by cennals05 » Thu May 19, 2016 1:54 pm
SANFL clubs must budget for at least $100,000 profit each year and not fall into losses under strict new fiscal rules to control concerning club debt in the state league.
But the SANFL will not — as European football leagues do — penalise financially troubled clubs with the loss of premiership points.
Rather, the league will demand — and assist with — changes in the club’s spending or revenue sourcing.
SANFL chief executive Jake Parkinson calls the “$100,000 rule” a “risk buffer” to bring an end to the debt cycle in SA league football.
Ultimately, the new fiscal demands will stop SANFL clubs building up seven-figure debts before rushing to the SA Football Commission seeking bailout funds.
“We can’t have one or two clubs reaching a point from where there is no return,” Parkinson told The Advertiser. “That $100,000 cash surplus in the budget allows for a risk buffer.
“We will not be taking away points to enforce the policy. And we will not be holding back league — or game development — funding from the clubs, as that would be self-defeating.
“But we will demand the clubs change. First, we will ask the clubs to look at increasing revenue. If the losses continue, we will ask for new control to their football spend after benchmarking their spending against the league average.
“And if there is no change after this, the league will have to mandate restructuring of the club’s budgets.”
Parkinson added it should be the responsibility of SANFL club boards — and the expectation of club members — that their clubs start each season with the intent to make a profit.
SANFL clubs will not be able to use their cut of the AAMI Stadium sale to make up the $100,000 cash surplus expected by the league in their annual budgets.
The “$100,000 rule” this week had its first fallout at an SANFL club with Woodville-West Torrens changing its administration — and making chief executive Peter Schwarz redundant from next Friday. His exit is said to be linked to political unease at Oval Ave.
The Eagles will follow the successful Sturt model of having its club administration led by two executives — a commercial chief and a football boss.
“This new organisational structure will enable (the club) to achieve financial viability and meet the SANFL’s financial performance requirement,” the Eagles say in a club statement. “It (also) will be one that will provide sufficient resources to the football department to ensure their continued competitiveness and success on field.”