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.
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.
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.
Martyn
Guest
We venture into China and after one game break even. Can only go up each year. Plenty of negative comments about the game being a waste of time and money. Dare say there were similar comments about about the telephone back in the 1860's. Bet their thoughts would be different today different.
Republican
Guest
..........well said. On the subject of Rugby League here , it may well dissolve altogether. Using the same rationale that you have especially in respect of Soccer in the UK, NRL clubs are choosing Kiwis to recruit over home grown grass roots at an alarming rate, while League GR are already in decline around the Sydney region especially. 33% of NRL players come from NZ and this trend is set to continue. It is moot as to whether this a good or bad thing for the game, but It can't be great for the future of the code in respect of fostering Ozzie GR, while it probably makes for better tele given the Kiwi players are clearly superior, despite the code being little more than niche across the ditch. I am very content with the status of our indigenous code being domestic. If we ever do reach a time where this is compromised, the code will simply fizzle out like a burning star, never to shine again, mark my words
Anonymous
Guest
What a ridiculous post. The AFL has got ZERO to do with "Melbourne". It is Australia's national winter competition and is a company. Any true sport fan in South Australia (for example) would see it like that. You certainly sound like a South Australia person.
Leonard
Guest
Long ago, some clever bugger warned us to be careful what we ask for (not sure who this clever-clogs was but this link might help - https://en.wikipedia.org/wiki/The_Monkey%27s_Paw ). It is essentially about unintended and unwanted consequences. That fiercely wonderful old Canadian pastime of [ice] hockey went, as they say these days, 'viral' south of their border - result: there are 23 US teams in the 30 team NHL, and control of the sport is now in 'foreign' hands (which may or may not be a good / neutral / bad thing). Or look at the English soccer's EPL: genuine Anglo-Celtics^ hardly get a game, and consequently, England WC teams don't get very far (i.e., no WCs in the half-century since 1966). Similarly, that most traditional of English pastimes, cricket: world power has 'followed the money' to India and its BCCI. (And what a wonderful thing, that Indian nationalists did not simple- and / or bloody-mindedly ban the game as 'colonialist' or 'imperialist' or 'racist' or some of other damn silly -ismist thing, but sensibly made it their own, as it were.) So sensible of AFL HQ to call its overseas competition an International Cup, and to avoid attracting (immediate and well-deserved) ridicule by naming it a 'World Cup' - does anyone take rugby league's self-styled 'World Cup' seriously? (But WCs in [field] hockey, basketball and rugby union make sense.) ^ 'Anglo-Celtics' rather than 'Anglo-Saxons': they ran out of 'pure' Anglo-Saxons in the centuries after 1066.
Martin
Guest
If your exporting a product, for example fruit, you usually send the premium quality overseas and keep the blemished fruit at home for local consumption. So the AFL was doing similar by exporting a game of AFL to Shanghai, is all about showcasing the best football code that Australia has to offer. Comments above from fans of other codes are just showing signs of insecurity and probably can't understand why AFL is so popular.
Perry Bridge
Guest
#Andrew On your basis then I hope you're still petitioning the Australian Govt to never ever again get involved in a bidding effort with the FFA (post the FIFA WC bid). And your scepticism towards main stream media - interesting - you sound very Donald Trump like. How about instead - take note that on any story there are a variety of perspectives. The 'facts' are often perception based. Hopefully we retain media outlets with different agendas to drive different perspectives. Believe what you will - but - don't just say "I don't believe" and not then go to the effort of illustrating the alternate facts that are based on research rather than just hot headed opinion. I am amazed by how much power you seem to believe the AFL has over all the Australian media outlets. They must all be based in Melbourne??
Mickyo
Guest
I agree Brendan
clipper
Guest
A fair article. I would think that in terms of expanding AFL interest among the ordinary Chinese citizen it would've been a failure, but don't really think that was the intention. In commercial terms it sound like it was a great success. I like the idea of Port sponsoring the Chinese AFL team for the international cup - how about other teams getting onboard and sponsoring an International cup team. The real benefit that I can see is the exposure to Chinese immigrants here - you see quite a few at Swans games, perhaps this will increase the fan base in this growing demographic.
Republican
Guest
.......perhaps not a god given right Wokkie but certainly a far more meritorious and compelling one than do the likes of an undeserving market place i.e. N.Z
The_Wookie
Roar Guru
AFL is all about the Melbourne clubs eh. Which is why every team introduced to the competition since 1986 has been a non victorian and we've gone from a 12 team victorian competition to a 10 - 8 split. Its why the AFL spent millions keeping Sydney and Brisbane going - and later Brisbane again, as well as Port, GWS and Gold Coast, and has spent 200 million on Northern game development in the last 15 years. Its also why the AFL tv deal guarantees teams outside Victoria will receive tv coverage of every match - most of them live - while no such guarantee exists for Victorian sides. Its why the AFL allows Victorian clubs to play home games in Tasmania, NT, ACT and QLD over the years, but not allowed them to sell games to Geelong. All aboiut them pesky Vics.
The_Wookie
Roar Guru
Im less romantic about professional sport than some. I dont believe Tasmania, the NT and the ACT have a god given right to an AFL side, although i think more could be done to foster the game itself in Tasmania at present. But lets be clear on one thing, playing a game here and there in China or NZ is one thing, but the AFL itself does not want to be multi national, does not care about developing the game overseas and what little interest it has overseas is about sending talent back to the Australian continent.
The_Wookie
Roar Guru
You didnt read the article at all did you? References for the entire article can be found at the bottom of the article on my blog. http://www.footyindustry.com/?p=3750
Agent11
Guest
There is already an NRL club who's major sponsor is Huawei.
Anonymous
Guest
Again... NRL fails to capitalise. As the AFL continue to cream Australia's sporting and TV landscape. Game in China is HUGE business!
Hunter
Guest
Big finical windfall for Port. Its great to see a club being so proactive, remembering that they used to be an absolute basket-case. There were reports at the time that Ports immediate future was at risk - seems a long time ago now.
Republican
Guest
........delusions of grandeur me thinks. We have yet to share the highest tier of the code with deserving heartlands i.e. Tassie the ACT the NT et el. I say we should work much harder in staying true to the codes DNA to make our game truly national. There exists a disappointing cringe sub culture that seems to feel that our code is of little value in its current domestic status. A contradiction and double standard also exists within the AFL that is expedient of those heartlands in order to realise follies i.e. GWS, GC, and any future off shore experiment they currently have waiting in the wings that satisfies a one dimensional approach to growth, dictated by the business i.e. television.
Republican
Guest
We can subjectively qualify and quantify 'success' ad nauseum without reaching consensus, since this is a philosophical debate. The Wookie has always been steadfast in his support of the commercialisation of sport as opposed to being of the cultural persuasion. Personally I happen to believe this interpretation and criteria of success is the 'root of all evil' and the catalyst for the devolution of sport around the world today. That said, his is certainly a very compatible doctrine with that of the aspirational multi national AFL. The best any of us can do who are not of this persuasion, is to cease supporting the AFL forthwith.
Mat
Guest
Now I'm more confused. First you said reports stated it would be a financial success or breakeven. Then you mentioned a figure of 10mill being made. Presumably meaning about 10mill was spent. Now your saying costs were 4mill and they made at least 7mill?????????? Are you just making this up? Where do all these varying numbers come from?
R King
Guest
Living in Adelaide, we all had to put up with the 'hype' leading into this match. Only in the weeks leading up to the game did the Power state it was all about building relationships and future sponsors. Once or twice did their coaching people come out and state the bleeding obvious, it was all about the 4 points [yawn]. Who cares it the Victorians consider it a success or not, One thing we do know about the Vics, if it starts making big money, they will want their share, after all some one has to prop up those 10 teams in Melbourne. The reality is that AFL will never be as popular anywhere else but in the Southern states of Australia, no amount of sugar coating it will change that. How popular are the GWS in Parramatta? Can the Lions [Fitzroy] stand on their own two feet in Brisbane [i think not] Even with the Swans [South Melbourne] having great success on the park can they really be financially sustainable, again I think not. The AFL is really all about the Melbourne clubs, they are still the VFL at heart, which is why until the Power can show that this Chinese adventure can turn a real profit [for them = equality] will the Victorians be sceptical and eventually resentful that they didn't do anything about it themselves.
The_Wookie
Roar Guru
Reality is costs were 4 million, and they made at least 7 million, possibly as much as 10 million. Dont tell me what my standards are.