How AFL should share the $1.25 billion pie

Andrew Demetriou addresses the media during a press conference announcing the AFL television rights at Etihad Stadium in Melbourne. Slattery Images

Andrew Demetriou was the cat rolling in cream as he announced the biggest television rights deal ever in AFL history last month. Demetriou said everyone would benefit in the $1.253 billion deal, and players and clubs have already staked their claims for a share in the riches.

The new rights deal ticks every box on the AFL’s wish list – cash, more live broadcasts and increased online presence. Now the AFL starts negotiating sharing the funds. The clubs, players, supporters and everyone in between have asked for ‘more, please’.

The players

The ink was barely dry on the contracts when Adam Goodes made the players’ claim for a share of the bounty.

They want 27 per cent of AFL revenue to be guaranteed to players as part of the new Collective Bargaining Agreement when negotiations start next week. Some have seen the already well-paid players’ move as unseemly, but crunching the numbers shows they have a case.

In 2010, the AFL’s operating profit rose by eight per cent. The total player payment cap per club, however, rose by only 3.33 per cent at the same time. This rise was agreed upon in the last CBA, but shows that the players putting their bodies on the line each week are not being rewarded.

The clubs

AFL chiefs and club officials met last week but details of any deals are yet to be agreed upon. Issues on the table include equalisation measures, a new streamlined salary cap, and an increase in the annual special distributions.

The financial disparity between successful and unsuccessful clubs is the elephant in the room.

Collingwood spent $19.5 million on its football department last year, $5.5 million more than the club with the least spending, North Melbourne.

Despite the salary cap and the draft, money matters in the football world. Collingwood, the league’s richest club, is sitting pretty without a loss this season while Port Adelaide is struggling to stay competitive on and off the field, with just one win and a large amount of debt.

The financial prosperity of each and every club will become a greater concern to AFL bosses after signing this deal. Channel Seven, Fox and Telstra signed up for nine games a week between 18 clubs. No-one benefits if any club is allowed to drown in debt.

The supporters

The results for supporters are a mixed bag. Demetriou lauded fans as “the biggest winners” in the deal and emphasised that “supporters will always be at the heart of our decision making.”

The introduction of every game live on Foxtel is a win for the 35 per cent of households that use the service but may disadvantage the average punter actually attending the game. The cheapest sports package on Foxtel adds up to $720 annually plus a $100 installation fee.

In 2011, the average price of a general admission membership for a family is $528. Reserved seats and extra children increase costs significantly.

Demetriou told ABC Radio that “there is nothing that can replace going to the football” and that the deal will deliver more crowds. Rising costs of petrol and the later 7:50pm bounce on a Friday night may force families into their lounge rooms instead of the grandstands.

The verdict

The true magnitude of what this deal can achieve is yet to be seen. The AFL faces the challenge of juggling their responsibilities to clubs, players, supporters, grassroots programs and the expansion of the league.

All are jostling for a win, but if one group loses, the effects may flow on to everyone. The responsibilities that come with a billion dollars are yet to be seen in Australian sport and all eyes are on the AFL and its new power.

The league has won the first half, but there is a long way to go to make sure they take away the four points in the long-term.