Clubs concerned over returns at revamped MCG
By Jake Niall
The Age
May 31, 2006
The redevelopment of the MCG could be costing tenant clubs as much as $30,000-$40,000 a game, with lavish new facilities in the Melbourne Cricket Club competing with those of the clubs.
Melbourne, Richmond and Hawthorn are collectively seeking a better deal at the MCG, with tenant clubs, besides Collingwood, having received lower returns to date on the equivalent crowds as last year.
While Melbourne, Hawthorn and Richmond have asked the AFL to win them a better deal at the MCG - asking the league to negotiate collectively on their behalf - the league has put its talks on hold until it works out how much money it will allocate to the players and clubs under the new television rights deal.
Melbourne chief executive Steve Harris said last night that the redevelopment was hurting the returns of the tenant clubs, besides Collingwood.
"I think you'll find the tenant clubs, based on similar crowds and attendances to last year, are something like $30,000-$40,000 worse off per game," Harris said.
"You multiple that by eight or nine games at the 'G and it really becomes serious money."
Harris said there was "a range of issues" tenant clubs had raised with the MCC and the AFL, with the redevelopment having created competition for the clubs.
"There's more competition now from the MCC itself, in terms of its improved facilities and the quality of the those facilities and the totality of them.
"I think you'll find both the MCC and the AFL and all clubs are not exactly selling out the same number of rooms at the same sort of margins that they used to because of that competition.
"And there's been some changes in the way the return to the clubs from gate takings and food and beverage and other things has been calculated from last year, which I think has taken some of the clubs by surprise, and I think there's some work going on to clarify what's already going on there."
The AFL is trying to close the vast gap between the massive returns that Collingwood receives under its deal and those that of the other three tenants.
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