Tigers surge up AFL revenue ladder - but just miss the top four (Age)

[one-eyed]

Tigers surge up AFL revenue ladder - but just miss the top four

Peter Ryan
The Age
21 March 2018 — 3:54pm

Richmond's drought-breaking premiership saw the Tigers roar up the AFL's revenue ladder in 2017, with their 37 per cent revenue increase pushing them to fifth on the table.

Collingwood remained the top revenue-earner despite missing the finals for the fourth year in succession, slightly ahead of powerhouses Hawthorn, West Coast and Essendon, who filled the top four.

The Tigers not only managed a massive increase in home-ground attendances, they also earned increased sponsorship revenue and are one of the few AFL clubs making a success of a non-football revenue source other than gaming, with their health and recreation business Aligned Leisure making money.

The information, contained in annual research from IBISWorld on club financial reports, saw 14 of the 18 AFL clubs post an operating profit in 2017, up from 10 in 2016.

IBISWorld's senior industry analyst Nick Tarrant said many AFL clubs still relied heavily on gaming revenue to make a profit.

"The AFL is pushing hard for the clubs to reduce their dependence on hospitality and gaming revenue, but it remains clear that certain clubs rely heavily on their corporate hosting and po-kies revenue streams. The three top clubs received the least funding from the AFL. In 2017, 29.4 per cent of Collingwood’s revenue came from hospitality and po-kies, with Hawthorn at 26.7 per cent," Tarrant said.

Although many clubs have expressed a desire to rely less on gaming revenue, most acknowledge it is a difficult task.

Sixty per cent of Gold Coast's revenue comes from AFL funding. More than 40 per cent of North Melbourne and St Kilda's funding came from the AFL in 2017.

Both the Kangaroos and the Saints will benefit from improved deals with Etihad Stadium in 2018, and North Melbourne does not earn revenue through gaming.

All clubs receive some AFL funding as a result of the broadcasting deals the AFL negotiates on their behalf.

The AFL annual report is expected to be published within the next fortnight.

https://www.theage.com.au/sport/afl/richmond-tigers-afl-revenue-collingwood-20180321-p4z5fl.html

[Hard Roar Tiger]

So the AFL are looking to develop the game in Western Sydney, the GC, inner Norf and bayside melbourne

[Dougeytherichmondfan]

Hawthorn make their budget with almost entirely pokies. Essendon just have donated most of theirs from wealthy benefactors and W.C make up about 3/4 of the divide in a 2 team city.

Realistically we can only chase Collingwood down at this stage.

[YellowandBlackBlood]

Hawthorn make their budget with almost entirely pokies. Essendon just have donated most of theirs from wealthy benefactors and W.C make up about 3/4 of the divide in a 2 team city.

Realistically we can only chase Collingwood down at this stage.

Didn't the article just state that Collingwood makes more than Hawthorn from pokies?

[WilliamPowell]

Interesting about our Leisure business

I must of misread the numbers 

[Slipper]

Interesting about our Leisure business

I must of misread the numbers 

I thought that too.

[WilliamPowell]

Interesting about our Leisure business

I must of misread the numbers 

I thought that too.

Certainly increased our revenues but the overall business (rev less expenses) shows it made a small loss. Which I might add is not that surprising in its first full 12 months of operations with any set up costs captured

[Jackstar is back!!!]

Interesting about our Leisure business

I must of misread the numbers 

I thought that too.

Wasn’t it reported as a loss at AGM ?

[Dougeytherichmondfan]

Interesting about our Leisure business

I must of misread the numbers 

I thought that too.

Certainly increased our revenues but the overall business (rev less expenses) shows it made a small loss. Which I might add is not that surprising in its first full 12 months of operations with any set up costs captured

Would be interesting to find out but generally speaking leisure centres make small losses or creep into small profits. However, there are some contracts that are money for jam. MSAC, Watermark and Gsac for example.

[Gracie]

Interesting about our Leisure business

I must of misread the numbers 

I thought that too.

Didn't we expand the number of centres by purchasing another licence?? Increasing revenue indicates we have expanded and there are always additional write offs in any new purchase. pretty confident the leisure centers will be profitable in the long run, especially with Melbourne predict ted to grow from current population of almost 5million to 8million over next 40 years

Certainly increased our revenues but the overall business (rev less expenses) shows it made a small loss. Which I might add is not that surprising in its first full 12 months of operations with any set up costs captured

[Rampsation]

That is true but one thing the club should do is look to take advantage of the current success by buying some substantial freehold assets which can generate revenue every year. Our club whilst having a strong balance sheet now doesn't seem to own a lot of stuff as freehold and now is the time to go looking for new things. Footy goes in cycles, we need to be strong when the system of the draft starts to work
against us.