Melbourne is facing $5 million black hole over next two years (Herald-Sun)

[one-eyed]

The Melbourne Demons could be faced with a $5 million black hole over the next two years

    Jon Ralph
    From: Herald Sun
    May 29, 2013

THE Demons could be faced with a $5 million black hole over the next two years, given poor crowd projections, payouts to key staff and revenue shortfalls.
Peter Jackson

Melbourne Demons interim chief executive Peter Jackson. Getty Images

New Melbourne chief executive Peter Jackson has already forecast a huge loss this season and said little would change next year if the revenue base did not grow.

The Demons have just wiped out a $5 million debt, but face being plunged deep back into the red, given its horrific season.

Having already been hit with a $500,000 tanking fine and a payout to departed chief executive Cameron Schwab estimated at $250,000, the club is facing pressure to sack coach Mark Neeld.

He is on a contracted estimated at $350,000 to $400,000 a year, so the Demons faces a payout approaching $600,000 for the last 18 months of his contract.

After four home games, the Demons are yet to draw a crowd above 23,000.

And crowds for the blockbuster fixtures against Hawthorn and Collingwood are likely to be hit by the team's woeful form.

The Demons are still 3000 members short of last year's total of 35,345.

Clubs estimate each 1000-member shortfall costs more than $100,000.

Read more at: http://www.news.com.au/sport/afl/the-melbourne-demons-could-be-faced-with-a-5-million-black-hole-over-the-next-two-years/story-fndv8pdq-1226652540234#mm-breached

[one-eyed]

And Eddie wants to the AFL to give Melbourne (and the Bulldogs) another $2 million or an extra 10% salary cap room.

http://www.news.com.au/sport/afl/collingwood-president-eddie-mcguire-calls-on-melbourne-and-the-western-bulldogs-to-receive-2-million-each/story-fndv8pdq-1226652580925

[dwaino]

He was only just sooking about Sydney's salary cap...

[mightytiges]

You've got to question Melbourne's long-term sustainability if they get their supporters to wipe out a $5m debt only for the footy club to rack it all up again in the space of just two years. Giving them $2m freebies as Eddie suggested is not only unfair to clubs like Richmond who have done the hard yards to try to get back on track but it also rewards clubs with incompetent administration. Why should a club and those in charge of it that stupidly handed over their first round pick for a dud like Dawes and then is paying him $2.2m over 4 years  be rewarded with another $2m on top of the $9m they already receive from the AFL? Crazy stuff! Clearly Eddie wasn't awake properly when talking about this either.

[one-eyed]

Demons to go cap in hand to AFL

    by: Greg Denham and Patrick Smith
    From: The Australian
    June 07, 2013

The AFL Commission will determine Melbourne's ability to mount a competitive challenge to the competition as early as next week when the Demons apply for urgently needed funding.

The embattled club could also be forced to fight on another front following yesterday's threat of a board challenge by former Hawthorn president Jeff Kennett. Already bracing itself for another dismal season on the field, it was confirmed yesterday that the dysfunctional club could face a 2013 loss of close to $3 million.

As fans turn their back on the Demons in droves, The Australian believes the club is carrying a current operating loss of $1.2m before interest is taken into account.

As well, it has fines to be repaid to the league over its "tanking" infringement and potential staff pay cuts, which includes coach Mark Neeld, a winner of five of his 32 games and contracted until the end of next year.

New chief executive Peter Jackson is understood to be preparing to lobby the commission at a meeting next week for an injection of capital not only to stem cashflow problems, but to assist in rebuilding its collapsed football department.

Melbourne will argue that additional AFL financial assistance now, on top of favourable funding it receives from the league and Melbourne Cricket Club, will provide more long-term value to the competition than a slow rebuild back to competitiveness.

Next month's annual Foundation fundraiser will be another challenge to the Demons. Jackson will have to have answers for influential supporters before seeking donations, which in recent years erased more than $5m in debt.

Because of its financial position, Melbourne's forecast total player payments appear likely to again sit for another year around 95 per cent of its salary cap.

The Melbourne board has been told the club needs to be able to pay the full salary cap, which this year is $9.14m, before the team can lift its performance.

AFL chief executive Andrew Demetriou yesterday said the league would not grant a one-off boost in player payments at Melbourne beyond what is already on offer for the established clubs.

The league will want to see Melbourne actively pursuing sponsor and membership dollars before it would even consider further assistance.

http://www.theaustralian.com.au/sport/afl/demons-to-go-cap-in-hand-to-afl/story-fnca0u4y-1226658960359