Pokies deal sparks AFL clubs feud CAROLINE WILSON
May 13, 2010 SEVERAL Melbourne-based AFL clubs are involved in a bitter feud over the spoils of a multi-million-dollar bonanza to be reaped from the state government's recent auction of poker machine licences.
The pokies auction has secured the short-term futures of several clubs after they managed to secure licences at massively discounted prices.
But the Western Bulldogs and Richmond are seething after Carlton took over some of their lucrative venues - thanks to the intervention of pokies king and former Carlton director Bruce Mathieson.
The Blues have gone from having one pokies venue to four, with at least 260 machines secured at the bargain basement price of $5500 each.
This was made possible after Mr Mathieson recently terminated Richmond's long-term lease at the Royal Oak in Richmond and the Bulldogs' lease at the Vic Inn at Hobson's Bay, signing both over to Carlton.
The Blues will also take over the Manningham Club in Bulleen (formerly Brisbane Lions) and continue to control machines at its club in Laverton.
The moves should eradicate Carlton's $5 million debt over the next decade.
Liberal backbencher and Richmond supporter Bernie Finn told The Age: ''I think it's grossly unfair that one individual has the power to remove a major source of revenue from three AFL clubs and unilaterally direct it to just one.''Bulldogs chief executive Campbell Rose said he had expressed disappointment to Carlton boss Greg Swann. ''It's terribly disappointing to see our inner-heartland being taken away by the Bruce Mathieson organisation on behalf of one of our kindred clubs for their commercial benefit,'' said Mr Rose.
The Bulldogs have finished up with 55 machines, which the club purchased at an average cost of $62,000 each.
Licences for the state's 27,500 poker machine were sold as a result of the government's decision to end the duopoly on licences previously held by Tattersall's and Tabcorp.
The auction raised a total of $981 million, well below market expectations, with many clubs overjoyed at winning 10-year licences for machines at $5500 apiece.
Hawthorn was celebrating after the silent auction, having paid the $5500 minimum for some 100 machines for which it had considered bidding as much as $110,000 each.
Melbourne's board allocated $4 million for 92 machines at the Mathieson-owned Leighoak club, but ended up paying just $370,000.
Collingwood, St Kilda and Essendon - like Melbourne - took up the option of buying licences for 40 machines before the auction, paying between $25,000 and $40,000 each, before securing the balance of their machines at auction for just $5500 each.
In something of an understatement, Essendon chief executive Ian Robson said last night: ''We are satisfied that we have secured the outcome we have and that the machines we were after at the market level were bought at a lower level than anticipated.''
Collingwood's deal with Mr Mathieson at the Coach and Horses was renewed, with the Magpies said to have heavily invested in the relationship.
Mr Mathieson was one of the group that overthrew Carlton president John Elliott in 2003. He quit the board several years ago, but had always promised the Blues he would support them via his pokies empire.
With the sale of machines to end the Tattersalls-Tabcorp duopoly by 2012, the new 50-50 split between the licence-holders and the government operators is estimated to see machines in Victoria profit to the tune of $470,500 each over the 10-year agreement.
http://www.theage.com.au/afl/afl-news/pokies-deal-sparks-afl-clubs-feud-20100512-uy3z.html
