AFL Revenue gap widening

[David Bird]

THE AFL says the stadium revenue problem is becoming even worse for several Melbourne-based clubs this season.

The league has released its club financial review for last year and has reported a $2.7 million gap in net stadium returns between Victorian and non-Victorian clubs.

West Coast had the highest net return from their home stadium and Melbourne had the lowest, with the difference now at $11.1 million.

AFL chief executive Andrew Demetriou says the outlook for some of the Melbourne clubs is becoming even bleaker.

The league is lobbying fiercely to make the MCG and Etihad Stadium renew their deals with clubs.

The AFL has taken Etihad Stadium to court over the issue.

AFL clubs generally had another year of growth in many financial areas and total club memberships reached another record level.

But total club profitability fell by nearly 50 per cent last year and five clubs recorded operating losses.

Source (http://www.news.com.au/heraldsun/story/0,21985,25437359-11088,00.html)

[Phantom]

Just example on how bad these stadium deals are Carlton have been told they will receive just $17,000 from their Round 2 game against the Brisbane Lions, despite a crowd of 42,496.

[David Bird]

ST KILDA'S three home matches at Etihad Stadium this season will see it hit with a bill from the venue's operators for $125,626.

In the most glaring illustration yet that the stadium deals are financially disastrous to tenant clubs, the top of the ladder Saints will be slugged with the invoice, despite attracting 87,834 spectators to those games.

The club is effectively paying the Docklands stadium management about $1.40 for every patron who has attended their games.

The Round 1 match against Sydney attracted 32,442 fans, followed by 29,066 for West Coast in Round 3, and 26,326 for Fremantle in Round 4.

The Saints' bill for the Dockers game will be $73,105.

The shock revelations are in the first detailed analysis of match returns conducted by the AFL since Etihad Stadium operators removed deals that delivered fixed returns on matches.

Under the conditions that existed last year, St Kilda's first three games would have earned it $200,000.

The AFL has taken Docklands management to court over alleged contract breaches and is in an ugly standoff with the MCG Trust.

Docklands tenant the Western Bulldogs has fared better, but only just.

The Bulldogs earned $71,192 from their Round 3 match against Richmond, which attracted 46,261 spectators.

That equates to $1.53 a head from the average $20 generated at the gate by each patron.

Before the breakdown in relations between Etihad Stadium management and the AFL, the league paid about $700,000 a year to the stadium, half the fixed match returns.

The league withdrew the subsidy on the basis the money would stay with the stadium and not reach the clubs.

AFL chief executive Andrew Demetriou revealed yesterday there was a $2.7 million gap in net stadium returns between Victorian and non-Victorian clubs.

"And the trend in the early part of the season is not looking flash at all," he said.

"They will be bleaker (than 2008 figures). What we do know is that without that guarantee (of fixed returns) there are clubs getting really disappointing returns at the moment."

Demetriou again attacked Etihad Stadium management.

"At the moment the only beneficiaries of how this stadium is going are the shareholders," he said. "The AFL has held its prices, but we are seeing nothing from the venues, in fact they are putting prices up.

"Food is up, car parking is up, and honestly, they need to take a good look at themselves on that front because everything else in this world is coming down at the moment due to the financial crisis."

Etihad Stadium management rejected Demetriou's claims, arguing food and beverage was comparable with other venues.

It also wanted it known the league had increased the price of a full AFL membership by $35 to $430.

Source (http://www.news.com.au/heraldsun/sport/afl/story/0,26576,25440572-19742,00.html)