Author Topic: The New Deal ........ (Age)  (Read 3102 times)

Offline one-eyed

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The New Deal ........ (Age)
« on: October 28, 2012, 03:04:41 AM »
We've been lobbed in again with the likes of North, Dees and Dogs as needing to be financially propped up by the AFL  ::).

The new deal
   
    Jake Niall
    The Age
    October 28, 2012



PETER Gordon saved old Footscray's name in 1989 by rattling tins and creating a Barack Obama-style groundswell of what he called ''micro donations'' from ordinary supporters. In his second coming as president of the Bulldogs, he is also tapping into the well-heeled and reaching into his own far deeper pockets to ensure that the Dogs don't find themselves in quicksand again.

Footscray had what then seemed insurmountable debt of $1.5 to $2 million when this impassioned lawyer orchestrated ''the Save the Dogs'' campaign. Today, the club's debt is closer to $10 million, yet it is not facing the same existential threat. The wolves aren't at the Dogs' door.

Gordon notes that the debt the Dogs had in 1989 was equal to ''100 per cent of the club's actual revenue and this year's it's less than a third''. But the more pertinent difference is this: That, in 1989, the league was walking the Dogs down the aisle in an arranged marriage with Fitzroy and actively sought to reduce the number of [Melbourne] clubs. In 2012, the AFL has a safety net that protects the vulnerable - read small - clubs.

Socialism - not a word Gordon likes deployed in a football context - has ensured that there are still 10 teams in Victoria and quite a few outside of this state. When Gordon left old Footscray in 1996 and it re-branded as the Western Bulldogs, the AFL was dealing with the fallout from ''the Melbourne Hawks'', which was subsequently seen as the (failed) merger to end all mergers.

In the decade after Gordon's exit, every single club played in a preliminary final - including Richmond and Fremantle. Collingwood rose from ruin, Carlton fell into disrepute for several years. The Dogs were within a kick of that first grand final since 1954 in his first season of exile, when the Saints lost to Adelaide, Melbourne made a grand final in 2000 and was a regular finalist under Neale Daniher. North Melbourne, foiled in its attempt to take over Fitzroy in the year it won the 1996 premiership, won a second flag in 1999; Port Adelaide, later to prove the most impecunious of non-Victorian clubs, was premier in 2004.

The years from 1997-2006 were the heady days of football socialism. There was a competitive balance in the competition, courtesy of the draft and a salary cap that was actually enforced. But socialism had its limits. Some clubs were more equal than others, as the blockbusters and free-to-air television coverage confirmed. While the AFL sought to compensate by handing the poorer clubs a cheque - and by sending them to Canberra and Darwin - it could not control what clubs spent outside of player payments. So began the football department ''arms race'', in which development coaches would multiply, recruiting budgets exploded and the once humble fitness coach was re-invented as ''director of sports science''.

The clubs with money and smarts found ways to gain a critical millimetre of advantage. Collingwood, the heaviest spender in football, would not miss the finals from 2006 until this year. Sydney - a club without vast funds but which was consistently in the top four football budgets - would remain thereabouts and win a second flag this year without the need to bottom out. Geelong, with a home ground goldmine, became the Corio Bay Packers - a provincial powerhouse, Hawthorn, too, turned dollars into wins, while West Coast proved recession proof.

In 2012, the ladder is heavily biased towards the clubs that are best resourced; more worrisome, the Dogs are down, the Demons haven't played finals since 2006, North has muddled along and Port has become nouveau poor. This week, the fixture will hand Collingwood seven Friday night games, the Bulldogs none. If this is partly due to results, does anyone doubt that the Pies, Essendon or Carlton would be so deprived of prime time if they were holding up the ladder?

The new inequality, apparent for a few years, is suddenly a hot topic, with Sydney chairman Richard Colless raising the question of how clubs can be better supported. ''I'm certainly of the view that there is a reasonably direct lineal correlation between football spending and success on the field,'' said Gordon, whose club spent about $5 million less on football - largely excluding player payments - than the Pies and Eagles behemoths this year.

The trading and free-agency period exposed a troubling disparity that is seldom spoken about - the higher amounts that the weak clubs must pay to recruit or retain players when they are down the ladder. Angus Monfries is receiving around $1.5 million over four years at Port; Essendon offered much less over two. Chris Dawes gets a hefty contract from the desperate Demons, while Mitch Brown is offered $400,000 or more for four years by the Saints. Conversely, Brian Lake has donned brown and gold for far less than the Dogs were paying him.

The AFL is wondering how it might restore equality and fraternity, without ditching liberty. It has already revamped its funding models, handing more dough to the Dogs, Saints, North, Demons, Port and Richmond from 2012-14. The Tigers won't need it if they win games. The others will, no matter where they finish.

One proposal that has been raised within club-land is what has been called ''a luxury tax''. Under this form of ''New Socialism'', the rich can spend whatever they like on football - hiring a coach and career adviser for every player if they wish - but they would be taxed once the outlay reaches a certain number. If the Eagles' footy budget exceeded $20 million, for instance, they would pay the AFL, say, 25 cents for every dollar over that amount. The theory is that no one wants to stymie innovation, or equalise to the point teams lose any sense of individuality, but that, equally, they have to be competing on something like level terms.

Over the next few weeks, the US will decide which form of free market capitalism it wants. ''Communist'' China will choose its leadership and chart a new course at the National People's Congress. The AFL, more akin to social democratic Norway, is trying to navigate the next phase and maintain an egalitarian competition without killing initiative. It has already allowed the players greater freedom of movement - Kurt Tippett excepted. How it handles finer points of this new socialism has become the game's big question.

http://www.theage.com.au/afl/afl-news/the-new-deal-20121027-28ctr.html#ixzz2AW2mj8cr

Offline yellowandback

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Re: The New Deal ........ (Age)
« Reply #1 on: October 28, 2012, 05:47:11 AM »
When did the AFL give us money? Sue the buggers, this type of crap hurts our clubs reputation!
It's that simple Spud
"I discussed (it) with my three daughters, my wife and my 82-year-old mum, because it has really affected me … If those comments … were made about one of my daughters, it would make the hairs on the back of my neck stand up. I would not have liked it at all.”

Dubstep Dookie

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Re: The New Deal ........ (Age)
« Reply #2 on: October 28, 2012, 08:15:18 AM »
Isn't Carlton carrying the most debt?

Offline Penelope

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Re: The New Deal ........ (Age)
« Reply #3 on: October 28, 2012, 10:46:59 AM »
When did the AFL give us money? Sue the buggers, this type of crap hurts our clubs reputation!
the league gave us and some of the other clubs in debt a handout to help reduce said debts. Last year i think it was.
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Offline Phil Mrakov

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Re: The New Deal ........ (Age)
« Reply #4 on: October 28, 2012, 11:18:01 AM »
Isn't Carlton carrying the most debt?

Apparently their 10 million dollar debt is manageable
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Offline Smokey

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Re: The New Deal ........ (Age)
« Reply #5 on: October 28, 2012, 12:04:06 PM »
That article is mischievous with the way it has portrayed only 6 clubs as receiving handouts.  In fact, the handouts are a part of the AFL's Club Funding and Equalisation Strategy announced in Sept 2011 and all clubs except 5 (Geelong, Hawthorn, Adelaide, Gold Coast and GWS) will receive extra handouts.  Here is an excerpt from an article that explains it:

The Club Future Fund will provide:
 
A minimum EQUAL distribution of $3.25m to all clubs over 2012-16, totalling $58.5m.
A further $48m will be distributed DISEQUALLY over 2012-14 and be invested into specific initiatives for a selected number of clubs. Apart from facility projects, these additional funding commitments are only made for 2012 to 2014.
A further $37m has been budgeted to be invested over 2015 and 2016 in a DISEQUAL fashion but is not currently allocated to specific clubs. This allows the AFL to review the effectiveness of the investments made over 2012 to 2014 and the status of equalisation and financial health across the clubs to make the necessary investment decisions for 2015 and 2016.


Here is a list of all the clubs that received an extra handout (part of the $48m referred to in the Age article):

West Bulldogs - 7m
North Melb - 7m
Melbourne - 5.8m
St Kilda - 5.7m
Richmond - 4.7m
Port Adel - 3.9m
Sydney - 3.9m
Brisbane - 3.9m
Essendon - 1.5m
Carlton - 1m
Collingwood - 1m
West Coast - 1m
Fremantle - 1m

Every single club that received this funding had to formally identify to the AFL what it intended to use the funds for and sign off an agreement that it would use the funds for that purpose only.  A bit more on how it is being managed:

Approximately $92m of the $144m has been tied to initiatives, and can be summarised as:
 
Over $31m towards club facility developments, that we expect could total over $200m in new assets
Approximately $7m in debt reduction grants for 2012 to 2014, helping save over $400,000 per annum in interest costs from 2014.
Over $21m towards new resources and programs to grow membership, sponsorship, fan development, and digital and media initiatives for 2012 to 2014
Over $8m towards achieving minimum required capability in football department resources and systems and helping bridge the gap in TPP for 2012 to 2014
Over $25m in ongoing subsidies primarily to clubs constrained by stadium deals for 2012 to 2014.
$14m in funds committed to clubs but not tagged to activity for 2015 and 2016 (the last two years of the $3.25m distribution)
A further $37m in disequal funds not yet allocated to clubs for 2015 and 2016.
Each club will be provided with a formal funding package letter outlining the conditions of funding. Clubs that receive significant new packages will work with the AFL to set 2012 budgets and agree on hiring strategies and KPIs for new roles.
 
Clubs that receive funding for infrastructure projects will develop a funding schedule, linked to key milestones.


Here is a link to the article I've quoted above:

http://www.fiveaa.com.au/article_afl-announces-1-1-billion-club-funding-package_110460

It makes an interesting read and shows that like most football journo's nowadays, Jake Niall has not let the complete truth get in the way of the slant he wanted to portray inaccurately in his story.   :banghead

Hellenic Tiger

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Re: The New Deal ........ (Age)
« Reply #6 on: October 28, 2012, 12:06:22 PM »
Isn't Carlton carrying the most debt?

Apparently their 10 million dollar debt is manageable

As opposed to our debt being eradicated to a large part by FTF.

Of course you can't mention Carlskata and their debt plus Juddy's salary 3rd party agreement with Visy and their bottomless salary cap. ::)

Online RedanTiger

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Re: The New Deal ........ (Age)
« Reply #7 on: October 28, 2012, 12:34:10 PM »
When did the AFL give us money? Sue the buggers, this type of crap hurts our clubs reputation!

As posted by al and smokey, the AFL club funding document explains the money given out.
Our total is $8 million (with conditions) - page 13.
http://mm.afl.com.au/portals/0/2011/finals/club_funding_presentation_260911.pdf

Offline Phil Mrakov

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Re: The New Deal ........ (Age)
« Reply #8 on: October 28, 2012, 12:45:57 PM »
Isn't Carlton carrying the most debt?

Apparently their 10 million dollar debt is manageable

As opposed to our debt being eradicated to a large part by FTF.

Of course you can't mention Carlskata and their debt plus Juddy's salary 3rd party agreement with Visy and their bottomless salary cap. ::)

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Offline yellowandback

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Re: The New Deal ........ (Age)
« Reply #9 on: October 28, 2012, 01:37:35 PM »
When did the AFL give us money? Sue the buggers, this type of crap hurts our clubs reputation!

As posted by al and smokey, the AFL club funding document explains the money given out.
Our total is $8 million (with conditions) - page 13.
http://mm.afl.com.au/portals/0/2011/finals/club_funding_presentation_260911.pdf

Guys, that isn't my definition of a hand out. A hand out is a plea for money by a team who cannot pay their bills. Bulldogs, demons, kangas all have had hand outs.
The equalisation fund is a completely different premise
It's that simple Spud
"I discussed (it) with my three daughters, my wife and my 82-year-old mum, because it has really affected me … If those comments … were made about one of my daughters, it would make the hairs on the back of my neck stand up. I would not have liked it at all.”

Offline Smokey

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Re: The New Deal ........ (Age)
« Reply #10 on: October 28, 2012, 01:53:07 PM »
You are correct Y&B but Jake Niall chooses to make the connotation it's a handout for struggling clubs in his article.  Poor sensationalist journalism choosing to use some of the truth to create a nonfactual 'fact'.

Offline WilliamPowell

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Re: The New Deal ........ (Age)
« Reply #11 on: October 28, 2012, 02:14:57 PM »
Hate to break it to everyone but outside the funding listed by smokey in his post the RFC has indeed received monies from the AFL in previous years

This money related to an inferior stadium deal we and a number of other clubs had with the MCG and Etihad. Think for memory last year it was around $200-400k and was referred to and labelled as special distribution fund which has now been replaced by "Future Fund".

Granted parts of Niall's article is poorly worded but the reality is we are going to be receiving a greater amount form the Futures Fund than a number of other clubs.
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Offline Smokey

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Re: The New Deal ........ (Age)
« Reply #12 on: October 28, 2012, 03:16:45 PM »
And as we should WP.  That money is only to try and equalize the disparities caused by the AFL's insistence on using stadia and involving deals that clubs might otherwise not have entered into.  It's not a handout to struggling clubs, it's financial recognition of the fact the AFL cause and create an uneven playing field by fixturing based around television, crowds and the greater good of the game.  It's timely to revisit the article in an old thread to see why this money to us should exist and not be mentioned as any 'SOS'-type handout:

http://oneeyed-richmond.com/forum/index.php?topic=15711.msg302468#msg302468

Offline smasha

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Re: The New Deal ........ (Age)
« Reply #13 on: October 28, 2012, 03:33:25 PM »
Isn't Carlton carrying the most debt?

Apparently their 10 million dollar debt is manageable

Since they took our pub.
LOL staying alive through Richmond pubs.
Looking for a flag with an ex Richmond premiership player.
Odear Carlton.

Offline WilliamPowell

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Re: The New Deal ........ (Age)
« Reply #14 on: October 28, 2012, 03:56:21 PM »
And as we should WP.  That money is only to try and equalize the disparities caused by the AFL's insistence on using stadia and involving deals that clubs might otherwise not have entered into.  It's not a handout to struggling clubs, it's financial recognition of the fact the AFL cause and create an uneven playing field by fixturing based around television, crowds and the greater good of the game.  It's timely to revisit the article in an old thread to see why this money to us should exist and not be mentioned as any 'SOS'-type handout:

http://oneeyed-richmond.com/forum/index.php?topic=15711.msg302468#msg302468

Agree with you smokey

 This new funding arrangement model is a good one. Dare I say it a correct one. Because it is based on a needs basis in areas that clubs are lacking

But in the past we have received money from the AFL like the Dogs, Demons, Blues, Saints and N0rt and rightly or wrongly that money has been labelled "AFL Handouts" because that is how the media want to portray it

I know we don't like being lumped with the Clubs I've listed but the reality is we got the handout (granted not to the level of most of them) and like it not that's what it was. Biggest difference for us was the monies weren't the difference between us making an operating loss or profit unlike the Dees, Dogs & N0rt.

As I said the article is poorly worded although in fairness it doesn't describe the new funding model as handouts. There is no hiding from the fact that as I said we are club that is at the top end of what the majority of clubs will be getting

My view is that and I expect to be howled down for it but we seem to get very sensitive over this whole funding and debt analysis when it appears/gets raised in the media and I am not sure why.

Facts are we are still carrying debt as most clubs do, we have received funding from the AFL in the past and will in the future. No point in denying it. Clearly though, there is one big difference and that is our Club is working its backside off to correct things so that we don't need to be in this position in the future
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