AFL clubs face cash crisis as money talks break down
Damian Barrett and Michael Warner | March 21, 2009
FOOTY faced another crisis as talks aimed at generating millions of dollars for struggling Melbourne clubs broke down.
An AFL delegation rejected a State Government-proposed solution on financial returns on games played at the MCG.
Having already taken legal action against management of its Docklands stadium, the AFL now is in dispute with the MCG Trust.
The AFL was hoping for up to $10 million a year more from deals with the MCG.
But it was left angry at a package, largely put together by the Government, that proposed to add only an extra $4 million a year.
"There is a hell of a lot of work to do," said a footy official last night.
The Herald Sun has learned that during the meeting the Government offered the AFL a package that would:
PROVIDE an extra $90,000 a match for clubs playing home games at the MCG.
EXTEND from 2032 to 2042 the AFL commitment to play 40-plus home-and-away season matches plus finals, including the Grand Final, at the MCG.
SEE the Government take control of Yarra Park (used for parking on match days) and in turn transfer management of it to the MCG Trust.
In total, the Government's proposal would be worth about $4 million a year to the AFL and the Victorian clubs.
As well as this, it was proposed the AFL would receive a "financial reward" from the government for increasing attendances.
But, the Herald Sun has discovered the AFL was seeking a package that would benefit it and its clubs by $10 million a year.
At the meeting were AFL bosses Andrew Demetriou and Mike Fitzpatrick, David Smorgon (Western Bulldogs president), Eddie McGuire (Collingwood), Frank Costa (Geelong), Greg Swann, (Carlton CEO), Steven Wright (Richmond CEO), David Meiklejohn, John Wylie and Stephen Gough (all of the MCG), as well as Sports Minister James Merlino and a band of advisers.
Mr Merlino would not comment on the specifics of the deal being offered, but it is known it relates to every club that plays a home game at the MCG.
The only Melbourne-based club that does not is St Kilda.
"We are committed to doing what we can to hep secure the future of Victorian football clubs," Mr Merlino said.
"It is no secret the Brumby Government wants to see a more financially secure future for the Victorian clubs. I have said previously we will do all we can to help broker a deal on this issue.
"I have met with the clubs, the AFL the MCG Trust, and I am not in a position to confirm any details of the proposal, as discussions are continuing."
Mr Demetriou could not be contacted.
Mr Smorgon, who was appointed head of the clubs' delegation, said: "I am not going to comment on any negotiations between the AFL, its clubs, the State Government and the (MCG) Trust."
Under the current AFL-MCG contract, the AFL commits to producing 1.7 million spectators for MCG matches each year.
It commits to 2.1 million spectators under a "best endeavours" clause in the contract, and last year recorded 2.8 million spectators.
In 46 home-and-away matches, the average crowd was nearly 50,000.
The Herald Sun revealed in November that Victoria's 10 AFL clubs were set for a showdown with the Government after tiring of the perceived unjust financial returns on the millions of dollars they generated for the state.
The clubs' anger is directed to many areas, including the Government-backed construction of a rectangular stadium for soccer's Melbourne Victory and rugby league's Melbourne Storm, as well as Cricket Australia's lucrative deal with the MCG.
The AFL has taken legal action against management of the other Melbourne stadium it uses, Docklands.
http://www.news.com.au/heraldsun/sport/afl/story/0,26576,25217976-19742,00.html
