Record overall debt forecast by: Greg Denham
From: The Australian
August 09, 2013 UP to 10 AFL clubs - the most on record in the same season - have forecast a financial loss this year.
While the overall profitability of the 18 clubs has been estimated at amounting to a combined $5 million, the figure will be inflated by powerhouse clubs - Collingwood, West Coast and Hawthorn.
Club chief executives were informed of their overall financial state of play by the AFL at a two-day conference in Victoria that ended yesterday.
The only clubs who have budgeted for a profit this year are the Magpies, Eagles, Hawks, Geelong, North Melbourne, Fremantle, Richmond and Essendon.The Bombers' end financial result will depend on their ongoing legal costs arising from their defence of the ASADA/AFL investigations, and potential AFL Commission recommendations.
Sydney's result is also believed to hang in the balance between a loss and a small profit, depending on how far it goes into the finals.
The most disturbing data received was the record overall debt now carried by the clubs.
The league revealed that combined club debt had jumped from about $50m last year to $95m.
Gaming debts soared to $55m, but much of this is attributed to the additional costs incurred in establishing venues and a change in August last year to the gaming formula where clubs had to purchase 10-year licences for each po-ker machine.
AFL clubs that operate gaming venues said they were confident of eliminating the debt over time.
The overall debt figure includes $9m owed to the AFL, and $31m owed to banks, which has significantly decreased in recent years.
Two years ago, clubs carried bank debts of $46m.
Several financially struggling clubs appear certain to have their AFL assistance funding increased for next year as an interim measure before the league settles on a revised equalisation formula.
Clubs were informed that total player payments, including additional services agreements, would increase next by more than $600,000 a club.
Salary caps will rise from $9.14m a club to $9.63m, while additional services agreements will increase by $111,000 to $963,000.
Next season's pre-season appears certain to be condensed to a two- or three-week sanctioned practice match series, to allow the AFL premiership season to start a week earlier and extend to 24 rounds, with two byes per club.
http://www.theaustralian.com.au/sport/afl/record-overall-debt-forecast/story-fnca0u4y-1226693838140
