Port Adelaide money crisis hits flashpoint (H-Sun)

[one-eyed]

Port Adelaide money crisis hits flashpoint

    Michelangelo Rucci
    From: Herald Sun
    May 30, 2011 11:15PM

THE SANFL can no longer bankroll the debt-ridden Port Adelaide Football Club - and may take over the AFL club.

The Power's financial crisis hit a flashpoint last night when the SANFL declared it had no reserves and no line of credit to underwrite the AFL club's shaky finances.

This was met with the instant resignation of John Irving, the independent adviser appointed by the SANFL to the Power board in June last year.

Club president Brett Duncanson and chief executive Mark Haysman will be under pressure to resign as the SANFL prepares to protect the AFL licence from being forfeited to the AFL.

No senior Power executive or board member would comment last night after lengthy rounds of meetings with the South Australian Football Commission.

Insiders at Alberton say Port's financial shortfall was identified to the commission last year when the SANFL and AFL underwrote the Power with a $5million debt-reduction package.

The SANFL had to borrow $4million for its part in the cash investment in the club.

Now the SANFL says it cannot lift its debt profile, currently at $27million, to borrow more money to underwrite the Power.

Port, the 2004 premier, says it has improved its financial performance by $2.5million in the past year, but is still falling short of break-even as it suffers from poor crowds to its home games.

Only 16,376 attended Port's most recent home game against Fremantle and the club struggles to draw more than 25,000 to AAMI Stadium except for Showdowns.

Port also has stepped up its own debt-reduction plans this year with the "Back in Black" campaign. So far it has raised $1million to work against the $3million of debt on the Power's books.

The Power's only option - if there is not an SANFL takeover today - is to have the AFL cover the shortfall in its finances.

This would then increase tensions between the SANFL and the AFL on the future directions of the licences at both SA-based AFL clubs, Adelaide and Port.

Both clubs wish to be independent clubs, in line with AFL clubs in Victoria.

The SANFL wants to maintain control of the two licences, a model of governance the Crows and Power say is flawed and hindering their financial strength.

http://www.heraldsun.com.au/sport/afl/port-adelaide-money-crisis-hits-flashpoint/story-e6frf9jf-1226066011719

[tiger101]

looks like it has hit the fan over at Port Adelaide. I wonder what the AFL will do. Do they really want a 2nd grade league running an AFL team.

[wayne]

Is this a case of things picking up once they move to the Adelaide Oval?

[gerkin greg]

the SANFL are grubby little pan handlers and they will continue to rape the SA clubs until the AFL step in
wouldn't matter how many people turned up to games, their gate deal is super shonkey
it's actually a good move from Port to remain a financial basket case as it is the only way to force the SANFL to relinquish control of the licence, i can smell Mien Führer all over this one

[one-eyed]

AFL guarantees Port Adelaide's future, three Power directors stand down amid financial, managerial crisis

http://www.foxsports.com.au/afl/afl-premiership/port-adelaide-financial-crisis-worsens-as-sanfl-declares-it-can-no-longer-prop-up-the-struggling-afl-club/story-e6frf3e3-1226066173860?from=public_rss

[mightytiges]

the SANFL are grubby little pan handlers and they will continue to rape the SA clubs until the AFL step in
wouldn't matter how many people turned up to games, their gate deal is super shonkey
it's actually a good move from Port to remain a financial basket case as it is the only way to force the SANFL to relinquish control of the licence, i can smell Mien Führer all over this one

Yep the SANFL have screwed Port since they prevented them from joining the AFL in 1990. The AFL will step and support Port until 2014 when both SA clubs move to the Adelaide Oval. Even despite that AFL footy has been on the nose in SA. Crowds and TV ratings down. It's probably due to both sides being rubbish in recent years and the archaic state of Footy Park. SANFL crowds and ABC tv ratings I believe are up though.

[J Buckthorn]

AFL guarantees Port Adelaide's future, three Power directors stand down amid financial, managerial crisis

http://www.foxsports.com.au/afl/afl-premiership/port-adelaide-financial-crisis-worsens-as-sanfl-declares-it-can-no-longer-prop-up-the-struggling-afl-club/story-e6frf3e3-1226066173860?from=public_rss

Darn.

I was hoping they'd be relocated to Tassie, then JT would have to support them 

[Penelope]

the SANFL are grubby little pan handlers and they will continue to rape the SA clubs until the AFL step in
wouldn't matter how many people turned up to games, their gate deal is super shonkey
it's actually a good move from Port to remain a financial basket case as it is the only way to force the SANFL to relinquish control of the licence, i can smell Mien Führer all over this one

Yep the SANFL have screwed Port since they prevented them from joining the AFL in 1990. The AFL will step and support Port until 2014 when both SA clubs move to the Adelaide Oval. Even despite that AFL footy has been on the nose in SA. Crowds and TV ratings down. It's probably due to both sides being rubbish in recent years and the archaic state of Footy Park. SANFL crowds and ABC tv ratings I believe are up though.

The SANFL also screwed Port Adelaide by basically forcing them to take over administration of the Port Magpies, also a administrative basket case.

[RollsRoyce]

Maybe they should sell off all their home games