Simplify handout system: Richmond
Greg Denham | The Australian | June 17, 2008
RICHMOND wants the present form of AFL financial assistance to clubs - annual special distribution - abolished at the end of next year, and wants assistance solely based on stadium deals.
Tigers president Gary March yesterday said the criteria for ASD was too complex, and he favoured the introduction of a stadium equalisation fund with an initial available annual pool of between $10-$12 million.
"No-one understands ASDs and they are a point of frustration for fans and clubs," March said. "So let's get rid of them and go with a simpler and fairer system."
The Richmond proposal is based on the net earnings of clubs per person who attend home matches. "West Coast is the leader and earns about $32 per person for every home game at Subiaco Oval," March said.
"Richmond nets about $14 a person, well under the competition average of $20 for every fan that goes through the gate. Not one Victorian club, with the exception of Geelong, is above the competition average."
March wants the AFL to fund the difference between the actual club return and the average, on an annual fluctuating means-test basis. The Tigers are one of six Melbourne clubs who receive the bulk of ASDs. Their share of the $6.3 million pool this year is $400,000.
March believes that under his proposal, Richmond could reap in excess of $2 million, based on last year's average home attendances of 40,000.
"I think the Western Bulldogs, the Kangaroos and Melbourne could all be better off," he said. "Rather than give handouts, we're suggesting the AFL should fix stadium deals."
The Bulldogs, Kangaroos and Demons carry about $12 million in debts between them.
Richmond has a $4 million debt and March believes that could be repaid within two years under his criteria for financial equalisation.
"I don't believe the AFL should pay out club debt, because it doesn't fix inherent problems, but a stadium equalisation fund would help clubs with mounting debt problems," March said.
The Tigers president says Victorian clubs deserve a better deal because they have all supported ground rationalisation programs by giving up home grounds.
"Our home is the MCG, but we play games at Telstra Dome," he said. "We're always disadvantaged, unlike most of the interstate clubs."
Carlton chief executive Greg Swann yesterday supported the Richmond proposal. "The simpler the better," he said of the Tigers' proposed criteria.
Swann said Carlton received a Telstra Dome match return from its round-eight clash against Brisbane in front of 38,675 of just $26,700. "That's a long way short of Collingwood's guaranteed $200,000 whenever they play at Telstra Dome," Swann said.
The AFL is reviewing its ASD package and will make a recommendation for beyond 2009 to the commission in August.
The league review, pushed forward at the insistence of some clubs, includes an analysis of other revenue-related criteria such as sponsorship, assets, debt, non-football revenue, training facilities and the employment of key staff.
The existing criteria for ASD is proof of being disadvantaged in football-related revenues. The main factor is stadium arrangements, but revenue from supporter bases, which are measured by adult membership and revenue per member are taken into account.
The bulk of the annual assistance package this year goes to the Western Bulldogs ($1.7m), the Kangaroos ($1.4m) and Melbourne ($1m).
As reported exclusively in last Thursday's The Australian, Melbourne's debt has swelled from $2m at the start of the year to $4.5m, and it is expected to seek financial assistance of at least $1m from the AFL well beyond next year.
The Demons were originally scheduled to come off the financial drip system at the end of 2009. "It's about equalisation," said Demons chief executive Paul McNamee. "Give us the same game schedules as the bigger clubs and we'd be much less reliant on the ASD."
http://www.theaustralian.news.com.au/story/0,25197,23874875-5012432,00.html
