Clubs in line for hand-outs
Greg Denham
The Australian
July 20, 2005
THE AFL commission has endorsed a change next year in special assistance to financially disadvantaged clubs, which could lead to an increase in base revenues for more Melbourne-based clubs.
The competitive balance fund - which this year funded the Western Bulldogs, Melbourne and the Kangaroos with a combined $4million - ends this year.
It will be replaced by an on-going annual special distribution, which will start with a $5.4m pool next year to be distributed to clubs eligible under a new formula.
This system will be reviewed after three years.
The funds will be given to eligible clubs monthly from next year, on top of the 2006 annual AFL dividend to clubs of about $4.33m each.
In changing the way special financial assistance is allocated, the AFL has tried not only to implement a fairer equalisation program, but will eliminate the associated stigma directed at the clubs that have been historically disadvantaged.
Criteria for eligibility is similar to the equalisation system, and clubs still will be subject to competent management requirements.
The Bulldogs, Demons and Kangaroos will be first to benefit but other clubs, including Richmond, could qualify. Under the special distribution, it is understood the Bulldogs will receive not less than their present $1.5m annual funding, while the Demons and the Kangaroos could received on-going benefits of up to $1m each.
The formula is based on general guidelines of historical handicaps, especially to Melbourne-based clubs, in a bid to stem the widening gap between the revenues generated by the rich and poorer clubs.
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