“Without Sydney (Swans) being successful, the whole national competition would’ve collapsed.”
That statement was hard to fathom. When I first heard it, I thought the former CEO of the Australian Football League, Ross Oakley, was talking bullshit.
In hindsight, that was an ignorant response, considering I wasn’t even born before South Melbourne’s 1982 reincarnation in Sydney.
Why did I struggle to comprehend these comments from ex-AFL boss?
When you look at the competition now, it’s commercially viable, extremely well publicised, and the fans remain tribal; now connected and plugged in digitally. Speculation, conjecture and general dialogue among supporters are at an all-time high, all thanks to that dreaded mini-computer most of us are now glued to. It’s an obsessive sporting code.
I didn’t grow up in a world of mergers or relocations. I wasn’t accustomed to constant speculation about clubs’ futures, like my father was in the 80s and 90s. I never had to experience that uncertainty of not knowing whether my beloved team would still be around the next year. For those in their mid-30s and younger reading this, it’s hard to fathom.
From the late 90s, when my liking for footy as a child started to become something of a religion, all the way through that millennium era as the competition’s TV deals and publicity began to increase rapidly, the game started to consume me and my school friends.
There was more money for the AFL to throw at beefing up media attention and bigger crowds going through the turnstiles, but for supporters it was about more fandom – our connection to a higher place increasing with every passing season.
Your club claiming a premiership gradually morphed into this utopian experience that every supporter desperately had to capture at some point in time (of course unless you’re a Saints or Demons fan).
I am a Melbourne supporter. But on the whole, as a neutral and lover of the game, I’ve been spoilt.
“Spoilt” being a relative term. (Photo by Daniel Pockett/AFL Media/Getty Images)
In a COVID-19 season, clubs have had revenue streams significantly reduced and crowds have been minimal.
On a more personal level, my customary 20-minute train trip to the MCG to yell, scream and revel in the highs, and despair in the lows, with fellow Demons supporters taken away.
However, my beloved club appears to be financially stable for now, as one of the few clubs who have chosen to be not ‘assisted’ by the AFL during this compromised year.
They are joined by Essendon, Collingwood, Adelaide, Hawthorn, West Coast, Richmond and the Western Bulldogs as a financially strong club, who have resisted the temptation to use the AFL as their pseudo bank to prop them up.
That leaves a whopping ten clubs on a drip line to the governing body. It’s a major concern.
At the end of March when the league was shut down indefinitely, CEO Gillon McLachlan voiced his strong commitment that all 18 clubs would emerge from the hiatus.
Gillon McLachlan (Quinn Rooney/Getty Images)
With significant cost-cutting at club level easing tension. It doesn’t safeguard cash-stricken from preserving their identity, rather it elevates the problem – borrowing more money and debts piling up further.
The AFL will have considerable debts and interest to pay the banks. Their ability to do that will be compounded by News Corp revealing the governing body is spending roughly ten per cent of this season’s revenue on interstate hubs, which equates to $40-50 million.
It’s been well documented McLachlan and co. expect a loss of $400 million this year. In the previous financial year, they registered a profit of $50 million. That’s a big hit.
With the unpredictability of this pandemic, there are no guarantees we will see a return to normality in March for the 2021 season. More financial losses are a distinct reality for the AFL.
That’ll open up the dreaded conversation of mergers or relocations to preserve clubs. Anyone who thinks otherwise, just remember how much the TV deal impacts on the clubs – they had to cut 80 per cent of their staff in March.
Banks are unrelenting and there’ll come a point in time where the AFL will have to be, too. They’ve already had to let go around a third of their own staff. That financial dripline could get thinner.
If we go through another COVID footy year, the struggling clubs will plummet further. That’s a fact.
It’s not me to speculate which clubs might be embroiled in fraught discussions about their future existence, but the Tasmanian opportunity could intensify. Most people pre-coronavirus saw them as the 19th team to enter the competition, however, it could end up being the new 18th team that dilutes or saves a club, depending on how you like to look at it.
“For our industry and game to emerge stronger from this ongoing COVID-19 challenge and the increased uncertainty we face over coming years, we need to significantly change our business model for not only the AFL but the wider football community,” McLachlan read in a statement.
As much as we love our clubs, footy is a business. Anything is possible. Just ask old South Melbourne and Fitzroy supporters.
Listen to No Merger, a four-part docuseries on the failed merger between Melbourne and Hawthorn in 1996.
MX
Roar Rookie
@Clipper GWS have been letting kids in for free and playing in two cities 280km apart just to get enough fans in lol.. You would have to be the fake news king on this site with all your false claims against NRL
Mr Right
Roar Rookie
I stand corrected, 3 premierships in 45 years. North have won 4 premierships in that time & people want them merged or relocated. How does that sit with you?
Floyd Calhoun
Guest
It’s actually four in forty years, but you’re right, not much to show. Richmond however, still has the priceless insurance of a huge supporter base to call on. Melbourne, St.Kilda, GWS, GCS, North Melbourne, & Western Bulldogs don’t have that luxury.
Mr Right
Roar Rookie
I often wonder if the AFL regrets not offering North more incentive to relocate to the Gold Coast about 10 years ago. The Northern Kangaroos with their club colours, history & records intact would have given them certainty of their future. It would have been easy enough to organise a Melbourne based supporters club & they would most likely been playing in Melbourne 5-6 games a year as well.
Mr Right
Roar Rookie
People don't normally pay good dollars every week for entertainment that doesn't include emotion.
Mr Right
Roar Rookie
CD, what has always has puzzled AFL fans is why the 3rd biggest city in Australia, Brisbane can only support one club in it's favourite sport? Smaller cities like Perth & Adelaide support two strong clubs each.
Mr Right
Roar Rookie
Well said BT1. The swans went 72 years between premierships 1933-2005. But over the last decade have won more games than any other club besides Geelong & Hawthorn. They were given assistance by the VFL/AFL to maintain & increase an important market. In a city that contains 20% of the country's population, they have added to AFL marketing & revenue in a huge way. Foxtel, national sponsors etc. Which has flowed onto players & club employees in so many regions. Our game is the biggest sport in this country by a far stretch. Having viable teams in all the major hot spots of this country has definately led to this. No major changes are needed. A national competition with a draft & salary cap is a frustration for the teams at the top, but it is an important means to an end to ensure long term success for our competition.
Mr Right
Roar Rookie
SM, you refer to Richmond as a power club? They have played in only 2 grand finals in 40 years. I'm relatively interested to read your definition of a low tier club.
Liam
Guest
Forgive me, but until the AFL unshackles themselves from their content factory at AFL media, I think the clubs will be fine.
Tony H
Roar Pro
Yeah, but most of us are talking about the City.... Not the club.
Graeme
Roar Rookie
Forgive me spruce for thinking you are a closet West Coast fan. You like mention them at any opportunity.
The Joy Of X
Roar Rookie
@ A. Houghton I neglected to mention, possibly, the most important point why there will be no AFL Club mergers. The broadcasters want content, and want 9 games pw to broadcast. Any reduction in games will lead to significant reduction in Rights payments- and thus payments to players & Clubs, less moneys for community development and promotion etc.
Pedro The Fisherman
Roar Rookie
By what measure? Onfield the Crows are rubbish. Off field they continue to be one of the big four clubs! Port on the other hand are good onfield … at the moment (for a change … but they haven’t won anything yet and I doubt they will …) and their off field management is rubbish (as it usually is and always has been)!
Charlie Keegan
Roar Guru
I believe you mean when their management is sound. It’s not sound at the moment hahs
Eddy Jay
Guest
If you could somehow take out emotion (which I know is impossible), there would be about six AFL clubs in Melbourne, two in Perth, two in Adelaide, one in Sydney, one in Brisbane, for a 12-team competition.
Eddy Jay
Guest
Or The Van Diemen Demons.
RT
Roar Rookie
Hence my “unfortunate reality” conclusion. It is unfortunate to me that a traditional footy state with more footy followers than GWS doesnt have a team, though I get the long game. Same if GWS win a Premiership at the expense say of St Kilda or any team with a decent supporter base.
Captain Obvious
Guest
You're right. AFL is like the franchisor. They negotiate the all the key rights that generate the revenues - broadcasting, digital, images, merchandise, ticketing, catering, etc. From that they fund clubs and throw them a lifeline when required. Risk now is that we've reached peak broadcast rights. The stakeholders that once bid the price up to $2.5bn can no longer afford to do so. 7 West Media is now a $160m microcap with debt of over $400m that it can't pay. Foxtel is also heavily in debt and subscribers are quickly heading for the exit. Telstra is still there but it's a telco, not a media company. It can build apps and websites but it can't create content. In short, the AFL can't continue to keep handing out cash to clubs in the medium term. The clubs themselves have done a poor job at really monetising their content. The idea of mergers and relocations was just as offensive back in the 90s as it is now. Listen to the "No Merger" podcast. A stark reminder that whatever we may think is right for the club and the fans, the AFL is a business. That's what will drive discussions around mergers.
Pedro The Fisherman
Roar Rookie
So that top 8 team :laughing: obviously doesn't translate into profitability. Who is running that club of yours? Something must be going wrong down there but the bandwagonners are very vocal this year - must be going OK on the field ... never hear from them at other times. There are a big 5 or 6 clubs and then there is Port and the rest of the handout clubs. PS: You would know what it is like for your mob to make history for all of the wrong reasons ... 119 reasons! ... History in the making! First team to lose to Gold Coast! First Team to lose to GWS ...
Pedro The Fisherman
Roar Rookie
... and they are not Port so their appeal is much wider and their management is sound!