The Western Bulldogs and North Melbourne will each be handed $7 million more by the AFL over the next three years than some of their richer rivals.
Melbourne ($5.8 million), St Kilda ($5.7 million) and Richmond ($4.7 million) are also among the prime beneficiaries of a new club future fund, announced by the league on Monday.
The new pot of AFL cash replaces the annual special distribution (ASD) fund, and will be worth almost triple the amount, $144 million between 2012-16, compared to $52 million over the past five years.
But it comes with a catch.
Clubs benefiting from the new equalisation system have to specify where the extra money will go and risk having that funding withdrawn if they fail to meet key performance indicators.
AFL chief executive Andrew Demetriou said that condition was crucial to winning the support of all clubs for a plan he hopes will narrow the gulf between the richest and poorest.
“They’ve told us they want to make sure there are reviews and checks and balances along the way, so that clubs don’t squander this unbelievable opportunity,” Demetriou said.
“We, out of this agreement, want to leave a legacy and have 18 strong viable football clubs.”
The plan was warmly welcomed by Bulldogs president David Smorgon, who said it would enable his club to employ extra assistant coaches and counter inequalities in fixturing and stadium deals.
Smorgon said the Bulldogs have 23 football department staff, while some clubs have up to 40. He said narrowing the gap would boost their chances of on-field success.
“That’s what it’s all about, the ability to win a premiership and as a result of this package, not only the Bulldogs, but a lot of other clubs will have a better opportunity,” Smorgon said.
In total, the AFL will hand its 18 clubs $1.11 billion over the next five years, up from $786 million over the 2007-11 period.
About 60 per cent of that will be used to cover total player payments, based on the $1.144 billion, five-year financial package the AFL has offered players – despite the fact players have already rejected the offer.
Demetriou was adamant there was no more money available to the players.
The $1.11 billion figure also includes payments such as prize money and travel costs and $65 million set aside to help fund the continued development of expansion clubs Greater Western Sydney and Gold Coast.
Of the $144 million club future fund, $58.5 million will be equally distributed.
Another $48 million will be distributed on a needs basis over the next three years, with clubs such as the Bulldogs and Kangaroos to receive $7 million, while powerhouses such as Hawthorn and Geelong have not been allocated any.
The remaining $37 million will also be unequally distributed in the final two years of the agreement – 2015-16 – with the recipients to be determined in time.
The additional funding could be used to boost football department staffing, or off-field administration, upgrade or build facilities, reduce debt, or offset poor stadium deals.
Interestingly, clubs on the whole will devote more of their extra funding over the next three years to increasing non-football capabilities ($21 million), such as growing membership and sponsorship, than football capabilities ($8 million).
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