The AFL has secured a line of credit with banks which will allow the league to continue operating through the coronavirus crisis.
The deal, announced on Monday, comes a week after the AFL and all of its clubs had been forced to stand down about 80 per cent of staff in the face of the biggest financial crisis to hit the sport.
It also follows a restructured deal being agreed on between the AFL and players, who will take a significant pay cut.
The total amount derived from the AFL loans is reportedly more than $500 million.
“I want to thank the NAB and the ANZ for their support, but I also want to stress that while this is a relief, it is not a return to business as usual or a release valve,” AFL chief executive Gillon McLachlan said.
“The football community is, like businesses across every sector, still very much in the financial fight of its life with the losses this year stretching to many hundreds of millions of dollars.
“What this means is we have a chance to get through but we will only get through this period if we are united as an industry and every one of us at all levels of the AFL continue to make the hard decisions to drastically and urgently cut costs.”
The AFL’s decision to purchase Marvel Stadium – then known as Etihad Stadium – in 2016 was crucial in recent days as the league leveraged the venue ownership in negotiations with the banks.
McLachlan said the AFL was committed to playing the remaining 144 games of the 2020 season, plus finals, and implored football fans to adhere to government advice to slow the coronavirus spread.
Lukey Miller
Guest
Agreed, Gil has done ok. I am sure he will trim the organisation a fair bit so that it is leaner and a bit "meaner". When things return to "normal" he will want to have an attractive product to satisfy the action starved fans. Less of 44 players crammed into just 50 metres would be a good start, but only the coaches could change that. We might need to get used to 17 minute quarters (and hopefully only 40 interchanges). There will be less assistant coaches and the associated people. It might emerge as a better game - it really needs to.
Republican
Guest
......the $'s have to come from somewhere, which means the banks can't sustain these sorts of financial lifelines indefinitely. I can't see this ending well as the contagion is such an unknown that sees this ground hog day just that. This is another 'new normal' reckon.
Kanggas2
Roar Rookie
I think we were in all but recession territory Can’t see house prices increasing for a while , but plenty of people stuck with big mortgages for a while . At least we have a socialist government now that will look after the people. Who would have thought Good luck to everyone in need of it
Raimond
Roar Guru
I think the competition will be trimmed down to 16, the NRL will go down to 14.
Paul D
Roar Rookie
Nope, no chance. I work for a large superannuation fund these days - got out of my contract job with govt fines & revenue last year around september for a perm job here, and I'm busier than I've ever been given what's happening working out of our cbd office atm since they split up our contact centre, so driving to work and parking in one of the absent exec spots. well looked after here, glad to still have a job tbh might have to work from home in the future but at this stage not happening
6x6 perkele
Roar Rookie
Fair enough man, it'll be one or the other either way Michael Pascoe will have a decent opinion piece regardless, hoping you're taking care of one self, I'd imagine you're home now.
Paul D
Roar Rookie
The government has shown that when it comes to interest rates they are all about looking after mortgage holders first, and self-funded retirees relying on term deposits can go whistle. I happen to agree with that view too for what its worth, there are plenty of other investment options for the old croakers to look at. Unless the housing market explodes and they need to put that fire out I can't see them raising interest rates beyond 1% in the next 5 years. Housing prices are already so huge any increase is a big whack to so many people.
6x6 perkele
Roar Rookie
It'll start next year imo, we are in classic recession territory and the rates as they are ATM are unsustainable. It'll be the unfortunate by-product of conditions of the last few years imo.
Paul D
Roar Rookie
I agree, he's done very well in difficult circumstances.
Paul D
Roar Rookie
I'm not sure interest rates are rising anytime soon
6x6 perkele
Roar Rookie
They have one asset and the nice banks will be wolves within the new year as interest rates rise, this could get very bad kids.
Gyfox
Roar Rookie
I am very glad we have Gil McL at the helm of the AFL. Not sure if anyone else could have handled this as well as he has.