The billion-dollar world of AFL clubs

By The_Wookie / Roar Guru

Its that time of the year when all AFL clubs have lodged annual reports and we can finally get a handle on what they’ve been up to off the field for the last year or so.

Club revenues in 2017 narrowly missed the billion dollar mark, totalling $998.13 million, averaging $55.45 million per club.

That was a rise of $141 million (+17%), with AFL distributions up $46 million (+20%).

At the upper end of the scale you have Hawthorn and Collingwood, each passing $70 million, boosted by the pokies. Essendon, Richmond and West Coast round out the top five – each making more than 60 million, with West Coast not having any pokie revenue at all.

At the bottom end, Gold Coast and North Melbourne both made less than $40 million.

Four AFL clubs reported comprehensive losses totalling $5.87 million – Collingwood and Geelong taking multi-million dollar hits in depreciation and amortisation – while 14 clubs reported profits totalling $26.62 million, although several required assistance from the AFL’s ‘Future Fund’ to get over the line.

In an age where television revenue is considered the be all and end all, it’s worth noting clubs turned more than $240 million in revenue last season on memberships, reserved seating and gate receipts – this isn’t far short of the distributions handed out to the clubs from the TV deal.

This doesn’t factor in signage and pourage rights, or onsite merchandise sales, figures up five per cent (about $13 million) in 2017.

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Collingwood, Adelaide and West Coast lead the charge in memberships, each taking in more than $20 million, while there should be real concerns at the bottom, with Greater Western Sydney taking in $1.8 million – and that figure includes its merchandise sales.

Clubs also turned over more than $212 million in sponsorship, at an average of $11 million per club, up $8.3 million (4.1%) on the previous year.

Collingwood and Sydney sit at the top of the sponsorship table, with more than $18 million each. Even GWS tops $11 million in sponsorship, however the Suns sit at the bottom, with less than $6 million.

The AFL’s $418 million annual TV deal started last year, and the league appears to have distributed $277 million of it to the clubs in 2017, up $46 million on the previous year.

With GWS and Gold Coast at the top, with more than $24 million, Brisbane and St Kilda also come in for more than $20 million in AFL distributions.

It’s worth noting that the base distribution in 2017 was $10.6 million, and some clubs are entitled to money from central revenues pertaining to signage, pourage, promotion and game buyout rights.

Clubs spent more than $450 million on their football departments in 2017, with the average club spending in excess of $25 million, up 10 per cent on 2016. Collingwood lead the way with $28 million, including expenditure on women’s football and their VFL or VFLW sides. GWS and Sydney make up the top three with more than $26 million.

Clubs had more than half a billion dollars in assets, with West Coast ($77 million) and Hawthorn ($66 million) leading the way, and both clubs looking to build their own multi-million dollar facilities in the short term.

At the other end of the scale, the Queensland clubs both languish at the bottom of the equity table, in the red – the Lions over $13 million in negative equity.

West Coast is probably the largest football club in the country – certainly so in the AFL in financial terms. Other clubs have more members and bigger attendances, but it’s hard to go past the raw cash the Eagles bring in each year, with tens of millions in the bank and in investments.

In the long term, of the established clubs, the Lions and Saints have issues to address.

St Kilda have a promising move back to its traditional home at Moorabin to look forward to, and an improved deal at Docklands that will make an extra million or two a year.

Brisbane are angling for a training facility at Springfield and for some funding there from the state and AFL to make that happen, but like most things in Queensland, the only real answer is getting back to the winners’ list more frequently.

The AFL annual report for 2017 is due out any day now and promises to make fascinating reading, with the league including its Docklands assets and revenues for the first time.

The Crowd Says:

2018-03-16T17:48:08+00:00

MattyB

Guest


That's fair enough Aligee,but what makes cows so special? I'm more a micro person as opposed to macro but some of this logic fascinates me.

2018-03-16T12:22:19+00:00

Aligee

Guest


Sorry Mattb, but cats and foxes in this country dont IMO deserve to live, even domestic moggies are very destructive on Native animals, hunt them to extinction, considering they would probably survive a nuclear holocaust i doubt it will happen, but i wouldnt complain if they were. A virus for cane toads would be appreciated as well.

2018-03-16T10:56:22+00:00

MattyB

Guest


Thats correct Matto,and explaining your stance is good. Don't just take shots at someone with no explanation or just saying lol. I feel sorry for snakes,rats,rabbits,cats,mice,foxes,lizards etc but I still eat bread,pasta and breakfast cereal. I do grow my own fruit and vegetables though,but if bugs try to infiltrate I do what I must.

2018-03-16T08:06:42+00:00

Matto

Guest


Yeah, factory farming is a pretty new part of any ecosystem. I see more wrong (potentially) caused by thinking "animals are here to serve us" than I do from the 'bleeding hearts' "choosing" an animal to care about. I actually agree with most of what Algee has said in this thread so I'm not sure we disagree mattyb

2018-03-16T05:33:57+00:00

Lroy

Guest


By any statistical measure, the Eagles are the greatest sporting club in Australia... pretty sure you'd all agree with me right?? ;-)

2018-03-16T04:44:03+00:00

clipper

Guest


Perry, I don't believe many fans would've tagged on to the Swans - when GWS entered the competition, there was no decline in Swans attendance - if anything it went up - quite different to the situation re the Lions and Suns. Quite different demographics between the two areas. Kanga - how on earth can you say if GWS fill Homebush regularly they will be considered a success - has there been any team in NSW that would fill that stadium? The mere fact that they have a better attendance than 3 Sydney NRL teams means they are gaining some traction, although limited - The Storm, even being the most successful NRL team for the last couple of decades, has not even come close to the poorest AFL team in Melbourne. I also wouldn't be too dismissive of 7mate - most of the Soccer matches are on a secondary channel as well.

2018-03-16T00:16:10+00:00

Aligee

Guest


Well its what lead to Football Parks at Waverly, and In Adelaide are the main ones, football sought to be independent of cricket grounds and the financial constraints of who controlled them, there was even at one stage a Football run Football Park in Canberra and at different stages a football owned ground in Sydney. Cairns in Queensland has a independent football owned ground and the game has gone from strength to strength because of it, Southport on the GC also owns its own ground which was donated to the club years ago, it is an absolute financial powerhouse.

2018-03-15T23:40:37+00:00

MattyB

Guest


Matto,I don't totally agree with Pauls comments there as the issue is more complex,but his reasoning was explained. I'd say all animals on earth are here to serve other animals,that's why we have ecosystems. Do people who love cows so much seriously think no animals are harmed when we harvest vegetables,wheat,sugar etc.,just sounds like picking and choosing animals to feel sorry for to me.

2018-03-15T23:23:21+00:00

MattyB

Guest


Floyd,I think your only considering one aspect of the industries,in that aspect your correct but there's much more that needs to be considered before reaching a final conclusion.

2018-03-15T20:28:16+00:00

Cat

Roar Guru


Go ahead - show me you can. This information is only available through member services, ie: a phone call.

2018-03-15T14:28:47+00:00

Matto

Guest


"animals are here to serve us" Lol. what?

2018-03-15T14:20:48+00:00

Matto

Guest


"West Coast is probably the largest football club in the country" What did you think of this being said about your Weagles Pauly d

2018-03-15T13:00:15+00:00

Kris’

Guest


Nobody cares in New South Wales .

2018-03-15T12:59:18+00:00

Kris’

Guest


Disingenuous again

2018-03-15T12:58:50+00:00

Kris’

Guest


Very contrarian

2018-03-15T12:13:43+00:00

Alicesprings

Guest


The AFL’s relationship with cricket overtime had been a fascinating one. No doubt who is wearing the pants now.

2018-03-15T12:09:13+00:00

Alicesprings

Guest


Agree. Doesn’t get acknowledged much, especially on the east coast, but the Eagles are the largest Football club in Australia. The rich get richer and the poor get more dependent.

2018-03-15T11:47:24+00:00

Kris’

Guest


their full back so they put the guy who never passes the ball back there(ok slight hyperbole) Unless Barba comes back I think the sharks need to find a 5/8 and put Moylan back there. Actually don’t.

2018-03-15T11:38:37+00:00

Kris’

Guest


West Brom and Stoke went down the path of having very heavily specialised squads (big, strong, physical, direct). When it stopped working the new managers didn’t really have too many other reins to pull. Now we just need SBS to stop putting Manchester teams on the telly every week for a title chase that is already over. Huddersfield v Palace will be very tense this weeken

2018-03-15T11:00:42+00:00

Kris’

Guest


West Brom and Stoke went down the path of having very heavily specialised squads (big, strong, physical, direct). When it stopped working the new managers didn’t really have too many other reins to pull. Now we just need SBS to stop putting Manchester teams on the telly every week for a title chase that is already over. Huddersfield v Palace will be very tense this weeken

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