It was recently announced that Andrew Demetriou had recieved a pay rise from the AFL Remuneration Committee as a reward for keeping the AFL on the straight and narrow these last few years.
In 2010, he received $2.2 million for his work. So what exactly has he been doing thats so great?
Let’s look back over the last five years.
First, the bad news.
NRL proponents are fond of saying that the AFL’s TVs viewership is down, and from the AFL’s own annual reports, they are right. While the 2010 Annual report has not been released yet, the figures up until the 2009 report aren’t ones to be making us all warm and fuzzy.
TV viewership in 2006 rated an average 5.1 million cumulative viewers weekly, with 4.15 million watching the Grand Final.
Over time, that number has steadily decreased to a low of 4.5 million per week in 2009 (an 11% drop). Grand Final viewing has been on the rise again to 3.8 million in 2009, from a 2007 low of 2.57 million.
In any case, it represents a drop of 350,000 viewers (down 8%).
Those things will reduce the chances of the AFL getting its potential billion dollar deal for TV rights.
Now the good news.
Attendances are up from the 2005 benchmark of 6,763,852 to this year’s 7,146,604. An increase of around 6%.
Big increases have been in the membership department – in 2005 there were 506,509, the 2010 figures are up 21% to 614,251.
Still, the largest increase lies in the particpation area, where the 539,526 benchmark has been truly obliterated with a 39% increase in participants since 2005.
Now, the very good news.
Revenue is up in a big way, helped along by the massive deal signed in 2006 for $690 million in cash, and $90 million in contra, as well as $60 million in internet and new media rights, and a further $8 million in radio rights.
Finally the sale of Waverly Park also contributed in a big way to the league’s bottom-line. In 2005, the league generated 203.7 million in revenue. Last season, that figure reached 335.8 million.
That’s a massive 57.2% increase in revenue.
Distributions to clubs are up, from a total of $92 million in 2005, up to a whopping $142 million in 2010. (Incidentally, in 1987 the league returned a whole $12 million to the VFL clubs.)
The increase to the clubs is 54%, which corresponds reasonably well to the revenue increase for the same period. Clubs must be pleased.
League debts were obliterated in 2008, with the repayment of all outstanding moneys completed and $50 million in cash on deposit.
League profits after distributions and grants have varied wildly over the years as the league funds various projects, but the AFL has gone from generating 1.7 million in operating profits in 2005, to a high of 26 million in 2007.
In 2010, after the establishment of the GWS and Gold Coast team setups reduced profit in 2009, profits returned to a very decent $23 million.
Then there’s the rise in assets.
With the leagues sale of Waverly reducing its assets to effectively zero, league assets in 2009 were reported to be in excess of $100 million, with the prospect of assets coming under its control in the next 15 years.
Stadium and infrastructure investment is at an all-time high, with the AFL supplying funding to a large number of football related developments around the country.
The AFL has committed to funding developments in:
Blacktown, NSW (2.5 million in 2006)
Carrara, QLD (10 million in 2010-11)
Sydney Showgrounds, NSW (10 million in 2011)
Aami Stadium, SA (300k in 2009)
TIO Stadium, NT (2 million in 2009)
Thuringowa, QLD (2007)
Maroochy Sports Complex, QLD (2007)
North Dalton Park, NSW (2007)
Nth Narabeen Oval, NSW (2007)
Noranda Sports Complex, WA (2007)
The 2007 Annual report shows more than 230 Community football projects worth more than $104 million were approved.
In addition, the AFL now plays premiership matches in every state and territory. In 2005, this was not the case.
At the NRL, David Gallop has followed an almost identical path over a similar period of time.
Demetriou started off as the CEO of the Players Association in 1998, before taking the reins in 2003. Gallop started in the Legal and Business side of things in 1997, before taking over the NRL in 2002.
I lack the data from the NRL to make an objective comparison between the two, and beside the article is long enough as it is.
However, the main differences appear to be that one inherited a league recovering from the wounds of Super League, the other took over a thriving organisation that went from strength to strength.
It was pointless to draw comparisons with any other CEO in the same period.
The FFA’s Ben Buckley is relatively new, and the ARU’s John O’Neill is relatively new in his second stint at the job.
With all the evidence in hand, there is one real blot on the landscape of Demetriou’s career as a CEO at the AFL and that’s the TV viewership side of things. Everything else is well and truly on the up.
However, it’s the TV viewership issue that’s going to be causing concerns in AFL circles. By every other benchmark, the game has never been in better shape.
He has raised revenues, negotiated a massive TV deal in the process, as well as other media deals.
On his watch, particpation, attendance and memberships are at an all-time high. The league is expanding into new and uncharted territories.
It must further be pointed out that Demetriou does what he can because of the work of the men who went before him: Wayne Jackson, the first non victorian CEO who saw the second teams put into WA and SA; Ross Oakley, who took the league out of WA and QLD; Allen Aylett, who took the league out of Victoria and into Sydney.
It was Isaac Newton who wrote: “If I have seen further than other men, it is because I have stood on the shoulders of giants.”
Notes: All this information is downloadable from the AFL website.
Mark hermanson
Guest
Demetriou is an over paid ,,,,,,,. How can he allow an hour and a half delay on round 1thursday night footy into Adelaide. Sorry andrew not everyone in Adelaide follow port or Adelaide. We are sick to death of delayed games especially Friday night footy which I would love to watch with my 8year old but when the first bounce is at twenty to nine i end up going to bed as well. For the good of the game pressure needs to be put on 7 and 10 to show games live and if they can't they should have to provide the game to another carrier. Isn't that what anti syphoning is all about .
OzFootballSherrin
Roar Pro
sheek - alas, after we saw the FFA pay overs to attract John O'Neill from the ARU and then Ben Buckley from the AFL, that becomes an inflationary pressure on key exec salaries. Demetriou at very least prooved his worth during the negotiations with FFA, Lowy and Govt in the WC bid process......apparently.......if we believe the FFA sources that Michael Lynch quoted!!! re the morality of it, well, look at Ashley Cole, shoots a guy after bringing gun to training........WTF???? and he get's a penalty of being fined 2 weeks wages. and that amounts to $400,000. Let's not be too fussed about someone getting $2.2 mill a year, when there's ball kickers earning $10 million plus a year. And while AFL players ARE NOT on a global pay scale, being industry specific as they are - the executives in charge of the game ARE on a global pay scale. but - agreed, the PM is under paid, but, they do get pretty cool benefits.
Koops
Roar Rookie
You make a fair point, but, how many people make a living out of trading shares, futures, warrants etc and make 2.2 million ............all from the comfort of their chair in front of their computer screen, quite a few i would suggest, are they not worthy of the money they make ?. It's all very subjective i think, banks and telcos whose exectutives are payed squillions to shed jobs etc are in my book payed outlandish salarys immoraly. Demetriou is probably overpayed a bit, but do i find it objectionable on moral grounds, ... not at all, ... he is growing jobs, and the business, and the money is returned to the clubs (shareholders if you like), and grass roots football.
sheek
Guest
As I mentioned in a previous post on Demetriou's salary, his competence & whether he works hard is not at issue - my query is a MORAL one. No-one, no matter how good they are, is worth $2.2 million. We already live in a world of severe inequity, so how can people be sucked into thinking someone else is worth that much money? Why couldn't Demetriou do the same job on $500-600,000 per annum? $2.2 million is about 35 times the average salary of an adult Australian worker. Is Demetriou really 35 times better than the average Australian?? The Prime Minister Julia Gillard is reportedly on an annual salary of &330,000 pa. I would consider her role more important & stressful than Demetriou's, irresopective of what we might personally think of Gillard & her policies. Admittedly, her salary has a lot of hidden perks behind it. It seems to me the whole point of these outlandish remuneration packages is to make these people feel important & superior, & not much else. No-one is worth $2.2 million, except perhaps surgeons who perform life-saving operations, but these guys aren't on this kind of money & nor would the majority of them demand such a salary. Their satisfaction is in the skill & achievement of heir work. When people say thay Demetriou is "worth" $2.2 million, or Ralph Norris is somehow worth $16.3 million, obviously you are sadistically (& perhaps greedy) minded people who enjoy living on a planet of severe inequality.
TW
Guest
Andrew Demitriou and Mike Fitzpatrick will probably be smiling a bit now. The Gold Coast Club has reached 11,170 paid up financial members and that will grow further as their first regular season gets closer next month. The turf is being laid at the 25000 seat Gold Coast Stadium which is about 3 months to completion. http://www.gc17.com.au/ How about those Jolly Orange Giants - They have had another membership surge since I last looked last week - 8583 as of today. That is up over 200 in that period GWS are playing Nth Melb in Albury this weekend - That area will become one of their strongholds over time - They have several players from the region in their current squad.
Moonface
Roar Guru
Demetriou is good at what he does, but given the amount of money he has to work with and a totally biased media in his favour, even Julia Gillard could run the AFL. He has also put a lot of people offside and AFL does not have the good reputation or credibility it had before he started.
ac
Guest
The NRL will do very well in 2011 and the AFL know it. Andrew is a very clever CEO thats for sure.
The_Wookie
Roar Guru
we've never said they arent. in fact we've always claimed that melbourne supports all codes if they are half decently run teams, doesnt matter what sport it is.
Ian
Guest
Hardly a crusade. Just merely pointing out the obvious that when you're the only game in town with competitors snuffed out you will rate well. Check out the following; http://www.dailytelegraph.com.au/melbourne-rebels-score-television-ratings-record/story-fn6bmf8d-1226009691395 People in Victoria / Melbourne are looking for an alternative to the local code. Also interesting to note that the Rebels game attracted more attendance than any of the four AFL games played last weekend.
Redb
Roar Guru
Delayed Friday Night games on Ch 7 is one of the reasons ratings have declined. The NRL goes live to key markets and its no surprise its ratings have improved. That's a no brainer.
Koops
Roar Rookie
Seriously Ian, you have issues, for years in every newspaper, internet board, you have gone on and on about this, RL was trialled in Perth on Sunday arvo and the ratings were pathetic, so it was canned, if it manages to get on TV in Melbourne on a HD channel at a reasonabale time , good luck, but your personal crusade has nothing to do with this thread. Do you actually have anything else to say, without repeating yourself.
Ian
Guest
Wookie At least if one lives in NSW or QLD then a foxtel subscription enables one to watch the AFL live. In Victoria, the rugby league (important Friday night and finals series) is currently hoarded into the wee small hours by Channel Nine and not on sold to subscription TV.
JamesP
Guest
Koops, as I mention in my post above - even a 7.30pm start (i.e. 1 hour earlier) - will result in better ratings. Yes I recall the Pies v Freo game. Any teams showing WA teams on Friday night (if any) should be live into Perth - Subiaco is sold out anyway. Lets also not forget the 200k spike in Melbourne when 663,000 saw Geelong v Pies live as well...
JamesP
Guest
Isn't Frank a little to old :) Then again, that didn't stop Lowy I suppose
JamesP
Guest
Yes I am. I know Gil has been the faithfull number 2 for a while now, but BB has experience in perhaps the hardest job of all.
The_Wookie
Roar Guru
My money is on Gillon Mclachlan, but wouldnt discount a number of club CEOs from taking over. Trevor Nesbitt would be ideal - and would help deal with the unruly nonvics - but Frank Costa would also be awesome.
TW
Guest
Your comments about Buckley is that a rant as well. Are you inferring he will replace A.D. if and when he goes.
Koops
Roar Rookie
Here in WA, by the time a game starts in WA , it is over in the east, many people who have dream teams will be on the net checking things out, and many will not bother with the TV game, a live game last season between the Dockers and Collingwood rated 315,000 in Perth, compared to around 120,000, on a normal friday night, with 2 non WA teams. If they want better TV ratings, the games must be live or close to it. BTW nice balanced article.
JamesP
Guest
Have they left the game in better position then they found it? Um....did you not read Wookies article above? Or have you come straight down here to have a rant? I have said this before, but I think Ben Buckley will come straight back in. Despite what the soccer fraternity think (Exhibit A Jesse Fink) he is not a bad CEO, and has the NSW/QLD contacts to ensure that the new teams thrive and prosper.
TW
Guest
It was reported in the media last year by Caroline Wilson that Andrew Demitriou and AFL Commission boss Mike Fitzpatrick had a unofficial pact to to stay in their positions until 2012 the year that GWS enter the comp. Now we know that CW is not held in high regard in some AFL circles but on this occasion the lady might be right with her speculation. In the same piece CW said that A.D. was fielding some big job offers from the commercial world and M.F. business interests were mainly in Sydney. If they do go what will be their legacy - Have they left the game in a better position than they found it.