Carlton asks for financial leniency from the AFL for $1.5m debt
Caroline Wilson | April 7, 2009
THE Carlton Football Club has pleaded for — and looks likely to receive — financial mercy from the AFL over a five-year-old $1.5 million debt.
The Blues have told the AFL they are unable to repay the seven-figure sum, a legacy of the club's financial crisis that haunted the Ian Collins regime after the bitter political fallout that followed John Elliott's exit from Princes Park.
The AFL, having fined Carlton close to $1 million at the end of 2002 for systematic salary cap cheating, loaned the club $1.5 million shortly afterwards in a bid to ease the cashflow crisis that threatened to derail the Blues in the early years of Collins' board.
The loan was interest-free for one year but the Blues have been servicing the interest on the debt ever since and received official notification from the league in February reminding them of the impending October deadline at which time the debt had to be repaid.
Carlton chief executive Greg Swann wrote back to the AFL informing the league the Blues had no hope of repaying the debt on time. Swann asked the AFL for a one-year extension, reminding the competition's governing body of the Blues' significant financial commitments to the redevelopment of Princes Park.
Although the request has yet to be put before the commission, the next official board meeting of the AFL is expected to approve the Blues' request with CEO Andrew Demetriou telling The Age late yesterday: "I imagine the commission would look favourably on their request. If we can help a club through these troubled times we will do so."
Not only is the AFL expected to grant the Blues a 12-month extension, it has also halved the 6 per cent interest it was charging and at last month's commission talks, officially moved to reduce the interest charged to clubs to one per cent below the current bank rates at any given time.
The AFL has also given the Kangaroos some financial relief by cutting the interest on an advance requested by the club of its annual broadcast dividend.
It is not unusual for clubs with cashflow issues early in the season to request an early cash handout of dividends due at the end of the season.
http://www.realfooty.com.au/news/rfnews/carlton-asks-for-financial-leniency-from-afl/2009/04/06/1238869906856.html
