Port ask for some cash...
Posted: Tue Mar 17, 2009 8:28 amhttp://www.realfooty.com.au/news/news/p ... 38317.html
PORT Adelaide has been officially moved on to the AFL's critical list with the club confirming last night it had requested emergency assistance for the first time via the competition's annual special distribution.
Port chief executive Mark Haysman told The Age the club had requested an immediate seven-figure sum from the AFL as part of a three-year funding bid to ease the club's financial crisis.
Haysman addressed the entire staff of Port Adelaide at Alberton late yesterday to update them on the gravity of the situation, which he said was now fully understood by the AFL and the club's licence-holder, the SANFL.
Power's cash-flow crisis has escalated in recent weeks with its co-major sponsor potentially unable to pay the club this year.
SANFL boss Leigh Whicker told The Age shortly before last night's SANFL annual general meeting that it was working to ensure the club was not placed at risk.
"We would not want to see the licence tarnished or the club put at any risk," Whicker said. "We've recognised our responsibility as holders of the licence to work with Port Adelaide because they are a very proud club and we need to ensure that they can maintain their existence as a company limited with our guarantee and continue to run their business."
Not only has Port Adelaide's debt escalated to about $3.5 million but the Power's co-major sponsor Bianco has raised doubts about its ability to deliver its contracted $750,000 for 2009.
The Adelaide-based building supplier is committed to the club until the end of 2010 but the AFL and SANFL are worried about its ability to deliver.
At this stage it is not known whether Port Adelaide will have the Bianco logo on its jumpers against Essendon in round one.
The club's other major sponsor, Vodafone, has already announced it will pull out or significantly reduce its commitment at the end of 2009.
Port Adelaide is the first non-Victorian club to officially request money. North Melbourne, Melbourne and the Western Bulldogs are all recipients of annual special distribution funds, which will be reviewed at the end of 2009.
"The SANFL and the AFL now fully understand the gravity of out situation," Haysman said last night.
"We have approached the AFL about financial assistance through the additional special distribution for 2009, '10 and '11 to help get us back on our feet as we work to rebuild the club.
"The AFL understands the size of our exposure. Our current model is not sustainable. We are fighting for sustainability. It is an uncomfortable situation."
The off-field crisis at Alberton was exacerbated last week when coach Mark Williams again raised doubts about his relationship with Port's new administration and confirmed Domenic Cassisi had not been his first choice as captain.
The SANFL communicated its concerns to Port Adelaide's administration while Williams, who said he had pushed for a new contract but not received one, maintained he had been unfairly edited in the television interview.
Given the club's poor membership figures and all-time low attendances in 2008, Haysman said: "We are trying to put ourselves out there and there will be times when there is the risk of these things happening."
Port lost $1.4 million last season, when it finished 13th, turned over an unhealthy number of staff and watched its average home crowds drop to little more than 23,000. Although the Crows also suffer from a relatively poor stadium agreement, it is an annual $3 million better off than Port Adelaide in terms of members and attendances.
The AFL is working with the SANFL to ensure an improved stadium deal from the SANFL-controlled AAMI Stadium.
The private view of the AFL and the SANFL is that even with an expertly administered board and executive Port Adelaide will take a generation to garnish a supporter base that will sustain it.
The AFL remains determined that the club's wealthy licence-holder contribute financially to help ease its debt and cash-flow crisis.
The good news is that the club appears to have a vastly improved working relationship with the SANFL, given the historic political mistrust between the two.
PORT Adelaide has been officially moved on to the AFL's critical list with the club confirming last night it had requested emergency assistance for the first time via the competition's annual special distribution.
Port chief executive Mark Haysman told The Age the club had requested an immediate seven-figure sum from the AFL as part of a three-year funding bid to ease the club's financial crisis.
Haysman addressed the entire staff of Port Adelaide at Alberton late yesterday to update them on the gravity of the situation, which he said was now fully understood by the AFL and the club's licence-holder, the SANFL.
Power's cash-flow crisis has escalated in recent weeks with its co-major sponsor potentially unable to pay the club this year.
SANFL boss Leigh Whicker told The Age shortly before last night's SANFL annual general meeting that it was working to ensure the club was not placed at risk.
"We would not want to see the licence tarnished or the club put at any risk," Whicker said. "We've recognised our responsibility as holders of the licence to work with Port Adelaide because they are a very proud club and we need to ensure that they can maintain their existence as a company limited with our guarantee and continue to run their business."
Not only has Port Adelaide's debt escalated to about $3.5 million but the Power's co-major sponsor Bianco has raised doubts about its ability to deliver its contracted $750,000 for 2009.
The Adelaide-based building supplier is committed to the club until the end of 2010 but the AFL and SANFL are worried about its ability to deliver.
At this stage it is not known whether Port Adelaide will have the Bianco logo on its jumpers against Essendon in round one.
The club's other major sponsor, Vodafone, has already announced it will pull out or significantly reduce its commitment at the end of 2009.
Port Adelaide is the first non-Victorian club to officially request money. North Melbourne, Melbourne and the Western Bulldogs are all recipients of annual special distribution funds, which will be reviewed at the end of 2009.
"The SANFL and the AFL now fully understand the gravity of out situation," Haysman said last night.
"We have approached the AFL about financial assistance through the additional special distribution for 2009, '10 and '11 to help get us back on our feet as we work to rebuild the club.
"The AFL understands the size of our exposure. Our current model is not sustainable. We are fighting for sustainability. It is an uncomfortable situation."
The off-field crisis at Alberton was exacerbated last week when coach Mark Williams again raised doubts about his relationship with Port's new administration and confirmed Domenic Cassisi had not been his first choice as captain.
The SANFL communicated its concerns to Port Adelaide's administration while Williams, who said he had pushed for a new contract but not received one, maintained he had been unfairly edited in the television interview.
Given the club's poor membership figures and all-time low attendances in 2008, Haysman said: "We are trying to put ourselves out there and there will be times when there is the risk of these things happening."
Port lost $1.4 million last season, when it finished 13th, turned over an unhealthy number of staff and watched its average home crowds drop to little more than 23,000. Although the Crows also suffer from a relatively poor stadium agreement, it is an annual $3 million better off than Port Adelaide in terms of members and attendances.
The AFL is working with the SANFL to ensure an improved stadium deal from the SANFL-controlled AAMI Stadium.
The private view of the AFL and the SANFL is that even with an expertly administered board and executive Port Adelaide will take a generation to garnish a supporter base that will sustain it.
The AFL remains determined that the club's wealthy licence-holder contribute financially to help ease its debt and cash-flow crisis.
The good news is that the club appears to have a vastly improved working relationship with the SANFL, given the historic political mistrust between the two.
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