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AFL's China foray can be considered a success

Port Adelaide's venture into China was a financial success. (AAP Image/Julian Smith)
Roar Guru
20th May, 2017
31
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Much has been made of the recent Australian rules game between the Gold Coast Suns and Port Adelaide in Shanghai. There was a lot of hype from the AFL, mockery from other codes and some local confusion over the intricacies of the game itself.

Port Adelaide claim that match costs – including temporary stands and ground maintenance – were about $4 million and that these costs were met by 20 companies, including 12 Chinese firms who had never been involved in Australian football before.

Port Adelaide have also secured another $3 million sponsorship with Chinese conglomerate MJK International Holdings, although much of this is to be allocated to its development programs in China.

Andrew Hunter, spearhead of Port Adelaide’s China strategy, was quoted as saying the club will bring in almost $10 million as a result. So at the very least, the game has broken even on cost. Although we won’t get the full picture until Port’s next AGM and annual report.

Attendance was reported as 10,118 – a figure many remain skeptical about due to apparent large gaps in the crowd. AFL CEO Gillon McLachlan was not altogether convincing in his explanation of the reason for the gaps. He claimed the empty sections in the grandstand were due to fans having access to nearby corporate marquees, which were located at either end of the ground. Tickets reportedly sold out in about three hours.

More than 5000 Australian fans flew over for the game and around 2000-3000 locals were believed to have purchased tickets, while The Financial Review reported that 3000 tickets were taken by Australian and Chinese companies for corporate hospitality. They also reported 1800 police were in attendance.

Considerable government support was lent to the endeavor, including sponsorship by Tourism Australia. The event was attended by the South Australian Premier, Victorian and South Australian trade ministers, the Federal Assistant Trade Minister and the Australian Ambassador to China. A number of Australian and Chinese business representatives were also in attendance.

Chinese television ratings have not yet been made available (and to be honest the Australian ones weren’t fantastic), but the AFL was quite pleased to announce that three major Chinese networks CCTV, Shanghai TV and Guangzhou TV would all take the game live. CCTV is free-to-air and available to everyone in China with a television set, giving a potential reach of about 1.3 billion, while Shanghai TV and Guangzhou TV are available in their local regions only. Previous broadcasts in China have been reported in the media as rating between 2 and 3.5 million.

The Australian noted that local Chinese media reporting was generally favourable with the Chinese-language Wenhui Daily writing the game was “a milestone event, a historic breakthrough. It drew wide interest from Australian and Chinese TV audiences, and might have reached the highest TV audience in the AFL’s history, with Channel Seven, Fox Sports, China Central TV, Shanghai TV and Guangzhou TV all covering it”. Crowd reviews were a mixed bag of positive and negative.

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Success, breakeven or failure
All reports indicate this was a financial success or at least a breakeven. If Port did get $10 million, thats equivalent to almost a quarter of its total financial income in previous years, and I’m not sure how anyone can knock that back. I rate this a success.

The AFL called the attendance a success, but it was a little light on local flavour. However, for the first match for AFL premiership points in China, 2-3000 public fans is a reasonable start for a totally foreign sport. I rate this a breakeven.

No figures have been provided for television ratings. This may not be a good sign, as they were expected earlier in the week. So that’s a possible failure. And as for the standard of play, it was pretty poor. The Suns’ preparations and strange flight arrangements didn’t help. It’s certainly something for other teams to consider when playing next year. Unfortunately, this part has to be rated a failure.

In short, simply being financially profitable mkaes the venture a success. It met all of Port Adelaide’s aims, including increasing its sponsorship portfolio and Chinese exposure. Certainly Port and the AFL believes it to be a success and are planning on returning there next year.

Critical to the success has been the planning. This wasn’t a fly by night operation – not least proven by the length of time it took to develop the turf at the stadium. The match was the culmination of years of work by Port Adelaide in particular, who set their sights on a Chinese future as early as 2014. They developed a business network in Hong Kong, sponsored the Chinese national side, and gained Chinese corporate and Australian government assistance and support.

Short-term plans
Port Adelaide have indicated they are fielding interest from a number of clubs and states in response to this match – there is no guarantee for the Suns – and expects to make as much as $2 million from the next clash. The Power paid Gold Coast $500,000 to play a home game in China this year, but the amount on offer for next season is said to be as high as $1 million.

The AFL is looking at playing the next game under lights, and in a better timeslot. The AFL has also said it will work towards increasing the ground’s capacity after such a fast sell-out. Port Adelaide chairman David Koch has indicated the club may look at the more modern Shanghai Stadium, although that comes with significant logistical hurdles including the presence of a running track. In the mean time, Port will continue to maintain the grass surface as its present venue.

Long-term plans
This is a long-term play by Port Adelaide and the AFL – but mostly Port Adelaide. Port have had a presence in Hong Kong for some years and the club sponsored China’s AFL International Cup side in 2014 and is doing so again in 2017. There will also be technical and financial support provided thanks to the deal struck with Shanghai CRED in 2016.

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The club also has full-time development officers in southern China and around Shanghai and run an Auskick-type program in 14 international schools in the Shanghai area. Thanks to MJK, that will now be expanded to Xian. The AFL itself is chipping in $250,000 for development in southern China.

Port have also struck a deal with Shandong Sports University and the Shandong Research Centre of Sports Science that will open up opportunities to develop world-leading sports science research for all parties through collaborations in teaching, research, education, experiential learning and placement opportunities.