Proposed model for the Magpies - Power Joint Venture?

[Aerie]

If the only way the Magpies can survive in the SANFL is to merge with the Power under the proposed model, I see nothing wrong with it. They're all Port Adelaide anyway and the Magpies have proven they are viable as far as attendances and membership is concerned. There is already restrictions in place to prevent too much of an advantage on field (sort of).

Whilst I think the SANFL can continue on with 8 clubs and still be strong, I think it would be better with the current 9 - merger or no merger.

The issue is the advantages that Port Magpies would get from the merger. Whether they be onfield or off field it doesn't matter. It's an advantage that no other SANFL club has. The vote wasn't 8-0 for no reason. If Port Magpies want to survive they can ome up with a way to do so by themselves. I hope they do.

They also have disadvantages the other 8 clubs don't have. It's a messy situation. I can definitely see why the proposal was shut out.

If this is the only way Port Magpies can survive in the short term though, is it better to let them die?

I'm not sure.

Aerie both clubs are in dire straits read the report from the commisions meeting tonightwhy the merger did not go ahead the SANFL have pumped in 3.5 million in the last 2 years into the Power and have budgeted another 2.6 mil for this year, the Maggies have made a loss of 200,000 bucks also, there only saviour is lots of wealthy sponsors. When 90 % of your supporters shift camp its gonna be pretty hard to survive and anyhow they made the mess so they gotta fix it.

I'll have to read that report. I guess they made the mess and they do have to fix it, but isn't that what they're trying to do by merging? They are all Port Adelaide - and maybe the Power won't survive? Maybe the advantages aren't as strong as people might think? And isn't there something in the current proposal which allows a review in the coming years anyway?

[Apachebulldog]

I see what ya mean eddie i thought you were calling us posters on safooty backstabbing traitors.

[eddie eagle]

I see what ya mean eddie i thought you were calling us posters on safooty backstabbing traitors.

No then I would be on something!!

[Harry the Horse]

Rod Payze tonight said: *Before SANFL, AFL and government grants, the Port Adelaide Football Club suffered a trading loss of $1.6 million in 2008 and $2.9 million in 2009.

*The SANFL was required to inject $3.5 million into the club in 2009 to sustain its financial position.

*While the Port Adelaide board and administration are working tirelessly to turn around the club's position, the Board has budgeted for a further $2.6 million loss in 2010.

*The Port Adelaide Magpies declared a loss of $230,233 for 2009. The Magpies have current creditors in excess of $750,000."

Summary - Port Adelaide bit off more than it could chew in its desire to play in the AFL. It has not the supporter base nor financial acumen to sustain itself at that level. Its greed will certainly result in the death of its past, the Magpies and it cannot be ruled out that it will also result in the death of its present, the Power.

The correct course of action here would be not to kill off the Magpies but the Power who are bleeding at a rate almost 10 times their poor SANFL relations.

It is the Power which is a burden to SA football, not the Magpies.

(Dons helmet and bullet proof vest and hides in corner ...)

[Apachebulldog]

Well said Harry ya made some great points there.

[Barto]

the SANFL directors all agreeing to let the AFL apple ripen on the tree. One night the Port Adelaide football club decided to get up and eat the AFL apple all to itself. Seems it has rotted in their stomach with 20 years to reach it's worst effect.

Probably not a bad analogy, that AFL entry is a poisoned chalice for them. They (Port Power) have budgeted for another loss this year.

[UK Fan]

BTW anyone else heard the rumour the lease at the POW is for sale ???

[dedja]

Rod Payze tonight said: *Before SANFL, AFL and government grants, the Port Adelaide Football Club suffered a trading loss of $1.6 million in 2008 and $2.9 million in 2009.

*The SANFL was required to inject $3.5 million into the club in 2009 to sustain its financial position.

*While the Port Adelaide board and administration are working tirelessly to turn around the club's position, the Board has budgeted for a further $2.6 million loss in 2010.

*The Port Adelaide Magpies declared a loss of $230,233 for 2009. The Magpies have current creditors in excess of $750,000."

Summary - Port Adelaide bit off more than it could chew in its desire to play in the AFL. It has not the supporter base nor financial acumen to sustain itself at that level. Its greed will certainly result in the death of its past, the Magpies and it cannot be ruled out that it will also result in the death of its present, the Power.

The correct course of action here would be not to kill off the Magpies but the Power who are bleeding at a rate almost 10 times their poor SANFL relations.

It is the Power which is a burden to SA football, not the Magpies.

(Dons helmet and bullet proof vest and hides in corner ...)

There was a couple of long threads about this a few months ago and I'm hesitant to open the can of worms again but here goes ...

The PAFC (Power) generates significantly more income for the SANFL that it does for itself, so if you look at the whole picture, PAFC is a net contributor to the SANFL, despite the SANFL returning some of that revenue back to PAFC.

I don't have the numbers in front of me at the moment, but let's say that PAFC generates $10M in revenue (which is around the mark), the gross benefit of the PAFC to the SANFL is still in the order of $7M per year.

In addition as reported in the PAFC Annual Report for 2009, PAFC had a trading profit of $1.6M, less SANFL $3.75M and AFL $1M = $3.1M loss. They have net assets of $10.4M.

So I'm sorry, your argument regarding the Power being the burden on SA football (ie. the SANFL) does not stack up.

[The Sleeping Giant]

BTW anyone else heard the rumour the lease at the POW is for sale ???

I've heard North have put in a bid.

[Barto]

R
It is the Power which is a burden to SA football, not the Magpies.

[MagareyLegend]

Rod Payze tonight said: *Before SANFL, AFL and government grants, the Port Adelaide Football Club suffered a trading loss of $1.6 million in 2008 and $2.9 million in 2009.

*The SANFL was required to inject $3.5 million into the club in 2009 to sustain its financial position.

*While the Port Adelaide board and administration are working tirelessly to turn around the club's position, the Board has budgeted for a further $2.6 million loss in 2010.

*The Port Adelaide Magpies declared a loss of $230,233 for 2009. The Magpies have current creditors in excess of $750,000."

Summary - Port Adelaide bit off more than it could chew in its desire to play in the AFL. It has not the supporter base nor financial acumen to sustain itself at that level. Its greed will certainly result in the death of its past, the Magpies and it cannot be ruled out that it will also result in the death of its present, the Power.

The correct course of action here would be not to kill off the Magpies but the Power who are bleeding at a rate almost 10 times their poor SANFL relations.

It is the Power which is a burden to SA football, not the Magpies.

(Dons helmet and bullet proof vest and hides in corner ...)

There was a couple of long threads about this a few months ago and I'm hesitant to open the can of worms again but here goes ...

The PAFC (Power) generates significantly more income for the SANFL that it does for itself, so if you look at the whole picture, PAFC is a net contributor to the SANFL, despite the SANFL returning some of that revenue back to PAFC.

I don't have the numbers in front of me at the moment, but let's say that PAFC generates $10M in revenue (which is around the mark), the gross benefit of the PAFC to the SANFL is still in the order of $7M per year.

In addition as reported in the PAFC Annual Report for 2009, PAFC had a trading profit of $1.6M, less SANFL $3.75M and AFL $1M = $3.1M loss. They have net assets of $10.4M.

So I'm sorry, your argument regarding the Power being the burden on SA football (ie. the SANFL) does not stack up.

All due respects - these are irrelevant, emotive points lacking in credibility (or articulation) - in other words mate what are you trying to say?

[dedja]

LOL, no emotion at all. All facts taken straight from the published PAFC 2009 Annual Report.

The claim was that the Power are a financial burden on the SANFL. I'm merely stating by using the available facts that the PAFC (Power) are a net financial contributor to the SANFL ... nothing more, nothing less.

... with all due respect to you.

[MagareyLegend]

But they are mate - read Rod Payze's statement "The financial plans presented by both (the Power and Magpies) to the league directors did not contain a compelling business case to raise confidence for any improvement in finances over the next three years."
Further:-
In essence, the SANFL clubs declared they were prepared to carry the financial burden of waiting for the Power to rebuild its business in the AFL. But they are not prepared to challenge this with the extra burden of salvaging the Magpies.
They argue two "bad" businesses cannot be put together to form a good one.
Payze used financial figures to justify the league directors' recommendation which will signal the end of Port Adelaide's 140-year presence in the SANFL.

You just can't read financial statements!

[dedja]

Sigh ... net contribution to the SANFL ... ie. AAMI Stadium match day revenue that the Power earns for the SANFL. The Power make a loss on this but the SANFL rake in massive revenue.

LOL, perfectly able to read a balance sheet, I've managed multi million dollar budgets for many years ... but it doesn't contain the above financial detail because the SANFL buries it in their Annual Report.

Yes, if the Power continue to sustain trading loses then their net assets will dwindle over time, but even if the SANFL gave them $3M back a year to trade in the black (which all would want to avoid) the SANFL will still have a net gain to the tune of approx $7M per year.

It all depends on what perspective one choses to look at the numbers.

Put another way, if the Power were wound up tomorrow, the SANFL would have an approx net $7M pa revenue shortfall in future years compared to past.

[am Bays]

Just on Channel 9 that the clubs had voted against it.

quite one sided apparently.....

Er yep, 8-0 is pretty one sided

Well IIRC the Glenelg Cheer Squad banner on Aug 5, our first game after that fateful July 31 night, against Norwood at Footy Park was: They started the fight so lets unite". Looks like the 8 remaining clubs have heh??

Any former GFC Cheer Squad member who post on here have a picture of that banner including the original banner before the SANFL made them take the picture of it.....

Shouldn't have brought that up but couldn't help it. FWIW as I stated on this thread late last week I became "for" the merger as I couldn't see any advantage for the Magpies in it, I also couldn't see any long term future either. All this decision has done is bring forward the inevitable.

[Booney]

May just be the start of something special and I can only hope we dig ourselves out of this mess.

Sitting back and waiting for a white knight isnt the answer. Action, power to the people and fighting will keep us afloat.

The negative comments of many on here will be duly noted and remembered for a long,long time.

[CUTTERMAN]

Booney, in the end it's your only real option as a club, the merger option would doom the magpies to death within the next few years anyway. Other clubs have been able to do it, I can't see why Port can't. PAMFC need to realize that they have to look after themselves FOR themselves. Not for the benefit of Port Power. The only disconcerting part is that there has been no groundswell. This morning I heard on 891 an interview with the only PAMFC punter down at FP, there to support his club, the poor bloke, how would he feel?
THE ONLY F#*^@$G PUNTER!!!!! WHAT ARE YOU PEOPLE DOING? THE SILENCE IS DEAFENING.
The poor bloke had to look up "doomed" in the dictionary" (at least he looked it up) when he heard the news that the magpies were about to be doomed to history. I can't believe you are all letting your great club slip away so easily.

[Booney]

Booney, in the end it's your only real option as a club, the merger option would doom the magpies to death within the next few years anyway. Other clubs have been able to do it, I can't see why Port can't. PAMFC need to realize that they have to look after themselves FOR themselves. Not for the benefit of Port Power. The only disconcerting part is that there has been no groundswell. This morning I heard on 891 an interview with the only PAMFC punter down at FP, there to support his club, the poor bloke, how would he feel?
THE ONLY F#*^@$G PUNTER!!!!! WHAT ARE YOU PEOPLE DOING? THE SILENCE IS DEAFENING.
The poor bloke had to look up "doomed" in the dictionary" (at least he looked it up) when he heard the news that the magpies were about to be doomed to history. I can't believe you are all letting your great club slip away so easily.

Would you consider me heading down to Football Park last night or me donating $1000 of my hard earned as being more beneficial to my club?

Do tell?

[CUTTERMAN]

Whatever it takes for you Booney, donate more if you can afford it. I can really only afford to get my seasons pass and membership for Sturt but I've looked at other ways I may be able to help my club and have put something into action. I see Voice, Barto and other Sturt punters on this forum doing the same and asked myself "what can I do?".
So I'm not telling you that there's an easy option, and I wouldn't presume to tell you what you should do. I'm just saying that there's no groundswell on behalf of the PAMFC punters, with that I'm saddened and surprised.

[TimmiesChin]

It sounds like the other SANFL clubs couldn't see the joint venture working financially rahter than it making Port too strong.

Without malice, it would be good if the reasons for this could be shared with the punters. If there were holes in the model - please share them with us.
I realise Rod Payze has indicated how much each club lost last year, but that was last year... the merger was aimed at moving towards fixing that. And if the clubs hadn't lost money last year, would they have been looking to this year ?

The maggies lost $250K or so ... if the merger somehow saved $250K between the clubs then the SANFL clubs would have been no worse off. Ther merger doesn't need to address the entire $3 million.

With respect to the POW. Put simply, if there was a benefactor that was willing to pay out the debt and gift it to the magpies, it seems like they would be viable - or very close to it as the interest payments seemed to be the equivalent of their loss last year. I can't see it happening now, but this sort of actiuon would at least give the club an asset base to work from.

I'm also keen to see when the SANFL will unveil its new stadium deal, as this is a key component of the Power (and Crows) strategies going forward.