Tigers to Get $7.95mil Under New AFL Funding Scheme

[tigs2011]

Money is sweet and when the time comes the decision will be - do we play Norf or GCS or GWS at Docklands and lose $150,000 on the match or do we sell it and get $500,000 - thats a $650,000 swing right there to revenues. We all want games in Melbourne but I cant see us taking hits of $650,000 a game to be honest.

If we are winning on regular basis then we wont lose money on games Etihad - if 30k is the break even I reckon we'd get that easily

I've said it many times before we start winning consistently and start making finals our draw will turn dramatically. Clubs will want to play us and with that will come the $$$ by other means, eg increased sponsorship, better TV exposure

Build it and they WILL come 

If we get our goal of 75,000 members we won't be playing home games at Etihad. Have the Pies played a home game there this year?

[Dubstep Dookie]

What are peoples thoughts on this reducing out 'Fighting Tiger Fund' goal to half and pumping all the money into the oval/staffing?

[tigs2011]

What are peoples thoughts on this reducing out 'Fighting Tiger Fund' goal to half and pumping all the money into the oval/staffing?

FTF will stay. 8mill from this plus 6mill from FTF plus 2.5-3mill from selling games plus money saved on interest = good times

[WilliamPowell]

If we get our goal of 75,000 members we won't be playing home games at Etihad. Have the Pies played a home game there this year?

Yes they did

2 homes games at Etihad -v- Port (rd 1) & adel (rd 9)

[one-eyed]

Here's the full report of the AFL's Club funding & equalisation strategy 2012‐16

http://mm.afl.com.au/portals/0/2011/finals/club_funding_presentation_260911.pdf

Page 6

A legacy of the Club Future Fund will be to complete the footprint of elite training & administration bases for clubs

Clubs that benefited from major facilities grants over 2007‐11 included: WB, NM, Melb, StK, RFC, Adel, Port, Geel & Carl

Recommendation: Focus distributions to larger Clubs into legacy facility projects

NOTE: smaller facility programs required for Richmond (Punt Road Oval);

Page 8

A legacy of the Club Future Fund will be to accelerate debt reduction for clubs constrained by debt

Recommendation

• Debt reduction is an important legacy for clubs and the industry
• Targeting minimum rate of debt reduction per annum – encourage clubs to find additional contributions
• AFL pay direct to the bank
• Corresponding reductions in AFL $5m guarantee limit
• Debt reduction to be a priority reinvestment area if club exceeds revenue forecasts
• Commitment for 2012‐14 only

In the graph for 2011, we are listed as just below the profitability line and $4m in debt (within the $5m AFL guarantee). North, Brisbane, Carlton and Dogs ($10m debt?) are carrying more debt that us. Carlton, Melbourne, North, St Kilda, Brisbane and Port are less profitable than us.

Page 9

The Club Future Fund will raise the minimum level of capability and systems at most resource constrained clubs

Gap in Football Resources (Coaching, Development, Conditioning & List Management)
Minimum required is 28 people
Richmond has 25

Gap in Non Football Resources (Membership, Corporate, Digital, Fan Dev & Brand, Finance/HR/IT)
Minimum required is 40 people
Richmond has 31

Recommendation: Invest in the specific roles and systems each club needs to bridge gap to minimum required capability. Seed fund roles for 2012‐14, with clear KPI’s to test effectiveness. Ambition for roles to be self sustainable by 2014, or else discontinue

Page 10

Legacy of Club Future Fund will be to help clubs penetrate key growth corridors and grow digital businesses

Club & Industry Growth Opportunities

1. Sales resources to fill spare stadia capacity: Richmond - MCG

2. Secondary markets: Richmond - Cairns

3. Connect to population growth corridors: Richmond - North suburbs

Page 11

Club Future Fund will be distributed to the priority needs for each Club

Richmond gains funding for:
* Facilities
* Revenue constraints / stadia
* Football capability
* Non football capability & growth
* Debt reduction

Page 13

Club Future Fund support for most constrained clubs skewed to debt reduction, commercial growth and stadia revenue gap

Committed Funding

                 Equal (2012-16)    Disequal (2012-14)        Total (2012-16)
Richmond           $3.25m                  $4.7m                      $8.0m

Page 15

Key recommendation of club working group was to ensure funding and budgets are managed more tightly

Model applied to Clubs receiving significant disequal funding

Funding of new resources linked to a KPI model
• KPIs agreed for each new resource
      • Financial (revenue)
      • Non‐financial (web traffic, registered fans etc)
• AFL to approve key appointments
• If resources do not meet KPIs over 2012‐13 then discontinued or alternative strategy pursued
• Objective for roles to be self funding/absorbed by clubs post

• Note: a schedule of Club Future Fund distributions for facilities to be agreed with clubs based on project milestones


Stricter Budget Framework
• Agreed 3 year strategic plans and forecasts
• AFL to approve annual budgets
    – Expenditure commitments within achievable revenue forecasts
    – Must budget for surpluses
• If revenue achieved above forecast, then agreed reinvestment priorities
• Monthly finance meetings with AFL (tbc)
• Funding at risk 2014


Shared objective that clubs will be less reliant on ‘disequal’ funding for survival in 2015 and 2016

http://mm.afl.com.au/portals/0/2011/finals/club_funding_presentation_260911.pdf

[tigs2011]

If we get our goal of 75,000 members we won't be playing home games at Etihad. Have the Pies played a home game there this year?

Yes they did

2 homes games at Etihad -v- Port (rd 1) & adel (rd 9)

Hmmm. Guess we have to crack 100,000 

I'm sure the Pies didn't lose money there. Just need to fill the place out.

[WilliamPowell]

If we get our goal of 75,000 members we won't be playing home games at Etihad. Have the Pies played a home game there this year?

Yes they did

2 homes games at Etihad -v- Port (rd 1) & adel (rd 9)

Hmmm. Guess we have to crack 100,000 

I'm sure the Pies didn't lose money there. Just need to fill the place out.

Remember though the Pies got a crowds of around 40k + so they wouldn't have lost money

[Stripes]

I also agree that we did do the best out of the clubs. We have the greatest potential and strategic plan moving forward from the current financial strugglers. As WP has already mentioned, when we begin to perform on field (unlike every other club this is something we haven't come close to for a few decades) the percentage financial improvement will be significant.

This grant could not have come at a better time for us really. We are at the early stages of a financial resurrection while our debt and spending initially still appears worthy of significant assistance. If the AFL had of been looking at our books in a few years time once our predicted improvement occurs, we would have received far less.

So out of all the clubs, this money will give us the shot in the arm to lift us up to the top far more rapidly than any other club. 

Now we just need some onfield success but that won't be hard will it....will it 

[tigs2011]

If we get our goal of 75,000 members we won't be playing home games at Etihad. Have the Pies played a home game there this year?

Yes they did

2 homes games at Etihad -v- Port (rd 1) & adel (rd 9)

Hmmm. Guess we have to crack 100,000 

I'm sure the Pies didn't lose money there. Just need to fill the place out.

Remember though the Pies got a crowds of around 40k + so they wouldn't have lost money

That's what i mean when i said all we have to do is fill the place out 

75,000 members should go close to filling a 50,000 stadium provided our members don't be too precious about the stadium we play at. Look at the PA game (even though it was Cuz's last game our season was shot) we got about 37,000. It's certainly do-able. Until then though we may as well keep selling them and making half a million.