Demons seek MCC alignment and AFL cash
Caroline Wilson | September 11, 2008
THE Melbourne Football Club will officially push to rejoin the Melbourne Cricket Club as part of the Demons' survival plan that has already had the club request $3 million from the AFL next season in special assistance.
Melbourne's historic relationship with the MCG has been severed for 25 years, but the new Jim Stynes-led administration has made it clear it wants to regain the official partnership under the MCC umbrella to bolster its identity and secure an acknowledgement of the football club's rich history.
The relationship would have no financial commitment but would see Melbourne again become a section of the MCC, potentially see its jumper adorned with an MCC logo and boost its appeal to sponsors as the MCG's "home club" as opposed to being a tenant club. The AFL, which supports the push, last month reminded the MCC in strong terms of its obligation to the club that had an integral role in the stadium's heritage.
While the Demons' top priority is the search for a new major sponsor, the club is handling several complicated issues before Cameron Schwab's arrival as chief executive on September 29, including a potential settlement for Nathan Carroll.
The errant defender has raised little interest from other clubs after a poor season both on and off the field and is contracted to the club for another year.
Better news for Melbourne — which will reinstate the Demon as its official logo next season — is that the Casey agreement is nearing completion and the club remains on track to establish a new headquarters at the yet-to-be-built rectangular stadium in the Olympic Park precinct by the middle of 2010.
The AFL Commission will next month decide the extent of its 2009 hand-out to the Demons which — without the debt demolition campaign and the AFL Annual Special Distribution — would have recorded a loss of some $3.2 million in 2008.
Instead, thanks to the debt demolition — which is close to $3.1 million — and the AFL's $1 million in special assistance, the club could record a reasonable profit but still have debt of at least $4 million.
The good news for Melbourne is that it is now working in a fruitful relationship with the AFL, which has been impressed by the early achievements and planning of Stynes' board.
The AFL's financial boss, Ian Anderson, has seconded his senior administrator, Bill Tsiakos, to Melbourne. Tsiakos has been spending more than 50% of his working week examining the club's situation and working on a business plan.
It is understood that the league has unofficially indicated a more likely ASD injection next year of between $1.5 million and $2 million. Under its AFL agreement Melbourne is only due to receive $250,000.
The MCC has made no financial commitment to Melbourne beyond this year. Like the AFL it remains perplexed at the performance of the Paul Gardner-Steve Harris administration, which both controlling bodies claim failed to meet its business obligations while receiving special funding.
Further complicating the tripartheid relationship is the MCC's refusal to financially commit future financial assistance to Melbourne until the AFL makes a decision on the ASD.
Last month, terse words were exchanged between AFL chairman Mike Fitzpatrick and the MCC with the AFL boss strongly reminding MCC chairman David Meiklejohn and his CEO Stephen Gough of the club's historic association. The MCC in turn reminded Fitzpatrick that Melbourne was part of the AFL competition.
The AFL Commission's frustration with the MCC centres around the relatively poor stadium agreements endured by the tenant clubs — in comparison with the arrangements West Coast and Fremantle have at Subiaco — despite the stadium's reliance upon Australian rules football.
Melbourne's previous funding arrangements with the MCC — it received $500,000 in 2008 — exist because almost a quarter of MCC members barrack for Melbourne. The MCC membership is made up of 23% Melbourne supporters with Essendon the second strongest club in MCC terms boasting about 14%.
While Melbourne's MCG attendences were at the bottom of the tenant clubs this season, the AFL has argued that $500,000 was a poor exchange for Melbourne's plethora of MCC members.
The MCC constitution stipulates that its various sections are separate legal entities, which receive MCC funding. The Melbourne bid would not include a request for ongoing funding.
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