Richmond expected to reap $2.5 million from the new stadia deals......
Cash for clubs as ground war ends with Etihad Stadium deal closeGreg Denham | September 22, 2009
VICTORIAN clubs are poised for a huge financial windfall as the long-running standoff between Melbourne's second venue, Etihad Stadium, and the AFL appears headed for a settlement, as early as this week.
A meeting in Melbourne yesterday between the AFL and its clubs was told by the league that the frustrating stadium battle, which has been crippling clubs that play home games at Etihad Stadium, could be drawing to a close.
The AFL is understood to have agreed to a compromise, which has been put to Etihad Stadium's Sydney-based board of owners.
Positive dealings between Etihad Stadium and the AFL have moved quicker since an agreement was reached this month between the AFL and the MCC/MCG Trust, which controls the code's No 1 venue, the Melbourne Cricket Ground.
The pre-Brownlow Medal awards meeting at AFL House was hosted by the league's executive and commission, with each of the 16 clubs represented by their president and chief executive.
Disadvantaged clubs were told by the league that their annual special distribution payments would continue beyond this year after completion of a review, with some clubs set for bonus payments this year and in 2010.
Clubs who play home games at Etihad Stadium are set to get similar financial benefits as those gained by MCG tenant clubs.
While the MCG clubs receive at least an additional $100,000 per home game from the start of this season, Etihad Stadium clubs could get the same financial gain from the start of 2010.
And in keeping with a promise to Etihad Stadium clubs from the AFL almost three weeks ago that they would not be disadvantaged, it is understood that St Kilda, the Western Bulldogs and North Melbourne will share in a combined one-off bonus of $1.6 million this year.
St Kilda, which this year played all 10 Melbourne home games at Etihad Stadium, is set to receive the maximum AFL bonus of $800,000, with the Bulldogs and Kangaroos each receiving $400,000.
Next year, should the Etihad Stadium deal be finalised as expected, the biggest financial winners will be the Bulldogs, Kangaroos, Melbourne, Richmond and the Saints. With improved stadium deals, annual special distribution remaining at similar levels as this year, and with discretionary AFL bonuses to enhance equalisation, the Dogs, Kangaroos and Demons are expected to have their revenue increased by up to $3.3m. Richmond and St Kilda are expected to reap almost $2.5m. The AFL's compromise in dealings with Etihad Stadium owners is to guarantee more and better-quality games at the Docklands venue.
In return for a better deal for tenant clubs, it is understood the venue has been guaranteed 46 games from next season, an increase on the AFL's minimum obligation up to 2015.
And then 42 premiership matches each season from 2015, when the league has the capacity to reduce its content to just 30 home-and-away games and five pre-season fixtures.
It is not known whether further Supreme Court action by the AFL against Etihad Stadium management will continue should an agreement be reached.
The league had been preparing court action to recover as much as $20m it claims is owed in supply and pourage rights at the stadium since it began operating in 2000.
As exclusively reported in The Australian last month, the forecast of cash benefits to struggling clubs has come about after the AFL commission approved a revolutionary new financing scheme to ensure, for the first time, that all clubs have sufficient resources to compete equally on the playing field.
New AFL funding to clubs, plus the expected uniform Melbourne stadium deals, will not only guarantee the future existence of Victoria's 10 clubs, but will ensure that every club can meet basic industry costs for recruiting, drafting, rookie lists, additional services and salary cap payments.
Demetriou said the commission wanted every club to have the capacity to pay the full amount of the salary cap ($7.95m in 2010) as well as additional services commitments, which are promotion and marketing payments to players and worth up to $555,000 per club next year.
"We can benchmark what it costs to run a football department, we have all those figures," Demetriou said. "It's all to do with getting a competitive AFL team on to the field."
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