Clubs may lose AFL funding
Caroline Wilson | February 25, 2009
THE AFL has threatened to withhold millions of dollars of funding to at least three Victorian clubs it had pledged to redevelop rundown stadiums and facilities.
Carlton, Richmond and North Melbourne are understood to have been taken aback two days ago upon receiving what has been described as relatively antagonistic correspondence from the AFL demanding to redefine their funding arrangements.
The Kangaroos were threatened with the withdrawal of an estimated $1.2 million in a letter from the AFL's chief financial officer Ian Anderson on the eve of yesterday's launch of the Arden Street redevelopment.
No AFL executive attended the official launch of the rebuilding of what the commission agreed several years ago were the worst facilities in the competition.
While Kangaroos captain Brent Harvey and Victorian Government minister Bronwyn Pike turned the soil yesterday at what will become a $13 million migrant resource centre and training facility at Arden Street, an atmosphere of disquiet prevailed among senior North directors at the opening.
Like the Tigers, North was somewhat insulted at the tone of the AFL correspondence. Both Richmond and North Melbourne are understood to have immediately responded to Anderson's letter in a bid to correct some discrepancies. The Tigers, whose indigenous learning centre at Punt Road is expected to be completed by June 2010, were told their budget for the redevelopment had a hole of more than $6 million.
Carlton was told its budget shortfall was close to $5 million, while North's deficit was an estimated $2.8 million. All those figures have been privately disputed by the clubs who claim they would lower their costs rather than blow their budgets.
Richmond has not yet tendered for the Punt Road redevelopment, but the AFL had threatened to withhold its promised $1.5 million allowance. The Blues were threatened with the withdrawal of a further $1.2 million to the Princes Park rebuilding unless the club close the deficit and detail its funding plans.
Anderson told the clubs that the AFL was concerned that in tough economic times it did not want clubs plunged into greater debt. He demanded the clubs get their budgets in order and outline their funding arrangements or lose the league's portion.
The AFL wrote to the clubs demanding they explain perceived budget shortfalls in the redevelopments — all of which were heralded by the Bracks Government in 2006 in a bid to boost Victorian football and its facilities and which the AFL pledged to help fund.
AFL senior executive Gillon McLachlan confirmed Anderson's correspondence last night, saying: "I don't want to speak on behalf of Ian, but he is the CFO of the AFL and his role is to oversee the finances. His letter was simply to get some comfort from those clubs that their finances regarding redevelopments and the processes around them were in place."
While no club executive was willing to comment last night, The Age understands some disquiet prevailed around the AFL's threatening tone at a time all the Victorian clubs are struggling with corporate sales and the league is continuing to plough millions into its developing markets.
Several clubs have also been forced to downgrade their financial expectations for 2009 with the league having to date failed to reach agreement with either the MCG or Telstra Dome regarding the poor match returns.
http://www.realfooty.com.au/news/news/clubs-may-lose-afl-funding/2009/02/24/1235237650956.html
