Andrew Demetriou and Eddie Maguire recently came out in the press to declare war on the Federal Government’s proposed mandatory pre-commitment legislation for poker machines.The main concerns for the AFL is the growing revenue that comes from club-owned poker machines.
Victorian AFL clubs run over 2500 poker machines, which currently generate about $50 million per annum in revenue, and this number is set to double in the current financial year.
No doubt why the AFL oppose the legislation.
“To suddenly, out of nowhere, without any consultation, to have what looks like being a footy tax imposed, is going to absolutely hit football clubs right between the eyes,” declared Collingwood President Eddie Maguire.
Tony Abbott, the Liberal party’s federal opposition leader, understandably agrees with Maguire and condemns the Gillard “footy tax disaster”.
Hawthorn AFL president and former Victorian Liberal premier Jeff Kennett argues that “the Gillard government is going to wipe out AFL clubs right throughout the state.”
AFL chief Andrew Demetriou did agree that the government needed to help raise awareness around problem gambling and actually tackle that issue, but not at the expense of AFL clubs. Andrew would like someone else to pay for the problem and not in the AFL’s backyard, if you don’t mind.
There are two galling aspects to the AFL’s stance on poker machines.
Firstly, the AFL is not particularly in need of any money, nor likely to go broke any time soon because of any government initiatives, especially ones aimed to help reduce problem gambling.
The AFL has annual revenues of over $300 million, and recently signed a $1.3 billion media rights deal to make sure that its bank balance will continue to fatten.
The claims by Demetriou and other AFL figures that the government’s initiatives will harm AFL are ludicrous and quite frankly insulting to its membership, which would certainly contain a number of problem gamblers.
The second exasperating aspect of the AFL’s ridiculous complaints is that the AFL and AFL clubs pay no taxes. That’s right, not one cent of any AFL revenue goes back to the government or taxpayers. Every cent of every dollar they earn is spent on AFL, including poker machine revenue.
The AFL isn’t a charity, it’s a business. It certainly pays its executives like a business, with bonuses for increased revenue.
So why doesn’t it pay any taxes like a business?
As its annual report explains, the AFL is exempt from income tax because its activities “are solely the promotion, administration and development of Australian Rules Football”.
How are poker machines classed as solely the promotion, administration and development of Australian Rules Football? I find that hard to swallow. Poker machines are installed at AFL clubs to provide revenue for the AFL, pure and simple.
The AFL executives increased their payouts to over $5 million, based on their ability to derive increased revenues, of which poker machines played a part.
Andrew Demetriou signed off on a $200,000 cash pay rise for himself, which took his package up to $1.8 million. The charitable tax-exempt AFL sporting organisation now pays its CEO five times more than the Prime Minister bringing in the pokie legislation receives.
Certainly businesses will structure their organisations to minimise their tax outgoings, but how much longer should the federal government allow a business like the AFL to pay no taxes? And how can the AFL claim that it is hard done by when its tax arrangement would be the envy of any business?
Jaceman
Guest
ICF Heres another one of those positive AFL stories that the Melbourne media love to print... http://www.heraldsun.com.au/sport/afl/afl-slammed-for-backing-pms-pokies-policy-change/story-e6frf9jf-1226251796015
Tony
Guest
SMH page 5 article today gives more details of NRL officials influencing NSW State Govt to alter pokies laws so ES Leagues Club can build new club at Narellan. All those millions of $$$ is okay, because it's not AFL!
It's Called Soccer
Guest
Dr Livingstone, I presume! Note no ref to the millions made by NSW Leagues Clubs, very little of which goes into sport.
c
Guest
http://www.heraldsun.com.au/sport/afl/afl-slammed-for-backing-pms-pokies-policy-change/story-e6frf9jf-1226251796015 afl slammed-for-backing-pms-pokies
c
Guest
Bondy
Guest
Jaceman. All the futbol is on the net for free this mornings Kings Cup 8.00 Am Eastern (Esp) Real vs Barca no form of F.T.A. or cable platform was showing it "or i simply couldnt find it anywhere", i watched an enthralling match between the two best club sides in the world for free on the net . If there was no H.A.L. theres simply no need for me to have the cable platform simple, if your interested which you are there were 19 streams of that match from English to Arabic you name it's there and thats just one of about 10 sites that stream live futbol and other sports . The world is a small place .
piesman2011
Guest
A valid point Jaceman.
piesman2011
Guest
The cats made me cry last year..... and you have made me cry again this year.... are you happy.. Sorry again for the double post I fail at posting on this site..
piesman2011
Guest
The cats made me cry last year..... and you have done the same again this year...
Fitzy
Guest
Amen.........please tell this to ICF i think he missesthe point and must be about 12 years old the way he argues without evidence and continues to belittle AR, no one is bagging soccer, were just saying if your going to report be even hand and not lie. But anyway one day he might grow up.
Dingo
Guest
Unhealthy obsession.
Jaceman
Guest
ICF, You are a genius - you have united people against association football. If you want your game to be considered part of the mainstream then you have to learn to co-exist. Extreme comments turn people off and look like the comments of envy.
Jaceman
Guest
You obviously dont live in NSW where the clubs are going crazy, NRL heavy weights are crying poor on behalf of NRL clubs, Gallop, Hadley, Warren, Gould, Packer. Wookiw showed that demetriou was mild in his plea for some moderation in a trial. ICF I assume you have an agenda since you are so anti-AFL.. I assume therefore that soccer mightnt be your only passion...
Boomshanka
Guest
Jaceman FYI: Super League is alive and well in the UK. Channel Nine also paid for and hold the exclusive broadcasting rights for Australia for this. Care to hazard a guess as to how much gets shown into Melbourne? Yet another example of watching sport in the so called "sporting capital of the world"
Jaceman
Guest
My latest look at the Pay TV ratings for Soccer or Association football are in the low 60Ks even before Big bash started although the marquee games get in the low 100K. With the soccer TV (association football is too long to write) rights up for renewal and the Socceroos probably going back to FTA under anti-siphoning and the fact that soccer nuts are unlikely to give up their Pay Tv because the EPL, Serie A, La Liga etc are there then the local soccer fear is palpable...
Jaceman
Guest
Its the Competition and Consumer Act Lads not TPA anymore. All sports codes are cartels - would you Boom like another Super league breakaway...
The Cattery
Roar Guru
Instead of spending all your money on ciggies and pokies - go see a dentist!!
Jaceman
Guest
Piesman - who invaded who? - Aussie Rules and Rugby were played for 50 years in NSW and Qld before RL...
piesman2011
Guest
All good. I try not to get upset and I try to see all sides of the story before I post (often I fail). Passion is what sport is about. As to intelectual deficiencys, I am a member of most hated and intellectually challenged/toothless bunch of suporters in the country. Anyone who apoligises for such a minor issue is a good guy in my books and I am sorry if I went over the top with my response.
Bondy
Guest
piesman 2011. I must apoligise for the attack some take passion a little to far at times . Is it an intellectual deficiency i'll leave that to you . I'm man enough to apoligise though .