SA AFL licences

[stan]

http://www.adelaidenow.com.au/sport/san ... 6069372668

This is interesting but not really a surpirse. $27Mill of debt will do this to you.

But in my opinion the crows will do well from this, and also Port will probably also be better off. Basically if Port can get hold of the licence and I'm not sure how as they have a cash flow problem, then this would open up an immediate move to Adelaide oval and hence a better stadium "deal".

[JK]

Good move I reckon

[stan]

Good move I reckon

Yeah well like I said for the crows this will be exactly what they need to become a finanical powerhouse because they have plenty of members and get great numbers to there games. So you know with some some business development they could really start to build. For Port this would give them a chance to move forward with a move away from the SANFL.

Also other winners will be SACA, football will make its way to Adelaide oval very quickly.

But the big problem is the SANFL will probably need to work out what they are doing wrong to get themselves so badly in debt.

[Jim05]

About time. Ive said it since day 1, charge the clubs rent at AAMI and live of the profits. The SANFL is in a win/win, wait to port move to AO then they can jack up the stadium deal.

[JK]

To my simple mind, it should have benefit for the SANFL cometition also .. If the clubs own their own licenses and then need any assistance, that's up to the AFL to provide it and they wont have as much pull over the SANFL (as they currently do as license holders)

[gadj1976]

Please pardon my ignorance, I haven't followed the licence thing particularly closely.

So currently the SANFL own them and have a huge debt.

If the SANFL sell the licences, what does it gain? (Obviously an injection of cash)

What long term benefits?

If the clubs buy the AFL licences from the clubs, what do they gain?

What long term benefits?

[JK]

Please pardon my ignorance, I haven't followed the licence thing particularly closely.

So currently the SANFL own them and have a huge debt.

If the SANFL sell the licences, what does it gain? (Obviously an injection of cash)

What long term benefits?

If the clubs buy the AFL licences from the clubs, what do they gain?

What long term benefits?

From my limited understanding mate ...

1. Cash injection, and losing the responsibility for financial assistance/obligation to the clubs (ie, the SANFL loses the need to protect the licenses as they no longer own them)

2. Long term benefits are that the AFL clubs have more financial capacity, as any $ earnt over break even point on matchday (at any stadium) is revenue solely returning to the club (and not a SANFL dividend) ... The money the SANFL would receive for the licenses should fill an interim void until the AO move takes place (at which time $$ are generated and returned to the SANFL and it's clubs via the land at West Lakes, effectively replacing the current dividends).

[FlyingHigh]

That is staggering if the Power has only collected 20% of it's sponsorship revenue. Why? Who is respnsible for that? No dubt the SANFL's fault too somehow.

[Hondo]

I agree it seems a good move

It seems like the SANFL are too exposed to the financial fortunes of 2 clubs that play in a different competition than the one they control and run. Too exposed and at times too distracted. It's too many layers of management like Councils and the State Govt can end up with on certain issues. Too much cash disappears inadmin costs.

The SANFL have reaped from the good times but now in tougher times it is taking on responsibility for problems that are to some extent out of their control. They can't directly control the on field form of the Crows and Power and have no say on issues like live against the gate TV coverage. Yes, they can appoint directors to the boards of the AFL clubs but then they get into this conflict of interest between looking after the AFL teams and the SANFL comp leading to inevitable criticisms that by trying to manage both they manage neither very well.

The current set up has allowed the AFL to step back from any problems and leave them with the SANFL as license holder.

If the SANFL can get profit out of the redevelopment of the land at West Lakes and a share of the profits from the AO then they can get back to focussing on the SANFL competition and leave the underwriting of the Crows and Power to the AFL, as it should be IMO.