Roos' cash crisis prompts AFL talks
Caroline Wilson | June 21, 2009
A ONE-MILLION-DOLLAR funding shortfall of North Melbourne's Arden Street redevelopment prompted top-level talks at AFL headquarters two days ago.
Kangaroos' chief executive Eugene Arocca confirmed last night that his club had sounded out the AFL as to whether it could bring forward $1.2 million in payments from 2010 should it reach a cash-flow crisis by October 30 this year.
Arocca said the club was also investigating taking out a $1 million bank loan in order to stem a potential cash-flow problem, a loan which would escalate the North Melbourne debt back above $4 million.
Although concern has been mounting in AFL circles regarding the Kangaroos' financial situation, Arocca insisted the Friday meeting — which included league chiefs Andrew Demetriou, Gillon McLachlan and Ian Anderson — broke up amicably.
"We walked away with them having a better understanding of our financial situation," said Arocca, "and there was some information they weren't aware of which they were pleased about. If they were concerned, they shouldn't be concerned now."
The AFL's concern also surrounded North Melbourne's 2009 financial result. Despite shocking stadium returns from home games, the Kangaroos expect to reap a total of $150,000 from their home fixtures this season. The club claims it remains on track to make a small profit or break even.
Despite this, it has been suggested in recent days the club would be prepared to spend $800,000 in a bid to snare coach-in-waiting Nathan Buckley, although North has refuted those reports.
The AFL's figures have North losing at least $500,000. Although club president James Brayshaw stated the Etihad Stadium dispute with the AFL over stadium returns was close to being resolved, Demetriou refuted that claim four days ago.
The $1.2 million dividend from the AFL is each club's entitlement from internet revenue over the term of the current five-year broadcast deal ($500,000 a year) and extra money in player payments ($700,000) for which the AFL would charge North three per cent in interest payments. The AFL has not guaranteed the club would be forwarded the money.
Should the club decide instead to borrow $1 million from the bank, its debt would increase to an estimated $4.2 million. Arocca said he remained hopeful neither option would be necessary.
The AFL has still not finalised its additional special funding beyond this year to those clubs unable to survive without extra revenue, but there is no doubt the Kangaroos, Melbourne, Port Adelaide and the Western Bulldogs at the very least will remain reliant on the funding from the AFL whether or not it reaches a new financial agreement with the MCG and Etihad Stadium.
The $15 million Arden Street redevelopment is running ahead of schedule according to Arocca — one reason the Kangaroos had become concerned about cash flow given they might be forced to make their final payment before the AFL's 2010 financial schedule.
Arocca said the new training facility, administration offices and immigration centre could be completed before October 30. He said Friday's meeting had come about at North's request, and not the AFL's.
Caroline Wilson | June 21, 2009
A ONE-MILLION-DOLLAR funding shortfall of North Melbourne's Arden Street redevelopment prompted top-level talks at AFL headquarters two days ago.
Kangaroos' chief executive Eugene Arocca confirmed last night that his club had sounded out the AFL as to whether it could bring forward $1.2 million in payments from 2010 should it reach a cash-flow crisis by October 30 this year.
Arocca said the club was also investigating taking out a $1 million bank loan in order to stem a potential cash-flow problem, a loan which would escalate the North Melbourne debt back above $4 million.
Although concern has been mounting in AFL circles regarding the Kangaroos' financial situation, Arocca insisted the Friday meeting — which included league chiefs Andrew Demetriou, Gillon McLachlan and Ian Anderson — broke up amicably.
"We walked away with them having a better understanding of our financial situation," said Arocca, "and there was some information they weren't aware of which they were pleased about. If they were concerned, they shouldn't be concerned now."
The AFL's concern also surrounded North Melbourne's 2009 financial result. Despite shocking stadium returns from home games, the Kangaroos expect to reap a total of $150,000 from their home fixtures this season. The club claims it remains on track to make a small profit or break even.
Despite this, it has been suggested in recent days the club would be prepared to spend $800,000 in a bid to snare coach-in-waiting Nathan Buckley, although North has refuted those reports.
The AFL's figures have North losing at least $500,000. Although club president James Brayshaw stated the Etihad Stadium dispute with the AFL over stadium returns was close to being resolved, Demetriou refuted that claim four days ago.
The $1.2 million dividend from the AFL is each club's entitlement from internet revenue over the term of the current five-year broadcast deal ($500,000 a year) and extra money in player payments ($700,000) for which the AFL would charge North three per cent in interest payments. The AFL has not guaranteed the club would be forwarded the money.
Should the club decide instead to borrow $1 million from the bank, its debt would increase to an estimated $4.2 million. Arocca said he remained hopeful neither option would be necessary.
The AFL has still not finalised its additional special funding beyond this year to those clubs unable to survive without extra revenue, but there is no doubt the Kangaroos, Melbourne, Port Adelaide and the Western Bulldogs at the very least will remain reliant on the funding from the AFL whether or not it reaches a new financial agreement with the MCG and Etihad Stadium.
The $15 million Arden Street redevelopment is running ahead of schedule according to Arocca — one reason the Kangaroos had become concerned about cash flow given they might be forced to make their final payment before the AFL's 2010 financial schedule.
Arocca said the new training facility, administration offices and immigration centre could be completed before October 30. He said Friday's meeting had come about at North's request, and not the AFL's.
