+ year redevelopment of the AAMI Stadium precinct.

As part of the agreement, the SANFL received an upfront payment of $10 million which was transferred to the AFL to retire debt, money borrowed as part of the $16.25m provided to Port Adelaide to keep the club viable ahead of the move to Adelaide Oval.

Commencing in 2016, the SANFL will start to receive payments totalling a further $61 million by 2027 as part of a staged redevelopment of the precinct.

The existing oval will be retained for training by the Adelaide Football Club, which has a lease over the site until 2048.

It is anticipated the project will eventually include at least 1600 homes with an array of living options available including architecturally designed homes, townhomes and apartments. The project is set to deliver a cosmopolitan café and dining culture, boutique shopping strip, public open spaces and lifestyle offerings.

With the signing of this agreement, the SANFL has secured a legacy for our code and one that will benefit football across the State.

Page 4
AFL LICENCES
In March 2014, the SA Football Commission officially reached agreement with Adelaide and Port Adelaide to transfer the two AFL licences to the clubs in return for payments totalling more than $18 million.

The agreement will see the two clubs pay the Commission annual Club Game Development grants totalling $18.311 million, concluding in 2028. Adelaide will pay $11.326 million while Port Adelaide will pay $6.985 million in grants between 2013 and 2028.

As part of the agreements signed, the AFL confirmed that the SANFL will continue to manage Game Development in South Australia and committed to provide the SANFL with annual AFL Game Development Grants over the same period, a figure which would total approximately $29 million with CPI.

The AFL also committed to continue to provide appropriate annual AFL Talent Development Fees to the SANFL, a figure which would total approximately $16 million at existing levels (average of $1.0 million per year). [pretty sure this is the transfer fees when players are drafted then play certain amount of games additional payments are made by AFL clubs to state leagues and junior teams]

View attachment 116773
This bit belongs after the peragraphs on the left had side of this attachement.

The SANFL achieved a positive net cash flow from operating
activities of $1m compared to $0.3m in 2013 and had cash
on hand of $1m and a further $2m offsetting debt. This
represents an increase in cash of approximately $1.34m
compared to 2013.

The positive cash flow was mainly due to higher revenue
generated from moving AFL Football from AAMI Stadium to
Adelaide Oval. The financial uplift from moving to Adelaide
Oval has been measured at approximately $3.78m.

In addition to this uplift of $3.78m, SANFL benefited from
hosting an unbudgeted AFL Final at Adelaide Oval and the
Bon Jovi Concert at AAMI Stadium.

So the bottom line - the SANFL got an extra $3.78m from AO, the benefit of a final and Bon Jovi and basically broke even (small $31k loss) when yu take out all the book entries and increased their cash position by only $1.34m

What was Lickers salary

 

[Joelg]

When the players are drafted the AFL clubs pay fees and more when they debut and play 10th and 50th game. These payments fit in the definition of the phrase you bolded. I dont know if fhere are additional amounts included in that. Re our licence I reckon they were bugger all given the loss we have made between 2008-13.. Part of me wonders if we were driven into the ground financially as a way to break the Sanfl shackles.

Probably mostly true, but Dunk, Toop etc etc were not the sharpest tools in the AFL sheds

 

[DSL64]

You ever heard of Carl Fragomeni?

Yeah...
And I've heard of Milan Faletic, Darryl Cahill, Grave Danger, Trevor Sorrell, Peter Woite, Bruce Abernathy, Chicken Hayes and many other Dead-Set Legends...

But I don't see the link between knowing a 70's Legend and you calling our beloved Guernsey a jail bar...

 

[*PAF]

Yeah...
And I've heard of Milan Faletic, Darryl Cahill, Grave Danger, Trevor Sorrell, Peter Woite, Bruce Abernathy, Chicken Hayes and many other Dead-Set Legends...

But I don't see the link between knowing a 70's Legend and you calling our beloved Guernsey a jail bar...

Prison bar

 

[Kwality]

Yeah...
And I've heard of Milan Faletic, Darryl Cahill, Grave Danger, Trevor Sorrell, Peter Woite, Bruce Abernathy, Chicken Hayes and many other Dead-Set Legends...

But I don't see the link between knowing a 70's Legend and you calling our beloved Guernsey a jail bar...

OK.

 

[PowerbaII]

On the topic of finances, does anyone know the 2015 AFL prize money for finals appearances? Or how much we got from the AFL for making the prelim last year?

 

[Eighteenseventy]

What was Lickers salary

 

[Eighteenseventy]

The SANFL justifies their take from the Oval so they can finance "the development of the game in SA"
Does their financial report actually quote a figure as to how much is allocated to "game development" and how this amount is actually spent?

 

[tribey]

On the topic of finances, does anyone know the 2015 AFL prize money for finals appearances? Or how much we got from the AFL for making the prelim last year?

We'd get more money making the semis of the women's draw of the Australian Open.

 

[BornPort]

On the topic of finances, does anyone know the 2015 AFL prize money for finals appearances? Or how much we got from the AFL for making the prelim last year?

Isn't it usually just enough to cover expenses and player payments? I don't think the club actually earns any profit from finals.

 

[RussellEbertHandball]

What was Lickers salary

You know the answer - they never reveal it.

 

[Andre]

We'd get more money making the semis of the women's draw of the Australian Open.

It'd depend who's playing at the Women's open as to whether we'd have a semi though.

 

[RussellEbertHandball]

On the topic of finances, does anyone know the 2015 AFL prize money for finals appearances? Or how much we got from the AFL for making the prelim last year?

Its in the AFL Record 2015 Season Guide book somewhere. I saw it when I bought it a few weeks ago and flipped thru it. Dont have it on me now, but it lists the prize money for 1st, 2nd, 3rd-4th, 5-6th and 7-8th. It hasnt changed since 2008 when they said the premiers got $1.2mil and they had to split that half with the players and the players half was outside the cap. the runner up gets $660k. I cant remember the rest.

 

[RussellEbertHandball]

Isn't it usually just enough to cover expenses and player payments? I don't think the club actually earns any profit from finals.

Nope they have finals subsidies for match costs and also travelling subsidies for travelling finals teams for each final - which isnt much, but as per my last post they have specific amounts which are paid for which week you got kicked out and it has to be split 50% with the players and the players 50% is outside the cap.

 

[Janus]

It was only a few years ago that I only hated Carlton. Now I hate Carlton, Essendon and North. I have an incredibly ir(rational) hatred of Norf though, everything about them pisses me off yet I can't really point out why.

Perhaps I can articulate. I hate Norf because they celebrate their "shinboner spirit" yet in the same breath complain about how hard they have it. In fact, that's the primary reason why I hate them - that "woe is us" emo ****stick attitude that makes you want to grab that blue and white jumper - the one that they have sold out for filthy lucre again and again - and use it as toilet paper so they really have something to complain about.

Norf are what happens when the vocal minority win. They are a minority for a reason. They managed to get a once in a generation player in Carey and from that moment on seem to think that means they have a divine right to exist when every man and his dog was trying to kick us out not more than 3 years ago.

It's the lot in life of Norf to get smashed like a red headed dwarf step child come finals time. **** I hope, hope, hope we both have a good year and we meet them in a prelim final at home. The Chad Cornes jig and the Warren Tredrea bow will have nothing on what I would be doing in the stands.

 

[PowerbaII]

Its in the AFL Record 2015 Season Guide book somewhere. I saw it when I bought it a few weeks ago and flipped thru it. Dont have it on me now, but it lists the prize money for 1st, 2nd, 3rd-4th, 5-6th and 7-8th. It hasnt changed since 2008 when they said the premiers got $1.2mil and they had to split that half with the players and the players half was outside the cap. the runner up gets $660k. I cant remember the rest.

Cheers REH. I have an AFL Record from 2010 3rd place received $330,000 that year. I thought it would have increased since then.

 

[RussellEbertHandball]

Cheers REH. I have an AFL Record from 2010 3rd place received $330,000 that year. I thought it would have increased since then.

I don't know about 2015 but I doubt it will, as the AFL did its budgeted expenditure for 2012-16 to tie in with the TV deal and as it hadn't changed between 2008-14 years as was listed in the book, I cant see why they would up it in 2015. If the clubs jump up and down a bit - as they reckon they should get the lion's share of any TV monies increase in the next TV deal, then it might go up in the 2017-21 TV deal period.

 

[tribey]

I don't know about 2015 but I doubt it will, as the AFL did its budgeted expenditure for 2012-16 to tie in with the TV deal and as it hadn't changed between 2008-14 years as was listed in the book, I cant see why they would up it in 2015. If the clubs jump up and down a bit - as they reckon they should get the lion's share of any TV monies increase in the next TV deal, then it might go up in the 2017-21 TV deal period.

It must go up.

They talk about disincentivising tanking, how about really incentivising winning?

If they upped the purse to something truly meaningful, let's say, $5,000,000 to the premiers as a conservative start, that would be a boon to even the likes of Collingwood and West Coast.

 

[RussellEbertHandball]

It must go up.

They talk about disincentivising tanking, how about really incentivising winning?

If they upped the purse to something truly meaningful, let's say, $5,000,000 to the premiers as a conservative start, that would be a boon to even the likes of Collingwood and West Coast.

Mate they love to follow the NFL and the prize money in the NFL is ****all

 

[tribey]

Mate they love to follow the NFL and the prize money in the NFL is ****all

Because the TV money is ginormous ($181,000,000 to each club by 2016).

Does the share of TV revenue given to each AFL club even cover our salary cap?