Magpies and Power merger to be announced in a fortnight.

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Re: Magpies and Power merger to be announced in a fortnight.

Postby TimmiesChin » Wed Oct 27, 2010 9:11 am

nickname wrote:
Barto wrote:
So the Power are going to give the Magpies 1.36million a year if a merger goes ahead in exchange for the POW. Cant they just do this anyway?


I don't think it's quite like that. The combined PAFC is only allowed to allocate 1.36m a year to running the Magpies. It's not like a handout.


So is that 1.36 million allocation include the handout from the SANFL all the clubs get.

What is the usual spend of an SANFL club. Would the 1.36 million be sufficient ?
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Re: Magpies and Power merger to be announced in a fortnight.

Postby Hondo » Wed Oct 27, 2010 9:47 am

This is from the Port web:site

http://www.portadelaidefc.com.au/news/newsarticle/tabid/6038/newsid/104588/default.aspx

What has changed since February?

A number of important things have changed since a merger was initially proposed by the two Port Adelaide clubs last February:
- The SANFL, Port Adelaide Football Club and Port Adelaide Magpies have worked together closely on this proposal and there is now a much more robust business case that underpins the model.
- There has been a significant increase in external corporate commitment and support for the united entity.
- There is also a much clearer understanding among the stakeholders of the business case and the benefits it would deliver for Port Adelaide and for South Australian football in general.

When those factors are combined, they present a compelling case for the change


I haven't understood what has made this new proposal so compelling compared to the last one that was thrown out and gives some explanation.

The SANFL have worked with them on the proposal so I guess they can't now knock it back as it's partly their proposal too. Anyone know about the "significant increase in external corporate commitment"? Who has stepped in here?
In between signatures .....
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Re: Magpies and Power merger to be announced in a fortnight.

Postby Macca19 » Wed Oct 27, 2010 10:14 am

Hondo wrote:The SANFL have worked with them on the proposal so I guess they can't now knock it back as it's partly their proposal too. Anyone know about the "significant increase in external corporate commitment"? Who has stepped in here?


Not sure, but it was said earlier this year that there were a number of sponsors lined up ready to put in reasonable money if the 'merger' went ahead.
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Re: Magpies and Power merger to be announced in a fortnight.

Postby Macca19 » Wed Oct 27, 2010 10:24 am

Barto wrote:
beenreal wrote:Rampant paranoia I'm sure.


Some of the people who made the decision are actually pretty well educated in financial matters. I don't think their decision was based on paranoia, but continue to think that like a chunk of Port fans seem to think North are getting vengeance for the 1989 grand final loss. Had the proposal not been haphazard, it would've got a more favourable response.


Im sure the decisions by most clubs werent based on paranoia. Im sure that Norths decision to twice knock back the two different proposals sight unseen is somewhat paranoid. I also think their numerous jibes in the 'website notice that never was' was incredibly unprofessional and built around getting the supporters fired up....'yeah **** em...they tried to kill footy in this state whinge moan grizzle'.

And yes i know there are plenty of corporate clowns in the world....I dont believe that Duncanson, Haysman are such however.
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Re: Magpies and Power merger to be announced in a fortnight.

Postby Big Phil » Wed Oct 27, 2010 10:28 am

The meeting where voting from each club will take place was initially scheduled for Tuesday 9th of November...

To give the clubs some extra time to review the proposal put to them last night, the meeting is now scheduled for Monday 15th of November...
Last edited by Big Phil on Wed Oct 27, 2010 11:56 am, edited 1 time in total.
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Re: Magpies and Power merger to be announced in a fortnight.

Postby Dutchy » Wed Oct 27, 2010 10:51 am

TimmiesChin wrote:
What is the usual spend of an SANFL club. Would the 1.36 million be sufficient ?


And what happens when/if the Power cant afford to pay this to the Magpies?
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Re: Magpies and Power merger to be announced in a fortnight.

Postby nickname » Wed Oct 27, 2010 10:56 am

Dutchy wrote:
TimmiesChin wrote:
What is the usual spend of an SANFL club. Would the 1.36 million be sufficient ?


And what happens when/if the Power cant afford to pay this to the Magpies?


It's a maximum, it's not compulsory to spend the full amount.
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Re: Magpies and Power merger to be announced in a fortnight.

Postby sjt » Wed Oct 27, 2010 11:40 am

Dutchy wrote:
TimmiesChin wrote:
What is the usual spend of an SANFL club. Would the 1.36 million be sufficient ?


And what happens when/if the Power cant afford to pay this to the Magpies?


I think we're all asking the same questions:

1) If Power can't afford to pay the Magpies, is the SANFL paying them again, via the Power?
2) Do Port (Magpies) get paid first, so in a way they're underwritten by the Power and in turn by the SANFL
3) As Barto said, the expenses would have to be closely audited i.e the joint expenses such as marketing this gives the Magpies a potential advantage.
4) I'm tipping each year they'll be spending their 1.36m. Why wouldn't they?
5) Call it paranoia or past experience, but I'd be surprised if beyond the $1.36m there will ever be anything left over for the remaining SANFL clubs distribution.
6) Will Port Magpies still get the same SANFL distribution as the other clubs? And yes I know this distribution comes from the stadium agreements with both the Crows and Port, and thus we need strong AFL sides.

It looks like this "merger" will take pressure of the magpies (which it's designed to do). The financial pressure will still be on the other SANFL clubs. Hopefully, it will make the Power financially more viable and thus help the SANFL.
Lots of questions, now we rely on our club managers to make the right decision, for the SANFL's benefit.
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Re: Magpies and Power merger to be announced in a fortnight.

Postby beenreal » Wed Oct 27, 2010 11:45 am

TimmiesChin wrote:
nickname wrote:
Barto wrote:
So the Power are going to give the Magpies 1.36million a year if a merger goes ahead in exchange for the POW. Cant they just do this anyway?


I don't think it's quite like that. The combined PAFC is only allowed to allocate 1.36m a year to running the Magpies. It's not like a handout.


So is that 1.36 million allocation include the handout from the SANFL all the clubs get.

What is the usual spend of an SANFL club. Would the 1.36 million be sufficient ?


Certainly not out at the Ponderosa. :-? :-"
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Re: Magpies and Power merger to be announced in a fortnight.

Postby sjt » Wed Oct 27, 2010 12:04 pm

beenreal wrote:
TimmiesChin wrote:
nickname wrote:
Barto wrote:
So the Power are going to give the Magpies 1.36million a year if a merger goes ahead in exchange for the POW. Cant they just do this anyway?


I don't think it's quite like that. The combined PAFC is only allowed to allocate 1.36m a year to running the Magpies. It's not like a handout.


So is that 1.36 million allocation include the handout from the SANFL all the clubs get.

What is the usual spend of an SANFL club. Would the 1.36 million be sufficient ?


Certainly not out at the Ponderosa. :-? :-"


I'm not sure how they account for Premiership celebrations, but hopefully the expenses incurred aren't too significant.

They should really be rushing to save the Port Magpies, with their same old supporter attitudes. :roll: :roll: Really makes you sympathetic to the mess they got into.
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Re: Magpies and Power merger to be announced in a fortnight.

Postby Macca19 » Wed Oct 27, 2010 1:03 pm

sjt wrote:5) Call it paranoia or past experience, but I'd be surprised if beyond the $1.36m there will ever be anything left over for the remaining SANFL clubs distribution.


What do you actually mean by this?
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Re: Magpies and Power merger to be announced in a fortnight.

Postby sjt » Wed Oct 27, 2010 2:17 pm

Macca19 wrote:
sjt wrote:5) Call it paranoia or past experience, but I'd be surprised if beyond the $1.36m there will ever be anything left over for the remaining SANFL clubs distribution.


What do you actually mean by this?


That the $1.36m Magpies "expense" will be met and anything gained from the potential synergies of the merger in the form of revenue (POW and other), will end up in the running of Port Adelaide power. Everything from marketing to the 10 coaches it seems afl clubs need.

The problem, in my view, is the key point (as the rest seems like puffery) :
"The financial benefit of a merger to the Port Adelaide Football Club – and SA football in general – is estimated at $1.4 million to $1.9 million per year."
So is the "general" benefit to the SANFL due to having a strong retained magpies team in the SANFL? Or is it because they won't need to provide another $2.5m?. Or does it somehow create an extra 1.4 - 1.9 mill that all clubs will share in? We're (I'm)not privvy to how this figure is arrived at and how the other SANFL teams will benefit from the merger, hence my comment we're relying on our club management to do whatever is best for the SANFL.
Hope it doesn't go to paying out coaches contracts early.
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Re: Magpies and Power merger to be announced in a fortnight.

Postby nickname » Wed Oct 27, 2010 2:34 pm

Presumably it's $1.4m - $1.9m that the SANFL won't have to pump into the OnePAFC.
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Re: Magpies and Power merger to be announced in a fortnight.

Postby sjt » Wed Oct 27, 2010 3:00 pm

nickname wrote:Presumably it's $1.4m - $1.9m that the SANFL won't have to pump into the OnePAFC.


That would be my expectation.

I can understand from an admin side, staff costs, marketing etc money can be saved. I would have thought a couple of hundred thousand max. I can only guess the remaining 1.2-1.7 may be increased income (as opposed to reduced costs), from changing the pokie venue?
Sounds like the power might be paying the Magpies a capped "royalty" on the use of the Magpies asset, in the form of the pokies. So the Power get the benefit of any pokies upside (probably via a venue move), and the magpies get guaranteed income and almost a guarantee of survival. The SANFL benefit, because they don't have to spend as much (potentially) on the Power and or Magpies.
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Re: Magpies and Power merger to be announced in a fortnight.

Postby Dutchy » Wed Oct 27, 2010 5:52 pm

Probably should have guaranteed a $1m dividend from the savings back to the SANFL like they have guaranteed a payment to run the Magpies.

Wonder if the Port fans would have an issue if the Crows wanted to merge with Centrals?
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Re: Magpies and Power merger to be announced in a fortnight.

Postby Barto » Wed Oct 27, 2010 6:20 pm

Port Adelaide wrote:http://www.portadelaidefc.com.au/news/newsarticle/tabid/6038/newsid/104588/default.aspx

What has changed since February?

A number of important things have changed since a merger was initially proposed by the two Port Adelaide clubs last February:
- The SANFL, Port Adelaide Football Club and Port Adelaide Magpies have worked together closely on this proposal and there is now a much more robust business case that underpins the model.
- There has been a significant increase in external corporate commitment and support for the united entity.
- There is also a much clearer understanding among the stakeholders of the business case and the benefits it would deliver for Port Adelaide and for South Australian football in general.

When those factors are combined, they present a compelling case for the change



At least the club is admitting their business model wasn't up to scratch and it wasn't about jealousy, bitterness and 21 year old grand final results like their supporters claim.
It's all the SANFL's fault.
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Re: Magpies and Power merger to be announced in a fortnight.

Postby beenreal » Wed Oct 27, 2010 7:52 pm

Dutchy wrote:Probably should have guaranteed a $1m dividend from the savings back to the SANFL like they have guaranteed a payment to run the Magpies.

Wonder if the Port fans would have an issue if the Crows wanted to merge with Centrals?


As long as the Crows move to Elizabeth Oval and change their name to Central District, I'll have absolutely no problem with it.
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Re: Magpies and Power merger to be announced in a fortnight.

Postby Dutchy » Wed Oct 27, 2010 8:28 pm

As I thought....conditions! :lol:
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Re: Magpies and Power merger to be announced in a fortnight.

Postby CENTURION » Wed Oct 27, 2010 9:02 pm

Dutchy wrote:As I thought....conditions! :lol:

but We'll learn to live with them.
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Re: Magpies and Power merger to be announced in a fortnight.

Postby hereselmo1 » Wed Oct 27, 2010 10:18 pm

Dutchy wrote:Wonder if the Port fans would have an issue if the Crows wanted to merge with Centrals?


Sounds brilliant. Make it happen.

I am sure all the other SANFL clubs will be happy with Centrals having a cap on spending too.
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