(L-R) Josh Fraser of Collingwood, Joel Selwood of Geelong, Travis Cloke of Collingwood, Harry Taylor of Carlton, Joel Corey of Geelong, Shannon Cox of Collingwood, Gary Ablett of Geeong & Martin Clarke of Collingwood in action during the AFL Round 03 match between the Geelong Cats and the Collingwood Magpies at the MCG. Slattery Images
The Melbourne Cricket Ground, the paddock that grew. It’s iconic of both Melbourne and Australia, from hosting the US Army in WWII, to setting baseball and rugby attendance records at various times.
The Ground famously hosted the first Olympics in the Southern Hemisphere.
It’s main bread and butter though is Australian Football and cricket.
But, who owns it? How does it operate?
Some recent comments, from people such as Ben Buckley, Cockerill and Lynch, have indicated that there’s still some degree of ignorance out there.
So …
The MCG is built on crown land. It belongs to the Victorian people (government).
Under the terms of the Melbourne Cricket Ground Act – 1933 – the government appointed MCG Trust is responsible for the management of the venue.
The MCG Trust has contracted the MCC to manage the MCG and the existing contract runs to 2042.
Under the terms, the MCC has the exclusive rights to manage the MCG.
The MCC is a private club, incorporated under the Melbourne Cricket Club Act of 1974, and boasts the biggest membership (by far) of any sporting club in Australia.
The club was founded in 1838 when the population of the Port Phillip District was around 2000.
Why is all this important?
Simply, that any government funds towards the stadium go to the MCC. Not the AFL. The AFL is a tenant. The AFL and the MCC have often had drawn out disputes and negotiations around their contract.
Recently, the AFL managed to negotiate an extra return for it’s matches (given that the AFL has well exceeded it’s attendance target at the ground). The MCC trade off was to seek to extend the MCC-AFL contract by another 5 years to 2037.
Why such long terms? The simple reason is economics.
The current ground configuration is made up of the $142 million Great Southern Stand, and the $434 million Northern/Olympic/Ponsford Stands. So where did the money come from?
Well, only $77 million from any level of Government (State). And that’s a story in itself. The rest is MCC funds and debt.
They carry well over $300 million in debt. And the only reason they can ‘afford’ to carry that debt is the more than 2.5 million attendees each year for AFL at the ‘G.
It is effectively the house that the AFL paid for, but the MCC built and the Victorian Government owns.
And that leads to the story about the VFL, some land at Waverley and successive state governments.
But that’s for another day.
Recommend this story.
December 4th 2009 @ 9:02am
Art Sapphire said | December 4th 2009 @ 9:02am | Report comment
Michael, this looks like another case of sanctimonious AFL exceptionalism.
The MCG is owned by the Victorian Government via the MCG Trust.
Swan Street Stadium is owned by the Victorian Government via the Melbourne & Olympics Park Trust
The Victorian People own both grounds. Hooray!!
December 4th 2009 @ 9:35am
Michael C said | December 4th 2009 @ 9:35am | Report comment
Yes, however, the Vic Govt has paid for 100% of Swans St, and less than 14% of the MCG.
The ‘State’ owns both grounds…..however, the payment plans are rather different….one is user pays.
December 4th 2009 @ 9:50am
Art Sapphire said | December 4th 2009 @ 9:50am | Report comment
Yes, confirmation from Michael that the “people” own both grounds.
“Hasta la victoria siempre” – for Essendon FC and Melbourne Victory FC (ok, Victory is capitalist enemy privately owned club but they are part of the greater football revolution, so they can be forgiven)
Viva la revolucion
December 4th 2009 @ 9:16am
LT80 said | December 4th 2009 @ 9:16am | Report comment
Michael, when did the Victorian gov provide the 77m funding? Was it for construction of the Great Sth Stand or Northern/Olympic/Ponsford Stand? Or was it some for both?
December 4th 2009 @ 9:39am
Michael C said | December 4th 2009 @ 9:39am | Report comment
LT80
no govt funding for the Great Southern Stand (the state wsa broke end of 80s early 90s…..which was why Docklands was 100% private equity).
The $77 mill state funding was for the MCG redevelopment for the 2006 C’wealth games – the Ponsford/Olympic/Northern job.
This is important why considering Ben Buckley/FFA suggesting other sports benefitted from public spending on stadiums including Melbourne for the 2000 Sydney Olympics……it didn’t happen.
December 4th 2009 @ 8:44pm
Michael C said | December 4th 2009 @ 8:44pm | Report comment
btw – even going back to the 1956 Olympics, the new stand at the time cost 700,000 quid and the Govt only put in 100,000.
Govt’s have got away with severely underfunding the venue.
Why?? because it IS actually able to pay for itself,…..quite handsomely.
December 4th 2009 @ 9:38am
Midfielder said | December 4th 2009 @ 9:38am | Report comment
MC
December 4th 2009 @ 10:00am
Michael C said | December 4th 2009 @ 10:00am | Report comment
FYI – the MCG new deal with the MCC:
below is an article from Greg Denham in the Australian date sept 4, 2009.
AFTER more than six months of haggling, Victorian clubs are on the verge of a massive financial windfall following yesterday’s new agreement between the Melbourne Cricket Club, the MCG Trust and the AFL.
The next step, understood to be a formality, is for an act of State Parliament to be passed before AFL clubs who play home games at the MCG will benefit by at least $100,000 per game from the start of this season.
And despite the continued stand-off between the AFL and its clubs over their deals with Melbourne’s second venue, Etihad Stadium, clubs based at the Docklands venue were yesterday told by the league that they would not be disadvantaged.
Progress in the impasse was hastened by the involvement of the State Government after it was revealed in The Australian in May that the AFL and its clubs took their grievances directly to the premier John Brumby. The key changes in the MCC/MCG Trust contract with the AFL are:
* Clubs playing home games at the MCG receiving at least an additional $4.6million a year — or $100,000 a game — for the next 10 years from home and away matches revenue.
* $1.50 per attendee for each attendee between 2.1 million and 2.5 million per annum, $2 per attendee between 2.5 million and 3.0 million per annum and $3 per attendee over 3.0 million per annum.
* The Victorian Government delivering a capped contribution of $36m towards a major refurbishment of the Great Southern Stand specifically for the redevelopment of the AFL members’ area.
The management of Yarra Park transferring to the MCG Trust, with a key water project to secure the future of the trees at the park and guaranteeing car parking for patrons.
Extension of agreement for five years, out to 2037, for the grand final to be played at the MCG and the AFL to schedule at the MCG at least 10 of the 12 best attended home and away matches in Melbourne each year.
The biggest benefactor will be financially struggling Melbourne, which is set to reap an additional $1m in revenue this year for its 10 home games.
AFL chairman Mike Fitzpatrick yesterday thanked Mr Brumby and his sports minister James Merlino for their support in brokering the new agreement.
The AFL threatened in May to take the grand final to Sydney after the current agreement expired in 2032 if a satisfactory deal could not be struck.
This is the most recent example that illustrates that the AFL is merely a tenant and has to fight tooth and nail to extract anything, the MCC likewise has to fight tooth and nail to service it’s debts,
and the state govt…….is quite happy to facilitate both parties fighting each other if it means they (the govt) can get away with putting as little money as possible into the venue.
the previous major issue was the AFL stand off with the MCC over hosting an MCG final each week of the finals, and with the national competition, finally resolved this issue via being able to ‘bank’ finals and thus allowing interstate preliminary finals for example. For a couple of years though, that issue dragged out and the AFL scheduled bigger games at Docklands and annoyed the crap out of many supporters.
December 4th 2009 @ 10:55am
Brian said | December 4th 2009 @ 10:55am | Report comment
So the MCC is reliant on the AFL to pay its debts but isn’t the AFL reliant on the same Victorians to come to its games. Hasnt the govt built ovals all over the state to aid the AFL?
The AFL has only ever paid for use of grounds as per the contracts it signs. It has no more right to the MCG than a tenant who rents from his landlord for 100 years. The Vic Govt & MCC have taken the ownership risk with the MCG, thus debt and ownership is in their name. Like any tenant the AFL has never taken the financial risk of ownership and so has no right on the reward.
If the AFL wants to buy the ground from us Victorian taxpayers make us an offer, otherwise stop pretending you have some moral or spiritual claims to the stadim. As for Vic Govts thwating old VFL park well newsflash the Govt job is to look after its citizens and its taxpayers not the AFL.
December 4th 2009 @ 11:10am
Michael C said | December 4th 2009 @ 11:10am | Report comment
where has the govt built ovals to aid the AFL all over Victoria??
there are recreation reserves, …. cricket ovals were in place first in Melbourne ‘village’….
Correct, the AFL has no more right to the MCG than it’s contracts stipulate. And gains no more benefit from the venue than can be derived from the terms of the contracts.
The VFL DID take the ownership risk with VFL park and was only obstructed by state govts after EARLIER being given every encouragement.
Okay – now might be a good time to go into it.
December 4th 2009 @ 4:21pm
oikee said | December 4th 2009 @ 4:21pm | Report comment
M.C the Qld government has built a stadium to aid rugby league, and rugby, and soccer. Its not something to be un-proud of, you love the game, the government is just making money off you loving the game. Same applies to the new stadium at the coast for AFL. all the retired ex-pats love the game, so the government built them a stadium so they could squeeze every last cent out of retired vics,. Queenslanders wont be paying for it. ?
No queenslanders follow the game. 
ouch. Same applies to the new bubble dome, you wont have to pay, it will be all the expats from Sth Africa, Taiwan, Mangolia, China, NZ, Italy, Greece, Etc, etc, etc.
December 4th 2009 @ 11:19am
Redb said | December 4th 2009 @ 11:19am | Report comment
You’ve missed the point. No-one has said the AFL owns the MCG, the article clearly shows who owns the MCG.
But make no mistake the MCG is the stadium it is due to the AFL who is easily the biggest patron. Any redevelopment factors in AFL games as a major revenue generator for the stadium, it’s daylight to the next user.
Redb
December 4th 2009 @ 1:52pm
Beast-A-Tron said | December 4th 2009 @ 1:52pm | Report comment
You miss the point. Its not about the AFL being entitled, it is about the MCC and how it manages its finances.
“ownership risk” is a key phrase there, and perhaps you should look up the definition of risk. Who do you think the MCC, the “landlord” is going to favour? The tenant who has lived there for 100+ years (and will gladly live there another 100 years) and put his three kids through school and university, or some new hotshot who has blown into town and is probably going to leave once party season is over?
Evidently compromise is needed because Soccer cannot generate the same revenue long-term as Australian Football does, and hence the MCC will not want to upset the applecart. It’s all about risk management baby.
December 4th 2009 @ 11:18am
Michael C said | December 4th 2009 @ 11:18am | Report comment
VFL Park – Part 1
Even as early as just after WWII, the long history of dispute b/w the VFL and teh MCG trustees (along with the changing demographic spread of Melb’s population) – saw the VFL in 1959 – plan its own stadium.
The VFL wanted to enjoy the ‘fruits of its own labours’.
In 1962 the VFL bought 200 acres of land out at Waverley, and 2 years hence at obtained vacant possession of all houses and land at the site which henceforth was referred to as ‘VFL Park’.
During the 1960s, the VFL took a portion of gate takings from all VFL matches, allocating it directly to the project.
In August 1967, a league publication “Football Life” predicted an eventual capacity of 166,000, with parking for 25,000 cars.
December 4th 2009 @ 11:28am
Michael C said | December 4th 2009 @ 11:28am | Report comment
VFL Park – part 2
The VFL wanted a stadium of it’s own to NOT have to devote a large and prime seating area to the MCC members. The VFL developed a membership package for football fans wanting to RESERVE their rights and privileges at the new stadium.
There was no difficulty in the VFL gaining ‘subscribers’.
It was pretty obvious to all that the VFL saw the venue as their future ‘centre of operations’, or ‘future of football’.
By 1981, the time was near – and the Board of Directors voted to move the Grand Final from the MCG to VFL Park from 1984.
December 4th 2009 @ 11:44am
Michael C said | December 4th 2009 @ 11:44am | Report comment
VFL Park – part 3
VFL park was opened in 1970. By 1981, it had reached a capacity of 75,000 – and the new plan to prepare for hosting the GF was to increase to 104,000 seated.
Not quite 166,000 – - – but, no need to worry about MCC members, and the VFL park members ‘cap’ was graded relative to the size increments of the venue.
All that was needed was the State Govt approval for the extension works to go ahead. Simple huh??
The VFL’s original decision to build its stadium at Waverley had been guided by assurances from the State Govt of the day that the area would be provided with transport facilities to match it’s fast growing residential status – such that is was rapidly becoming the demographic centre of Melbourne.
The Cain Labour Govt was not keen to facilitate the removal of the GF from the traditional ‘rented’ home of the event. And, to a degree – the MCG is very central and is well serviced by the nearby Melb CBD being the hub of the public transport network – so, an element of fairness needs to be provided here!!!
This is where it get’s juicy (AndyRoo!):
Early in 1982, the Cain Govt refused to approve the extensions to the stadium.
Through 1983 the VFL and Govt, MCG Trustees and MCC were involved in ‘heated’ negotiations.
The VFL annual report at the end of 1983 expressed concern regarding some proposed legislation that would give the State Govt the ulitmate say in where the Grand Final was played. The threatened legislation would have declared the Grand Final a ‘major sporting event’ and given the Govt the right to intervene, through court injunction, in any move to have it played at what the Govt regarded as an inappropriate venue.
Now – - do you see where this is relevant when people ponder the FIFA WC if it were to come to Australia and if the NRL,AFL, or whomever were to dig their heels in……at what point would Govts (State or Federal), simply legislate a ‘solution’.
December 4th 2009 @ 11:52am
AndyRoo said | December 4th 2009 @ 11:52am | Report comment
This is why I don’t think we will see world cup legislation…. it gets the blood boiling!!
December 4th 2009 @ 1:53pm
AndyRoo said | December 4th 2009 @ 1:53pm | Report comment
What about Waverly agreeing to host World Series matches….I bet that didn’t go down to well
December 4th 2009 @ 1:57pm
Redb said | December 4th 2009 @ 1:57pm | Report comment
World Series Cricket was in Summer, problem?
Waverley was a hole out in the middle of the burbs with no public transport and a hellish (to get out of) carpark.
December 4th 2009 @ 2:01pm
Michael C said | December 4th 2009 @ 2:01pm | Report comment
It was okay for North Melbourne games………uh….yeah,…..point taken.
December 4th 2009 @ 2:02pm
AndyRoo said | December 4th 2009 @ 2:02pm | Report comment
I only heard about it at lunch time. I was guessing this caused a bit of angst between the MCC and the AFL.
December 4th 2009 @ 2:15pm
Michael C said | December 4th 2009 @ 2:15pm | Report comment
Main thing about World Series Cricket is that it had washed over by 1980, and so, by the early 80s cricket was back in establishment hands and was back and thriving at the MCG.
Did it provide a scare??
Probably.
Did it inspire a real hardball approach?
Possibly.
‘have to do some research on that front.
December 4th 2009 @ 2:20pm
Redb said | December 4th 2009 @ 2:20pm | Report comment
you mean the MCC losing cricket games. yeah probably did cause some angst at the time.
Before the 1992 one day Cricket Cup and the redevelopment of the Southern Stand the MCG was getting pretty old. The old Southern Stand (Bay 13 still fun) was pretty buggered.
When we talk about the MCG needing the AFL , there is no doubt a lot of the improvements were assisted by the week to week year on year patronage of footy games. If just a cricket ground and occasional special event I dont know where it would sit as a modern stadium.
One thing for sure, the MCC must have thrown a party when ANZ Stadium was downsized from 115,000 to 83,000.
December 4th 2009 @ 2:34pm
Michael C said | December 4th 2009 @ 2:34pm | Report comment
and don’t forget that out at Waverley we had the light towers, night footy and day/night cricket, we had drop in cricket pitches and by about 1982 we had sepia tone ‘giant screen’ scoreboard.
The MCG was getting left in the dark ages.
basically – the VFL was investing in it’s facilities for the comfort of patrons and a marketable ‘product’………..the state govt and the MCC weren’t.
December 4th 2009 @ 2:39pm
Redb said | December 4th 2009 @ 2:39pm | Report comment
The contrast between Waverley with the way back Grand stands to the MCG and particularly Docklands is stark. There was no atmosphere at Waverley.
December 4th 2009 @ 3:33pm
jimbo said | December 4th 2009 @ 3:33pm | Report comment
MC,
you’re selling the AFL supporters a bit short there tomodachi.
The AFL didn’t just pay for the MCG with all their fans using it.
AFL also paid for roads, hospitals, schools and trains and trams in Melbourne because all the AFL supporters use and patronise them to get to AFL games.
And lets face it, AFL supporters go to hospitals and they all went to school, didn’t they?
They have made Melbourne what it is today.
Lets not stop there – AFL is the game that made Australia.
Who needs politics or religion – lets all just play AFL.
December 4th 2009 @ 3:42pm
Michael C said | December 4th 2009 @ 3:42pm | Report comment
are you serious??
Me thinx you forgot your emoticon.
December 4th 2009 @ 4:01pm
oikee said | December 4th 2009 @ 4:01pm | Report comment
M.C he is serious, and i put it down to the game being a melbourne game,. Same applies around the world to soccer, but soccer is well international. I dont know where he is going, but their is something to be learnt from this statement i think. Collingwood jumpers for every new-born , anyone? Well he mentioned hospitals.
Emotion.
December 5th 2009 @ 1:41pm
jimbo said | December 5th 2009 @ 1:41pm | Report comment
There you go MC – you should put some smileys in your article too, or were you being serious?
Oikee
love the idea of an AFL jersey for all newborn babies as part of the baby bonus.
December 6th 2009 @ 2:51pm
Michael C said | December 6th 2009 @ 2:51pm | Report comment
Jimbo -
just want you to comprehend, in a nation chock full of venues paid for by varioius levels of governmetn…..the Melbourne stadium environment is pretty unique – - 1 100% public funded stadium of 31K, 1 100% private funded stadium of 55K+, and one 87% privately funded stadium of 100K capacity.
Now – - in a partially related part of this overall topic which relates back to Olympic funding and Crawford reports etc,
compare to Wembley stadium:
The £757 million Wembley Stadium project received £161 million of public funding from the following sources:
•£120 million of Lottery Funding from Sport England
•£21 million from the London Development Agency
•£20 million from the DCMS for non-stadium infrastructure works
What Australia lacks is a lottery’s funded sports spending program!!!!
btw – Wembley for example, attracts about 1.5 million soccer/rugby fans annually,……it seems positively under used compared to the MCG!!!
December 6th 2009 @ 3:06pm
bever fever said | December 6th 2009 @ 3:06pm | Report comment
MC Your first mistake is to assume that Jimbo can comprehend.
December 4th 2009 @ 4:01pm
Norm said | December 4th 2009 @ 4:01pm | Report comment
lol jimbo.