Carlton granted $2 million help
Fox Sports
July 19, 2006
THE AFL has granted Carlton $2 million in financial assistance to help the cash-strapped club reduce its debts.
The assistance package comprises a $1.5 million interest-free loan and a $500,000 grant from the league's annual special distribution to be directed towards the maintenance of MC Labour Park.
The AFL also appointed one of its commissioners, former Blues dual premiership captain Mike Fitzpatrick, to act as an independent observer on the club's board.
The AFL has given Carlton a deadline of October 31, 2008 to pay back the $1.5 million.
The league was committed to assisting the Blues address their parlous financial plight, which includes debts of more than $6 million, AFL chief executive Andrew Demetriou said.
"The AFL is committed to having 16 strong clubs, and the whole competition is a beneficiary of having our clubs in a healthy financial state," Demetriou said.
"Carlton is a great club, a great sporting brand, and it has contributed enormously to the success of the competition over a long period."
Carlton president Graham Smorgon described the deal was a "very reasonable outcome" for the club.
"It's very positive news for Carlton," Smorgon said.
"It really does meet our cash-flow requirements in the short term, and provides the opportunity for Carlton to regroup and go forward."
The Blues must present the AFL with monthly statements and regular business plans to ensure the club is on the right path to turning around its finances.
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