Financial support for clubs honoured * Greg Denham
* The Australian
* March 25, 2010 THE AFL yesterday reassured the current 16 clubs that its financial support was ongoing and guaranteed funding would continue beyond the start-ups of the league's 17th and 18th licences, the Gold Coast and Greater Western Sydney.
AFL chief executive Andrew Demetriou yesterday told The Australian that the league had every intention to continue its annual special distribution (ASD) to clubs after the present funding agreement expired at the end of next year.
Demetriou said ASDs would be open to every club to ensure all clubs at least had a competitive football department.
Future AFL funding after the establishment of the two new clubs was raised on Tuesday, when Geelong president Frank Costa predicted that financial support from the league would end some time after 2012.
"Clubs will be expected to stand on their own two feet," Costa said. "It's just my personal view, but there will come a point, not long after the two new clubs are playing, when the AFL will stop subsidising losses and helping struggling clubs to balance their books.
"I think the first team to fall over after the AFL withdraws its subsidies will be relocated to Tasmania. Then we'll have a real national competition."
The AFL has poured more than $43 million back to clubs via revenue from its ASD funding since 2002.
The Western Bulldogs and North Melbourne have received more than 50 per cent of the overall distribution.
Demetriou insisted funding was available for all clubs depending on their needs.
Port Adelaide last year received an additional $1m from the AFL because of a severe revenue shortfall due to its poor stadium returns at AAMI Stadium.
Clubs that will receive ASDs this year are the Bulldogs ($1.7m), the Kangaroos ($1.4m), Melbourne ($1m), Carlton ($600,000), and Richmond ($400,000).Port Adelaide will receive $250,000 but is seeking more and is under an AFL review, while the Sydney Swans will receive $779,000 as a cost of living allowance for players. The cost of living allowance will be paid outside the salary cap.
Specific amounts to each club will be reviewed at the end of this year.
The bottom three clubs last season in football department spending were the Bulldogs, North Melbourne and Melbourne, which each spent less than $14m.
The seven highest-spending clubs were West Coast, Collingwood, Geelong, Sydney, Hawthorn, Fremantle and Carlton, who all spent more than $16m.
The AFL guarantee, which would also firmly entrench the future of the 10 Victorian clubs, was offered last year following a meeting of club presidents with the commission.
Clubs wanted to compete equally off the field with each other, which included having enough money to have comparable training facilities, as well as being able to fully fund football department spending, including the salary cap.
While agreeing to an equalisation principle, the AFL also said it would not tax the more prosperous clubs to sustain those clubs who historically struggle financially.
Last year, Demetriou said it was vital to have stability within the Victorian clubs during the competition's expansion in southeast Queensland and in western Sydney.
The clubs recorded a combined profit of $8m in 2009, down from $13m in 2008.
Only three AFL clubs -- Brisbane, Port Adelaide and the Swans -- recorded financial losses last year.
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