AFL to seek $500m loan during unprecedented crisis
theage.com.au/sport/afl/afl-to-seek-500m-loan...
theage.com.auPosted Mar 24, 2020, 9:26 AM UTC
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theage.com.auPeople are still not understanding how big this is. Listen to how the club presidents are talking about this - the language is absolutely dire. We've got clubs talking about "if" they survive into next year and looking at just how much of a cut everyone will need to take to pull through.
Obviously this is planning for if no games go ahead this year - which seems incredibly likely at this stage.
There's a strong possibility some of our favourites have played their last games. Burgoyne, Ablett etc. There is no guarantee these guys don't retire before the game returns.
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Wanna get really depressed? There’s no guarantee of footy next year either
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Ugh, I don't want to think about that
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Burgoyne kicked three goals so we’ll give him a three-year deal.
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How long does it take to pay back $500 million???
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Depends, I'm not a expert on AFL structure or Australian financial practices but revenue was $793mil with a surplus of $27.9mil.
Even if they made a similar surplus and used it entirely to service the debt your looking at something like 20 years.
I supposed the real issue is many clubs make revenue outside of footy (see Hawthorn and Pokies) and I imagine that'll dry up quickly and clubs will be left in serious problems.
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Is the next TV rights deal going to be worth much?
A lot of job losses, a lot of businesses closing.
There won't be as much competition for eyeballs.
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Caro said the TV deal got extended in the off season by a further 2 years. I think that buys enough time for the world to return to 'normal' before they have to renegotiate.
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500 million at 2 percent over 25 years....
a lot of interest.
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I’m really interested in the AFL using Marvel stadium as security for a loan and I’m not sure it’s the golden ticket everyone here seems to think it is - the stadium is 20 years old, in need of renovations in the near future and if the league were to default and it was repossessed by a creditor what value would it have given there would no longer be a use for it?
The land would be worth a fair bit but still there’d be a great dirty obsolete stadium on it that would incur significant demolition costs if you wanted to sell or redevelop the site. Either way I think it’s value has been wildly overblown and if I were a creditor I’d be very concerned using it as security
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what value would it have given there would no longer be a use for it?
docklands is used for more than football and there is still absolutely value in the stadium considering that when football inevitably comes back in whatever form it will be played there
docklands is also basically the australian home for the UFC, not to mention the BBL, the aleague, and it has the capability of hosting big stadium concerts and stuff. if they need to use it as collateral it won't save the AFL on it's own, but it will go a long way to helping them
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Not arguing your point for anything except this one tangent:
The UFC have run two events there, and said they never wanted to go back there after the first time, because the atmosphere sucked compared to Rod Laver. They made a special exemption for the Izzy Whittaker fight, they've made it clear Rod Laver is their home in Melbourne.
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yeah, you're absolutely right. i don't know how i mixed it up, i guess it's just seeing how much UFC stuff they have at docklands made me conflate the two locations
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Without the AFL the Stadium becomes a huge white elephant though. Stadiums are very expensive to run and the maintenance costs on Marvel would be huge and wouldn’t come close to being covered by only being used 18 or so times a year. While footy would return eventually it’s a very big unknown how or when and creditors aren’t in the habit of holding onto failing assets for a couple of years - they need to liquidate and other than Government, who would buy it?
Also it’s a pretty rapidly depreciating asset, within 10 years it will need a significant investment in the form of upgrades or rebuild. They would definitely still be able to lend against it but $500 million seems absurdly large
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MCG carrying $120m in redevelopment debt
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That 50 year contract obviously wasn't enough for them
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It was never about MCC or the MCG. It was about keeping the GF in Melbourne for the benefit of Victorian teams only.
It is a shame they sold the asset (GF location) so cheaply for political points and Victorian Hegemony. An additional 20-30 million per year in the AFL coffers would look good about now.
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If playing lists shrink could this kill the VFL? No AFL team would want to field an extra side if they want a fully fit list
Could it lead to 16 players on the field? (Which had already been put forth by Clarko before all this started)
Also they estimate Marvel is worth 1 billion, surely without the AFL that drops significantly. No one will want to buy it if AFL isn’t being played there.
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I'd prefer 16 players on field to shorter quarters.
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I’m guessing 34 games played like Round 1 2020, in 2021 to make up for a lost 2020. Just what I think could happen, but who the he’ll knows.
It’d be a great way to recover revenue for sure.
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Would be awesome too
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The salary cap is $12.45m with 18 clubs which is an annual total of $224.1m of player payments. Revenue last year was $794m for the AFL alone. Not including the clubs revenue and of course costs.
I’m sure they have smarter blokes than me managing their books but something’s gone wrong with their working capital if they have had no crowds for 1 round and there are pay cuts.
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The solution is quite simple, bring the game into a national competition and reap the benefits.
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Revenue idea: the AFL should sell the naming rights to round 2.
We had the Toyota Opening Round, now brace yourselves for the "your name here" Re-opening Round!
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Wordtwoyamum round is kinda weird but I guess I’ll take it
Codyfucksticks round brings into light more questions
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Will anybody buy the rights in this climate?
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Reopening Round, bought to you by Corona (the beer)
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I'm buying into that.
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The big ticket item was $225 million for upgrades and redevelopment of Docklands stadium.
Cancel this Gil and use it to prop up AFL.
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The decision to announce the MCG would remain the home of the grand final for another 20 years on top of the existing 20 years it already was booked in for, rankled with a lot of non-Victorian fans, with plenty of vitriol being directed at the AFL for selling out, shafting their interstate clubs for decades in exchange for their 30 pieces of silver to redevelop Docklands.
Articles swiftly appeared in various publications and sites from the states west of Warnambool, bemoaning the decision as a VFL relic, and a decision made solely with the interests of 10 of the 18 clubs in mind
Sold a gold bar for nickels and now its coming back to bite Gil.
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Wouldn't be surprised if we see a shortened draft as well
Think this is a great time to reflect on who and what is important in society and AFL whilst it is a brilliant sport to watch, they are way overpaid for what they do and are not important.
If anyone should be on the money AFL players are it should be doctors, nurses, paramedics, police and any emergency service worker.... you know the people who contribute to the greater good of society.
I am appalled in the AFL players association’s response to this crisis saying “we need more clarity”. The whole of society has no clarity and these players are so wealthy off the back of kicking a football around a field.
Do they not understand that when there is no money coming in, they can’t be paid?
That's very reactionary and unfair. They're paid relative to the success and revenue of the AFL, sport is big business.
Are you gonna apply this same attitude across the board for all industries? Do you wanna start auditing everyone's income?
The players are the ones who pushed for the revenue share model...
The point is people are suffering far worse than them and they are being completely greedy. So yes, this is being applied to all other industries.... people are losing jobs left right and centre.
They got offered 20% over the next two months which is far more than enough to live off when compared with the numerous other Australian’s who have lost their jobs.
I understand they may have mortgages, expenses, etc. which are relative to their income but at the end of the day, everyone is suffering, not just them, and they are not protected from this either.
The way they are talking is as if the AFL can just pull money out of their arses and pay them? It doesn’t work like that unfortunately.
If there’s no money coming in? Then there’s no money to go out.
But you weren't talking about their paycut. You said they're overpaid, don't do anything important and other people deserve the money they're on. That's all separate from the current circumstances.
Supply and demand. When the money is flowing they are in high demand and whilst they font necessarily deserve it, the players do earn their share of the money going into the league from fans.
Now that there’s no money why should they be paid for not doing the job that earns them that money?
Couldn’t agree more, the wanted a revenue share, what about when the AFL is running at a loss?
Can’t have your cake eat it too.
Do you think the AFLPA will accept that?
1 year Covid shutdown, the next strikes?
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Well they’ll have to take some things cause of the covid
Like everyone else has they can stop being brats and be like the rest of us