It will be the clubs making massive gates that will be hit the hardest. Clubs barely breaking even on game day will obviously be less disadvantaged by the crowds not being allowed in
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2019 Financial Results
- Thread starter The_Wookie
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It will be the clubs making massive gates that will be hit the hardest. Clubs barely breaking even on game day will obviously be less disadvantaged by the crowds not being allowed in
RussellEbertHandball
Flick pass expert
If WCE collect $9m from gate receipts, and stadium deals and crowd size means another club only collects $2m from gameday, its easy to work out there is a $7m loss differential before game day and other costs are cut.
Its the exception that proves the rule.2020 speculation or informed guesstimate?
- JOHN STENSHOLT
AUSTRALIAN FOOTBALL
COURTNEY WALSH
AUSTRALIAN FOOTBALL
- 4:47PM SEPTEMBER 18, 2020
NoCookies | The Australian
www.theaustralian.com.au
'If there is one club that can encapsulate just how savage coronavirus has been on AFL balance sheets and the financial swing it has caused, it is the West Coast Eagles.
Last year, the Eagles posted the biggest profit in Australian sport when they recorded a net surplus of $8.8m from $88m revenue. Merchandise sales after the club’s 2018 grand final win boomed and membership surged. West Coast made $35m revenue in 2019 from membership and its gate takings, and $14m in corporate hospitality. But this year, with at best a reduced capacity and with most fans missing at games, it will make a “substantial loss” for 2020, according to one source. That likely means a negative financial swing of $10-15m.'
The upswing when normality returns will be just as fast. And no club can absorb the losses like West Coast.
Given the mandated cost savings, I suspect they will return even more profitable than before, and long term, 2020 will not make much difference.
As a follow up, I suspect one of the reasons for the scale of West Coast losses is they have not cut as hard as other clubs. Note that I dont have specific info for this, juts my hunch. They have decided to ride the losses and keep people on board imop. There just doesn't seem to be much news coming from WC about lay offs.
Of course, if we get another outbreak, and 2021 is seriously compromised as well, then all bets are off, even WC cannot absorb losses like this for long.
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The Eagles had to cut 20 % of their staff as per the AFL directive same as every club.Not because we want to or need to but because it was an AFL directive .Level playing field type thing. The club explained that when they were offering to pay for the North Melbourne game .
My take on it is that the fifteen million is a loss of revenue not an overall loss and when all is said and done the Eagles are happy with fifth place and a home final.
the Eagles have a high risk high reward arrangement with Optus stadium and have had five home games with 50% capacity as opposed to eleven home games with 50,000+ average crowds as expected early this year.Fremantle ended up with seven home games at half capacity at Optus.
My take on it is that the fifteen million is a loss of revenue not an overall loss and when all is said and done the Eagles are happy with fifth place and a home final.
the Eagles have a high risk high reward arrangement with Optus stadium and have had five home games with 50% capacity as opposed to eleven home games with 50,000+ average crowds as expected early this year.Fremantle ended up with seven home games at half capacity at Optus.
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West Coast make more from matchday than any other club - that's why their revenue is so high in the first place. So a loss in matchday revenue is going to hit them harder than any other club as well.
But even if it's a $15m net drop, meaning a loss of $6 or $7m, that's easily recoverable by their cash reserves.
