One-Eyed Richmond Forum
Football => Richmond Rant => Topic started by: one-eyed on March 14, 2020, 03:54:44 PM
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Brendon Gale on SEN [12mins]
AUDIO: https://player.whooshkaa.com/episode?id=594828
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* Round 1 and beyond?
Changing by the hour. So much we don't know. When we do find clarity we try to notify our members and supporters. The decisions made so far have been the right ones. Round 1 will go ahead at this stage but it'll be very different.
* What sort of things are being talked about?
Dialogue over past 72 hours. Main thing is a consistent uniform approach. Affects the whole industry and the public.
* Expecting no footy at some stage?
No indication at this stage from the AFL.
* Financial impact?
Impossible exercise. Hit to footy finances and the economy is going to be significant. We will communicate with members in due course (regarding member events). How that will be is not known yet.
90k crowd say on a normal Thursday night like round 1 returns $1.2-1.4 million. That's one game. Extrapolate that for other games. That's the impost.
* Need to contain the virus and reduce the spread (hence the crowd lockouts). Appropriate measures are being taken by the AFL. The footy still should go ahead.
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Richmond chief executive Brendon Gale anticipates losses for some clubs to hit seven figures per game.
“It’s hard (to predict) an average - it does really depend on club to club. It’s an impossible exercise because we don’t know the impact of this at this stage,” he told SEN on Saturday.
“We don’t know how long we’ll be playing games without crowds. Simple maths, if you look at our game on Thursday night we’d probably expect a crowd of around 90,000.
“A crowd of high 80s, 90,000, would probably return a gate of $1.2 to $1.4 million. That’s one game. You extrapolate that and it’s a big number.”
The Tigers were to split the profits from the traditional fixture with Carlton.
“It’s going to be a significant financial impost to all clubs,” Gale said.
“As I said we just don’t know, we’re flying blind. We don’t know I guess how long we’ll be impacted for.
“But they’re secondary considerations. Right now we’re worried about the health of the public at large, our football public, our football stakeholders and obviously our players and staff.”
https://7news.com.au/sport/afl/afl-and-nrl-clubs-outline-devastating-financial-cost-of-fan-lockouts-c-745088
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some clubs could go bankrupt from this
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some clubs could go bankrupt from this
Does the AFL's TV rights have a force majeure clause like the NRL?
The NRL is asking for financial assistance from both Federal and state governments. They are worrying their whole sport will go under. Their clubs don't have nowhere near the membership and supporter base the AFL does.
https://www.nrl.com/news/2020/03/15/competition-shut-down-would-be-catastrophic-for-nrl/
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Pure stupidity by the afl put the league on hold for the time being no need to play in empty stadiums like all major sporting leagues have done.
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I can't see the AFL not bailing out clubs. There'll be no more Fitzroys
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AFL deep down want 2 Melbourne based clubs to disappear. they wont bail anyone out imho
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Richmond has more in cash reserves ($24m) than the whole of Rugby Australia.
The estimated value of the AFL's future fund is about $100 million while the NRL is sitting on cash reserves of $147 million.
https://www.smh.com.au/sport/rugby-union/rugby-on-the-brink-as-virus-spooks-broadcasters-hits-reserves-20200315-p54a93.html
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our cash reserves are going to take a massive hit, we will be lucky if we have $12 million by this time next year if corona isn't sorted.
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Richmond has more in cash reserves ($24m) than the whole of Rugby Australia.
The estimated value of the AFL's future fund is about $100 million while the NRL is sitting on cash reserves of $147 million.
https://www.smh.com.au/sport/rugby-union/rugby-on-the-brink-as-virus-spooks-broadcasters-hits-reserves-20200315-p54a93.html
How does the NRL have more cash reserves than the AFL?
Seriously!
No spectators at games I mean you wouldn’t even know it was a lockout no one attends most games.
Not even half the amount of viewers watch games.
The whole competition is a shambles and no one likes that Greenberg fella.
How is it even possible they have more cash reserves.
They must be doing something brilliant compared to how the AFL run their finances.
It’s mindboggling.
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Gill just said the AFL is working with clubs to get them through. No details though.
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Richmond has more in cash reserves ($24m) than the whole of Rugby Australia.
The estimated value of the AFL's future fund is about $100 million while the NRL is sitting on cash reserves of $147 million.
https://www.smh.com.au/sport/rugby-union/rugby-on-the-brink-as-virus-spooks-broadcasters-hits-reserves-20200315-p54a93.html
How does the NRL have more cash reserves than the AFL?
Seriously!
No spectators at games I mean you wouldn’t even know it was a lockout no one attends most games.
Not even half the amount of viewers watch games.
The whole competition is a shambles and no one likes that Greenberg fella.
How is it even possible they have more cash reserves.
They must be doing something brilliant compared to how the AFL run their finances.
It’s mindboggling.
Easily
Less teams to prop up. Lower salary cap and a $2 billion broadcast deal
Throw in that most TV is via pay TV rather than FTA
New teams come into the NRL and they have to be self sufficient not funded by the NRL
And don't forget on the last 18 months the AFL have bought Comic Book Stadium outright
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Just read that another key spend of the AFL this year and next is current CBA
AFL covers the increases in the salary cap, the current CBA signed off last year included large increases in player salaries
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Malcolm Speed on SEN just now.
Clubs have 4 revenue streams:
AFL distribution - AFL revenue depends on tv rights.
Membership - mostly in the bank at this time of the year but stopped.
Sponsors - they want exposure. That relies on games being played.
Gate receipts - gone.
AFL clubs live on the margins. A 'good' $2-3 million profit from avg $60m revenue = just 5c in the dollar.
So this is all about a huge hit to finances and trying to get through this.
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I didn't see it all but did Tom Browne say some clubs will go into voluntary administration?
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I didn't see it all but did Tom Browne say some clubs will go into voluntary administration?
Didn't hear him say that
But he did run through a list of costs the AFL incurs every season.
Was highlighting the costs -v- revenues coming in from broadcasting, gates etc
Club distributions total $314 million includes salary cap funding
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AFL clubs are likely to be forced to shave at least $5 million — and as much as $10 million — from their balance sheets due to the shortened 2020 season and reduced overall revenue.
For powerhouse organisations such as West Coast and Collingwood, compulsory soft cap reduction is unlikely to cause too many problems. But for smaller clubs such as St Kilda or North Melbourne, the measures will sting.
One club estimated “$5 million as an absolute minimum” would be cut from their budgets, while another said it would be “around $5 million, according to our data”.
One club suggested recruiters could be under the most pressure to keep their jobs with less under-age and state league football to watch. Regrettably, the official said, clubs will not be able to sustain employees if they are not adding to the business. Recruiters, if they aren’t recruiting, would potentially be vulnerable – at least for the 2020 season.
In the administration wing of clubs, it’s believed community, events and marketing could come under strain too.
https://www.foxsports.com.au/afl/afl-coronavirus-news-updates-absolutely-brutal-financial-losses-flagged-for-fans/news-story/cdf122d207ada15b2a7e59c44226463c
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tom browne has a great track record. On par with nixon that bloke
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Government's multi-million AFL lifeline revealed
By Chris De Silva
Nine WWOS
19 March 2020
Teams who struggle to cope financially with the shortened AFL season could be helped by the state government in order to survive the COVID-19 pandemic.
Despite AFL boss Gillon McLachlan's announcement that the season would get underway as scheduled, a number of clubs are already feeling the heat.
According to Collingwood president Eddie McGuire, while the state government will not hand out money to the the AFL, Victorian Premier Daniel Andrews is in discussions with league power-brokers to find a way to assist clubs that are at risk financially, with a secure loan that could be worth "hundreds of millions of dollars".
"I spoke with the premier of Victoria Daniel Andrews who is well aware of the economic impact on Victoria if clubs were to fold or to have to sack so many people," McGuire told Footy Classified.
"The football industry feeds a lot of people in this town and right around the country. He is talking with Gil McLachlan at the moment as well as (AFL GM of Finance) Ray Gunston and Richard Goyder, the chairman of the AFL commission, about how they can help football survive.
"There won't be a handout because the state of Victoria has to look after itself. The state government will not be giving out a handout, but there are other machinations that can come into play where there might be a line of credit to help save the AFL and get through.
"This is going to take 10 years to get through. Certainly the next three years will be an impost because there will be a massive line of credit, i.e. a secured loan, to get us over the line."
According to respected AFL columnist Caroline Wilson, with teams set to play with no fans for the foreseeable future, there are fears that several clubs could go under.
"St Kilda, Melbourne, Gold Coast, GWS, Brisbane, North Melbourne. These clubs could do quite worse than just struggle now," she said.
"There is a genuine fear that these clubs could go under."
With the AFL already giving up five rounds of the season, the estimated financial loss for the league already sits in the vicinity of $70 million, and McGuire added that clubs are looking at losses of as much as $15 million each.
"The TV money will flow, but the money that keeps the clubs alive are the people walking in the door and there's none," he said.
"Six months of a lockout is what we've got today, that's the season. This is crucial that we are able to find the money to keep the game going the way we have.
"The finances of the football clubs and the AFL are absolutely extremely parlous at the moment. Never have we faced anything like this. This has been a nuclear bomb going off for the AFL.
"They are the best credentialled, they are the best run and they have the best finance and the best deals, but if you don't play football, then you don't make the money."
While not all clubs will fight to stay alive, McGuire said that the AFL was hell-bent on ensuring the financial health of all 18 clubs during this trying period.
"This is crucial that we are able to find the money to keep the game going the way we have. At the moment we are doing it collectively. We don't want anyone to fall," he said.
"We don't want anyone to fail. Every club is a major part of the AFL. No one club is greater than the other as far as it's importance to the tapestry of the game.
"Pull the string of the tapestry and sometimes the whole thing goes."
With the league now set to proceed with the season, the focus shifts to how the matches will be fit into what is sure to be an interrupted season.
According to Nine's AFL reporter Sam McClure, the league will not accelerate any of the fixtures in the first two rounds of the season, with Rounds 3-6 to be compacted.
However, McClure revealed that the government may not fund games that are scheduled to be played away from "regular areas".
"The only time the AFL will look to accelerate games, that is to cram more games into less days, would be from Rounds 3 and 4," McClure told Footy Classified.
"There is concern having spoken to multiple club CEOs and at AFL level that government money may not be forthcoming for games that have been sold away from regular areas, games in Ballarat, Tasmania and the ACT.
"They are sold there specifically so local governments can bring in crowds. With that now not happening, the questions are being raised whether there will be the money."
https://wwos.nine.com.au/afl/state-government-line-of-credit-to-assist-struggling-teams-in-shortened-season/b2f0cf0b-2ffa-4df6-9434-dd3102df80c4
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Eddie last night said the hit to each club will be between $8-15 million.
Clubs like Norf are going to cop the biggest hit because they sell games interstate. Even Hawthorn will be worse off than say us. The Tassie government only offers the Hobart and Launceston deals to attract visitors to games and the state. They surely aren't going to be paying that money to both clubs during lockouts for no return.
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Eddie last night said the hit to each club will be between $8-15 million.
Clubs like Norf are going to cop the biggest hit because they sell games interstate. Even Hawthorn will be worse off than say us. The Tassie government only offers the Hobart and Launceston deals to attract visitors to games and the state. They surely aren't going to be paying that money to both clubs during lockouts for no return.
Good to hear about North.
Hopefully they fold and merge with GCS to make a half reasonable team, then move to Tazwegia.
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Looking forward to dancing on Norf's grave... superfluous nuisance value club...#savourskins #bobansett #neverforget :dancing :shh