Port Adelaide $3.5m in debt and asking for a $1m AFL handout (Age)

[one-eyed]

Port threatened by funds crisis
Caroline Wilson | March 17, 2009

PORT Adelaide has been officially moved on to the AFL's critical list with the club confirming last night it had requested emergency assistance for the first time via the competition's annual special distribution.

Port chief executive Mark Haysman told The Age the club had requested an immediate seven-figure sum from the AFL as part of a three-year funding bid to ease the club's financial crisis.

Power's cash-flow crisis has escalated in recent weeks with its co-major sponsor potentially unable to pay the club this year.

Not only has Port Adelaide's debt escalated to about $3.5 million but the Power's co-major sponsor Bianco has raised doubts about its ability to deliver its contracted $750,000 for 2009.

At this stage it is not known whether Port Adelaide will have the Bianco logo on its jumpers against Essendon in round one.

The club's other major sponsor, Vodafone, has already announced it will pull out or significantly reduce its commitment at the end of 2009.

Port Adelaide is the first non-Victorian club to officially request money. North Melbourne, Melbourne and the Western Bulldogs are all recipients of annual special distribution funds, which will be reviewed at the end of 2009.

Full article at:
http://www.realfooty.com.au/news/news/ports-money-crisis/2009/03/16/1237054738317.html?page=fullpage#contentSwap1

[Chuck17]

Well the RFC has done their bit, they gave them Meyer and Rodan.

[mightytiges]

The realities of going from a big fish in a small pond to the big league. Their supporters aren't use to missing finals and wearing all teal jumpers  and their membership has fallen quite a bit from 5 years ago when the other clubs have seen their membership numbers rise.

$3m in 3 years. So effectively they want the AFL to pay off their debt for nothing .

[Hellenic Tiger]

Merge North and Port Adelaide. Simple

You have an already insignificant interstate club meging with an already insignificant Melbourne club who'll play in front of meagre crowds that virtually have  the same colours and the same amount of supporters and members. It will be an amalgamation of the Shinboners and Bogans. Perhaps this new insignificant club can be known as
The Shinbogans.

[WilliamPowell]

I reckon this again highlights how difficult and volatile the sponsorship market actually is and how it is impacting on clubs financial situation.

Bianco is a large company and going by the article they are struggling (and they are paying for the the back of the jumper @ $750k a year btw)... take that and Melb only being able to get $700k a year for the front of their jumper and there is message to AFL clubs and other sports, right now take what you can get... makes our deals look better by the minute

Staggering stuff when you consider it is only a 2 team town....

[Chuck17]

Perhaps this new insignificant club can be known as The Shinbogans.

   Love it Tucker 

[one-eyed]

AFL won't rescue Port Adelaide
Greg Denham | March 18, 2009

THE AFL is unlikely to save Port Adelaide from a financial shortfall with a cash injection made through the league's Annual Special Distribution fund. Chief executive Andrew Demetriou said yesterday the Power had other alternatives open to it.

"Just because a club makes a loss doesn't mean the AFL will throw money at it," Demetriou said.

"That's not always the answer. There are lots of ways we can work with the clubs to improve their position that don't require giving them money."

http://www.theaustralian.news.com.au/story/0,25197,25202588-2722,00.html

[mightytiges]

makes our deals look better by the minute

Spot on WP. Plus our sponsors you would think would be keen to continue to be our sponsors given the massive publicity we generate. It's turned into a "cheap" deal for them as Dick Smith has got millions of dollars worth of publicity out of the deal plus prime tv and front and back page shots in the major daily papers.

At the end of the year there'll be a few clubs looking for new major sponsors and it'll be a buyers market. Clubs will have to accept what they can get. Hopefully Dick Smith and Luxbet will stay on board until at least 2010.

[WilliamPowell]

At the end of the year there'll be a few clubs looking for new major sponsors and it'll be a buyers market. Clubs will have to accept what they can get. Hopefully Dick Smith and Luxbet will stay on board until at least 2010.

Gotta say if it was me (representing the RFC) I'd be starting these discussions NOW .... Dick SMith have an option for 2010 so I'd do that side first and then  I'd be trying to lock them in for another 2-3. Ditto Luxbet.com

[mightytiges]

Gotta say if it was me (representing the RFC) I'd be starting these discussions NOW .... Dick SMith have an option for 2010 so I'd do that side first and then  I'd be trying to lock them in for another 2-3. Ditto Luxbet.com

I agree WP. In the current climate the club needs to keep being proactive to secure sponsorship revenue.