2020 Financials Thread

[Kwality]

He's very very sensitive to anything in an AFL thread that looks like a positive comparison to the NRL. Very very sensitive

As you regularly post on the issue, you know the more appropriate threads as Wee Willy found. & well done.
Turning this thread into another AFL cheerleading forum reflects poorly on the hard work done by The Wookie or REH, et al in the analysis of the results.

 

[Prince Imperial]

Crows just announced at their AGM that they suffered a $2.84m statutory loss and that they have borrowings that total $4.5m.

Crows 2020 financial result

The impact of COVID-19 saw total revenue fall 34 percent

www.afc.com.au

 

[NoobPie]

Crows just announced at their AGM that they suffered a $2.84m statutory loss and that they have borrowings that total $4.5m.

Crows 2020 financial result

The impact of COVID-19 saw total revenue fall 34 percent

www.afc.com.au

I wonder if, in the background, the disproportionate losses to non-Victorian clubs would be an issue?

Victorian clubs almost netted out at $0 whereas apart from in Qld it looks like the non-Vics got smashed. How much was this due to the stadium deals in Melbourne and the coverage of hub costs?

 

[Rob]

I wonder if, in the background, the disproportionate losses to non-Victorian clubs would be an issue?

Victorian clubs almost netted out at $0 whereas apart from in Qld it looks like the non-Vics got smashed. How much was this due to the stadium deals in Melbourne and the coverage of hub costs?

I suspect it was because those clubs still had to host games, and all the costs that came with it, but didn't/couldn't bring the revenue in.

 

[RussellEbertHandball]

Traditional AFL annual report has been released.

https://resources.afl.com.au/afl/document/2021/03/10/766129c9-3bc6-446d-ab53-2614ffd88a00/2020-Annual-Report.pdf

From Chairman's Financial report on page 17

Revenue decreased by $127.8m, due to reductions in broadcast and commercial revenues from the COVID-19 pandemic;

Operating expenditure increased by $1.8m (0.4 per cent). This was due to the costs of completing the men’s season in which the AFL covered the majority of match-day costs as well as the High Performance Centres clubs stayed in throughout the season. These unbudgeted costs were offset by a cost reduction across the industry, including operating expenditure, salaries and wages;

Distributions decreased by $105.3m (28 per cent) through reductions in club and AFL Players Association distributions to offset the reduction in revenue and increased costs of running the men’s season.

After all revenue, operating expenditure and distributions, the AFL group’s loss for 2020 was $22.8m, compared with a surplus of $27.9m in 2019.

Page 150 - 10 year comparison.



There was no comment about AFL Membership like in previous years in the membership section on page 90. The info has become less and less. Obviously AFL probably wasn't keen to explain who quit, who took up the $170 option vs cash refund or credit against 2021 membership fees. This is all they said in 2019.

while AFL Membership provided another strong year of growth in 2019, totalling 58,027 members and representing year-on-year growth of 2.2 per cent.

This bit intrigued me on the next page, don't know what it all really means for 2021 onward.

The new economy

A revised AFL structure, following the impact of COVID-19, came into effect late in 2020 to ensure the game had the business model required to ensure the future health of Australian Football at all levels.

For this department, there will be an enhanced focus on our fans and audience – keeping the game affordable and accessible and a focus on growth in northern markets that embraced the game through 2020.

Marvel Stadium will complete a full integration into the AFL with a Stadium Operations team reporting into the EGM.

Commercial Operations will include corporate partnerships, advertising sales, membership, hospitality, ticketing and events and will now oversee marketing, digital media including the AFL’s website (AFL.com.au) and app, Marvel Stadium operations and the customer and fan experience.

 

[The_Wookie]

Marvel Stadium will complete a full integration into the AFL with a Stadium Operations team reporting into the EGM.

Commercial Operations will include corporate partnerships, advertising sales, membership, hospitality, ticketing and events and will now oversee marketing, digital media including the AFL’s website (AFL.com.au) and app, Marvel Stadium operations and the customer and fan experience.

This will mean an end to the separate annual reporting for AFL Stadia I suspect

 

[RussellEbertHandball]

A Bit of info consolidated group v parent entity results which isn't in the concise report.



Total equity of consolidated group is .................................................... 230,449......238,827


Explanation of results






AFL's net cash position improved by $38.7mil. Borrowings only increased by $18.1mil and government grant of $14.3mil helped but don't know how much of that Docklands stadium grant was spent. Still had a net cash flow of $61.7mil from operating activities

 

[The_Wookie]

 

[Kwality]

'685 Latrobe St As part of a broader precinct approach, the AFL entered into a contract in December 2019 to acquire a vacant site at 685 Latrobe St, adjoining the northern end of the concourse and were due to settle at the end of March 2020. Due to the early stages of COVID-19, the AFL agreed to novate the sale contract to Grocon, which has acquired the site and will develop a number of residential towers. The AFL has an opportunity to potentially lease a range of retail outlets on the ground floor abutting the concourse as part of the novation of the sale contract.'

2020-Annual-Report.pdf (afl.com.au)

How is this/Grocon travelling ?
AFL sells Marvel Stadium site in $67m deal (realcommercial.com.au)
Grocon collapse spreads as administration tally rises (afr.com)

 

[weewilly]

'685 Latrobe St As part of a broader precinct approach, the AFL entered into a contract in December 2019 to acquire a vacant site at 685 Latrobe St, adjoining the northern end of the concourse and were due to settle at the end of March 2020. Due to the early stages of COVID-19, the AFL agreed to novate the sale contract to Grocon, which has acquired the site and will develop a number of residential towers. The AFL has an opportunity to potentially lease a range of retail outlets on the ground floor abutting the concourse as part of the novation of the sale contract.'

2020-Annual-Report.pdf (afl.com.au)

How is this/Grocon travelling ?
AFL sells Marvel Stadium site in $67m deal (realcommercial.com.au)
Grocon collapse spreads as administration tally rises (afr.com)

Grocon are gone for all money so it will be interesting to see what happens to this project!

 

[The_Wookie]

All AFL clubs have now reported.

RussellEbertHandball

 

[The_Wookie]

 

[The_Wookie]

 

[Aussie in exile]

All team sports will show a loss for last year unless they have somebody doing some creating accounting and many will this year as well until things return to some sort of normal

 

[The_Wookie]

great article

 

[Aussie in exile]

great article

A very interesting read.
When you look at the figures it's very clear some clubs are going to need to be propped up for a while yet while others have shown real business acumen in this pandemic.

 

[Tonatopia]

Vic government is throwing money at any construction project they can find lately. Supposedly it's for Covid recovery, but it's so much in one sector of the economy you can only conclude that the CFMEU must have Dan by the short and curlies.

These deals are just the loose change that's fallen by the wayside.

What did he use as security to finance all these projects?
The feds were all over him, and eventually had to take him down.

 

[The_Wookie]

 

[Tonatopia]

Completely unsustainable.

 

[NoobPie]

Completely unsustainable.

$50M in excess distribution over the AFL club average over a decade when the AFL alone has had $6B in revenue over that decade.

Do you know what "unsustainable" means?

Actually, do you know what "completely" means?

 

[Tonatopia]

$50M in excess distribution over the AFL club average over a decade when the AFL alone has had $6B in revenue over that decade.

Do you know what "unsustainable" means?

Actually, do you know what "completely" means?

Trying to keep WCE and GC on an equal keel is completely unsustainable.

 

[The_Wookie]

Trying to keep WCE and GC on an equal keel is completely unsustainable.

Apparently not. The league seems capable of managing it so far.

 

[dave10]

Completely unsustainable.

Don’t agree. You need to think beyond short term and consider all the spin offs. If they generate an additional $200M over 3 years in TV rights income by having SEQ games live into QLD every week, then it pays for itself. The long term growth in the game and its extended income justifies the ‘loss leader’ strategy.

 

[Kwality]

Trying to keep WCE and GC on an equal keel is completely unsustainable.

Very different business models in very different markets with a clear plan to grow the game by the national body.
As any student of Gold Coast footy knows, the model we have was not the original choice of the games administration.

 

[blaisee]

AFL financial league table 2020

Rank	Club	Revenue ($,000)	Profit ($,000)	2019 revenue rank	Revenue growth 2019-20
1	Richmond	73,955	218	2	-19.8%
2	Carlton	50,214	3,652	5	-29.4%
3	Brisbane Lions	49,692	3,073	8	-15.7%
4	Hawthorn	49,442	-497	3	-36.0%
5	Essendon	49,143	1,223	6	-28.9%
6	Collingwood	47,822	-1,807	4	-34.9%
7	West Coast	44,638	683	1	-56.5%
8	Geelong	43,802	-2,567	7	-27.2%
9	Fremantle	40,412	-1,065	11	-30.1%
10	Port Adelaide	39,684	-4,041	9	-32.0%
11	Adelaide Crows	38,391	-2,844	10	-34.1%
12	St Kilda	36,449	-963	16	-21.9%
13	Western Bulldogs	35,561	1,801	15	-24.0%
14	Melbourne	34,756	-3,690	13	-28.8%
15	Sydney	34,723	-6,100	12	-34.3%
16	Gold Coast	33,129	-953	18	-23.8%
17	North Melbourne	32,255	214	17	-27.7%
18	GWS	28,634	-7,266	14	-41.0%

If there was any doubt as to which club is the AFL's powerhouse todays figures ends the discussion

Richmond, number 1 in crowds, number 1 in memberships, number 1 in revenue