AFL clashes with Telstra Dome
Sunday Herald Sun | Sue Hewitt | January 04, 2009
THE AFL is at war with Telstra Dome over stadium naming rights, sponsorship deals and the venue's use by Melbourne Victory.
Supreme Court documents reveal the bitter clash has turned personal, with more than a dozen letters exchanged between AFL chief executive Andrew Demetriou and Telstra Dome boss Ian Collins in the past six months.
The contents of the executives' letters have been sealed in a court envelope marked "Confidential AJD-5".
But public court documents reveal the stadium operator has told the league it has no right to demand access to the venue's private business agreements.
In a December 4 letter to Mr Demetriou, Mr Collins states bluntly: "There is no justification or basis for your request for documents."
The league wants to see the stadium operator's confidential agreements so it can launch further legal action to seek compensation or stop the stadium doing what it sees as harm to its sponsorship and other deals.
The AFL is believed to want to stop the stadium operator granting the United Arab Emirates-based airline Etihad the 2009 naming rights to the Dome - which houses AFL headquarters.
It is understood the AFL also wants bargaining power to broker a better deal for clubs claiming they get poor returns for home fixtures at the Dome. Some clubs say they need to get 40,000 fans in the ground before they break even.
The 10 Melbourne clubs were told before Christmas that the AFL and stadium managers had agreed to increase financial returns to the clubs, but the venue's board refused to ratify the move, according to sources.
It is understood the league wants Etihad barred because it is a competitor to the AFL's major sponsor, Qantas, and Collingwood sponsor Emirates airline.
The dispute has escalated, with the AFL demanding to know what deals the venue operator, Stadium Operations Limited, has done with league sponsors Foster's and Coca-Cola or any other third party.
The league also wants to know what agreements the stadium has with Melbourne Victory.
Court documents reveal the AFL's claim that its user agreement with the stadium gives it the right to veto some business dealings.
"The AFL is concerned that a naming rights agreement and/or sponsorship agreement has been entered into with Etihad in breach of the AFL user agreement," league legal and business affairs general manager Andrew Dillon said in an affidavit.
The dispute began on July 17, when Mr Demetriou sent a letter to Mr Collins.
There have been 16 letters between Mr Collins and stadium director Paul Barker and AFL executives, Mr Demetriou and chief operating officer Gillon McLachlan -- most between Mr Collins and Mr Demetriou.
There was a rush of 11 letters between the parties after the Etihad deal became public.
On November 28, the league played its hand, demanding all documents relating to the Etihad deal, the document said.
Six days later, the stadium operators rejected the claim. Mr Dillon said the AFL was worried the stadium was in breach of its user agreement over sponsors.
"As is apparent from the bundle of correspondence (the secret file) an issue has arisen between the AFL and the (stadium) in relation to pouring and supply rights for products of the AFL's major sponsors at the stadium," Mr Dillon said.
"Sponsorship is essential to the AFL. For a number of years, the AFL's major sponsors have included Qantas, Coca-Cola and Foster's (CUB)," he said.
The league filed its action on December 23 and on Christmas Eve the stadium operator lodged a notice that it would fight the action. The case will be heard on February 4.
http://www.news.com.au/heraldsun/story/0,21985,24870284-661,00.html
