Sojourner wrote:Clearly as most people are aware the Port Adelaide Power AFL side are currently experiencing significant financial problems. The SANFL have two issues, one being the owners of the license they are likely to see a signifcant revenue cut which is of concern to SANFL members who will subsaquently see returns to their SANFL sides greatly reduced if there is a dividend paid at all in 2009.
As I have mentioned, Port have paid a 'dividend' in every year except for 2. Every year this decade, the club has paid a dividend. This is already on top of other significant funds that both clubs make for the SANFL on game days. The SANFL is well supported financially by the Power. For arguments sake, when Freo lost $5m in 4 years back in the late 90s, the WAFC put a hold on all sub licence distribution by Freo for 8 years. They were allowed to keep all their profits for 8 years without paying a cent back to WA football. Going by this forum, people would show up with pitchforks if that happened here.
Secondly the AFL are currently pressuring the SANFL to put more coin into the Port Power Club which again comes at the expense of the various SANFL clubs as Peter is robbed to pay Paul.
What the AFL have said is that the SANFL have to do more to help make Port a profitable club. This will most likely be in the form of changing things around on gamedays...'stadium deals'. According to Mark Haysman, the WA clubs are around $2m better off and Brisbane $3m better off because of stadium deals. If this is so, then it shows that the SANFL are taking too much of the pie. If before a game is played, Freo are $2m better off simply because of a much lower break even point at Subi than what the Adelaide clubs get, then its an issue. This is obviously with my Port supporting hat on.
My concern is that in the current situation, I cant see what the SANFL can really do to actually make the Port Power AFL license a profitable concern
Giving the Adelaide clubs a fairer stadium deal would be a good start. Whilst there is a lot of talk about the bad stadium deals that the Etihad Stadium teams get, its becoming obvious that Port (and Adelaide) are equally worse off. Going by Mark Haysmans press conference, this is what Port are in talks with the SANFL about now.
maybe they could cut the guts out of the club and get rid of admin and coaching staff yet all that will result in is the club having a lesser peformance on the field and thus even less crowd attendances with the financial problems continueing to snowball.
Again, according to figures stated by both Mark Williams and Mark Haysman, Ports football department spend per win over the past few years is the best in the AFL. They are already quite thrifty in this department.
My thoughts are that this problem is a direct result of the decision that the SANFL made to award the license to the Port Adelaide FC bid. As you might recall the situation was bids from various sides - South-Glenelg, Norwood-Sturt, Port Adelaide, Woodville-West Torrens-North Adelaide-West Adelaide in the Cartel bid, Glenelg later joined the Cartel bid and I cant remember the position of the Central Districts club. South went on to support the Port Adelaide bid.
Now that the horse has well and truly bolted it appears to me that the Cartel bid may well have been the one with the best chance of success depending on how the side that went in which was supposed to be the Eagles was handled.
Considering that most WWT, NA, WA and Glenelg supporters were/are Crows supporters, it would involve supporters jumping off the Crows onto the new bandwagon. How would they market themselves? 'The second team for all South Australians'. Thats a great marketing angle! Given that the Crows won back to back flags in the 2nd teams first two years, how many ex-Crow fans would have jumped back on? There is very little to base any other selection would have been more profitable or successful than Port considering that every other selection would need to involve significant numbers of people jumping off supporting the Crows.
Fast Forward to today and we are in all manner of trouble and rumours are now running rife that an SANFL club possibly Sturt may well be a chance of collapsing financially due to the financial crisis, lack of Crows/Power funds and managment decsions taken to sell assets in the past.
Port are not the only club in financial trouble as you have mentioned. Many other clubs will also be under the pump in the current financial situation. Hearing that your major sponsor wont be honouring a $750k per year contract would make most clubs sweat id think. Though it seems now that they will be honouring their contract.
yet its pretty obvious that some quite drastic action has to be taken by the SANFL to safegaurd the integrity of the SANFL competition and to make a restructure to the point where the second AFL license is profitable
Giving Port a better chance to make money at home games, meaning they can pay more bills and reduce their debt, also meaning they can give a higher end of year sub licence distribution to the SANFL clubs. The fact that the WA AFL clubs are $2 million ahead before a games been played over the Adelaide clubs is an issue that should be sorted out.
To my knowledge, the SANFL take all parking, catering and bar revenue from Port games, a large percentage of Advertising revenue and most of the corporate box revenue. The SANFL takes around $400k per Port home game. As I said, if Port dont make break even point, we pay the difference to the SANFL.
The only way I can see that happening is for the SANFL to dissolve and re-launch the Port Adelaide Club as a more composite type version of an S.A based team not affiliated with any specific SANFL club and yet I think that is just physically not possible to do that.
You are right, its not possible to do that. Alienating the entire Port supporting population would not be clever. I dont know where people think these 30-50,000 other financially football supporting people are meant to come from. If the SANFL were getting 40k attendance on average then you could make some sort of play that it may happen. But they dont, its about 15k people go to SANFL games every week, still lower than Ports worst attendance. So again, where are these other people going to come from? The Crows waiting list?
In the next few days serious financial decsions have to be taken and will be taken that directly affect each of the 9 SANFL clubs greatly, lets hope that they really do a proper job of it and come up with a definate solution to solve the problem once and for all instead of the usual line re "managment and adminstration changes"......
Management and admin changes arent really useful considering Port turned over most of its off field staff this year. Try giving them a chance to turn it around before making other changes. Not to mention that the SANFL have appointed members on Ports board...if there is mismanagement going on, then they will already know about it.